Ships to shore up jobs

Cairns in line for maintenance contracts

LEICHHARDT MP Warren Entsch says the Cairns maritime industry will be the longrun winners despite never being in the mix to win a new $350 million Defence shipbuilding contract.

The Federal Government has awarded shipbuilder Austal the fast-tracked contract to build six new Cape Class Offshore Patrol Boats (OPVs) to shore up jobs during the coronavirus crisis. The boats – to be used by the Royal Australian Navy – will be built at the Henderson shipyard in Western Australia and bring the total number of the ships operating in Australia to 16.

The decision brings back memories of 2016, when WA beat Cairns to win a $500 million contract to build up to 21 Pacific class patrol boats.

However, Mr Entsch said any new OPVs being built was good news for Cairns, which could expect decades of lucrative maintenance and sustainment contracts throughout their lifetimes.

He said Cairns no longer had an industry capable of building the ships since the State Government refused to act as guarantor on a contract for NQEA to build the $300 million Air Warfare Destroyer fleet in 2009. That refusal led to NQEA’s collapse and the rapid loss of skills, resources and infrastructure to maintain the city’s former status as a shipbuilding powerhouse.

“The more boats that get built, the better our chance to maintain them,” he said. “We will win those contracts and have guaranteed work here for the next 30 to 40 years, at least, under the contracts.

“And there will be no troughs – that is steady work.

“We won the lotto when Cairns was named the northern sustainment hub.”

A critical piece of infrastructure is still missing from the Cairns marine precinct – a 4000-tonne or 7000-tonne syncrolift required to lift OPVs and other large vessels from the water for dry-dock repairs.

Mr Entsch was certain a plan by BSE Maritime Solutions to spend “tens of millions” on such a piece of equipment for common use would eventuate in time for the OPVs’ completion.

The Australian Border Force currently operates eight Cape Class patrol boats, while the navy operates two leased models.