Common User Facility

The Cairns Marine Precinct (CMP) has continued to face rapidly growing demand domestically and globally, with maintenance, repair and overhaul (MRO) providers operating at or near capacity and struggling to meet market demand¹.

Federal and state governments have committed $360m towards the delivery of a maritime Common User Facility (CUF) to increase the capacity and capability of the CMP, allowing the precinct to deliver on future defence and maritime industry business. Given the work that is currently being turned away, it is now vital federal and state governments work together to accelerate delivery of the CMP CUF whilst, critically, ensuring sufficient funding to deliver on the project is allocated. The importance of this project becomes even more apparent in the context of the current geopolitical environment and increased focus on engagement with the Indo-Pacific.

In April 2023, the Australian Government’s Defence Strategic Review (DSR) outlined the force structure, posture and capability of the Australian Defence Force (ADF) over the coming decades. Key to this and one of six key priority areas identified by the Albanese Government was the need to improve the ADF’s ability to operate from Australia’s northern bases. As Australia’s most northern naval base on the eastern seaboard, HMAS Cairns plays a key strategic role in the nation’s defence capability, currently undergoing a $240m upgrade to accommodate at least four of the 12 Arafura-class Offshore Patrol Vessels.

In addition to HMAS Cairns, the precinct is also home to the first of four strategically located Regional Maintenance Centres (RMC) established under Defence’s Plan Galileo. RMCs are tasked with the ongoing maintenance and sustainment of multiple classes of Royal Australian Navy surface fleet which are expected to be significantly larger and more complex as a result of the continuous naval shipbuilding program. While the tonnage of the fleet is expected to increase by 132% across Australia from 2010-2048, Cairns’ RMC North-East will see the largest increase of 200%². Fast-tracked delivery of the CUF is critical to attracting further home ported vessels, ensuring regional sovereign sustainment capability and benefit to local industry.

This expedited delivery would also see Queensland support and strengthen Australia’s strategic, partnerships, alliances and dialogues such as AUKUS and the QUAD. Cairns’ strategic importance and longstanding status as the premier maintenance and sustainment destination for the region has seen a significant increase in visitation from foreign Defence and border force vessels with this trend only expected to escalate.

In order to meet growing demand and capitalise on these time sensitive defence and maritime opportunities while supporting local industry, it is vital the Queensland Government work with the Australian Government to ensure expedited delivery of the CMP CUF as well as ensuring sufficient funding is provided to deliver the project.

In the interim, the Queensland Government is urged to accelerate allocation of $12m (matched funding) for the city’s three shipyards pledged as part of the Industry Partnership Program. These upgrades are the latest phase of government investment in building sovereign capability in the yards – with ongoing investment required given the significance of the assets in the region.

Sources:
¹ PricewaterhouseCoopers (2022). Cairns Marine Precinct Infrastructure Investment Detailed Business Case.
² https://www.defence.gov.au/business-industry/naval-shipbuilding/plan/galileo