SYDNEY – Japan, France and Germany are battling in a three-way competition as the race for Australia’s lucrative $50 billion submarine contract draws closer. The National Security Committee is expected to decide within weeks – days even – the winning bidder for its partnership to build the next generation of Australian submarines.

Australia intends to buy 12 new submarines, a centrepiece of its defence strategy unveiled in February, which called for an increase in military spending of nearly $30 billion over the next 10 years to protect strategic and trade interests in the Asia-Pacific.

On Tuesday, the Japanese Soryu submarine, a variant of the submarine that Mitsubishi Heavy Industries and Kawasaki Heavy Industries are offering to build, began exercises in Sydney harbour with Australia’s navy – the first of its kind since 1999.

Despite the presence of the Soryu submarine and a well-attended media tour, Japan’s Chief of Staff Commander Fleet Escort Force insisted the exercise was not a sales pitch.

“We do not have an ulterior motive in having this media conference,” Rear Admiral Ryo Sakai told reporters.

As Japan showcased its submarine, Germany’s ThyssenKrupp AG’s launched an advertising campaign to illustrate its commitment to build the 12 submarines in South Australia.

“The German industry, backed by the German government felt it would be appropriate to explain to the Australian public the nature of the proposal being made,” said John White, chairman, ThyssenKrupp Marine Systems Australia.

ThyssenKrupp is proposing to scale up its 2,000-tonne Type 214 class submarine.

France’s state-controlled naval contractor DCNS has proposed a diesel-electric version of its 5,000-tonne Barracuda nuclear-powered submarine.

Once a bidder has been announced as the winner, there could be another three years of detailed design work and contract negotiation before steel is finally cut.

– with other agencies