Federal Government Commits $3.9bn to Adelaide Submarine Facility
At least $30 billion will be invested in constructing a shipyard designed to eventually build nuclear-powered submarines for Australia under the Aukus agreement, despite ongoing doubts about the deal.
Prime Minister Anthony Albanese announced on Sunday that the federal government has pledged $3.9 billion as a “down payment” to secure the future of the submarine construction yard located in Osborne, a northern suburb of Adelaide.
The government anticipates that the project will generate 10,000 jobs in design and construction, along with up to 1,000 apprentices annually at an onsite training facility.
Massive Scale and Cost of the Facility
The enormous cost of the facility is highlighted by the scale of its design footprint. Construction will require enough steel to build 17 Eiffel towers and 710,000 cubic metres of structural concrete for the 420-metre-long fabrication hall.
The Aukus agreement has been under scrutiny for months since the United States announced it would take over the nuclear submarine program.
Despite concerns, the prime minister dismissed doubts that the promised shipyard would never produce an Aukus vessel.
“This is in the interests of the United States, in the interests of the UK and in the interests of Australia,” Albanese said on Sunday.
The $30 billion cost estimate comes from Australian Naval Infrastructure, the government-appointed company responsible for delivering the Aukus facility.
In addition to construction, the new yard will have capabilities for testing and commissioning the submarines.
There has been no confirmation on how long the yard will take to complete or whether the $30 billion figure might increase.
Defence Industry Growth and Regional Impact
Defence has become a significant industry for South Australia, with the country’s first missile factory recently opening in Port Wakefield.
The Osborne site already hosts facilities for the Collins-class and Hunter-class submarines.
South Australian Premier Peter Malinauskas highlighted the scale of employment the project will require.
“There were 1,200 people working at Holden when it closed – 4,000 will be required to construct this facility,” he said.
“It is hard for South Australians to genuinely comprehend the amount of high-paid skilled work that has come our way.”
The announcement of this multi-decade infrastructure commitment comes just over a month before the South Australian state election.
A poll conducted on Wednesday indicated Labor holding a 61-39 lead over the Liberals on two-party-preferred terms.
