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 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) faces soaring demand globally and locally for its maintenance, repair, and overhaul (MRO) services, operating at full or near capacity.
To address this, both federal and state governments pledged $360m for a Common User Facility (CUF) to bolster CMP's capabilities, crucial for future defense and maritime industry growth. Urgent collaboration is needed to expedite the CUF's delivery, securing ample funding for the project.
This initiative gains significance amidst heightened geopolitical tensions, emphasising the Indo-Pacific engagement focus. Rapid action is imperative to capitalise on the CMP's potential and meet the escalating market demand in the evolving global landscape.
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 $180 million |
 |
Queensland Government $180 million |
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.
• 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.
• Progresses the Queensland Superyacht Strategy 2018-2028.
Recommendation
To meet rapidly growing demand and realise full economic benefit, the Queensland Government works with the Australian Government to expedite delivery of the Cairns maritime Common User Facility and commit to having an operational ship lift, undercover facilities and hardstands by 2028.
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[i].
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 ensure delivery of the CMP CUF whilst, critically, also ensuring sufficient funding to deliver on the project in its complete scope 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 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 and is currently undergoing a $240m upgrade. This includes infrastructure required to accommodate the new Arafura-class Offshore Patrol Vessels (OPVs), with HMAS Cairns originally identified to home port at least four of the planned 12 OPVs. The recent Federal Government Navy Surface Combatant Fleet review confirmed that acquisition of the OPVs would be reduced from 12 to six. Given the original intention to homeport four vessels at HMAS Cairns, and consistent with Defence’s move to consolidate operations in core geographic locations, HMAS Cairns and the Cairns Marine Precinct, provides Defence with the opportunity to establish Cairns as the nation’s centre of excellence for the OPVs, homeporting and subsequently sustaining all six vessels here.
The potential to homeport, maintain and sustain all six OPVs, in addition to opportunities to accommodate other minor war vessels, further underpins the need to commit to the delivery of the shiplift and ensure the region, and Queensland more broadly, harness the opportunity for expansion of the Defence Industry.
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 as a result of the continuous naval shipbuilding program.
Delivery of the CUF 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 delivery of the CMP CUF as well as ensuring sufficient funding is provided to deliver the full scope of 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.
[i] PricewaterhouseCoopers (2022). Cairns Marine Precinct Infrastructure Investment Detailed Business Case.
Last updated: July 2024
 |
The Honourable Steven Miles MP — Queensland Premier |
|
Expanding the Cairns Marine Precinct with a Common User Facility will ensure Cairns continues to ride a wave of success as northern Australia’s home of vessel repair, maintenance and overhaul. Construction of a Common User Facility will allow local service providers to pursue additional maintenance work from the Royal Australian Navy and Australian Border Force as well as from the private sector. We have a significant opportunity, particularly in the lead up to the Brisbane 2032 Olympic and Paralympic Games, to leverage the growth in the tourism vessel and superyacht sector. We will now seek a cost-sharing arrangement with the Australian Government to ensure more Queensland jobs and economic growth.
|
The Cairns Marine Precinct (CMP) faces soaring demand globally and locally for its maintenance, repair, and overhaul (MRO) services, operating at full or near capacity.
To address this, both federal and state governments pledged $360m for a Common User Facility (CUF) to bolster CMP's capabilities, crucial for future defense and maritime industry growth. Urgent collaboration is needed to expedite the CUF's delivery, securing ample funding for the project.
This initiative gains significance amidst heightened geopolitical tensions, emphasising the Indo-Pacific engagement focus. Rapid action is imperative to capitalise on the CMP's potential and meet the escalating market demand in the evolving global landscape.
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 $180 million |
Queensland Government $180 million |
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.
• 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.
• Progresses the Queensland Superyacht Strategy 2018-2028.
Recommendation
To meet rapidly growing demand and realise full economic benefit, the Queensland Government works with the Australian Government to expedite delivery of the Cairns maritime Common User Facility and commit to having an operational ship lift, undercover facilities and hardstands by 2028.
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[i].
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 ensure delivery of the CMP CUF whilst, critically, also ensuring sufficient funding to deliver on the project in its complete scope 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 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 and is currently undergoing a $240m upgrade. This includes infrastructure required to accommodate the new Arafura-class Offshore Patrol Vessels (OPVs), with HMAS Cairns originally identified to home port at least four of the planned 12 OPVs. The recent Federal Government Navy Surface Combatant Fleet review confirmed that acquisition of the OPVs would be reduced from 12 to six. Given the original intention to homeport four vessels at HMAS Cairns, and consistent with Defence’s move to consolidate operations in core geographic locations, HMAS Cairns and the Cairns Marine Precinct, provides Defence with the opportunity to establish Cairns as the nation’s centre of excellence for the OPVs, homeporting and subsequently sustaining all six vessels here.
The potential to homeport, maintain and sustain all six OPVs, in addition to opportunities to accommodate other minor war vessels, further underpins the need to commit to the delivery of the shiplift and ensure the region, and Queensland more broadly, harness the opportunity for expansion of the Defence Industry.
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 as a result of the continuous naval shipbuilding program.
Delivery of the CUF 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 delivery of the CMP CUF as well as ensuring sufficient funding is provided to deliver the full scope of 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.
[i] PricewaterhouseCoopers (2022). Cairns Marine Precinct Infrastructure Investment Detailed Business Case.
Last updated: July 2024
The Honourable Steven Miles MP — Queensland Premier
Expanding the Cairns Marine Precinct with a Common User Facility will ensure Cairns continues to ride a wave of success as northern Australia’s home of vessel repair, maintenance and overhaul.
Construction of a Common User Facility will allow local service providers to pursue additional maintenance work from the Royal Australian Navy and Australian Border Force as well as from the private sector.
We have a significant opportunity, particularly in the lead up to the Brisbane 2032 Olympic and Paralympic Games, to leverage the growth in the tourism vessel and superyacht sector.
We will now seek a cost-sharing arrangement with the Australian Government to ensure more Queensland jobs and economic growth.
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