The Australian Government is committed to establishing a consolidated Commonwealth-owned Defence precinct in Henderson, Western Australia (WA).
The precinct is a critical next step in delivering continuous naval shipbuilding and Australia’s AUKUS commitments. It will contribute to regional security as set out in the 2024 Naval Shipbuilding and Sustainment Plan.
The precinct will enhance Australia's self-reliance by constructing and sustaining more complex surface fleet vessels.
Project details
The Australian Government is committing an initial $127 million over 3 years to progress:
- planning
- consultations
- preliminary design and feasibility studies
- enablement of works.
This builds on the previously announced $8 billion investment in upgrades to HMAS Stirling through to the mid-2030s. It provides an operating base for Australia’s sovereign conventionally armed, nuclear-powered submarines from the early 2030s and supports Submarine Rotational Force – West from 2027.
Henderson consolidation
The consolidation of infrastructure and industry at Henderson involves:
- transforming part of the shipyard into a single, secure, Commonwealth-owned Defence precinct, capable of supporting larger and more complex vessels, including nuclear-powered submarines
- bringing together multiple naval shipbuilding projects under one agreement – the Strategic Shipbuilding Agreement.
Planning, design and feasibility studies will confirm the boundaries and exact infrastructure and facilities required for the precinct. Facilities to be established include:
- contingency docking capability and supporting infrastructure and facilities for nuclear-powered submarines – delivered at Henderson from the early 2030s
- depot-level maintenance of nuclear-powered submarines – delivered at Henderson from the late 2030s
- a large-vessel docking capability from the early 2030s.
Along with Osborne Naval Shipyard in South Australia, the precinct will be crucial in the Australian Government’s continuous shipbuilding capability. It will construct at least 36 vessels for the Australian Defence Force.
This includes on-shore build of:
- 18 Army Landing Craft Medium, the first of which is expected to launch in 2026
- 8 Landing Craft Heavy, the first of which is expected to be launched in 2028
- 8 General Purpose Frigates, the first of which will arrive in 2029
- 2 additional Evolved Cape class patrol boats currently under construction.
The General Purpose Frigates will replace the Anzac-class frigates currently based, maintained and sustained in WA.
Strategic Shipbuilding Agreement
As part of the consolidation approach, the Australian Government announced the establishment of a single strategic shipbuilder as a strategic partner to Defence.
The Strategic Shipbuilding Agreement (SSA) will bring together multiple shipbuilding projects under one agreement. It will enable the delivery of capability effectively and efficiently, providing industry with a stable pipeline of work and upskilling.
The SSA with Austal will:
- incentivise investment in the industrial capability of the precinct
- enable continuous shipbuilding capability, limiting time delays
- provide the broader supply chain, subcontractors and investors with greater confidence in their long-term partnership with Defence
- enable long-term workforce planning
- foster enduring community and regional engagement.
The government expects the SSA to end a boom-bust cycle of shipbuilding activity that negatively impacts local businesses, workers and their families. It will not exclude other entities from being engaged to work on shipbuilding activities at Henderson.
Consultation and timing
The work will be undertaken through a phased approach over more than a decade.
Defence and the WA Government have commenced consultation, including initial discussions with leaseholders, local industry and the commercial sector, about the future of the shipyard. This engagement provided considerations for planning, including the importance of ensuring current activities can continue as the project progresses.
Stakeholders from local industry, the commercial sector and First Nations groups were offered initial briefings on the precinct. A broad industry briefing with around 340 attendees was held in October 2024. Where possible, a taskforce representative is attending local events to answer community questions.
All construction activities will be undertaken in accordance with legislative and regulatory requirements. Environmental studies are underway to determine any environmental impacts and mitigation strategies.
Progress has been made on:
- critical planning activities
- further environmental studies
- communication and stakeholder engagement
- initial investigation into potential commercial and delivery models.
Initial planning for enabling works will begin in 2025, which include design for breakwater, dredging and planning of upgrades to essential services like power supply.
Collaboration
Ongoing collaboration is central to delivering this world-class naval shipbuilding and sustainment enterprise. Local and regional industry are critical to its success.
Establishing the precinct will diversify and directly support the WA economy. It will boost industries in the region, including in engineering, logistics and supply chains. Activities across Henderson and HMAS Stirling will create more than 10,000 jobs.
This will help drive growth in the tertiary and technical education sector, creating the pipeline needed to sustain workforce flow over the next 2 decades or more.
Defence and the Australian Submarine Agency (ASA) are working closely with the WA and local governments to:
- transport people and materials in a way that minimises congestion and delivers on upgrades to local roads
- minimise the impact of operations on the local communities of Rockingham, Henderson and nearby areas.
Establishing the precinct will generate socioeconomic benefits in the communities that will grow to support this major national endeavour: housing, schools, transport, services and infrastructure will all be needed.
Defence and the ASA are also working closely with local and regional industry to maximise benefits and mitigate impacts as the precinct is transformed. Defence has been working with the ASA and the WA Government to urgently explore options for consolidation of industry and infrastructure at Henderson.
Henderson Defence Precinct will be supported by the WA Government’s Western Trade Coast Infrastructure Strategy which will:
- provide industrial uplift and infrastructure to support Defence’s growing shipbuilding and sustainment needs in Henderson
- help address transport needs, traffic congestion, the availability of industrial land, ageing infrastructure and constraints to supply chain connectivity and continuity.
The Australian Government has also signed a Cooperation Agreement with the WA Government to enable planning for a Henderson Defence Precinct. The agreement demonstrates the mutual commitment to collaboration over the coming decade and beyond. This agreement is progressing, with a refresh of Defence, the ASA and WA governance forums and collaboration on initial priorities.
Background
At Henderson shipyard, there are a range of Defence and commercial activities with separate arrangements and processes. Much of the land is owned by the WA Government and managed through leases with multiple entities. A common user facility at the site supports the repair, maintenance and construction of naval and commercial vessels.
The 2023 Defence Strategic Review recognised Henderson’s critical role in delivering continuous naval shipbuilding and sustainment of Australia’s surface fleet in WA and in supporting the nuclear-powered submarine pathway.
The review highlighted that challenges around the workforce, the layout and development of the Henderson precinct needed to be addressed. The relationship between infrastructure, shipbuilders, contractors and workforce providers also needed to be addressed. Much of the land is owned by the WA Government and managed through leases with multiple entities. A common user facility at the site supports the repair, maintenance and construction of naval and commercial vessels. It also highlighted there is not enough work to sustain the number of shipbuilders located at Henderson.
The Independent Analysis into Navy's Surface Combatant Fleet reiterated the need for a larger, more lethal surface combatant fleet, outlining this should be complemented by a conventionally-armed, nuclear-powered submarine fleet.
Subsequently, the 2024 National Defence Strategy determined Defence must respond to the review’s recommendation and urgently address these challenges.