New boundaries to transform the Henderson shipyard into a massive defence precinct that can support AUKUS have been finalised in a deal between the Commonwealth and WA that aims to avoid disruption to the resources sector.
The Prime Minister will on Monday head to Henderson to unveil the long-awaited site selection for the new naval shipbuilding and sustainment facility which his government claims will support around 10,000 jobs over decades.
Sources familiar with the project have told The West Australian that estimates for the overall cost of the Henderson Defence Precinct have ballooned up to anywhere near $70 billion, much higher than the initial $25 billion figure touted last year.
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The West can also reveal the designated area for AUKUS nuclear-powered submarine sustainment facilities will be in the central sector of the revamped Henderson site, while naval shipbuilding and ship sustainment will be located to the south.
Following extensive technical analysis and engagement, the WA Government will operate common user facilities in separate “non-defence sites” to the north and south of the central section designated for submarines and naval surface ships.
A separate area further back from the waterline has been set aside for “fabrication, support and other facilities”, but the lack of a buffer zone between the nuclear-powered submarine section and non-defence site could raise concerns from the US.
Questions also remain over where the full funding for the Henderson defence precinct will come from after an initial $12 billion was announced almost a year ago, while the precise number of dry docks that could be included in the new shipyard is unclear.
“This is great for WA and great for local jobs,” Prime Minister Anthony Albanese said ahead of the announcement that will be made at the Henderson site on Monday.
“AUKUS is full steam ahead and we are proud to deliver this milestone today alongside our partner, the Cook Government,” he told The West.
Defence Minister Richard Marles said the selection of the site to revamp the Henderson shipyard was “a major step towards establishing a world-class sovereign shipbuilding and sustainment hub in WA”.
“This decision allows the next phase of planning and development of the precinct to progress at pace, so we can deliver the infrastructure needed to support continuous naval shipbuilding and sustainment in the west, and develop the capability to own, operate and sustain conventionally armed, nuclear-powered submarines.”
“All of this is critical to strengthening Australia’s sovereign defence industrial base, supporting thousands of local jobs, and delivering the maritime capabilities needed to keep Australians safe.”
Premier Roger Cook has praised the new site selection saying his hope is for the state to become the largest naval maintenance and shipbuilding hub in the southern hemisphere.”
“Over the next decade, defence is set to become WA’s second largest industry, helping us remain the strongest economy in the nation and the best place in the world to get a quality job.”
“(This) announcement is an important milestone that will enable both government and industry to get on with the job in securing this massive economic opportunity for WA.”
Access to the Henderson facilities is likely to remain an issue for the WA government, but it believes the new precinct plan will avoid disruption to vital resources sector work that occurs at the southern common user facility of the Australian Marine Complex.
Work towards the Henderson defence precinct will now move to a concept design phase involving further engagement between the Federal and State governments, as well as local industry, technical design and planning partners, and other key stakeholders.
Both the Albanese and Cook Governments say they want to minimise potential impacts to local businesses, including those not in the defence sector, as they work towards completing the “national strategic asset”. Last year, the Defence Department confirmed that the $25 billion estimate for the Henderson Defence Precinct was “roughed-up numbers” developed during initial studies in 2023-24 and flagged the “figure will evolve as we mature our design”.
