How Chile's Procurement Policy is Boosting Domestic Shipping

Chile is embracing a bold approach to naval defence by prioritising domestic shipbuilding in its fleet renewal programme.
This shift is spearheaded by President Gabriel Boric, who recently signed a ground-breaking national naval shipbuilding policy at the Asmar shipyard in Talcahuano.
The policy highlights Chile's commitment to leveraging local expertise, enhancing self-reliance and fostering its shipbuilding and logistics sector.
A vision for sovereignty
In June 2022, Boric tasked the Ministries of Defence and Economy, along with the Chilean Navy, with drafting a policy to anchor naval construction in domestic shipyards.
The goal is clear: strengthen Chile’s defence industry and assert national sovereignty by reducing dependence on foreign suppliers.
Rear Admiral José Miguel Hernández, Director of Asmar, highlights the ambitious vision of constructing Chile’s first locally built frigate by 2032.
“Asmar has tremendous experience in shipbuilding and it has been building auxiliary ships of different types for more than 60 years,” says José. “But we want to build our own frigates in the next decade. We will be responsible for the detailed engineering and construction of the frigate.
"However, we also require collaboration with associated companies for the integration of necessary systems.”
The policy also accelerates the construction of four multipurpose vessels under the Escotillón IV project, a key component of the Navy’s modernisation drive.
The first vessel is nearing completion at the Asmar yard and will undergo sea trials this year. With the new policy in place, construction of the remaining vessels is set to progress rapidly.
Modernising the navy for strategic challenges
Launched in 2022, the Escotillón IV project is designed to bolster the Chilean Navy’s logistics and transport operations.
The four multipurpose units are built to navigate the Pacific and Antarctic waters, providing critical support for naval operations, humanitarian missions and disaster response. These vessels represent Chile's growing capability to meet complex maritime challenges.
Chile’s recent success in delivering the icebreaker Almirante Viel demonstrates its capacity for building sophisticated vessels locally. The ongoing work under Escotillón IV is expected to further elevate the nation’s shipbuilding expertise and position Asmar as a leader in the region.
President Boric views this policy as integral to Chile’s long-term naval ambitions: “This means that with this we are ratifying our naval vocation.
“Chile has one of the longest coasts in the world. We are the only tricontinental country and we also have an Antarctic vocation, and we intend that our country be understood as the natural gateway to it.”
The role of Asmar in Chile's naval future
Asmar, a state-owned shipyard with more than six decades of history behind it, is central to this vision.
Known for its expertise in constructing auxiliary ships, the shipyard is now poised to take on the more advanced task of building frigates. Rear Admiral Hernández acknowledges the scale of the challenge, but emphasises the benefits of a sustained shipbuilding strategy.
“For Asmar, it is a tremendous challenge to sign this shipbuilding policy because it allows us to generate shipbuilding plans and with this to be able to renew both auxiliary and surface units of the Navy,” he explains.
“This continuous shipbuilding plan undoubtedly gives us the experience and know-how to be able to build these frigates that is a desire of the institution.”
By prioritising domestic production, Chile not only strengthens its defence capabilities but also invests in a thriving maritime industry.
Local shipyards like Asmar gain opportunities to expand their expertise, innovate and collaborate with associated companies to integrate advanced systems into new vessels.
The naval shipbuilding policy highlights a broader strategic goal: building critical defence infrastructure at home while boosting economic growth and technical knowledge.
President Boric’s message captures the essence of this initiative: “Signing this policy is important for Chile’s sovereignty. The policy will help the country rely less on foreign shipyards and build essential defence ships at home.”
Through this initiative, Chile is charting a path toward maritime independence, ensuring that its vast coastline and Antarctic interests are secured by ships built on its own shores.
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