Defence precinct in Henderson to receive billions of dollars to become southern hemisphere's biggest naval hub

Tens of billions of dollars will be poured into a new defence precinct at Henderson to make it the biggest naval maintenance hub in the southern hemisphere, creating 10,000 jobs and establishing an industry only rivalled by mining. The shipyard will be split into defence and civilian precincts in a major overhaul of the Henderson hub to cement WA’s position at the heart of the country’s nuclear submarine operations. Defence Minister Richard Marles and Premier Roger Cook will announce on Wednesday the creation of a consolidated defence precinct at Henderson where the new Army landing craft and general purpose frigates will be built and nuclear-powered submarines maintained, The West Australian can reveal. The plan is expected to create about 6300 jobs for West Australians in construction, shipbuilding and submarine maintenance. Another 3500 jobs are expected at HMAS Stirling to sustain the submarines based there. While the initial announcement only allocates $127 million for planning, design and enabling works, the Commonwealth has promised it is committed to funding the project likely to cost tens of billions of dollars over the next 20 years. This includes building at least one dry dock, which is needed for depot-level or deep maintenance of submarines. An indicative image of the defence precinct shows two such docks along with a floating dock for in-water maintenance and a “contingency” dock that can be used for unplanned repairs on nuclear-powered submarines. The latter could be in position as early as 2026, to cater for a rotational force of UK and US nuclear-powered submarines. The final design will be landed after a feasibility study and planning work over the next three years. The State Government said the scale of the project was enormous and would turbo-charge Perth’s booming defence industry. “This will make WA the biggest naval maintenance hub in the southern hemisphere,” Defence Industry Minister Paul Papalia told The West. He said defence would become WA’s second biggest industry behind mining, with predictions it could generate more than $16 billion a year for the State economy. “You’re talking about continuous shipbuilding which is significant and enduring, and you’re talking about maintenance of frigates and other vessels based in WA,” he said. “And beyond that there’s all the operational contribution.” The announcement resolves years of stand-off between the WA and Federal governments over plans for the Henderson precinct after the Morrison administration announced $4.3b to build a dry dock. It will also give Australia facilities on both sides of the continent — vital for national security — capable of conducting full-cycle docking on its large naval vessels, including the Virginia class and SSN-AUKUS submarines once they join the fleet from the early 2030s. Mr Marles said the consolidation of the defence precinct would support continuous naval shipbuilding at Henderson and Australia’s pathway to acquiring nuclear-powered submarines. Australia being capable of completely maintaining its submarines is a major milestone in the AUKUS partnership. “The Albanese Government’s commitments represent the most consequential defence investment in Western Australia in nearly four decades, since the establishment of HMAS Stirling in 1978 and its expanded role as Australia’s Indian Ocean fleet base in response to the 1987 defence white paper’s two oceans policy,” he said. “The Albanese Government is committed to investing in the growth of a productive and resilient defence industry and workforce to keep our nation safe and deliver a future made in Australia — which is exactly what the defence precinct will deliver.” Premier Cook said the “momentous announcement” would set the State up for an exciting future at the heart of the nation’s defence capability. “This massive investment delivers on my Government’s mission to develop and diversify our State’s economy by providing another economic pathway for our State for decades to follow,” he said. “It is a win-win for Western Australia and the nation.” Mr Papalia said it justified WA’s lobbying efforts since 2017 including a controversial “join the mission” ad campaign that aimed to shift submarine maintenance from South Australia to WA. “Absolutely, this vindicates our campaign and confirms that any criticism of that nature rings hollow because clearly this is the place to do depot-level maintenance for nuclear submarines,” he said. Those efforts had paved the way and convinced all parties WA was in prime position. “It’s a sweet spot where the South Australians have got to build frigates and they’ve got to build nuclear submarines in due course,” Mr Papalia said. “It’s now a lot more substantial. “WA’s competitive advantage is our resources sector and all the skills and capability from meeting that task can be applied to defence. The location is essential from strategic terms for the nation.” The Commonwealth announced in February, when it released the surface fleet review, that the navy would acquire 11 new general purpose frigates, with the first three to be bought from overseas and the rest built at Henderson, likely by Austal. In November, defence named Austal as its “strategic shipbuilder” with the intention of securing continuous naval shipbuilding at Henderson, similar to the program that has been in place for years at SA’s Osborne shipyard. The company is also building the Army’s medium landing craft and heavy littoral manoeuvre vessels along with two new Cape Class patrol boats. At the moment, defence infrastructure and contractors working on naval projects are mixed in with civilian operators in the Henderson precinct. Shipbuilders operating there include Austal, Civmec, ASC, BAE Systems and Luerssen. The creation of the new defence precinct would help meet security requirements from Australia’s AUKUS partners around maintenance of the nuclear-powered submarines. Defence Industry Minister Pat Conroy said the investment would create thousands of well-paid jobs in WA. “Successful consolidation of the Henderson precinct will secure decades of continuous shipbuilding in Western Australia, providing generational benefits for locals who play a vital role in keeping Australia safe,” he said. Mr Papalia was confident WA had the workforce to meet demand and that bipartisan support for AUKUS meant the plan would withstand a federal election due by mid-May. “Western Australia does mega projects well,” he said. “It’s in the nation’s interest that it happens and it’s really reassuring to a Government identify the need and commit to it now . . . I think defence is beyond politics.”