Australia Bolsters Amphibious Capabilities with $2.85 Billion Landing Craft Deal
Australia is significantly enhancing its amphibious warfare capabilities with a A$4 billion (approximately US$2.85 billion) shipbuilding agreement with Austal, announced in late February 2026. The deal will see Austal construct eight heavy landing ships at its Henderson shipyard in Western Australia, addressing a critical gap in the Australian Defence Force’s (ADF) heavy lift and beach landing capabilities.
Addressing a Capability Gap
The acquisition is intended to replace the capabilities lost with the retirement of the Balikpapan-class heavy landing ships. Construction is slated to begin within 2026, with a projected completion timeframe of approximately 12 years. The new vessels will be based on the LST 100 landing ship design developed by Dutch shipbuilding firm Damen Shipbuilding Group, with customizations to meet the specific requirements of the ADF.
Ship Specifications and Capabilities
The new ships will measure approximately 100 meters in length and 16 meters in width, with a full load displacement of 3,900 to 4,000 tons. Each vessel will be capable of transporting over 200 soldiers alongside substantial equipment, including up to six M1A1 Abrams main battle tanks or nine Redback infantry fighting vehicles.
These ships will primarily facilitate the maritime transport of ground combat forces, bolstering the Australian Army’s littoral mobility and logistical support within the Indo-Pacific region. They are designed to operate in conjunction with the Canberra-class amphibious assault ships, with the landing ships handling near-shore delivery of equipment and materials while the Canberra-class ships provide aviation support, command and control, and multi-service coordination.
Strategic Implications
The enhanced endurance and cargo capacity of these ships will support regular transport routes between Darwin, Townsville, and various bases throughout the Pacific. This will expand the ADF’s operational reach within the Indo-Pacific region and support the implementation of the Australian Defence Strategy’s focus on coastal maneuver and northern defense.
Economic and Industrial Benefits
The project is expected to significantly boost Western Australia’s shipbuilding industry, fostering the adoption of digital ship design technologies and improving skilled workforce training programs. Austal anticipates the creation of thousands of direct and indirect jobs spanning areas such as hull construction, propulsion system integration, and electrical systems.
Synergies with US Navy Programs
Austal is simultaneously constructing multi-purpose landing craft for the US Navy at its facility in Mobile, Alabama. The company highlighted the potential for deepened technical exchange between Australia and the United States regarding modular construction techniques, supply chain management, and equipment synergy, given the concurrent construction of amphibious ships in both countries.
On March 3, 2026, Austal delivered the tenth Evolved Cape-class Patrol Boat to the Royal Australian Navy, further demonstrating the company’s commitment to supporting the ADF. On February 23, 2026, Austal announced it continues to add to its Order Book, increasing resilience and diversity. On February 20, 2026, Austal was awarded a ~$4 billion Landing Craft Heavy Contract by the Commonwealth Department of Defence.