Tens of billions will be spent on a new defence precinct in Western Australia to get Henderson shipyard ready to service nuclear-powered submarines and build warships.
Defence Minister Richard Marles and WA Premier Roger Cook announced the establishment of a consolidated Commonwealth precinct on Wednesday.
A total 10,000 high-skilled jobs will be created.
The federal government is providing $127 million for a feasibility study over the next three years for planning and design of the precinct, which is likely to cost tens of billions over the next two decades.
The precinct will build army landing craft and general purpose frigates for the navy.
Under the AUKUS partnership, UK and US nuclear-powered submarines will start rotations in WA from 2027, prompting concerns from security experts over the planned timetable.
At least one dry dock will be built, which is vital for depot-level (deep) maintenance of submarines.
Mr Marles said it was unclear what the total cost of the precinct would be, but it was expected to be in the tens of billions.
“This represents the most significant defence industry offering to Western Australia since Federation,” he said.
Defence Industry Minister Pat Conroy said consolidation of the Henderson precinct would “secure decades of continuous shipbuilding in Western Australia, providing generational benefits for locals who play a vital role in keeping Australia safe”.
Mr Cook said it would “rival” the resources sector as one of WA’s main sources of economic growth, economic activity and employment.
A co-operation agreement between the federal and WA governments will develop governance over the precinct.
Plans include a floating dock for in-water maintenance and another for contingencies that could be used for unplanned repairs on nuclear powered-submarines.
The consolidation of the defence precinct is expected to support continuous naval shipbuilding at Henderson shipyard.
The government announced earlier this year, when releasing the surface fleet review, the navy would acquire 11 new general-purpose frigates.
While the first few would be bought overseas, the rest would be built at Henderson.
The government has also previously committed $8 billion to expand HMAS Stirling naval base, south of Perth.
