Skip to content
NSM secures Landing Helicopter Dock (LHD) contract

Naval Ship Management secures innovative naval sustainment program that delivers for Australian industry.

Naval Ship Management (NSM), Australia’s first and only dedicated warship sustainment company, has been awarded the sustainment program for two Landing Helicopter Docks (LHDs) at the Garden Island Defence Precinct in NSW, following a competitive bidding process.

The announcement made today by Minister for Defence, the Hon Christopher Pyne MP, confirmed NSM will provide the sustainment and support of two Canberra Class LHDs and 12 LHD Landing Craft (LLCs).

The program worth approximately $1.5b over 15 years, will commence from July 2019 after an initial six-month phase-in period, and will support over 1,000 direct and indirect jobs across Australia.

Joe Smith, General Manager of NSM, said:

“We are very proud to have been selected for this critical long-term responsibility. Working with the Australian Defence Force, we will bring our culture of responsiveness, transparency and collaboration to the job. Above all, we are committed to the sustainment and safety of the operations.”

Within the contract, NSM has committed to maximising opportunities for Australian industry through engaging their existing supply chain and working with potential new Australian suppliers.

Smith said, “NSM is committed to supporting small-to-medium sized businesses throughout the Australian maritime industry and will be engaging them on new supply opportunities as a result of the win”.

Minister for Defence, the Hon Christopher Pyne MP, said, “This new agreement will give the Australian Defence industry more certainty and encourage investment in both industry infrastructure, capability and jobs. He added, we are looking forward to working with them to ensure the continued safe and reliable delivery of the LHD assets.”

NSM Chairman, Andy Davis, has offered his congratulations and support to the team. He comments, “the JV between UGL and Babcock is successful because we can draw on the best capabilities from each, resulting in outcomes that are best for NSM and best for Defence.”

Naval Ship Management (NSM) Australia was formed in 2010 as a Joint Venture between Babcock and UGL. In 2022, Babcock acquired the remaining shareholding in NSM. NSM is now fully owned and trades under Babcock.

Have a media enquiry?

Please contact the Media Relations Team.