NAVAL NCRM SECTOR

NAVAL CONSTRUCTION, REPAIR AND MAINTENANCE – SECTOR REPORT

Mise à jour 2009/ALGERIE-DEFENSE/By Defence IQ a division of IQPC

  The World Market for Naval Surface Combatants and Submarines is valued at more than $185 Billion
over the next 10 years, with a near 50/50 split between the 2 sectors.

ARGENTINA
At the Almirante Storni Shipyard in Buenos Aires on the 22nd January, the hull of Type TR‐1700
submarine ARA “San Juan” was cut open to facilitate replacement of diesel generators. With this act
the Argentine navy has recovered a technological capability lost since the 90s when the then
Astilleros Domecq Garcia Shipyard was closed and deactivated. The shipyard was re‐opened in 2003
and since then a number of technological capabilities have been restored, including the recovery of
battery units, providing a firm base for the local integral overhauling, maintenance and construction
of submarines.
AUSTRALIA
Shipbuilding exports have included the construction at Williamstown on the outskirts of Melbourne
by the then Tenix Defence of two Anzac‐frigates and, more recently, two offshore patrol vessels for
the Royal New Zealand Navy. Risk mitigation and concern about skills availability have resulted in
the hulls of the RAN’s two 27,000‐tonne Canberra‐class Landing Helicopter Docks (LHDs) being built
by Navantia in Spain, but superstructure construction and fit‐out will take place at the Williamstown
facility, now part of BAE Systems Australia.
The Royal Australian Navy is simultaneously upgrading its eight “Anzac” class (MEKO 200) and the
four “Adelaide” (FFG‐7) class frigates. The “Anzac” class frigates are being upgraded to improve antiship
missile defence capabilities.
The West Australian company Austal, primarily a commercial shipbuilder, is now becoming a
significant player in the defence arena. Having exported patrol craft to Yemen and Trinidad and
Tobago in recent years, in November 2008, Austal clinched a US$185 million contract from the US
Department of Defense to build the first of a new class of multi‐use Joint High Speed Vessel (JHSV).
The ships will be operated by both the US Army and the USN. Based on the design of WestPac
Express, an Austal high‐speed catamaran ferry operated for the past seven years by the US Marine
Corps, the JHSV will be built at Austal’s shipyard in Mobile, Alabama, to conform with the
requirements of the US Jones Act. The Pentagon has options to order a further nine ships between
2009 and 2013 with a potential value of US$1.6 billion.
Utilising an innovative trimaran platform, Austal is also the vessel designer and builder for the
General Dynamics team that is competing for the USN’s multibillion‐dollar littoral combat ship
requirement. Although Austal’s Tasmanian rival Incat was unsuccessful in its bid for the JHSV
contract, three of its high‐speed catamarans continue on charger to the US military and were used in
determining the JHSV’s operational concept.

Austal has secured its first European defence contract with an order for four 21.2m inshore patrol
craft – for the Armed Forces of Malta (AFM). To be built at Austal’s Australian facilities they are
scheduled for delivery by the end of 2009.
BRAZIL
In September 2006 the Brazilian Navy ordered two NAPA 500‐class offshore patrol vessels (OPVs)
based on the Vigilante 400 CL 54 design from French shipbuilder CMN Group. Displacing 477 tons
the ships are being built locally at Brazil’s INACE (Industria Naval do Ceara SA) yard at Fortaleza and
are due for delivery in 2009. A further 4 OPVs have been approved, with a total of eight ships
planned.
On January 16th, the hand‐over ceremony of the patrol boat “Brendan Simbwaye” for the Namibian
Navy took place in the INACE (Industria Naval do Ceara) Shipyard at Fortaleza/Brazil. This boat is the
first naval vessel ever produced in Brazil for an African country.
CANADA
On 9th July 2007, Prime Minister Stephen Harper announced a procurement programme for up to 8
ice‐capable arctic OPVs (A/OPVs) with a Polar class 5 classification. The project is estimated to cost
CAN$3.1 billion (US$2.45 billion) and the first vessel is due for delivery in 2013. BMT Fleet
Technology was awarded an initial CAN$4.5 million contract for the definition phase of the contract
with STX Canada marine and BAE Systems and will produce a design to determine the navy’s
requirements.
The Canadian Navy’s only operational submarine, HMCS Corner Brook, will enter an extended
docking work period (EDWP) in 2011, Canada’s Department of National Defense (DND) has
confirmed. Canada is attempting to re‐establish its submarine capability through the CAD1.5 billion
(US$1.51 billion) Victoria‐class In‐Service Support Contract (VISSC) awarded to Canadian Submarine
Management Group (CSMG) on the 30th June 2008. Two boats, HMCS Victoria and HMCS Windsor,
have already entered EDWP with HCMS Chicoutimi scheduled to begin EDQP in January 2010.
CHILE
On 15th October 2008, Chile’s government‐owned shipyard Astilleros y Maestranzas de la Armada
(ASMAR) launched the second of 4 patrulleros de zona maritime (PZM) OPVs under the Chilean
Navy’s Danubio IV project. The first ship, Piloto Pardo, was commissioned in June 2008 with the
second ship, Policarpo Toro, due to handover in 2009.
Project PAM (Patrulleros de Alta Mar) is for up to 5 OPVs of 1,800 tons for Argentina. The ships will
be built at the Rio Santiago shipyard to the same Fassmer design as the Chilean boats with
construction expected to begin in 2009.

CHINA (PLA NAVY)
China’s warships building capability is growing at an impressive pace, and the submarine sector is no
exception. The latest member of the Chinese diesel/electric submarines family is the YUAN class
(Type 039A, or Type 041A, according to other sources). Based on the current pace, ten boats are
expected to be in service by the end of 2010. The other Chinese newcomers are the SHANG‐class
(Type 093) SSNs and the JIN‐class (Type 094) SSBNs. The attack submarine was designed with
Russian support, though contrary to earlier reports, it bears no resemblance with the VICTOR‐III
boats. Two new SSBNs are already in service, with a further pair being built.
While the former Russian aircraft carrier (ex‐Varyag) is nearing completion to be commissioned as
training carrier “Shi Lang”, local media report that construction of the first domestic 48,000 tons
aircraft carrier may start this year or 2010 at the latest, at the new Changxing Island Shipyard of
Shanghai’s Jiangnan Shipyard.
CROATIA
The Croatian Navy plans to have built domestically up to 10 fast patrol craft of 40m under a E95M
contract and two plus two advanced corvettes for another E400M; however, the latter programme
in particular looks extremely doubtful due to severe budget pressures.
DENMARK
The three new frigates of the RDN will be named HDMS “Iver Huitfeldt” (F 361), HDMS “Peter
Willemoes” (F 362) and HDMS “Niels Juel” (F 363). The first‐of‐class is being put together at the
Lindo dry dock of Odense Steel Shipbuilding and is scheduled for final outfitting from December
2010 and commissioning in 2012.
FRANCE
The FREMM programme will be reduced to eleven ships for France with no details yet as to how this
total will be split between the variants. The most urgent requirement is to replace two (out of four)
cancelled HORIZON air defence destroyers with two new FREMM Fregate de Defense Aerienne
(FREDA).
Being built for the Moroccans is a F‐ASM which reportedly will cost E470M if the contract is finalised
as drafted; the construction began in summer 2008 with expected delivery by 2012 or 2013.
Greece ordered six (4+2) FREMM In January 2009 to replace an equal number of their “Elli” class
frigates.
1 Forbin Class ‘fregate antiaeriennes’ is in service and the second will be operational in the near
future.
A third BPC (Batiment de Projection et de Commandement) is going to be built by DCNS to augment
the capabilities of “Mistral” and “Tonnerre”. Sources indicate that a fourth BPC is likely to be
ordered to replace the retiring training ship “Jeanne d’Arc”.

Between last October and early March, the St Nazaire‐based shipbuilder OCEA has launched five of
eventually 21 patrol boats type FPB 98. The hulls are built at the OCEA subsidiary at Fontenay le
Comte in Vendee, from where they are transferred by road to St Nazaire to receive superstructure
and for fitting out. At this building rate the E135M contract could be completed by 2013.
The French Marine Nationale launched a study for a new‐generation nuclear‐powered attack
submarine in 1998. Following an extensive development and project definition, DCNS was given an
order for six units on December 2006. Though commonly known as the “Barracuda” class the boats
will be named after French naval heroes, the first of the class being the SUFFREN. She is to be
commissioned in 2017, with the other boats following at 24 months interval until the programme is
completed in 2026.
On January 27th, DCNS delivered the Royal Malaysian Navy’s first‐ever submarine, following
Malaysia’s decision to set up a submarine force comprising two SCORPENE‐type conventionalpropulsion
boats.
GERMANY
In September 2006 the Deutsche Marine ordered the second batch of two Type 212A submarines to
supplement the four boats already in service and complete the programme. They are expected to
be commissioned in late 2012 and 2013 respectively.
The Type F123 phased improvement programme is in its phase 2 to be contracted soon. This task is
manpower intensive, as phase 2 means to extend the length of the frigate for increased stability, and
to replace the NATO Sea Sparrow Missile (NSSM) system by integration of the Evolved Sea Sparrow
Missile (ESSM) system.
Construction continues of the third combat support vessel Type EG1/702, as well as the acceptance
of the final three units of the K130 corvettes in 2009. Project K131 is of high importance, first
because the guided missile fast patrol boats need replacing soon, and also in view of the new tasks
and experience with the K130 fulfilling these new tasks. This new type will not be a second batch
K130, it will be a ship with so‐called two‐dimensional capabilities.
The German Navy is procuring four “Baden‐Wurttemberg” class (F125) frigates, which are expected
to enter service in the 2014‐2017 timeframe.
Portugal has ordered two Type 209PN submarines (with an option for a third one) to be built by
HDW in Kiel for delivery in 2010 and 2011, respectively.
GREECE
New Type 214 submarines are on order by Greece. The PAPANIKOLIS class has the lead boat being
built in Germany and three follow‐on submarines at Hellenic Shipyards in Skaramanga,
GREECE is upgrading three or four of its Type 209‐1200 boats under the NEPTUNE – II programme.
DCNS and the ELEFSIS shipyards signed a co‐operation agreement in October 2006.

TKMS‐Hellenic Shipyards (HSY) has established a new frigate programme office in Skaramanga to coordinate,
prepare and implement all actions related to the anti‐air warfare frigate project. The new
frigate project could expand to include up to eight vessels.
INDIA
The navy is concentrating on developing a network‐centric capability to augment its emerging ‘bluewater’
status to dominate Indian Ocean Region (IOR) sea‐lanes by controlling choke points and trade
routes. According to the IN’s classified Maritime Capabilities Perspective Plan, its present tally of
130‐136 ships and submarines will increase to 160 by the end of the 13th Defence Five‐year Plan in
2022, while its fixed air‐wing and rotary assets will more than double to around 350‐400.
This force structure of missile destroyers, frigates and corvettes centres around at least two, if not
three, aircraft carrier battle groups – one for each coast and a possible third in reserve – will be
supplemented by submarine and aviation assets all equipped with long‐range precision‐guided
munitions capable of anti‐ship and land‐attack missions. Network‐centric platforms and sensors,
new and upgraded MRAs, combat aircraft and attack helicopters, unmanned aerial vehicles (UAVs) –
including rotary‐wing UAVs – mine‐counter‐measure ships and auxiliary forces will complete the
navy’s emerging force structure to accentuate maritime domain awareness.
DCNS of France signed a contract in October 2005 for six SCORPENE‐type submarines to be built at
Mazagon Dock in Mumbai as the first step in Project 075 (Project 075A), with an additional nine
boats as an (unlikely) option. The original schedule called for the first boat to be delivered in 2012
and the entire class to be in service by 2017, but the programme appears having been delayed by
difficulties with the technology transfer package.
The IN, in conjunction with Mumbai‐based private contractor Larsen & ‘Toubro, plans to build three
to five additional ballistic missile submarines (SSBNs) by 2015‐17 and develop submarine‐ launched
cruise missiles (SLCMs) with ranges of more than 1,000 km under a classified programme of the
state‐run Defence Research and Development Organisation. The IN currently has 44 ships and
submarine son order, 39 of which are being indigenously built, as the navy has taken the lead over
the other two services in indigenising and privatising its equipment requirements. These include
two aircraft carriers, nine destroyers and frigates, six submarines, four corvettes, one tanker, three
offshore patrol vessels, 10 fast attack craft and eight additional combatant and auxiliary boats.
INDONESIA
Two new patrol craft were launched in January 2009, tentatively assigned the designation KRI
“Tarihu 827” and “Tarihu 829” to be commissioned into the Western Fleet Command. The Secretary
General for the Defence Ministry, also announced in January that the Ministry had decided to
postpone the purchase of two Russian‐made submarines that it had intended to purchase for the
Indonesian Navy as part of its 2004‐2009 Strategic Plan.
The purchase would instead be incorporated into the 2009‐2014 Strategic Plan. However, the Navy
expected the government to initialise the purchase and sign the contract this year.

ITALY
Italian shipyard Fincantieri announced a follow‐on order for a second batch of Todaro‐class
submarines in August 2008. Construction is to start in 2010 and the boats are due to be delivered in
2015 and 2016.
The Italian carrier “Cavour”, now undergoing sea trials and close to commissioning, will have a
double role as both traditional aircraft carrier and amphibious carrier.
This year marks another major milestone win the Franco‐Italian Horizon project, which will see two
of the PAAMS (Principal Anti‐air Missile System) – equipped anti‐air warfare (AAW) surface
combatants enter service by the end of 2010. The first‐of‐class ITS Andrea Doria was delivered by
Fincantieri in December 2007 and is due to achieve full operational capability this year. The second
ship, ITS Caio Dulio, was delivered on the 23rd April 2009 and is to become operational in 2010.
The Itailian Navy is to receive up to 10 of the next‐generation Bergamini‐class 6,000‐ton AS and
general‐purpose frigates from 2012 to replace Maestrale‐ and Artiglieri‐class frigates that entered
service in the 1980s and 1990s and represent the backbone of Italy’s ASW and escort capability. To
date, Fincantieri and partner Finmeccanica are under contract to build a total of six Bergamini‐class
(FREMM) frigates. It remains to be seen whether funding will be forthcoming for the third batch,
comprising four land‐attack‐roled vessels. Construction of the first two Italian “Bergamini” class is
progressing; they were named “Carlo Bergamini” and “Carlo Margottini. The first commissioning for
both French and Italian Navies’ FREMM is expected in 2011, deliveries are scheduled over a five‐year
period until 2016.
While Italy is the home of the internationally successful Intermarine‐designed glass reinforced
plastic (GRP)‐hulled dedicated mine countermeasures vessels (MCMVs), known as the Lerici/Gaeta
class in Italian service, the conceptual idea for the succession of its 12 existing vessels calls for the
acquisition of a larger vessel type better suited for overseas deployments that will remain outside
minefields and clear a path using remotely operated vehicles and autonomous underwater vehicles.
Moreover, the introduction of modular mission systems will allow other surface units such as the
currently projected future corvette, due to enter from around 2018, to carry out MCM tasks. A total
of six vessels, each displacing around 2,500 tons, is expected.
JAPAN
2 DDHM destroyers of the 19DD class are due to replace the Hatsuyuki class ships.
The spearhead of the future JMSDF underwater force is to be represented by the four units of the
SORYU class (originally referred to as Improved OYASHIO or 16SS). The first boat was launched in
December 2007 and commissioned in March 2009, and the remaining three units should enter
service in 2010‐2012, with a possible fifth unit as an option.
MEXICO
2 Oaxaca class OPVs are being built, for commissioning in 2010. A further 2 are planned.

NETHERLANDS
Damen‐owned Schelde Naval Shipbuilding has received a EUR240 million (USD345 million) contract
from the Netherlands’ Defence Materiel Organisation (DMO) to deliver 4 Patrol Ships
(Patrouilleschepen) for the Royal Netherlands Navy (RNLN). These vessels are of the Holland‐class
and are to replace the 6 Karel Doorman class frigates.
The first 2 vessels will be built by Schelde Naval Shipbuilding at its facility in Vlissingen with deliveries
scheduled for between November 2010 and November 2012. Construction of the second pair will
be focused on Damen Shipyard Galatz in Romania under supervision of Schelde Naval Shipbuilding.
The keel for the first ship was laid in December 2008.
The RNLN and Belgian Navy are upgrading their M‐Class frigates. The programme is to be carried
out in 2010‐2012 and includes modifications to operate NH‐90 helicopters, the addition of the
THALES SEASTAR radar, the replacement of the current SEWACO VIIB combat data system with
GUARDIAN MFF, and the addition of low frequency active sonar. The four RNLN “De Zeven
Provicien” class air‐defence frigates will also benefit from a development programme aimed at
providing new operational capabilities.
The Royal Netherlands Navy will upgrade its four “Walrus” class submarines with the second
generation escape system HABETaS®. A contract for the delivery of eight HABETaS® units was signed
on the 3rd June.
NORWAY
While Norway does not have a major warship builder, it has in Umoe Mandal a world‐leading
composite materials shipbuilder with the capability to build innovate designs such as the Skjold‐class
surface effect ships (SES), as well as mine‐warfare vessels, fast patrol craft and small surface
combatants.
Umoe Mandal’s other activities include the maintenance and modification of the RNoN’s Oksoy‐class
minehunters. The company further undertakes preliminary and concept design studies of new
composite ship designs for international customers and was a key team member of the unsuccessful
Raytheon‐led team competing for the US Littoral Combat Ship and, more recently, the US Navy’s TCraft
programme. The Skjold class is the RNoN’s new (NSM‐armed) fast strike craft design, ordered
under the terms of a NOK3.7 billion contract awarded in November 2003.
Norway has launched the upgrade of its six ULA‐class submarines (sometimes also unofficially known
as Type 210) commissioned in the 1989‐92 timeframe.
PAKISTAN
Pakistan is procuring four new frigates of the “Sword” class (F 22 P). The first three vessels are being
built in Shanghai, while the last unit is to be built in Karachi with Chinese technical assistance.

In 2006 Pakistan began evaluating a further procurement programme to enlarge its underwater arm,
as two earlier AGOSTA‐70 boats (HASHMAT class) are quickly approaching the end of their useful
service lives. The contenders were the DCNS MARLIN (an improved and “all‐French” SCORPENE) and
the TKMS Type 214. The latter was eventually selected, and a contract is currently being negotiated.
Three boats will be built in Pakistan, with the first delivery expected by 2014.
POLAND
Two ex‐Navy FFG‐7 frigates were to be replaced with six to seven new Meko A 100‐based Project
621 Gawron II‐class corvettes that are being built by the Stocznia Marynarki Wojennej (SMW)
shipyard in Gdynia. The first corvette, to be known as ORP Slazak, has been under construction since
November 2001 and the hull was expected to be in the water in September 2008. However, the
MND has no funds to cover manufacture of the corvettes for 2009 and 2010.
According to current estimates, the vessels are expected to cost PLN1.6 billion each due to the low
production rate, which was linked primarily to insufficient funding being provided by the MND in
2001‐07. According to current plans no more than three – and, perhaps more realistically, only two
– of the corvettes will be purchased, with the first not being in service before 2017.
Three Orkan‐class (Project 660) fast missile craft have been upgraded at SMW in co‐operation with
Thales Nederland, which provided its Tacticos combat management system. However, the
programme is also yet to be finalised. To maintain some real surface fleet capability, the MND
cancelled the retirement of Poland’s Gornik (Tarantul 1)‐class fast‐attack vessels and an upgrade of
the two remaining ships was ordered. Poland also wants to build new Kormoran II (Project 258)
mine‐countermeasures vessels to replace the once effective but already ageing Project 206FM and
Project 207 vessels.
PORTUGAL
A preliminary contract was signed with Viana do Castelo shipyard in December 2005, for the
construction of 5 OPVs. Designed for EEZ patrol and fishery protection, the ships are to replace the
Cacine class from 2008‐2011.
REPUBLIC OF KOREA
The first LPX helicopter carrier, called “Dokdo”, was launched on July 2005. The LPX class will have
three units. The second‐one (“Marado”) is already being built and should be ready by 2010.
According to local reports, not confirmed by the government yet, a second three ship batch of KDXIII
AEGIS destroyers is going to be ordered, while the second ship of the first batch, ROKS “Yulgok
YiYi” was launched at Daweoo Shipbuilding & Marine Engineering (DSME) last November (Hyundai
Heavy Industries/HHI had built the first‐of‐class ROKS “Sejongdaewang”). South Korea’s order for
the first of its new generation FFX was placed with Hyundai Heavy industries (HHI) last December
26th. Seoul is seeking 24‐27 ships to replace 37 hulls with the lead ship entering service in 2011;
another six joining the fleet by 2015.

The KSS‐2 programme was launched in November 2000 with an order for a first batch of three
TKMS/HDW Type 214 submarines, fitted with fuel cells AIP, to be built by Hyundai Heavy Industries
in Ulsan. The first two boats, SOHN WON‐IL and JEONGJI, have already been commissioned, and the
third unit is fitting out. A second batch of six identical submarines was then ordered in January
2009, under the form of HDW‐delivered packages to be assembled by a yard, that will be selected by
the MoD, boat per boat in a competition between Hyundai and Daewoo Shipbuilding & Marine
Engineering, which already successfully built the nine Type‐209 boats. Daewoo has won the contract
for the first submarine of the second batch, while the follow‐in orders are still pending. The six
boats of the second batch are expected to be in service by 2020.
RUSSIA
The 2,200 ton “Stereguschchiy” frigate is progressing, with 4‐6 follow‐on units at different stages of
construction that may be commissioned in a couple of years. The 3,600 ton “Grom” class is being
cancelled and the “Borodino”, still incomplete after 12 years in the Kaliningrad Yantar Shipyard is
planned to become a training ship and will be offered for sale. The 4,500 ton “Admiral Gorshkov” is
being built at Severnij Verf St Petersburg and is to be commissioned in 2013.
The Russian Naval Staff expects that construction of a nuclear‐powered aircraft carrier will begin in
2012 or 2013. The Navy plans to cut the number of ships from 240 to 123 by 2016.
The Navy is to receive two ‘stealth’ corvettes in 2010 and 2011, a spokesman for the United
Shipbuilding Corporation announced in January. St Petersburg’s Severnaya Verf started construction
of the “Soobrazitelny” in 2003 and the “Stoiky” in 2006. Russia plans to have up to 20 vessels of this
class to ensure the protection of its coastal waters, as well as its oil and gas transportation routes,
especially in the Black and the Baltic seas.
SAUDI ARABIA
Saudi Arabia has a requirement for six frigates to replace the “Madina” class units. The most likely
contenders are variants of the Littoral Combat Ship and the Franco‐Italian FREMM.
SOUTH AFRICA
The Navy Chief of Staff, recently released the Fleet Modernisation programme which has confirmed
reports that South Africa is seeking two amphibious assault vessels (LPH) under project MILLENNIUM
(formerly one strategic lift vessel was envisaged), six OPVs under project BIRO (formerly 10 OPV),
and one hydrographic survey ship under project HOTEL.
Under Project ‘Biro’ – 6 ‘multi‐mission OPVs’ are to be built in South Africa from around 2011.

SPAIN
Spain’s largest naval shipbuilder, Navantia, is striving to embrace new technology. Navantia
launched its second Scorpene for the Royal Malaysian Navy on the 8th October 2008, with handover
due to take place on the 25th October 2009. Navantia, along with French company DCNS, was
awarded a MYR4 billion (US$1.1 billion) contract for two 1,757‐ton submarines in June 2002, with
DCNS building and outfitting the forward sections at Cherbourg and Navantia responsible for the aft
sections. The first boat was named at Cherbourg in October 2007 and is currently undergoing official
sea trails out of the French port of Lorient, that are due to be completed in December. That
submarine will be handed over at the end of January 2009, arriving in Malaysia in August.
The programme has helped Navantia to refine its technology for building four S‐80A submarines for
the Spanish Navy. The four vessels are due to be commissioned by 2016.
The five‐sip Norwegian New Frigate programme –secured in June 2000 and valued at NOK16 billion
(US$2.3 billion) – is Navantia’s most significant export dealt to date. The last vessel is due for
delivery in 2010.
In March2008, Navantia launched its 27,000‐ton amphibious strategic projection ship (Buque de
Proyeccion Estrategica, BPE) Juan Carlos I, which will be the largest ship in the Spanish Navy when it
enters active service in 2009, significantly enhancing the navy’s ship‐to‐shore lift capabilities. Juan
Carlos I, was launched at Ferrol shipyard in Spain on the 10th March 2008 and is being prepared for
sea trials
Navantia is set to build two 27,851‐ton landing platform docks (LHDs) with BAE System Australia,
formerly Tenix Defence, for the Royal Australian Navy (RAN) based on the BPE design. The first
ship’s hull is currently being built in Ferrol and will be transported by heavy‐lift ship to Williamstown,
South Australia, in July 2012 for integration with the superstructure that is being built there, as well
as for outfitting and ship trials. The ship is intended to be operational by January 2014, with the
second due in service 18 months later.
At its San Fernando shipyard near Cadiz, the Spanish Navy’s fourth and final Buque de Accion
Maritima (BAM) offshore patrol vessel (OPV) is being built. It’s launch was scheduled for the 1st July
2009.
In addition, Navantia is constructing four littoral patrol ships for the Venezuelan Navy with the lead
ship, Guaicamacuto, having been launched on the 16th October 2008. Delivery of the four units is
scheduled to take place from August 2009 to July 2011. As part of the same EUR1.7 billion contract
signed in May 2006. Navantia is building four 2,300‐ton Patrullero Oceanico de Vigilancia OPVs for
the Venezuelan Navy that are due to be delivered from Nay 2010 to July 2011.
SWEDEN
The RSwN and Kockums have now completed work on the concept phase of the next‐generation A
26 submarine, two of which were recommended by the supreme commander as a replacement for
the Sodermanland class in the 2017‐18 timeframe. The detailed design contract and then the
construction contract were planned to be signed with Kockums in early 2009 and 2010 respectively.

Delivery of the first two of five Visby class corvettes is expected in December 2009, with the
remaining three due over the next four years.
The refit and modernisation of the first two Koster‐class (modified Landsort‐class) mine‐hunters was
completed in 2008, followed by sea trials. HMS Koster and HMS Vinga are being returned to the
RSwN in March 2009.
The Swedish Navy will begin a major refit of the first A17M “Sodermanland” class air independent
propulsion (AIP) submarines this year. The Swedish Defence Materiel Administration (FMV) has
placed the contract with Kockums for work to be carried out on HSwMS “Sodermanland” at
Musko/Nynashamn Orlogsvarv on Musko Island, south of Stockholm.
TURKEY
There are three major naval related shipyards in Turkey:
• Golcuk Naval Shipyard (GNSY) (Golcuk) – recent work included submarines (Type 209/1200
and more recent Type 209/1400) and MEKO 200TN series (two ships).
• Izmir Naval Shipyard (INS) (Izmir) – now primarily a repair and maintenance yard for surface
ships.
• Istanbul Naval Shipyard (INSY) (Istanbul) – INSY includes the former Pendik that was most
recently building the five (sixth building) “Kilic” class PGM and six “Alanya” class (HV‐54‐014)
MHC; and has the MILGEM Project Office located at the shipyard with first‐of‐class TCG
“Heybeliada” (F‐511) and F‐512 under‐construction there.
Several Turkish shipyards (outside commercial yards specialising in commercial vessels) are actively
involved in marketing their past production ship designs worldwide. These include (all sponsored by
SSM):
• Type 209/1400 mod (“Gur” class) sub – Golcuk Naval Shipyard (NS)
• MEKO 200TN (“Barbaros” class) FF‐ Golcuk NS
• Kilic‐IIB 62m missile patrol craft (PGM) – Golcuk NS
• Modified Lurssen FPB‐57 missile patrol craft (PBM) – two of 57.84m and two of 62.4m
design
• “Alanya” class (M 265) 54m mine‐hunting vessel
• Dearsan/Tuzla 56m 395 tons patrol craft
The Turkish Navy TF‐2000 programme for four air‐defence frigates has been in the headlines for
some time now but is unlikely to start soon.
UAE
UAE Naval Forces will acquire 12 new patrol boats for AED 771.1M (E172.9M) and retrofit the twelve
existing GHANNATHA boats in their fleet for AED164.3M (E36.8M). The first three boats of the new
series will be built in Sweden by Swede Ship Marine, the rest by ADSB.

U.K.
2 Queen Elizabeth class aircraft carriers are being built, with the first due to commission in 2015.
Their escorts will be 6 Daring Class Destroyers, the first of which entered service in January 2009
(replacing Type 42 destroyers).
Specific numbers of the different version of the Future Surface Combatant (FSC) programme are not
yet available, (rumour s indicate ten C1 in service in the 2020‐2029 timescale and eight C2 by 2030‐
2037).
Upgrade programmes continue on 13 Duke Class and 4 Broadsword class frigates, which are planned
to be replaced by FSC.
The UK MoD ordered the first three ASTUTE‐class SSNs for the Royal Navy from BAE Systems in
March 1997. A fourth unit was ordered in May 2007, and three additional units are planned and
expected to be ordered, being built to a “22‐month interval”, providing that the Royal Navy is fully
satisfied with the results of the first batch, and the Treasury is willing to allocate the required
resources. The programme is now running four years late with a significant increase in costs (+47%),
and is sometimes considered as the most troubled defence procurement effort in recent times.
After the early cancellation of the FASM (Future Attack Submarine) requirement, a new MUFC
(Maritime Underwater Future Capability) is being considered for an in‐service date post‐2020.
The famous Cammell Laird name has returned to Birkenhead on Merseyside, re‐established for ship
repairs by Northwestern Shiprepairers & Shipbuilders. In June 2008, Northwestern Shiprepairers &
Shipbuilders Ltd won a £180M contract from the UK Ministry of Defence to maintain 11 of its Royal
Fleet Auxiliary ships. In October 2008 it signed a partnership deal with Italian shipbuilder Fincantieri,
which is bidding to build six supply tankers under the MoD’s Military Afloat Reach Sustainability
(MARS) project.
U.S.A.
The US Navy (USN) has stated that the primary driver of its new proposal on destroyer procurement
is a change over the past two years in its assessment of the future threat environment for navy
ships. In particular, USN officials say they have become more concerned about threats that will be
posed by ballistic missiles, anti‐ship cruise missiles (ASCMs), and diesel‐submarines operating in blue
waters. In addition, China’s plans to build an aircraft carrier indigenously will also increase the
importance of blue water operations.
In light of the changed threat assessment, navy officials state that destroyer procurement needs to
be oriented toward ships capable of BMD, area‐defence anti‐air warfare (AAW) and blue‐water antisubmarine
warfare (ASW) operations.
The USN wants to stop procuring its new Zumwalt‐class (DDG‐1000) destroyer design and instead
resume procurement of Arleigh Burke‐class destroyers (known by the first hull number – DDG‐51).

Instead of continuing with the current programme of record, which calls for procuring five DDG‐
1000s between FY09 and FY13, in order to complete a planned class of seven ships, the USN’s new
proposal is to procure eight DDG‐51s between FY10 and FY15, in a 1‐2‐1‐2‐1‐1 profile. The navy has
suggested that additional destroyers could be procured after FY15, until its planned next‐generation
CG(X) cruiser is ready for procurement. Specifically, it sees a need for 12 additional DDG‐51s and has
stated that procurement of the lead CG(X), which had been planned for FY11, may slip to about
FY17.
The navy says the DDG‐1000 programme is well managed and that the ship is suited for its intended
missions of NSFS and operating in littoral waters. But it is not well suited, it says, for the navy’s new
priorities of BMD, area‐defence AAW and blue‐water ASW operations.
The reported slip in the schedule for procuring the lead CG(X) might have been an additional factor.
The LHA “Tarawa” replacement, LHA, initially known as LHX, will respond to different requirements,
first of all to the growing requirement for aviation spaces caused by the 2015 configuration of the
Marine Air‐Ground Task Force. Together with “Making Island” the lead ship of a series of four will
replace the decommissioned LHA‐3 “Belleau Wood” and LHA‐2 “Saipan”. Additional LHAs (up to a
further 4‐8 ships are being considered) would possibly have other features, which are now being
evaluated.

FY2010 Budget
As anticipated, Secretary of Defense Robert Gates signalled his support for USN’s major surface
combatants.
He stated that the LCS programme’s FY10 funding will accelerate from two to three ships in addition
to shoring up long‐term support for LCS by re‐emphasising the DoD’s commitment to the ultimate
goal of 55 ships.
No changes were made to the successful Virginia‐class programme, which currently calls for one
submarine in FY10 and two boats per year from FY11 through to FY13. The US Navy placed a
US$14Bn multi‐year procurement contract for eight “Virginia” (SSN 774) class attack submarines.
The submarines are being built by General Dynamics Electric Boat as prime contractor and Northrop
Grumman Shipbuilding.
Gates committed USD200 million to fund Aegis conversions of six additional destroyers.
The Ohio‐class ballistic missile conversion programme received a green light to commence in FY10.
We will shift the navy aircraft carrier programme to a five‐year build cycle, placing it on a more
fiscally sustainable path. This will result in 10 carriers after 2040,” he said.

The next generation aircraft carrier with the designation CVN‐21 [earlier CVN(X)] is underway, design
work having begun eight years ago. The first piece of steel was cut in August 2005. The US$5.1 Bn
detail and construction contract was signed on the 10thSeptember 2008. Acquisition cost for CVN‐
21 is expected to be US$11.7 Bn. The keel of the USS “Gerald R. Ford” (CVN‐78) is scheduled to be
laid in late 2009.
The Zumwalt‐class (DDG 1000) destroyer will remain a three‐ship programme if the navy can
negotiate a price to build all three at General Dynamics’ Bath Iron Works instead of sharing work
with Northrop Grumman’s Ship Systems in Virginia.
The Arleigh Burke‐class (DDG51) destroyer fared much better than the DDG 1000. Gates committed
to restarting the DDG 51 programme at Northrop‐Grumman’s Pascagoula, Mississippi, facilities, but
added that DDG 51 restarts may also move to Bath Iron Works if DDG 1000 is further truncated. 27
Arleigh Burke Flight IIA class destroyers are in service, with 7 more being built and a further 8
possible.
The navy’s CG‐X cruiser, which was anticipated to receive funding by FY17, will be delayed “to revisit
both the requirements and acquisition strategy”, according to Gates.
The proposed 11th San Antonio class Landing Platform Dock and Mobile Landing Platform
amphibious programmes will also be put on hold for cost and strategy review.
The Navy is struggling to get acceptable fixed‐price deals for a second Littoral Combat Ship (LCS)
from each of the two shipbuilders this year. Only one of the lead ships has been tested and
accepted by the Navy. And it is probably two years from becoming operational. The second LCS
was supposed to start sea trials in June and might be delivered to the Navy in September.
Unofficial Navy projections for future budgets call for buying four LCS in FY11, five each in FY12 and
FY13, seven in FY14, and nine in FY15. But no one now expects the Navy to have enough
shipbuilding funds for that aggressive schedule.