Cairns Shipyard Investment
Cairns Marine Precinct
The Cairns Marine Precinct is a critical enabler of the Far North Queensland economy and is central to building a sustainable, diversified future for the region. A leading maritime maintenance, repair and overhaul destination for vessels nationally and internationally, the precinct is home to a large and diverse marine sector including Defence and Border Force, a world-renowned tourism-reef fleet, commercial fishing and shipping, specialist boat builders and an active cruising yacht squadron, while also playing host to superyachts and cruise liners visiting the region. The precinct also offers education and training pathways delivered by the TAFE Great Barrier Reef International Marine College which are building the workforce for the future as well as playing a key role in capacity building across the Pacific.
The Cairns Marine Precinct (CMP) is grappling with rapidly increasing demand both domestically and globally, pushing local maintenance, repair, and overhaul (MRO) providers to their limits. To address the anticipated market needs through 2055, the federal and state governments have committed $360 million towards the development of a maritime Common User Facility (CUF). While this investment promises significant growth opportunities for the region, the CUF is not expected to be operational until late 2028 at the earliest. Consequently, a $12 million investment is urgently needed to upgrade existing infrastructure and support the region’s three major shipyards in the interim. This funding would enhance the precinct's capacity to meet current demand, particularly with the ongoing regeneration of Australia's naval capabilities. Additionally, it would enable the Cairns Marine Precinct to maintain its critical role in supporting the national defence and maritime sectors while advocating for the home porting of at least four Offshore Patrol Vessels at HMAS Cairns.
Benefits to the region
• Strengthen and diversify FNQ economy, building a more sustainable future.
• Increase capability, capacity and competitiveness.
• Solidify Cairns as a leading maritime MRO destination.
• Increase capability, capacity and competitiveness.
• Boost job creation and secure future of 4,600 jobs supported by the Cairns maritime industry.
• Progresses the Queensland Defence Industries 10-year roadmap.
• Progresses the Queensland Superyacht Strategy 2018-2028.
• Supports the 2024 National Defence Strategy.
• Supports Cairns as Regional Maintenance Centre North-East.
Recommendation
The Queensland Government:
1. Invests a final $12m in fixed infrastructure in the Ports North leaseholds held by the three shipyards to deliver additional Defence certified hardstands and increase near-term capability within the Cairns Marine Precinct during the delivery of the Common User Facility; and
2. Advocates to the Australian Government to home port at least four of the six Offshore Patrol Vessels at HMAS Cairns.
The Australian Government:
1. Commits $12m for Stage 2 capacity increases within the city’s three shipyard.
Overview
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 demand.
To meet the forecast market demand out to 2055[i] (based on 2022 DBC), 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. While the CUF will be catalytic for the region, bringing with it significant opportunity, the anticipated date of operation remains fluid, with late 2028 earmarked as the earliest possible date of completion. It is for this reason; further investment is required to provide local industry with enabling infrastructure in the meantime.
With the greatest regeneration of the nation’s naval capability underway since the Second World War, a $12m investment is required to support the region’s three major shipyards to deliver enabling infrastructure and invest in Ports North leasehold, supporting the controlled expansion of regional capability, complementary to the marine precinct’s new CUF while ensuring Cairns, as a nominated Regional Maintenance Centre, will have the capacity to meet demand.
In northern Australia, shipyards are key players with permanent ship repair and maintenance, and in-service support capabilities, including a significant, diverse, and highly skilled workforce in Cairns. This is complemented by the ability to deliver expeditionary services across the north and Pacific regions. As anchor tenants, the shipyards invest in strengthening the broader maritime workforce, facilities, equipment and services. They serve as a vital link for local industry, actively supporting 620 SMEs in the region through the provision of access to projects often without any mark-up or access-fee. A $12m investment would upgrade existing leasehold infrastructure to contemporary standards that meet Australian Defence specifications. This includes additional hardstand capacity that can be made available and operational in 2025, enabling the industry to capitalise on existing opportunity and demand for smaller tonnage vessels ahead of the Common User Facility’s completion.
Consistent with our longstanding advocacy position, we urge the Queensland Government to support industry capability with a $12m investment in the region’s three major shipyards, to meet growing demand and capitalise on time sensitive defence and maritime opportunities while supporting local industry.
Further, to maximise the investment and to ensure a future utilisation of these facilities, Advance Cairns requests the Queensland Government advocate to the Australian Government to home port at least four of the six Offshore Patrol Vessels at HMAS Cairns.
[i] PricewaterhouseCoopers (2022). Cairns Marine Precinct Infrastructure Investment Detailed Business Case.
Last updated: September 2024
The Cairns Marine Precinct (CMP) is grappling with rapidly increasing demand both domestically and globally, pushing local maintenance, repair, and overhaul (MRO) providers to their limits. To address the anticipated market needs through 2055, the federal and state governments have committed $360 million towards the development of a maritime Common User Facility (CUF). While this investment promises significant growth opportunities for the region, the CUF is not expected to be operational until late 2028 at the earliest. Consequently, a $12 million investment is urgently needed to upgrade existing infrastructure and support the region’s three major shipyards in the interim. This funding would enhance the precinct's capacity to meet current demand, particularly with the ongoing regeneration of Australia's naval capabilities. Additionally, it would enable the Cairns Marine Precinct to maintain its critical role in supporting the national defence and maritime sectors while advocating for the home porting of at least four Offshore Patrol Vessels at HMAS Cairns.
Benefits to the region
• Strengthen and diversify FNQ economy, building a more sustainable future.
• Increase capability, capacity and competitiveness.
• Solidify Cairns as a leading maritime MRO destination.
• Increase capability, capacity and competitiveness.
• Boost job creation and secure future of 4,600 jobs supported by the Cairns maritime industry.
• Progresses the Queensland Defence Industries 10-year roadmap.
• Progresses the Queensland Superyacht Strategy 2018-2028.
• Supports the 2024 National Defence Strategy.
• Supports Cairns as Regional Maintenance Centre North-East.
Recommendation
The Queensland Government:
1. Invests a final $12m in fixed infrastructure in the Ports North leaseholds held by the three shipyards to deliver additional Defence certified hardstands and increase near-term capability within the Cairns Marine Precinct during the delivery of the Common User Facility; and
2. Advocates to the Australian Government to home port at least four of the six Offshore Patrol Vessels at HMAS Cairns.
The Australian Government:
1. Commits $12m for Stage 2 capacity increases within the city’s three shipyard.
Overview
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 demand.
To meet the forecast market demand out to 2055[i] (based on 2022 DBC), 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. While the CUF will be catalytic for the region, bringing with it significant opportunity, the anticipated date of operation remains fluid, with late 2028 earmarked as the earliest possible date of completion. It is for this reason; further investment is required to provide local industry with enabling infrastructure in the meantime.
With the greatest regeneration of the nation’s naval capability underway since the Second World War, a $12m investment is required to support the region’s three major shipyards to deliver enabling infrastructure and invest in Ports North leasehold, supporting the controlled expansion of regional capability, complementary to the marine precinct’s new CUF while ensuring Cairns, as a nominated Regional Maintenance Centre, will have the capacity to meet demand.
In northern Australia, shipyards are key players with permanent ship repair and maintenance, and in-service support capabilities, including a significant, diverse, and highly skilled workforce in Cairns. This is complemented by the ability to deliver expeditionary services across the north and Pacific regions. As anchor tenants, the shipyards invest in strengthening the broader maritime workforce, facilities, equipment and services. They serve as a vital link for local industry, actively supporting 620 SMEs in the region through the provision of access to projects often without any mark-up or access-fee. A $12m investment would upgrade existing leasehold infrastructure to contemporary standards that meet Australian Defence specifications. This includes additional hardstand capacity that can be made available and operational in 2025, enabling the industry to capitalise on existing opportunity and demand for smaller tonnage vessels ahead of the Common User Facility’s completion.
Consistent with our longstanding advocacy position, we urge the Queensland Government to support industry capability with a $12m investment in the region’s three major shipyards, to meet growing demand and capitalise on time sensitive defence and maritime opportunities while supporting local industry.
Further, to maximise the investment and to ensure a future utilisation of these facilities, Advance Cairns requests the Queensland Government advocate to the Australian Government to home port at least four of the six Offshore Patrol Vessels at HMAS Cairns.
[i] PricewaterhouseCoopers (2022). Cairns Marine Precinct Infrastructure Investment Detailed Business Case.
Last updated: September 2024
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