Babcock JV wins AUD $1.5bn naval contract

Naval Ship Management (NSM), a 50/50 joint venture between engineer Babcock and UGL, has been awarded a new contract by the Australian Defence Force, worth around AUD $1.5bn (£860m) for up to 15 years.

The contract is for an initial five years (with Babcock's share AUD $250m) with the expectation of two further five year extensions.

The partnering agreement, which was won in a competitive process, sees NSM appointed asset steward of the largest vessels in the Royal Australian Navy: two flagship Canberra class landing helicopter docks (LHD) and their 12 associated amphibious LHD landing crafts.

The joint venture will begin the workon the vessels in July 2019, Babcock said.