Common User Facility
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, towage 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 with the Great Barrier Reef International Marine College delivering various programs to support the future maritime workforce. As the nation’s northern gateway to the Pacific, the Cairns Marine Precinct, plays a key role in capacity and relationship building across the Pacific.
Federal and state governments have committed $387m towards the delivery of a maritime Common User Facility (CUF) to increase the capacity and capability of the CMP, allowing the precinct to capitalise on future defence and maritime industry business. Since the development of the state government’s detailed business case in 2022, ownership and delivery of the project has transitioned to Ports North in late 2024, which necessitated a review into the estimated cost and scope of the project. This review subsequently identified several assumptions and estimates which were inconsistent with the requirements of the project, and required a recast of the cost estimate. This revised estimate was considerably more than the currently committed $387m.
Ports North is now undertaking a reassessment of scoping and cost estimates to ensure the delivery of a commercially viable CUF which meets industry needs.
Providing a platform for the region’s maritime maintenance, repair and overhaul sector to grow is key to the future economic diversification of the region. The Cairns Marine Precinct is poised to foster this growth, possessing a number of competitive advantages including its geographic proximity to the Indo-Pacific, home to HMAS Cairns and one of four strategically located Regional Maintenance Centres (RMC) supported by a strong, established industry.
“This region is a strategic and economic centre for northern Australia and the Common User Facility is at the heart of that critical role” – Hon Catherine King MP, Minister for Infrastructure, Transport, Regional Development and Local Government
In 2023, the Defence Strategic Review (DSR) observed that Australia was facing the most challenging strategic circumstances since the Second World War[ii]. A year on, the National Defence Strategy (NDS) highlighted the further deterioration of our strategic circumstances, in line with trends identified in the DSR[iii]. Central to these documents was the importance of northern Australia – increasing the Australian Defence Force’s ability to operate from Australia’s northern bases and deter potential adversaries from projecting power against the nation. As Australia’s most northern naval base on the eastern seaboard, HMAS Cairns plays a key strategic role in the nation’s defence capability and is currently undergoing a $240m upgrade to its facilities and deliver vital infrastructure required to accommodate the new Arafura-class Offshore Patrol Vessels (OPVs).
In addition to HMAS Cairns, the precinct is 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 fleet. Australia’s plan to double its surface fleet has significant impacts for Cairns which will see a 200% increase in tonnage by 2048[iv].
Cairns’ strategic importance and longstanding status as the premier maintenance and sustainment destination for the region has also seen a significant increase in visitation from foreign Defence and border force vessels with this trend only expected to escalate. The CUF would unlock this increased visitation, supporting and strengthening Australia’s strategic, partnerships, alliances and dialogues such as AUKUS, the QUAD and deepen our strong relationship with the Pacific.
The economic and strategic benefits created by the delivery of the maritime Common User Facility within the Cairns Marine Precinct cannot be overstated. A functional and commercially viable CUF is essential to meet the future capability and capacity requirements to service vessels across the maritime sector (Defence, civil, commercial and tourism).
Funding
This project was jointly funded by the Australian and Queensland Governments on an 50:50 basis. Works were set to commence in late 2023, weather and other circumstances permitting. Accelerated delivery is required.
| Australian Government $193.5 million |
Queensland Government $193.5 million |
[i] PricewaterhouseCoopers (2022). Cairns Marine Precinct Infrastructure Investment Detailed Business Case.
[ii] Department of Defence, Defence Strategic Review, Australian Government, 2023.
[iii] Department of Defence, National Defence Strategy, Australian Government, 2024.
[iv] Department of Defence, Plan Galileo and the Naval Shipbuilding Plan: Fact Sheet, 2024.
Benefits to the region
These projects are expected to generate a range of benefits for the marine, Defence and manufacturing industries, with benefits to flow more broadly through other industries throughout Cairns and Far North Queensland, including:
• Strengthen and diversify FNQ economy, building a more sustainable future
• Increase capability, capacity and competitiveness.
• Protect Australia’s national and geopolitical interests.
• Solidify Cairns as a leading maritime MRO destination.
• Boost job creation and secure future of 4,600 jobs supported by the Cairns maritime industry.
• Attract investment and re-investment.
• Progresses the Queensland Defence Industries 10-year roadmap.
• Supports the 2024 National Defence Strategy; 2023 Defence Strategic Review; Queensland Defence Industries 10-year roadmap; Queensland Superyacht Strategy 2018-2028.
Recommendation
The Australian and Queensland Governments continue to partner to fund and expedite delivery of the Cairns Marine Precinct Common User Facility. Of note, additional funding requirements will be confirmed following endorsement of the Business Case Optimisation Report recommendations.
Last updated: February 2025
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