Blue water ships: consolidating past achievements

Blue water ships: consolidating past achievements

7 December 2006

© Commonwealth of Australia 2006
ISBN 0 642 71736 2

View the report as a single document - (PDF 2034KB)


View the report as separate downloadable parts:

Members of the Committee (PDF 25KB)
 
Acronyms and abbreviations (PDF 12KB)
 
Main finding (PDF 19KB)
 
Executive summary (PDF 50KB)
 
Chapter 1 - Introduction and conduct of the inquiry (PDF 292KB)

  Referral of the inquiry
  Terms of reference
  Conduct of the inquiry
  Submissions
  Public hearings and site inspections
  Overseas delegation
  Structure of the report
  Acknowledgments
Part I
  Background—developments in the shipbuilding and repair industry overseas and in Australia

 
Chapter 2 - Current trends in Naval shipbuilding (PDF 112KB)

The experience overseas
  Falling demand, increased capability
  New shipbuilding model
  Globally integrated production systems
  A new 'heavy industry' sector
  A protected industry
Major shipbuilding economies
  The United States
  Europe
  The United Kingdom
  South Korea, Japan and China
Segmentation in the shipbuilding industry
Current trend—growing complexity in the construction of naval vessels
  Building in modules
Modern construction and the challenges for the prime contractor
  Developing and retaining a skilled workforce
  Peaks and troughs in demand for naval vessels
Conclusion

 
Chapter 3 - A brief history of Australia's Naval shipbuilding industry (PDF 59KB)

The early years of naval vessel construction and repair in Australia
Shipbuilding challenges—the experience of the 1960s, 1970s & early 1980s
  Problems with Defence specifications—the DDL destroyer project
  Problems with foreign acquisition—the FFG 01–04 project
  Problems with foreign design and Australian
construction—HMAS Success
Developing a modern, efficient naval shipbuilding industry
  The Australian Frigate Project
  Naval shipbuilding as a platform for a competitive local defence industry
Conclusion
Part II
  Australia's capacilty to produce large naval vessels

 
Chapter 4 - Australian Naval shipbuilders (PDF 408KB)

The prime contractors
  ASC and the Collins-class submarines: high achievement and high risk
  Tenix and the ANZAC class frigates: on time and on budget
  Thales Australia (ADI)
  Summary
  The aluminium shipbuilders—Austal and Incat
  Summary
  The Air Warfare Destroyer (AWD) and Amphibious Ship (LHD) projects
  The future of the primes
Conclusion

 
Chapter 5 - SME suppliers (PDF 90KB)

Supply network in Australia
  Steel fabrication—an example of Australia's capability
Tasmania and its supply chain
  Committee view
SMEs and their contribution to the industry
  Value adding
  Gaps in capability
International companies filling a void
  Overseas companies—fostering local industry
  Overseas companies—technology transfer and indigenous innovation
  Committee view
Overseas companies meeting special requirements
Conclusion

 
Chapter 6 - Infrastructure (PDF 463KB)

Investment in infrastructure
Overview of shipyards in Australia
Infrastructure and the lead naval shipyards in Australia
  The Australian Marine Complex at Henderson in Western Australia
  Osborne in South Australia
  Older shipyards
  Williamstown in Victoria
  Garden Island in New South Wales
  The Cairncross Dry Dock in Queensland
Overall infrastructure development in Australia
Infrastructure needs for the AWDs and LHDs
  Capacity to meet the challenges of an AWD and LHD program
  Through-life costs
Infrastructure outside the shipyard
  High wide load corridors
  Committee view

 
Chapter 7 - Workforce and skills (PDF 143KB)

Introduction
Skilled labour shortages
Naval shipbuilding—workforce demand
  Sustainment workforce
Other industry sectors—competition or support?
  Transferability of skills
  Workforce mobility—geographic issues
Skill sets
  Trade skills sets
  High-end skill sets
The AWD and LHD builds
Workforce and skills initiatives
  Federal government—skilling Australia's defence industry
  State government initiatives
  Overseas migration
  Conclusion

 
Chapter 8 - Intellectual property (PDF 35KB)

  Negotiating in a global market
  Benefits of IP access
  Australian IP development
  Conclusion
Part III
Productivity of the Australian shipbuilding and repair industry

 
Chapter 9 - The comparative economic productivity of the Australian shipbuilding industrial base and associated activity with other shipbuilding nations (PDF 90KB)

Difficulties in comparing the productivity of shipyards in Australia and overseas
  Quality of available data
  A protected industry and distorted data
Data on Australian productivity
  Australian shipyards, the construction of commercial steel
  ships and niche capabilities
  Australia's record in the construction of naval ships
Factors influencing productivity in Australia's shipbuilding and repair industry
  Costs and economies of scale
  Costs in meeting Australia's unique requirements
  The costs of customising a ship for Australian conditions
  Fluctuations in work flow
  Impediments to export trade
  Comparative labour productivity
Summary
Conclusion

 
Chapter 10 - The comparative economic costs of maintaining, repairing and refitting large Naval vessels throughout their useful lives when constructed in Australia vice overseas (PDF 44KB)

Background
Through-life costs
  The ACIL Tasman estimate
Conclusion

 
Chapter 11 - Economic benefits (PDF 60KB)

Broader benefits accruing from an in-country build
Quantifiable evidence of wider economic benefits
  The Minehunter and ANZAC studies
  Critiques of the ANZAC and Minehunter studies' modelling
Employment growth and broadening the industrial base
Contributing to an innovative and productive industrial base
Disadvantages of building overseas
Defence's assessment of these benefits
Conclusion

 
Chapter 12 - The strategic imperative (PDF 68KB)

Defence capability and the national interest
Australia's unique strategic requirements
The relationship between defence capability and an indigenous naval shipbuilding industry
The relationship between defence capability and an indigenous naval ship maintenance and repair industry
Connection between shipbuilding and maintenance, repair and upgrades
Conclusion

 
Chapter 13 - Overall assessment of Australia's shipbuilding and repair industry including Committee's main finding (PDF 21KB)

Part IV
  The role of governemnts

 
Chapter 14 - The role of defence in Australia's Naval shipbuilding and repair industry-informing industry (PDF 48KB)

Australian industry—an informed provider
  Premiums for local builds
  Industry involvement
Conclusion

 
Chapter 15 - Strategic planning (PDF 75KB)

Assisting industry improve productivity
SMEs
Infrastructure
  Committee view
  Competition and collaboration
  Committee view
Skills
  Committee view
Summary
Managing demand fluctuations
A strategic plan
  Committee view
Strategic planning—Defence Capability Plan
  Committee view
Summary

 
Chapter 16 - Defence-an informed buyer (PDF 40KB)

Strategic analysts
Technical specialists
Project managers and leaders
Conclusion

 
Bibliography (PDF 12KB)
 
Additional comments-Senator Mark Bishop (PDF 22KB)
 
Appendix 1 - Public submissions (PDF 11KB)
 
Appendix 2 - Additional information, tabled documents, and answers to questions on notice (PDF 21KB)
 
Appendix 3 - Public hearings and witnesses (PDF 19KB)
 
Appendix 4 - Site visits in Australia (PDF 11KB)
 
Appendix 5 - Delegation program to the Republic of Korea and the United States of America (PDF 10KB)
 
Appendix 6 - Extract containing a summary of main issues and points for discussion from a discussion paper published by the committee on 25 August 2006 (PDF 56KB)
 
Appendix 7 - Naval ships built at Cockatoo Island, Balmain and Williamstown dockyards; repair and upgrade activities at Garden Island (1912–1945) (PDF 34KB)

For further information, contact:

Committee Secretary
Senate Standing Committees on Foreign Affairs, Defence and Trade
PO Box 6100
Parliament House
Canberra ACT 2600
Australia

Phone: +61 2 6277 3538
Fax: +61 2 6277 5818
Email: fadt.sen@aph.gov.au