Austral awaits Govt decision on patrol boat order

Henderson-based shipbuilder Austal is waiting to find out whether it will win a Defence contract worth hundreds of millions of dollars, with a Government decision expected soon.

The Pacific Patrol Boat Program is the Federal Government’s most imminent naval order, with Austal and Cairns-based Teekay Shipping competing for the design and construction of up to 21 vessels worth $594 million.

Austal chief executive David Singleton told theTelegraph he expected the decision to be made soon.

“It is a relatively small defence vessels (contract) — it is not actually in the White Paper,” he said.

“It is the most imminent order the Government is going to place (and) these could be built in existing facilities.

“We don’t expect it’s that long away.

“It’s not weeks away, but it’s not years away either.

“It will be this year, I think.”

The overall cost of the project from construction through life sustainment and personnel costs is estimated at $1.38 billion over 30 years.

Much of Austal’s work for the US Navy has been the construction of multi-hulled aluminium vessels.

The new patrol boats will be made out of steel and, should Austal win the contract, it would represent an opportunity for the company to show its competence and versatility.

It may also boost Austal’s chances of winning contracts outlined in the Defence White Paper, which are also based on steel construction.

Australian Marine Complex general manager Jonathan Smith said companies such as Austal and other maritime-focused businesses in the Rockingham area were some of Australia’s best.

“WA has got a great record of coming in on cost, schedule and delivering extremely high quality,” he said.

“That’s how industry here has won its projects continually.

“The flexibility and depth of skills are all here in WA.”