Assistant Minister for Immigration and Border Protection Participates in Eighth Cape Class Keel Laying Ceremony

Austal Limited (Austal) (ASX:ASB) is pleased to announce Assistant Minister for Immigration and Border Protection, Senator the Honourable Michaelia Cash, participated in a keel laying ceremony today for the eighth Cape Class Patrol Boat at Austal’s Defence Facility in Henderson, Western Australia.

The vessel, Cape York, named after the northernmost point on the Australian continent, is the last of eight vessels being designed, constructed and sustained by Austal for the Australian Customs and Border Protection Service under a contract valued at approximately $330 million awarded in August 2011.

The first three Cape Class Patrol Boats, Cape St George, Cape Byron and Cape Nelson have already been successfully delivered to enter border protection operations. The fourth vessel, the Cape Sorell, is undergoing sea trials and will be delivered by the end of the year. All eight vessels of the current Cape Class production run are on track to be delivered by August 2015 in line with the original contract.

The keel laying ceremony is a time honoured shipbuilding tradition where three specially minted coins are placed under a keel block as a symbol of good fortune and to bless the ship. These coins will be removed just prior to the patrol boat’s launch.

The three coins for the Cape York keel laying ceremony were placed by Assistant Minister Cash; Austal Vice President Defence Davyd Thomas; and Customs and Border Protection acting National Director Ian Laverock.

At the ceremony Assistant Minister Cash commented on the significance of the occasion and commended Austal’s contribution to the program.

“This is an important milestone for both Customs and Border Protection and Austal, and it is a positive example of the strong working relationship between industry and Government,” Senator Cash said.

“The Cape Class design and construction has benefitted from Austal’s world-leading skills.”

Austal Australia President Graham Backhouse noted the highly collaborative effort between Austal and Customs and Border Protection and the significance of the program to Austal and its benefits to the nation’s economy and border protection.

“The Cape Class program is a great testament to the spirit of enduring relationship between Austal and Australian Customs and Border Protection Service,” Mr Backhouse said.

“The Cape Class is a program of work that underpins Austal’s strategy as a global defence prime contractor of Ships, Systems and Support. It’s a program that contributes widely to our nation’s economy through hundreds of highly skilled jobs in Western Australia alone, with many more employed far and wide. It’s a program that provides our nation with an unrivalled border force capability. And it’s also a program of some $330 million investment by Government that has enabled Austal to drive significant productivity efficiencies across the current Cape Class production run to a greater level than originally thought possible.”

In addition to its role as a defence prime contractor in Australia, Austal is also prime contractor for two major US defence projects - the Littoral Combat Ship (LCS) and the Joint High Speed Vessel (JHSV) - for the United States Navy.

Project Background

Austal was awarded the contract for the design, construction and through-life support of the Cape Class patrol boats for the Australian Customs and Border Protection Service in August 2011. The eight 58 metre aluminium monohulls are due to be delivered between March 2013 and August 2015.

The support contract extends for a minimum period of eight years and encompasses a full range of intermediate and depot level maintenance activities. Further options can be exercised by the Australian Customs and Border Protection Service for In-Service Support for the life of the Cape Class Patrol Boat Fleet.

The Cape Class Patrol Boats will have greater range, endurance and flexibility in responding to maritime security threats than the current fleet.

These vessels will also have enhanced capability to operate in higher sea states and survive in more severe conditions.

The Cape Class Patrol Boats will be able to:

• Undertake 28 day patrols;
• Sail 4,000 nautical miles before having to refuel;
• Combat the full range of maritime security threats;
• Carry a larger crew to more effectively and safely manage boarding operations;
• Identify, track and intercept an extended range of threats in the maritime domain and gather intelligence and store evidence for matters that may proceed to the courts; and
• Launch two Tender Response Vessels simultaneously.

Customs and Border Protection patrol boats may be deployed according to aerial surveillance, community reports and/or radar sightings.

They may be used to:

• Counter people, drug and weapons smuggling;
• Apprehend foreign fishing vessels;
• Gather information and intelligence;
• Monitor environmental pollution; and
• Assist management of offshore nature reserves and marine parks.