Shipbuilder Austal Defence Australia has been awarded a significant contract to construct eight Landing Craft Heavy (LCH) vessels for the Australian military, valued at approximately $2.82 billion USD. This announcement was made on March 15, 2024, and marks a pivotal moment for the company as it continues to strengthen its presence in the national shipbuilding sector.
The contract will see the construction of 100-meter (328 feet) vessels based on the Dutch Damen LST100 designs. The vessels will be manufactured at Henderson’s Common User Facility located in Western Australia, with construction slated to commence later this year. Each vessel will have the capacity to transport 200 soldiers alongside either six M1 Abrams tanks or nine Redback infantry vehicles.
Austal’s Role in National Defence
According to Paddy Gregg, CEO of Austal Limited, this contract underscores the growing strength of the company’s Australian operations within the national shipbuilding and sustainment enterprise. While the announcement did not specify a first delivery date, it indicated that the final vessel is projected to be delivered by 2038. The 4,000-tonne vessels are expected to greatly enhance Australia’s amphibious capabilities and improve its response to humanitarian and disaster relief operations.
This latest contract falls under Australia’s Project Land 8710 Phase 2 program, which aims to bolster the nation’s operational readiness. It follows an earlier selection by the Australian government for Austal to build medium landing craft under the first phase of the same program. The Department of Defence emphasized that the LCHs will have a payload capacity of 500 tonnes, further contributing to their versatility in various military and humanitarian roles.
Future Prospects and Challenges
In addition to the landing craft project, Austal is poised to play a crucial role in the Henderson Defence Precinct, where eight Mogami-class frigates for the Royal Australian Navy (RAN) will be constructed. This facility is also set to accommodate contingency docking capabilities for Australia’s future nuclear-powered submarine fleet.
In a related development, Austal entered into a strategic shipbuilding agreement with the Australian government in August 2025, aimed at establishing a continuous shipbuilding pipeline. This agreement focuses on designing, constructing, integrating, and delivering key naval programs.
Despite the positive developments, Pat Conroy, Australia’s Minister for Defence Industry, noted in a recent radio interview that Austal will need to demonstrate value for money and maintain efficiency to secure further contracts, particularly for the frigates. He stated, “They have to demonstrate a value for money and continued efficiencies and productivity through that continuous naval shipbuilding approach. But they are in a good position if they can deliver on the two landing craft projects.”
As Austal embarks on this ambitious project, the company’s ability to deliver on its commitments will be closely monitored, not just by the government but also by stakeholders within the industry. The successful execution of this contract could pave the way for further opportunities, reinforcing Australia’s capabilities in both defence and maritime operations.
