The defence systems are country-specific so as to meet the nation’s security requirements in most efficient manner and at economical terms. All the countries would like to have the defence systems made in their own country for reasons of self-reliance so that plug is not put in time of need. There are variations to this where collaborative developments are in vogue amongst friendly countries. However, the developing nations have not yet reached that comfortable status, and they continue to depend on exports from other countries to meet their defence requirements. This paper will review India’s international export potential in Naval Sector, and what can be done to realise and maximise this potential.

Potential Export Market in Naval Sector

The potential export market in the Naval Sector of interest to India can be summed up primarily in four regions. Firstly, Indonesia-Malaysia-Thailand region. Secondly, Saudi Arabia-UAE-Oman. Thirdly, some ten Latin American countries. Fourthly, other countries.

Indonesia-Malaysia-Thailand Region

Indonesia

Indonesia has projected the requirement of 24 new ships in the coming years. Four corvettes are already being built at Royal Shelde, Vissengen, Netherlands. Consideration is being given to indigenous building of corvettes (1500 tonnes) at PT Pal Surabaya, Indonesia in collaboration with Orrizonte Sistemi Navali S.P.A (Fincantieri) and Italian Navy corvette. Jakarta is seeking a fleet of 22 corvettes by 2024. Some of these corvettes will be built in the country.

The issue of exports in the Defence (naval sector) will need to be backed by the political will of the country. The consortium approach will enable the aim to be realised much sooner. The consortium partners could be the MOD, the Navy and the Shipyard (private/public).

In addition to Royal Shelde, also Blohm+Voss, Fincantieri and Daewoo/Hyundai Heavy Industries of South Korea will be vying to provide the design. Indonesia is also exploring possibility of co-operation with Australia for development of patrol vessels. Indonesia is looking forward to acquisition of two ROK Navy Type 209/1200 class submarines. It is also to modernise and overhaul Type 209/1300 submarines.

Malaysia

Two more frigates have been ordered in 2007 on BAE System Surface Fleet Solutions, Glasgow UK. Earlier two frigates were built at Yarrow Shipbuilders in Glasgow. Now the in-country Labuan Shipyard and Engineering has signed an MOU with BAE Systems for the construction of the frigates for the Royal Malaysian Navy. The construction of the new vessels is likely to be shared between the Yarrow Yard, which is now owned by the BAE Systems and the Labuan Shipyard & Engineering, which has the facility on the Labuan Island of the west coast of Sabah State. There will be Transfer of Technology (TOT) and production knowhow from UK to Malaysia. More than 300 Malaysian engineers will need to be trained in UK yards. Malaysia had traditionally purchased their warships from foreign yards but is now seeking to develop an indigenous shipbuilding capability and capacity. The above frigates are based on the GEC naval systems frigate–2000 design.

In addition to the frigates, six Offshore Patrol Vessels (OPVs)–MEKO A 100 Type are being built by Penang Shipbuilding Corporation and German Naval Group Consortium led by Blohm+Voss.

21 more OPVs are yet to be ordered. Bousted Heavy Industries Corporation (BHIC) is expecting order for building the OPVs of the MEKO 100 design for the Royal Malaysian Navy.

The Royal Malaysian Navy also needs a Multi -Role Support Ship. The contenders for this ship are Hanjin Heavy Industries & Constructions Korea, BAE System UK, DCNS France, Fincantieri Italy.

Two Scorpene class submarines are being built by DCNS France and Navantia Spain. There will be requirement for more submarines.

Thailand

Efforts are underway to acquire two new frigates from UK.

Two OPVs are being built at Shanghai Naval Dockyard in China ordered through China State Shipbuilding Corporation. Four more OPVs are to be ordered in 2008.

One training ship for the Royal Thai Navy is being built at Shanghai Naval Dockyard China. More training ships are to be ordered.

The future naval programme for 2011–2020 include 36 new patrol vessels, light frigates, submarines, amphibious ship, MCMVs and replenishment ship.

Saudi Arabia – UAE – Oman

Saudi Arabia

Request for Proposals (RFPs) for light corvettes are likely to be issued in 2008. It is expected that 8 to 12 such ships will be built. Preliminary presentations are already being made by DCN France, BAE Systems UK, VT Shipbuilding UK, Navantia Spain, Northrop Grumman Avondale, General Dynamics, Bath Iron Works.

Saudi Arabia has also shown interest in Midgets.

UAE

New class of light frigate (Project Yas) for the UAE Naval Forces is being conceived. Abu Dhabi Shipbuilding (ADSB) may be the prime contractor for this programme.

ADSB is presently building six Baynunab- class corvettes for the UAE Naval Forces.

ADSB is looking for overseas strategic partner for Shipbuilding & Naval Support Services.

Oman

Oman has recently placed order for three corvettes for the Oman Navy on VT Shipbuilding at a cost of GBP 400 million. These corvettes are expected to be completed in 2011.

Oman has also issued RFI for new ‘hydrographic survey vessel’. US Naval Sea Systems Command is promoting ship design based on Walton Smith Catamaran design.

Latin American Countries (Mexico, Argentina, Venezuela, Chile, Brazil,Colombia, Peru, Uruguay)

Latin American OPV programme consists of 37 OPVs to be built during 2008 to 2012 in given in table:-

Other International Naval Export Orders

Morocco

Royal Moroccan Navy has given Schelde Naval Shipbuilding of DAMEN Shipyards the order for the design and delivery of three SIGMA (ship integrated geometrical modularity approach) multi-mission frigates. The ships will be delivered by 2012. The SIGMA multi-mission frigates will be an extended version of SIGMA corvettes by adding one or two modules.

Canada

Six to eight Arctic/OPVs at estimated cost of C $ 3.1 billion are likely to be ordered. These ships need to be designed and built ab nitio. Consideration is being given to base the design on Norweign “Svalbard Class.”

Brazil

Brazil is to acquire four Type 214 SSKs. The first one will be built at HDW and the remaining three will be built in Brazil with HDW help.

Analysis of the International Export Market in the Naval Sector

The majority of the international export market in warship building pertains to light frigates, corvettes and OPVs.

Frigates are sophisticated and expensive platforms and represent the smallest surface combatant that can conduct extended blue water missions in a high threat environment. Frigates can range between 2,000-6,000 tonnes. These are designed for one specific role i.e. anti-submarine, anti-air warfare or multi-role design (general purpose).

Also read: India's quest for an indigenous aircraft carrier

Corvettes are well-armed ships with displacement ranging from 600-2,000 tonnes. They are best suited for regional operations and are generally not intended for ocean-going operations. Corvettes are probably the smallest platforms capable of accommodating the sensors, weapons, and combat systems needed to operate in a medium threat environment, including the littorals. The origin of the corvette can be traced down to World War I, when, in order to counter the German U boat menace in littoral waters, the British developed special ‘escort type’ corvettes. Also, in the convoy warfare of the World War II corvettes were used.

OPVs were developed for Navies and/ or Coast Guard missions. An OPV is capable of patrolling the waters of an Exclusive Economic Zone for an extended length of time. By virtue of its mission, an OPV needs to be relatively large (generally over 700 tonnes) to possess the necessary range and sea-keeping characteristics needed for extended offshore patrols. The OPV is often built to commercial standards and is slower (around 20 knots) than corvettes or light frigates. An OPV is generally lightly armed but can carry SSMs and ASW equipment in war time. Some OPVs are built to naval standards with growth margins for weapon upgrades. For smaller navies, the OPVs are main stay of their inventory. Even for larger navies, less costly OPVs may be essential in the future for economical extensions of coverage. The OPV has to span the gap between ‘coast guard’ and naval tasks.