It’s time to prepare for a new east coast base for nuclear-powered submarines

In light of the AUKUS agreement, Defence has announced a proposal to develop a new east coast base at one of three sites (one in Queensland and two in NSW) to support the operations of nuclear-powered submarines as well as surface vessels. The acquisition of nuclear-powered submarines opens substantial opportunities to develop resilient, fit-for-purpose bases and precincts to support operations and maintenance. While HMAS Stirling in Western Australia will continue as the west coast submarine base, the new east coast base will be the home port for half of the new nuclear-powered submarine fleet, supported by industry for operations and maintenance. 

The economic benefits to the chosen location will be significant: a spend in the region of $5–10 billion to develop the base, ongoing employment of 3,000 to 5,000 personnel, and an array of industries and services supporting these workers and their families. As an example, the Garden Island Defence Precinct in Sydney injects an estimated $842 million into its local economy annually, with around $286 million in salaries. 

Implementation will be a complex undertaking with resources from Defence, industry, and the community drawn together to support this important development in our nation’s military and industrial development. Therefore, governments, industries and communities that want to embrace an opportunity of this scale need to start planning now, so that they’re prepared once the location of the new east coast base is announced. Making the most of the opportunity calls for supportive policy and future-focused placemaking towards a precinct that may define Australia’s ongoing strategic capability as well as materially increase economic activity. It also calls for consideration of substantial challenges, not just within the precinct but across multiple regions surrounding the base.

Putting supportive policies and plans in place

Site considerations, environmental and nuclear regulations, and industry opportunity all fall within the intersection of federal, state and local government interests and controls. While the nuclear-powered submarine taskforce within Defence, led by Vice Admiral Jonathan Mead, is addressing this in a holistic manner, the path forward will require more than a federal government lens. 

VADM Mead recently highlighted that Defence cannot do this by itself and noted the need for a whole-of-government approach, underpinned by industry and the support of the Australian people. Building the nuclear mindset and social licence will need to be shared across all levels of government through appropriate policies and plans to bring industry and the community on the journey.  

Preparing for industry opportunities and impacts

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Bases work best when they are supported by comprehensive and specialised industry clusters. These clusters have distinct core capabilities that both match and pre-empt the defence asset’s needs. They also provide a supportive framework and ecosystem in which innovation can thrive through collaboration, knowledge sharing, experiences and building relationships that assist in transitioning into novel commercial opportunities. 

These clusters are an important arena in which the sustainable growth of Australian industry capability can be nurtured and supported during the often fraught transition into the global supply chain. They will also strengthen the industry ecosystem, promoting the evolution of an Australian sovereign “mini-prime” which is all important in this era of global competition and the burden of export regulations. 

Australian industry needs to position now so that the proposed east coast base can benefit most from an evolving, fit-for-purpose, specialised and comprehensive industry cluster. 

It is equally important that planning and activity gets underway rapidly to ensure that the right people with the right skills are available in the right place across construction, engineering, strategic capability assessment, nuclear considerations and port functions: not only for the proposed base, but also for industry and logistical support across supply lines. 

Placemaking to sustain thriving communities

A bespoke base that accommodates nuclear-powered submarines requires supporting workforces, industry and communities. While Defence will focus on the base itself and its supporting plans, state and local governments will play a major role in providing or supporting development outside the base footprint. The Australian Defence Force and industry personnel and their families will need liveable infrastructure such as healthcare and education, utilities, retail and local trades. Future-focused placemaking will be fundamental to success. 

It will also be essential to build a robust social licence in adjacent communities, including appropriate transparency and regulation. Real or perceived nuclear risk in communities must be mitigated through fit-for-purpose infrastructure, clear nuclear controls and robust nuclear regulation. Much of this work has already begun at the federal level: the Nuclear-Powered Submarine Taskforce continues to publish relevant information on controls and operations as a critical first step in community outreach and education. VADM Mead highlighted that nuclear safety is paramount and noted the intention to match or exceed US and UK standards, citing a US report indicating “that in 65 years of operation, US Navy nuclear-powered warships and their support facilities have had no discernible effect on public health or the environment”.

Harnessing a generational opportunity

The benefits that can be delivered from a new east coast base are broad and long-lasting. Governments, industries, communities and individuals will benefit from the economic growth. State and local governments and industry leaders have a generational opportunity but must approach it with due care, not only for the development and maintenance of nuclear-powered submarines, but also — importantly — for the people, precincts and places that support them. 

It is not a simple project to develop and deliver a liveable place that can accommodate the industrial nature of a naval base, situated in proximity to a wider Defence network that will also likely require changes to accommodate the shift in infrastructural load. To develop a successful base that meets all the requirements of the new nuclear-powered submarines and creates a thriving precinct, the state hosting the base will require substantial investment and participation from every aspect of the Defence industry, public and private.

The best solution for the state, for industry and for communities is a collaborative approach to understand and balance each other’s requirements. We need to start talking and planning now. 

About the authors

Nick Tate is an integrated infrastructure director based in Canberra. Nick has over 36 years of experience in delivering infrastructure and logistics services for the Australian government, including national strategic infrastructure planning. Nick completed full time service in the Navy as a Captain in February 2022 and now partners with clients to achieve innovative and sustainable solutions. Nick is also treasurer of the Australian Naval Institute.

Louisa Minney is a director and founder of PwC’s Australian Industry Capability Community of Practice, based in Canberra. Louisa is passionate about the industry with over 25 years of experience advising in small to medium enterprise growth for multilateral and Commonwealth organisations including the Asia-Pacific Economic Cooperation, Australian Small Business and Family Enterprise Ombudsman, Asian Development Bank and Australian Defence. She is an experienced company director and is currently chair of Australian Business Volunteers and serves on the ACT committee of the Australian Defence Industry Network. Louisa has also provided over 30 years of service to the Australian Army Reserve, most recently as a subject matter expert in peace operations.