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Cairns Marine Precinct Council: Cairns State Electorate: Cairns Federal Electorate: Leichhardt

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Cairns Marine Precinct Council: Cairns State Electorate: Cairns Federal Electorate: Leichhardt INDUSTRY DEVELOPMENT ADVANCE CAIRNS PRIORITIES 2019/20 CAIRNS MARINE PRECINCT COUNCIL: CAIRNS STATE ELECTORATE: CAIRNS FEDERAL ELECTORATE: LEICHHARDT BRIEFING NOTE SUMMARY • The Cairns Marine Precinct is a national defence asset that employs 4600 people. THE ISSUE • A State policy commitment is sought to position Cairns The Cairns Port is a critical enabler of the and an active cruising yacht squadron. The as a Regional Maintenance Tropical North Queensland (TNQ) economy, precinct also plays host to superyachts and cruise Centre for the Royal with the region welcoming the Federal liners visiting the Pacific. Australian Navy. Government’s commitment to base at least To retain its vital workforce and meet the needs • With the HMAS Cairns expansion scheduled four new Offshore Patrol Vessels (OPVs) in of this growing sector, Cairns requires additional to start in 2023, a stage Cairns over the next decade. The sustainment marine maintenance and sustainment capability. 2 Federal commitment and maintenance of vessels in northern This will enable the precinct to continue to is sought requiring two Australia aligns well with existing shipbuilding service Defence, Border Force and industry tranches of investment: (i) $25 million with $1 million commitments in southern Australia, and needs while providing growth, jobs and a secure to be allocated to a precinct- complements the strategic objectives of future for TNQ families. wide business case; and Australia’s Step-Up to the Pacific foreign policy Under an existing $24 million Federal (ii) on completion of the business case, $100 million initiatives. Government commitment, Stage 1 of a Cairns to support delivery of the As a national naval sustainment and Marine Maintenance Precinct upgrade has recommended actions. maintenance hub, the Cairns Marine Precinct delivered wharves, hardstands, slipway • Commitment is also sought currently services vessels from HMAS Cairns, extension and service upgrades. to secure the long term, Darwin, the United States and the Pacific Islands. A commitment of $125 million is now sought continuous maintenance and sustainment programs for The significant Defence and Border Force for Stages 2 and 3, which will lead to significant at least four Offshore Patrol contracts managed out of the precinct ensure increases in precinct capacity and complement Vessels in Cairns. a skilled, permanent marine and engineering the Department of Defence $420 million • Investment complements workforce of 4600 people is retained year- commitment to expand the HMAS Cairns naval the Queensland Superyacht round. The economic significance of the precinct base. Stages 2 and 3 will also complement and Strategy 2018-2023 and is reflected in the shipbuilding and repairs sector support the Queensland Superyacht Strategy the growing Defence requirements of Australia’s specialisation ratio of 24.24 (Cairns LGA). 2018-2023 and the Ports North Master Planning Step-up to the Pacific In addition to servicing Australia’s Defence process. initiatives. fleet, Cairns is home to a large and diverse marine sector with 1603 commercial vessels registered across tourism, fishing and shipping, 1 Department of State Development, Manufacturing, Infrastructure and Planning. Manufacturing Hub Delivery Model: Cairns, Townsville, Rockhampton. November 2018. The specialisation ratio is measured by comparing an industry’s share of total employment in a particular regional economy with the corresponding share of total employment for the overall Queensland economy for a given time period. An industry recording a ratio above 1.2 is considered ‘specialised’ in terms of employment, indicating its comparative importance. NEXT STEPS In November 2019, the Maritime Systems Division announced Cairns as one of three Regional Maintenance Centres for the Australian Navy, with the other two locations being Perth and Darwin. Federal commitment is now sought to secure the long term, continuous maintenance and sustainment programs in Cairns for OPVs, Pacific Patrol Boats, Armidale Class Patrol Boats and Custom Cape Class Patrol Boats to complement existing contracts for BACKGROUND Hydrographic Survey Vessels and Survey The Cairns Marine Precinct has serviced Leeuwin Class hydrographic survey ships Motor Launches. This commitment will: the Defence, Border Force and marine and four Paluma Class survey motor • Leverage the Cairns Marine Precinct’s industries for many years and as home to launches. Cairns also provides support current capability, ensuring value Fleet Base Pacific (HMAS Cairns), is one for Pacific Class patrol boats operated by for money for the State and Federal of the few ports in Australia that can offer neighbouring Pacific nations. Governments the Department of Defence significant To develop additional wharf space and • Support job creation and economic expansion opportunities in berth and land support infrastructure within HMAS Cairns, growth for TNQ facilities. the Federal Government has pledged • Offer a continuous Naval patrol boat Under the Security of Critical $420 million through the Navy Capability sustainment solution Infrastructure Act (2018) the Cairns port Infrastructure Sub-Program to support the • Provide industry continuity and sustain is a critical national infrastructure asset. delivery and home porting of the Arafura marine capability to service Step up to the It is the northern-most naval base on the Class OPVs. $300 million will be invested Pacific project initiatives from Cairns eastern seaboard and plays a key strategic in initial upgrades to construct new facilities • Support ongoing innovation and role in Australia’s northern naval capability. at HMAS Cairns, with works to commence development of marine industry expertise In acknowledging this role, in 2017-2018 early 2023 and be completed by 2025. in northern Australia the Federal Government committed to It has been calculated that for every In addition, to ensure that Cairns Marine upgrading the precinct through staged dollar spent on Defence in Cairns, the Precinct infrastructure meets the future needs investment. multiplier effect equates to over $5 in of Defence and industry, Federal investment HMAS Cairns employs about 900 other sectors of the economy. A Defence is sought for Stages 2 and 3 of the precinct Navy and civilian personnel, and provides investment of $420 million will therefore upgrade. Stage 2 requires $25 million, with administrative, logistic and maintenance have an impact of $2 billion on the TNQ $24 million to be shared across each of the support to nine homeported vessels, economy. three slipways in 2020 and $1 million to consisting of one Armidale Class patrol be invested in developing a precinct-wide boat, two Cape Class patrol boats, two business case. Stage 3 requires $100 million to support delivery of the recommended actions. • That the Department of Defence delivers on the initial $300 million upgrade of HMAS Cairns by 2025, with the remaining $120 million to be invested ESTIMATED by 2026 to support the home porting of at least four, and preferably six, PROJECT COST 2020- 2021- 2022- 2023- 2024- 2025- Offshore Patrol Vessels (OPVs), including associated sustainment and $545M 2021 2022 2023 2024 2025 2026 maintenance work. • That to further develop the Cairns Marine Precinct, the Federal Government Recommended commits $125 million for stages 2 and 3 of the precinct, delivering a stages 2 and strategic national Defence asset that meets the security needs of Australia in $25m $100m - - - - the Pacific region. 3 investments • That the Federal Government commits to a long term, continuous Recommended maintenance and sustainment industry for Defence and Border Force vessels $70m $100m $100m $100m $50m Defence Investment in Cairns. • That the Queensland Government adopts and promotes a policy position strongly supporting Cairns as a Regional Maintenance Centre for the Royal Australian Navy. • That through the Ports North Master Planning process, the Queensland Government delivers a strategic roadmap for Cairns that caters for the long- term needs of Defence and industry. PATHWAY TO PROSPERITY.
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