SEA POWER INTERNATIONAL

Viking Submarine Program Moves Forward

By AMI International

On Oct. 6, 2003, Kockums Naval Systems (owned by Germany's HDW) signed a contract with the Swedish Defense Material Administration for the next phase of the Viking Submarine Project. The $16.8 million contract covers part two of the project definition phase, which will run through the end of 2004. Part two involves the development of a balanced technical and economical basis for a decision on all follow-on phases of the program.

Kockums' share of the part-two contract is worth $13.8 million, and the company has also signed a subcontract with Odense Steel of Denmark for the remaining $3 million. Both companies share the majority of the work in which six submarines are to be procured for the Danish and Swedish navies. Sweden will procure two submarines beginning in 2006 (scheduled for commissioning in 2010 and 2011) and Denmark will procure the remaining four beginning in 2007 (scheduled for commissioning 2011 through 2014).

The Viking project is an interesting case study in the environment of competition in today's naval defense exports in that a government policy of protecting one's defense industrial base continues to override the issue of competition and EU consolidation. Denmark and Sweden are prime examples given that, even though both nations are two of the smallest in Europe and are cooperating in the Viking project, there is still a competition with the larger industrial bases such as Germany.

Although Sweden's Kockums is owned by Germany's HDW, Sweden is determined to maintain its own industrial base at Kockums as well as the long-term employment benefits that accompany it. The same can be said with Odense Steel in Denmark, a country with a small defense industrial base, where it is considered critical for the nation to maintain a naval shipbuilding capability. It must also be reasoned that other Swedish and Danish companies such as SaabTech and Terma will play major roles in outfitting the future submarines as well.

Eurocopter Panther Helicopters Bound for Mexican Navy Service

On Oct. 13, 2003, the Mexican navy signed a contract with Eurocopter to buy two AS 565 Panther helicopters (aka Dauphin), with options for eight additional units at a later date. The two units under contract are to be delivered by 2005. Procurement of the Panther helicopters will add to the Mexican navy's existing fleet of MD 902 Combat Explorers, MBB BO 105s, and AS 555 Fennec helicopters.

The Mexican navy continues to modernize and expand its helicopter fleet, as it commissions Justo Mendez-class offshore patrol vessels and plans for a follow-on class, which will also host naval helicopters. The Mexican navy may exercise the option for the additional helicopters beginning around 2005 or 2006, in preparation for the deliveries of the follow-on offshore patrol vessels beginning in 2008.

Vietnamese Navy to Order Additional Fast Attack Craft

In mid-October 2003, the Vietnamese navy ordered 10 additional fast attack craft from Russia's Vympel Design Bureau. The agreement with Vympel apparently covers the cost of 10 vessels that would be built under license at the Saigon Shipbuilding Company in Ho Chi Minh City, Vietnam. The design of the 10 new fast attack craft is based on the Tarantul III (Molniya) design and known as the BPS 500-class in Vietnam.

The Vietnamese navy took delivery of the first unit of the class from Saigon Shipbuilding in 2001 and expects the second unit to be delivered by the close of 2004. Construction of a third unit probably will commence in 2004 following the delivery of the second unit. Vietnam is taking advantage of the very low cost of indigenous construction within its borders as well as expanding its shipbuilding base as it attempts to modernize its naval force.

Dutch Submarine-builder RDM Markets Morays to Indonesia

In mid-October 2003, RDM submarines are being offered to Indonesia to fulfill that nation's submarine requirement. One aspect of the Indonesian navy's modernization plan is for the acquisition of at least two submarines from South Korea by 2008. However, industry sources indicate that there may be an alternative plan on the table, with the Indonesian navy also being offered two new-construction Moray submarines by RDM, marking the second time that the Moray has been offered to Indonesia, with the first being in 1994.

As an interim measure until the Moray-class could be delivered, the Indonesian Navy may take possession of two Zwaardvis-class submarines (formerly of the Royal Netherlands Navy) that have been stranded in Malaysia since 2000. The two Zwaardvis-class submarines were shipped to Lumut Naval Base in Malaysia under a private venture between PSC-Naval Dockyard and RDM, apparently under the same circumstances that Indonesia is being offered the submarines, as an interim measure until new-construction Moray-class submarines could be delivered.

The entire Malaysian Zwaardvis/Moray deal was subsequently canceled in January 2002, when the Malaysian navy selected the French Scorpene design. The cancellation of the Zwaardvis/Moray deal puts even more pressure on RDM as it has still not been able to sell the Moray design, which once was hoped to be a success on the foreign market. Failures in Indonesia in 1994, Egypt in 2000, and Malaysia in 2002 have raised questions over the Moray design, as most foreign navies are putting forth the requirement of a proven hull before purchase.

RDM hopes to make a sale to the Indonesians. However, the Indonesian navy has already publicly announced their desire to procure the South Korean Type 209 submarines, when they are replaced by the Type 214s in 2007 and 2008. The Indonesian navy currently operates two Type 209 (Type 1300)-class submarines and it would be easier to integrate the South Korean Type 209s than the Zwaardvis and Moray designs.

AMI International, Inc., Bremerton, Wash., is an international consulting and naval intelligence services company located on the web as amiinter.com.