AKIPRESS.COM - In a stunning reversal of fortunes, Japan – the onetime front-runner in the multibillion dollar tender to build Australia’s next-generation of submarines – failed in its bid to build the vessels, Japan Times reported referring to Australian Prime Minister Malcolm Turnbull.

Turnbull said the submarines would be built in Australia by France’s state-controlled naval contractor DCNS.

“Defense department experts were unequivocal – the French offer best offered the capabilities needed to meet Australian needs,” Turnbull said at a news conference in the Australian shipbuilding hub of Adelaide.

“We’ve received offers from TKS and the government of Japan, and I want to thank the countries of Japan and Germany for offers which were of very high quality,” he added. TKS is a reference to ThyssenKrupp AG of Germany.

Japan had fallen behind DCNS and TKS in recent weeks, analysts said. Turnbull confirmed that, noting that the Defense Department had given him an “unambiguous” choice for the bid.

The vessels will replace Australia’s aging diesel-electric Collins Class submarines. DCNS’s proposal involves a 4,500-ton conventional-powered version of its 4,700-ton Barracuda, to be named Shortfin Barracuda.

Despite Japan’s defeat, Turnbull said ties with Japan and the United States will remain strong.

Had Japan been selected, the contract would have been a huge boon for Tokyo as it pushes for joint defense development with other countries under new guidelines for the transfer of defense equipment and technology.

News reports earlier said Japan had been “all but dismissed” during a meeting of top Australian Cabinet officials. Tokyo’s bid was viewed as having “considerable risk.”