Defence has selected ST Marine as the preferred tenderer to convert the Royal Australian Navy tanker HMAS Success to be double hulled.
ST Marine represented the best value for money and the shortest time out of service.
The work will be carried out in Singapore, where the ship has a scheduled visit while on deployment in Asia and involves the double hulling of the HMAS Success to meet International Maritime Organisation standards for environmental protection against oil spills.
ST Marine’s tender came in under budget. As a result, funds saved on this project will be re-directed towards the priority repair and maintenance work required on HMAS Kanimbla and HMAS Manoora, for which a precautionary Operational Pause was recently initiated by the Chief of Navy. This work will occur concurrently at Garden Island, Sydney.
Overseas companies were allowed to bid for the work on HMAS Success as:
this is a o
ne-off project – work of this type will never again be carried out in Australia; and no Australian company had ever undertaken work of this type.
The on-going repair and maintenance of Navy ships happens in Australia and will stay in Australia. This includes the regular and on-going repair and maintenance of HMAS Success.
This year Defence will spend approximately $79M on ship repair and maintenance in the Sydney region.
Next year Defence has budgeted to spend $81M on ship repair and maintenance in the Sydney region.
Next year Defence will also issue tenders for five year contracts for the repair and maintenance of Navy ships at Garden Island. This work will all occur in Australia and is worth about half a billion dollars over the five years.
These long term contracts will provide more security for Australian businesses and more job security for their workforce.