OFFSHORE PATROL VESSELS GLOBAL PROCUREMENT UPDATE

As we approach the halfway point of 2012, Defence IQ casts an eye over some of the most interesting developments in the international race to acquire naval offshore patrol capability.

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May 2012

In recent years, modern defence forces have widely acknowledged a growing trend in the threat to national security as sea-based. Included is the explosion of maritime piracy, the increased focus on countering smuggling, drug-running and border control, and the rising value of the fishing industry, oil industry and naval trade routes. In addition, the recent conflict in Libya, the tensions in the South China Sea, and concerns across many other regions, all point to an immediate need to secure home shores. As a result, the Offshore Patrol Vessel has become – alongside the Maritime Patrol Aircraft – one of the most significant emerging tools for coastal protection worldwide. Acquisition programmes continue to dominate the immediate priority lists of navy and coastguard commanders, a development that is likely to continue over the next ten years and beyond. As part of our continued coverage of this domain, Defence IQ looks at the movements over just the past few weeks being made in: • South Africa • Nigeria • France • USA • India & Mauritius • Canada

Offshore Patrol Vessels Europe 2012 25 – 27 September 2012, Amsterdam, The Netherlands www.OffshorePatrolVessels.com

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The South African Navy (SAN) has confirmed that it will be building new Offshore Patrol Vessels, having requested options from the international defence industry. The programme, known as Project Biro, released a Request for Information in 2011 and is expected to issue a Request for Quotations before the end of 2012. It includes plans to also acquire Inshore Patrol Vessels. Recent reports suggest that the final roll out will consist of eight OPVs and six IPVs, replacing the current three T-Craft IPVs and three remaining strike vessels. In a nod to modernisation efforts, the new OPVs are expected to carry Autonomous Underwater Vehicles. Taking the same approach as other BRICs countries undergoing modernisation and expansion at this time, the ships will be built indigenously, ensuring that the South African economy benefits directly from the project and that the ability to upgrade the vessels over the coming 30 to 40 years exists on home soil. According to defenceWeb, Rear Admiral Bernhard Teuteberg, the Chief Director of Maritime Strategy emphasised the importance of building not just the ships but the very culture of shipbuilding and maintenance on a domestic level, of which it already has much experience.

“One of the reasons is that only 20 per cent of the cost of an OPV is acquisition,” said Teuteberg. “Eighty per cent goes into the life-cycle of that vessel. We have to ensure that we have the ability in South Africa, to maintain, redevelop if necessary, where necessary, [and] in time.” The Navy will likely be prioritising flexibility and modularity when making its decision on the contract being that it will continue to augment and refit the same platforms for several decades. Of the companies who have sought involvement in Project Biro, several signed a Memorandum of Understanding in 2011 to pitch their vessels for consideration, including DCNS and KND partnering for the French Gowind-class, Veercraft Marine and Navantia for the Avante-class, and a project for the joint powers of Damen and Lurssen Werft.

Defence IQ

Offshore Patrol Vessels Europe 2012 25 – 27 September 2012, Amsterdam, The Netherlands www.OffshorePatrolVessels.com

South Africa puts out call for OPV design

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The Nigerian Navy has signed a deal with China to build two new $42 million Offshore Patrol Vessels in its efforts to take action against the continued concern of maritime piracy around the Gulf of Guinea. Having been personally approved by the country’s President, Goodluck Jonathan, the ships are expected to be 95 metres in length and weigh in at 1,800 tons, carrying up to 70 personnel and enduring up to 20 days of patrol at a time. Other features include a helicopter deck, a 30 mm and 76 mm gun, and two MTU 20V 4000M diesel engines. While the first vessel is to be constructed in China, at least half of the sister ship will then be built within Nigeria to boost shipbuilding skills and benefit the local economy. 10 further OPVs are planned for procurement within the coming decade. As part of the naval expansion programme, Nigeria is also announcing procurement this year of at least three fast patrol craft, six littoral ships, and three coastal patrol craft., all of which will not only help to protect surrounding waters from militants, smugglers and traffickers, but will ward off threats to the oil and fishing activities in the Niger Delta. Last year, Vice Admiral Ola Sa'ad Ibrahim announced the Navy’s acquisition plans to a Defence IQ delegation, stating that the OPV is “a cost-effective platform for achieving improved security in the Gulf of Guinea.” “Key [OPV] objectives are the establishment of a viable relationship with other relationships and navies in support of the Nigerian Navy roles, enhanced stability and extended surveillance capacity with organic helicopters, and an envisaged displacement of around 2000 tons,” he said.

Aside to the vessels being procured under its £269m budget of 2012, Ibrahim also spoke of the vessels the Navy had received at no cost from allied forces – including the former US Coast Guard Cutter Chase, now named the NNS Thunder – which are now also being considered for future purchase under Joint Venture Production, with the Navy “open to discussions on viable proposals.” “It is perhaps a contention that one of the challenges impairing operational availability of platforms in many African navies is limited capacity for ship maintenance and life extension,” Ibrahim stated. “Apart from infrastructure and skill deficiencies, long-term availability of needed spares is also a major constraint…further complicated by the proliferation of acquisition sources from builders and vendors.”

Defence IQ

Offshore Patrol Vessels Europe 2012 25 – 27 September 2012, Amsterdam, The Netherlands www.OffshorePatrolVessels.com

Nigeria ups the stakes with two new OPV contracts

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The French Navy has commissioned its new DCNS funded Gowind-class Offshore Patrol Vessel to begin its three year evaluation period. The ship marks the first step in DCNS’s strategy to win a bigger contract with the French Navy, which should see it now deliver small and medium displacement surface ships, according to analysts. The 87 metre ‘L’Adroit’ successfully saw out its trial period, and boasts endurance of three weeks, speeds of up to 21 knots and a range of 8,000 nautical miles. Designed to remain at sea for up to 220 days, the ship will deploy UAVs, USVs and helicopters during its patrol to counter threats to fisheries, environmental interests and drug trafficking. The vessel has also been described as innovative owing to its ability to deploy fast attack boats for Special Forces in under five minutes, as well as a sensor mast and bridge both boasting 360 degree visibility. Gowind also requires a streamlined 30 members of crew to be at full operational capacity, with space to cater for up to 30 passengers, vital if it is to fulfil its ambition to lead effective in search and rescue or humanitarian missions. Other nations openly looking towards the Gowind to outfit their naval security programmes include Malaysia, which has now made an order for six ships to begin delivery from 2017, and South Africa, which is entertaining the possibility as part of its extensive naval transformation programme, known as Project Biro.

Defence IQ

Offshore Patrol Vessels Europe 2012 25 – 27 September 2012, Amsterdam, The Netherlands www.OffshorePatrolVessels.com

France commissions innovative OPV

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The US Coast Guard has sparked a series of proposals from the shipbuilding industry, having made public its initial requirements for a new Offshore Patrol Cutter programme. The Acquisition Directorate published the draft technical package, with an order for industry interest to be registered by the end of April. The Coast Guard’s current medium endurance cutter fleet is set to be rehauled over the coming years with a total of 25 new OPCs, providing that design and manufacturing costs can be effectively balanced with help from the private industry. Among the draft requirements for the tender is the need for the overseeing of C4ISR integration, human factors engineering, testing, modeling and simulation, and maintenance of a risk management programme. Much of the USCG’s research into the most viable industry partnering offers resulted from engagement at industry events, including the international Offshore Patrol Vessels conference series run by Defence IQ. USCG cutters have hit headlines several times this year for their effectiveness in dealing with rescue operations, including downed aircraft and stricken boats, as well as in the emergency sinking of a Japanese ‘ghost ship’ off the Alaskan coast, which had set adrift after the tsunami disaster in Fukushima last year.

Defence IQ

Offshore Patrol Vessels Europe 2012 25 – 27 September 2012, Amsterdam, The Netherlands www.OffshorePatrolVessels.com

US Coast Guard releases OPV requirements

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The Indian Coast Guard has announced approval to acquire six new Offshore Patrol Vessels to enhance its maritime interests as the country continues to modernise and beef up its national defence capabilities. Budget for the Coast Guard has spiked in the past year as the threat alert of terrorism and piracy remains high. The ICG expects to be at a strength of 200 ships and 100 aircraft by 2018. The new OPVs will be built indigenously by PSU Goa Shipyard Ltd (GSL) and will have helicopter deployment capability. The Coast Guard currently has several Vishwast class OPVs, as well as Sankalp and Samar ‘advanced’ OPVs. The Indian Navy has six active South Korean Sukanya-class OPVs, the same class of vessel in service with Sri Lankan forces. Meanwhile, India-based company Garden Reach Shipbuilders and Engineers Ltd (GRSE) is providing the Mauritius Coast Guard with a new OPV to be deployed from 2014 at a cost of £36.4 million, joint funded with India as part of a 2007 deal to strengthen ties and joint operations. The Mauritian vessel will provide both security and logistical support to the outer islands, supported by an onboard light helicopter and 60 crew members.

Defence IQ

Offshore Patrol Vessels Europe 2012 25 – 27 September 2012, Amsterdam, The Netherlands www.OffshorePatrolVessels.com

India signs off new OPVs

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The Royal Canadian Navy is facing further postponement to its plans to acquire new Arctic Offshore Patrol Vessels, according to papers presented to the House of Commons. The Arctic Patrol Ship Project, announced in 2007 by Prime Minister Stephen Harper, aims to add 6-8 new vessels to the force capable of breaking through ice in the difficult Northern coastlines of Canada, with first delivery by 2015. However, newly released reports suggest that this timeframe has been pushed back to 2018, and initial cost projection of CAD$3.1 billion will rise by $40 million. The vessels, which will have a lifespan of 25 years, were a subject of controversy when announced that they would have a ‘polar class’ of PC-5, which some analysts claimed would not be enough to break heavy ice, despite only six of the nineteen Coast Guard patrol vessels boasting a polar class above 5. The project is part of the National Shipbuilding Procurement Strategy, which aims to support indigenous industry and reintroduce a deep culture of shipbuilding to Canada over the coming decades. Canada’s Federal Public Works Minister visited Irving’s shipyard in Halifax this month to continue negotiations for construction of the vessels in a long-term contract worth $25 billion. The Canadian Navy has recently come under fire for severe delays and rising costs of its submarine programme and resupply ship acquisition, due to an apparent string of cost overruns, technical errors, ageing assets and a degradation of shipbuilding skills.

Defence IQ

Offshore Patrol Vessels Europe 2012 25 – 27 September 2012, Amsterdam, The Netherlands www.OffshorePatrolVessels.com

Canadian Navy hit with three year OPV delay

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Offshore Patrol Vessels: The original, most prestigious and still the world's leading OPV conference. "The annual Offshore Patrol Vessels Conference organized by IQPC has become an important reference world forum concerning the growing use of these naval assets, when senior representatives from different Navies can present and discuss the solutions they have found to reconcile technical issues with operational tasks and budget constraints so as to better accomplish their missions. The multidisciplinary presentations are also an excellent opportunity to get knowledge on new designs and developments from the naval shipbuilding industries, including the platform, its sensors and weapon systems.“

- Rear Admiral Francisco Deiana, Director of Naval Engineering, Brazilian Navy We are now in the midst of our planning for the 2012 event, however, please learn more about our global events, taking place in Asia and South America – visit the websites for more information: 2nd Annual Offshore Patrol Vessels Asia: www.offshorepatrolasia.com Inaugural Offshore Patrol Vessels Latin America: www.opvlatinamerica.com We look forward to seeing you at one of our events! Learn more about our 2011 OPV speakers, or download a few of our free articles and interviews in our Resource Centre.

Conference Dates: 25 – 27 September 2012 Amsterdam, Netherlands

www.OffshorePatrolVessels.com

Offshore Patrol Vessels Europe 2012 25 – 27 September 2012, Amsterdam, The Netherlands www.OffshorePatrolVessels.com

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