The Australian government has awarded a A$1 billion (approximately US$681 million) contract to shipbuilder Austal Defence Australia. This agreement entails the detailed design and construction of 18 Landing Craft Medium (LCM) vessels, marking a crucial step in the country’s naval fleet modernization.
A New Fleet for the Australian Army
The detailed design and construction work for these vessels will be undertaken at Austal’s shipyard in Henderson, Western Australia. Construction of the first LCM is slated to commence next year, with the delivery of the last vessel, all destined for the Australian Army, anticipated by 2032. These versatile craft will be capable of carrying loads up to 80 tonnes, significantly enhancing the ground forces’ logistical and projection capabilities.
Paddy Gregg, CEO of Austal Limited, underscored the strategic importance of this contract. „With these 18 Landing Craft Medium and any further vessels planned as part of the Strategic Shipbuilding pilot program, we are developing the shipbuilding capability to build larger, more complex vessels, in Henderson into the future and delivering sovereign shipbuilding capability for Australia,” Gregg stated.
Overcoming Hurdles in Project Land 8710
This acquisition falls under Australia’s Project Land 8710 Phase 1A program, which had previously faced delays. The program initially called for the first landing craft to be delivered by 2026. An earlier plan had selected a design by local firm Birdon, with Austal then tasked to build that design under an accelerated schedule announced in 2024. However, that plan soon encountered headwinds, including risks over an „immature design,” which, according to Australian public broadcaster reports in June, could have led to delays of up to two years. The new direction, with Austal undertaking both design and construction, appears to address these prior challenges and streamline the program.
Henderson: Australia’s Rapidly Growing Naval Hub
Australia’s commitment to its naval capability extends further. Austal has also been selected to build eight heavy landing craft (LCH), based on the Dutch Damen LST100 design, also at the Henderson shipyard, under the Project Land 8710 Phase 2 program.
Furthermore, the Henderson site is poised for massive expansion, with a recent commitment of an additional A$12 billion. This investment will upgrade the infrastructure to enable the construction of eight Mogami-class frigates for the Royal Australian Navy (RAN) and provide contingency docking capabilities for Australia’s future nuclear-powered submarine fleet, acquired under the AUKUS pact. Henderson’s strategic location, near the RAN’s Fleet Base West—a planned rotational operating base for AUKUS partners’ (US and UK) nuclear-powered submarines from 2027 under Submarine Rotational Force (West)—underscores its central role in Australia’s defense strategy.
