Germany Hardsell Submarine Deal With Australia

March 18, 2016

 The German company competing for Australia's $50 billion submarine contract is ramping up its pitches and lobbying became more intense. Germany is positioning itself as the "safe option" to build Australia's new submarine fleet, arguing it avoids upsetting China. 

 
The German company ThyssenKrupp Marine Systems (TKMS) linked its bid to strategic tensions in the South China Sea. It also said that awarding the contract to Japan could damage Australia's relationship with China. 
 
According to a report in ABC, TKMS positioned itself as a neutral alternative for Australia, caught between its security interests with Japan and the United States, and its trade interests with China.
 
Germany says choosing their boats, unlike Japan's, would avoid inflaming tensions with Beijing.
 
Hans Atzpodien, the German company's chairman, described the Japanese bid as a choice for Australia between its relationship with China, its biggest trading partner, and Japan, its second biggest partner.
 
"Maybe it is an advantage dealing with us not to be in a position where you have to — let's say — decide between certain heavyweights of the Pacific area," Atzpodien said.
 
Germany is proposing to build a variation of its Type 214 submarine, named Type 216, that would take into account Canberra’s long-distance needs. Atzpodien also said Thursday, according to AP, that the company could build all 12 submarines in Australia for about 20 billion Australian dollars ($15 billion) — less than half the cost that Australia had estimated.
 
Germany's ambassador to Australia Christoph Muller used his address to the National Press Club to spell out Germany's growing alliance with Australia.
 
"Germany and Australia have discovered that we are not only liked-minded, but that there are lots of things that we can do with each other and for each other," Muller said.
 
France is offering a diesel-electric version of the Barracuda-class nuclear submarine under construction for the French navy. Japan proposes a longer version of its Soryu-class diesel-powered propulsion system with advanced stealth capabilities.
 
U.S. Pacific Fleet commander Adm. Scott H. Swift told reports in Canberra that the United States would support Australia on any choice of submarine. 
 

Logistics News

GAC to Acquire Quadrant Pacific’s Ship Agency Business

GAC to Acquire Quadrant Pacific’s Ship Agency Business

US East Coast Port Union Strike Threat to Test Shippers' Nerves

US East Coast Port Union Strike Threat to Test Shippers' Nerves

Brazil's Container Port Operator Seeks to Avert 'Congestion' Surcharge

Brazil's Container Port Operator Seeks to Avert 'Congestion' Surcharge

Xeneta: US Importers Caught in a Vicious Circle

Xeneta: US Importers Caught in a Vicious Circle

Subscribe for Maritime Logistics Professional E‑News