Naval Business News Digest

Spain restructures naval industry - The Spanish government has restructured its state-owned naval construction industry following IZAR's spin-off of its unprofitable merchant construction business.

IZAR is currently building the F-100 and F-310 Aegis frigates for the Spanish and Norwegian Navies and an amphibious assault ship for Spain. Its F-100 and amphibious designs are contenders for the RAN's Air Warfare Destroyer and Amphibious Landing Ship projects, respectively.

IZAR's warship construction business has been renamed Navantia under an act of the Spanish Parliament and was re-launched on 2 March. It is owned by Spain's state-owned holding company SEPI (Sociedad Estatal de Participaciones Industriales).

The Spanish second Vice President Mr Pedro Solbes said this marks the beginning of a new future for the shipyards, following a Framework Agreement signed by SEPI, IZAR and the Spanish trade unions.

Navantia's Chairman, Mr Juan Pedro Gómez Jaén, said Navantia' s lines of activity are shipbuilding, propulsion and energy, ship repairs and systems and weapons; both in the military and in the civil sectors, although the later will account for no more than 20 per cent of its total activity.

It is one of the few naval firms with a total capacity for the design, development, construction, integration and integrated logistic support for platforms, propulsion and naval combat systems, and for delivering fully operative ships, he added. It also has one of the market's most comprehensive portfolios of naval and coastguard ship designs.

The manufacturing facilities integrated into Navantia had a turnover in 2004 of over 1.1 billion Euros, with export sales of 564 million Euros. The company employs 5,562 staff at El Ferrol, Cádiz and Cartagena, while the Head Office is in Madrid.

ADI wins Protector guns contract - Prime contractor Tenix Defence Pty Ltd has awarded ADI Limited the contract to supply the MSI DS25M gun systems for three ships it is building under the New Zealand Ministry of Defence's Project Protector.

Tenix was named prime contractor for Project Protector in July 2004. The Protector fleet will comprise one multi role vessel, two offshore patrol vessels and four inshore patrol vessels to be progressively delivered in 2006 and 2007. The MSI gun systems will be installed on the MRV and the two offshore patrol vessels. Tenix tendered the MSI gun in its baseline offer to the NZ MoD.

The Protector vessels will incorporate the ATK 25mm M242 Bushmaster cannon, common to the NZ Army's LAV III Light Armoured Vehicles, providing commonality of ammunition, training and support.

The MSI DS25M is designed by UK firm MSI-Defence Systems. ADI had previously produced six 30mm MSI gun systems for the RAN's Huon Class minehunters.

"ADI considers the MSI modular gun system as the best in the market. It is extremely well designed, very robust, while maintaining a lightweight footprint," said Mr Lucio Di Bartolomeo, ADI's managing director.

Tenix cuts first steel cut for NZ ships - Tenix Defence has cut the first steel for the two Offshore Patrol Vessels ordered by the Royal New Zealand Navy under its NZ$500m Project Protector.

The NZ Secretary of Defence, Mr Graham Fortune, switched on computerised cutting equipment at Tenix's Williamstown dockyard to begin manufacturing plates for the two 85m, 1,500 tonne OPVs.

The ships are being constructed as part of Royal New Zealand Navy seven-ship order, which includes four 55m Inshore Patrol Vessels and a 131m Multi-Role Vessel, as well as the Offshore Patrol Vessels.

Tenix Defence CEO Robert Salteri said the ceremony at Williamstown underlined the skills and capabilities developed by Tenix Defence and its suppliers and subcontractors in Australia and New Zealand.

"Tenix Defence won the Project Protector contract last year in global competition, against shipbuilders from the UK, the Netherlands, Singapore and Germany," Mr Salteri said.

"This followed our successes first with completing two FFG frigates for the Royal Australian Navy, then the 10 ANZAC frigates for the Australian and New Zealand navies.

The seven ships are being built at three locations. The Multi-Role Vessel is being built in the Netherlands, with final fit-out at Williamstown.

The Offshore Patrol Vessels will utilise the modular construction method used with the ANZAC frigates. Modules will be built at Williamstown and the Tenix facility at Whangarei in New Zealand, and the ships will be consolidated and launched at Williamstown. The Inshore Patrol Vessels will be constructed entirely at Whangarei.

Tenix wins tanker conversion contract - Tenix Defence Pty Ltd has won the $60 million contract to upgrade and refit the recently acquired merchant tanker Delos which will replace the Royal Australian Navy's ageing auxiliary oiler, HMAS Westralia.

The contract is for the design, initial logistic support and modification of the 37,000 tonne Delos, with the modified ship to enter service in June 2006 as HMAS Sirius.

The conversion process will enable the tanker to conduct under way refuelling of RAN vessels, including the existing ANZAC and FFG frigates and the new Air Warfare Destroyers that will enter into service from 2013.

The conversion will be carried out at the Common User Facility at Henderson, south of Fremantle, in Western Australia. Modifications will include:

* installation of a replenishment at sea rig

* accommodation modifications for Navy personnel including heating, ventilation, air-conditioning, freshwater and sewerage

* other additions include a helicopter landing pad, Rigid Hulled Inflatable Boats and a related crane, and Navy life support and damage control equipment.

The Delos is currently chartered to Teekay Shipping Singapore under a commercial arrangement. Following contract negotiations with Tenix it will be delivered to Western Australia. Once the conversion is complete, the crew of HMAS Westralia will be transferred to HMAS Sirius, enabling a seamless transfer of operational capability to the RAN.

Bulk delivery of Austal patrol boats - Fremantle-based Austal Ships delivered all 10 of the patrol boats ordered by Yemen Ministry of Defence simultaneously in February. The unusual sight of ten navy patrol vessels being loaded onboard the heavy lift ship "Maria" contrasted the normal exports leaving the port of Fremantle.

The shipment is a truly international logistics exercise involving leading aluminium shipbuilder Austal; Singapore-based project and heavy lift shipping specialist Coli Shipping (S); SAL, the German owners of "Maria"; and the Yemen Ministry of Defence which ordered the boats in June 2003. Loading of the 37.5 metre boats, each weighing 90 tonnes, was managed by local heavy lift and logistics specialists, Global Hire.

The delivery of these vessels heralds an important step in Austal's progress as an internationally recognised supplier of navy and patrol vessels. It follows January's naming ceremony for the first of twelve 57 metre patrol boats for the Royal Australian Navy, and reflects Austal's status as one of Australia's most successful and advanced manufacturing companies.

The Yemeni patrol boats have been designed to meet a variety of operational requirements including general police missions in coastal waters, customs control and anti-terrorist operations at sea, offshore protection and tracking, surveillance of the Exclusive Economic Zone, defence and protection of national sea areas and operations within integrated task forces.

The heavy lift ship left the Australian Marine Complex on Wednesday 9 February and offloaded Yemen's new maritime force in the port of Hodeida two weeks later. Awaiting the arrival of the new patrol boats were the 60 members of the Yemen defence force who each spent several weeks in Perth last year receiving instruction on vessel operation and maintenance techniques.

Tenix to develop new simulator for RAN - The ANZAC Ship Alliance, with Tenix Defence as lead industry partner, will develop computer-based simulators to enhance the Marine Technician training currently provided by the Training Unit Anzac Ship Support Centre.

The Marine Technician Maintenance Training System (MT MTS) will be developed by the Electronic Systems Division's Simulation Group for certain ANZAC Ship Hull, Mechanical and Electrical systems, including propulsion diesel, gas turbine and power train systems.

"These simulators allow trainees to interact freely with the equipment," said David Gray, MT MTS Project Engineer, Tenix Defence ESD.

"They respond to user input in the same manner as real equipment and allow trainees to gain a conceptual understanding of internal equipment operation through animated schematic representations of sub-systems."

Mr Neil Fuller, Project Manager of MT MTS, believes use of a PC simulator is an important step forward in the naval training program as it eliminates risk of injury or equipment damage, and allows multiple students to practice simultaneously, improving training throughput.

"Currently trainees have an extremely limited set of equipment training aids on which they can put their skills into practice. Ship visits are the only means by which they can gain practical experience," Mr Fuller said.

"The MT MTS provides a comprehensive training environment and significantly reduces the costs associated with on-board training."

The system will be installed in Western Australia following acceptance by the RAN. It is expected to be fully operational within 12 months.

KBR appointed 'Physical Integrator' for UK carrier project - The MoD has appointed Kellogg Brown & Root (UK) Ltd (KBR) to act as the preferred 'Physical Integrator' on the Royal Navy's future aircraft carrier (CVF) project.

After a competition KBR were selected in recognition of their track record of both operating in alliances and delivery of complex, bespoke projects in the off-shore industry and other sectors.

The MoD established that due to the size of the proposed carriers no single shipbuilding facility in the UK has the infrastructure, skills or capacity to build the two ships on its own. The carriers will need to be constructed at a number of different sites before transportation to a final integration facility which will both create and sustain thousands of jobs in dockyards across the country.

Building and integrating the two carriers, the biggest warships ever built in Europe, represents a major challenge requiring considerable project management skills. In discussion with the CVF Alliance partners involved in the project, Thales and BAE Systems, it was agreed that there was a need to appoint a company - as a risk-bearing member of the Alliance - to further strengthen the Department's approach to this area and introduce innovation to the manufacturing phase. This will be a key role for the Physical Integrator on behalf of the Alliance.

An initial contract for study work is expected to be placed over the coming days. The value will be in the region of £5m.

Confirming KBR's selection, the UK Minister for Defence Procurement, Lord Bach said: "KBR bring significant experience from other alliances and in the management of major, multi-site programmes. We look forward to the contribution they will make in further de-risking the programme and helping to shape the shipbuilding element of this important programme. The MoD, as client, will of course retain the right to have the final say on all work allocation and selection decisions"

"The CVF alliance strategy is based on best practice in the commercial sector. It will allow us to draw on the strengths, resources and expertise of all parties involved and represents the most effective way forward," Bach added

The CVF forms part of the biggest British naval construction program for a generation involving nuclear submarines, Type 45 destroyers, assault and landing ships and support vessels. At the peak of the demonstration and Manufacture Phase, it is expected that around 10,000 people will be working on the CVF project in the UK.

Canberra briefs ANZAC support bidders - The Australian Department of Defence has begun to solicit expressions of interest in a long-term in-service support contract for the RAN's eight ANZAC class frigates. The frigates will be supported under an Integrated Materiel Support (IMS) agreement designed to replace the existing In Service Support (ISS) arrangements which are due to terminate soon.

IMS is designed to provide Whole of Life management of the ANZAC Ships and their support facilities.

The IMS services will be procured through a staged process beginning with a Request for Proposal (RFP). Delivery of IMS under an Integrated Alliance framework remains the preferred method of procurement. The Integrated Alliance will deliver IMS functions to the ANZAC Mission System in four main functional disciplines:

* IMS Management

* Engineering Support

* Maintenance Support

* Supply Support

The Generation function currently exists under the ANZAC Ship Alliance with Tenix Defence and Saab Systems. Both Tenix and Saab will be retained to deliver the Generation function under the new Integrated Alliance.

It is expected that the new Integrated Alliance will be supported from within Australia and remain in place for a period of 15 years.