Originally published by Elizabeth Pike of The Australian.
01.10.2026
The navy’s two largest ships are out of action as maintenance shortfalls undercut the government’s strategy to create a force modelled on the US Marine Corps that would defend the nation’s northern approaches.
HMAS Canberra and HMAS Adelaide have been tied up at Fleet Base East in Sydney for more than two weeks, according to Defence sources, due to issues with their engine propulsion units.
The Department of Defence confirmed the status of the vessels on Thursday following questions from The Australian, revealing a “technical issue” had been identified in the propulsion units of both Canberra-class landing helicopter dock ships.
“This is a unique issue that has not been seen before in this type of propulsion system,” a Defence spokesman said.
“A technical investigation has been conducted, and plans are being finalised to undertake necessary repairs. Defence is committed to resolving this matter as soon as possible.
“Navy continues to meet all of its preparedness requirements.”
Defence would not confirm how long the ships had been out of action, but the department did not dispute it had been at least two weeks, and potentially months.
It is not the first time the LHDs have been out of action since they were acquired just over a decade ago, with power failures leaving both ships unavailable for Pacific disaster relief missions in 2022 and 2023.
Despite recent warnings about the lack of funding for sustainment, issues with the ships have been caused in part by a lack of specialised staff who can fix the “azipod” units.
The latest incident risks undermining the government’s strategy to move to a “littoral” force that can be deployed in the island approaches to Australia, as the country faces what ministers have described as the “most challenging strategic circumstances” since World War II.
The LHDs are the country’s main assets for amphibious warfare, humanitarian assistance and disaster relief, alongside HMAS Choules, a 20-year-old landing ship that was acquired from Britain in 2011 to fill critical gaps in the fleet.
The Australian understands HMAS Choules recently returned from deployment and its crew is on leave, meaning the navy would struggle to respond to an immediate crisis.
At least one of the three ships should be available to go to sea at all times, but the LHDs have consistently fallen short of their availability targets, according to a report by the Australian National Audit Office last June.
The ANAO report found the navy’s operational requirements had been “impacted by shortcomings in the management of LHD maintenance”.
“The LHDs have fallen short of meeting availability targets since 2020-21 and sustainment-related deficiencies and workforce shortfalls have given rise to risks involving critical failures in the vessels, possible damage to navy’s reputation and concerns for the sustainability of the LHDs over the long term,” the report read.
Complications with the azipods – diesel-electric-powered propellers mounted on steerable pods that can be rotated 360 degrees – were flagged when the government acquired the ships more than a decade ago with thousands of defects.
The LHDs were constructed by Spanish shipbuilder Navantia and finished by BAE Systems in Victoria in 2014 and 2015.
The ships, including their 12 landing craft, cost $3.09bn, according to Defence reports in 2019, and they are the largest ships ever constructed for the Australian navy.
Although the Department of Defence reported that issues with the pods had been rectified in 2021, there have been persistent problems with seal failures and oil leaks.
The Chief of Navy also warned as recently as May 2024 that the force was overspending its budget and facing a sustainment funding shortfall of $2.7bn from 2024-28.
Sustainment covers maintenance and upgrades, supply chain management, personnel services and logistics to keep the ships running throughout their life cycle.
According to a minute identified in the ANAO report, the Chief of Navy said the additional funding would be required “immediately” to ensure the fleet was seaworthy and safe, and the navy could meet contractual obligations.
However, according to the federal budget in May, funding for navy sustainment will decline over the next two years, falling from $4bn in 2025-2026 to $3.7bn in 2026-27, and dropping again to $3.6bn by 2027-28.
Funding picks back up to $3.8bn the following year to reach $4.2bn over the forward estimates to 2030.
Sustainment for the LHDs and other navy assets has been underfunded mainly due to the government’s ambitious acquisition program, led by the $368bn AUKUS deal, Defence experts said.
Former Defence Department deputy secretary for strategy, Peter Jennings, said the ships’ lack of availability was “certainly a consequence of Labor’s decisions to cut operational spending”.
“(Defence Minister) Richard Marles failed in all of his arguments to cabinet to get more money for Defence. The truth of the matter is, it’s just not a priority for this government, and the Defence organisation knows it,” Mr Jennings said.
“Of course, the government would deny it, but that’s the truth of the matter.
“They’re trying to deliver the equivalent of 3 per cent of gross domestic product on a budget which is 2 per cent and it just can’t be done.
“At precisely the moment the government is telling us that we’re facing the most critical strategic circumstances since the end of the Second World War, our ability to move our forces is actually very limited.”
Mr Jennings said it was time for Mr Marles and the department to provide a public explanation, as problems with the LHDs were significant and highlighted the “very limited capabilities that we could bring to bear if there was a requirement for a military operation somewhere”.
Mr Jennings also said there was no prospect the ships would reach their service lifespan of the 2050s.
“If you listen to the speeches of Richard Marles and (Defence Industry Minister) Pat Conroy, you’d gain the impression that the Defence Force is in sort of peak fighting condition, and it’s simply not true,” he said.
Strategic Analysis Australia director Michael Shoebridge said the government’s plan to move to a US Marine Corps-style “littoral force” was not credible if the LHDs were out of action.
“If the navy’s two biggest ships are not available for operations and tied up at the wharf, that is not a surprise because the navy and Defence have failed to adequately sustain and maintain these ships for years,” Mr Shoebridge said.
“They were put on notice last year by the ANAO … of the chronic failure to maintain these vessels, and so to find out over a year later that the situation hasn’t improved is appalling.
“And the problem is if Defence can’t effectively maintain its two biggest ships, what confidence can our AUKUS partners have about our ability to maintain nuclear submarines?”
Mr Marles was contacted for comment but did not respond before deadline.
A Defence spokesman said the department accepted all the recommendations from the ANAO report, and actions around transitioning from acquisition had been addressed and completed.