A nuclear submarine yard project at Osborne, South Australia, has had $3.9 billion put down on it as a down payment by the federal government.
The state and federal governments are proceeding with the project amid persistent US doubts over the AUKUS Pillar 1 nuclear submarine deal; click here for our story.
The new yard is expected to cost $30m and create nearly 10,000 jobs in the state, according to Canberra estimates.
Prime Minister Anthony Albanese says the project “is critical” to delivering a conventionally-armed, nuclear-powered submarine capability.
But it also has other benefits, he pointed out.
“This is a driver not just of our national security and how we’re going to defend our nation into the future, it’s also a driver of our economic prosperity,” he told a press conference.
Deputy PM and Defence Minister Richard Marles says that “momentum” for the project “is real”.
“Osborne will be critical to Australia’s nuclear-powered submarine program under AUKUS while supporting continuous naval shipbuilding and sustainment,” he says.
“From construction of the submarine yard to delivery of critical infrastructure and the development of a skilled workforce, progress is accelerating.”
Marles says Australia is on track to deliver the sovereign capability to build nuclear-powered submarines.
South Australian Premier Peter Malinauskas says “AUKUS presents a watershed moment for the South Australian economy, and the scale of the work coming our way is difficult for most people to comprehend”.
“At least $30bn will be invested at Osborne …. that investment has already started flowing and is only set to grow.
“This is just the beginning,” he points out.
“That figure only represents the task of building enabling infrastructure. There will be many billions more invested in building nuclear-powered submarines which will provide thousands of highly skilled, well-paid jobs for decades.”
THE SUBMARINE YARD
The new yard will feature three large areas dedicated to fabrication, outfitting and test launches/commissioning.
It is expected to be 10 times larger than the existing Osborne South Development project with its current naval shipyard; a fabrication hall in area one alone is expected to measure 420 metres long.
Enabling work and skills training for the project is expected to cost about $2 billion and $500 million-plus respectively.
The Australian Naval Infrastructure (ANI) just built a link road to the shipyards; Eurimbla Way connects Pelican Point Road in the east to bypass the existing rail line and is now open to traffic.
A new Skills and Training Academy (STA) campus is taken shape with the first intake of 1000 students expected in 2028.
The governments says at least 4000 workers will design and build the submarine yard with around 5500 workers to support nuclear-powered sub production at its peak.
About the Australian Submarine Agency: click here to visit their website.






