Soaring costs: Finocchiaro Government orders Darwin Ship Lift project investigation

The Finocchiaro Government is having the controversial Darwin Ship Lift project at East Arm investigated. Find out why.

Darwin Shiplift

The Finocchiaro Government is having the controversial Darwin Ship Lift project at East Arm investigated because of ballooning costs.

Originally announced by the former CLP Government as a $100 million project, the cost blew out to $400 million under Labor in 2019, and again to $515 million in 2022.

The government says it has now uncovered that the project is facing significant additional forecasted costs in the order of hundreds of millions of dollars.

Treasurer Bill Yan said the project will now be formally referred to the Public Accounts Committee (PAC) for investigation.

The project at East Arm has seen significant delays and cost blowouts since it was announced almost a decade ago.

The ship lift was first proposed in 2015 by the then CLP Government and delays in its development dogged the NT Labor Government during its eight years in office.

Despite dozens of media statements and events at the East Arm site, the project is still dragging its heels.

Chief Minister Lia Finocchiaro, Treasurer Bill Yan and Attorney-General Marie-Clare Boothby Picture: Fia Walsh.

Embarrassingly in March last year it was revealed that land set-aside for the ship lift project was still under private ownership more than two years after negotiations for a land-swap commenced.

Part of the ship lift’s business case was based on servicing offshore patrol vessels, with the Navy’s fleet service review cut in half from 12 to six.

Mr Yan says the it was time for Territorians to get answers after years of Labor mismanagement.

“The Darwin Ship Lift, originally scheduled for completion by the end of 2024, was meant to be a nation-building project that would anchor our defence, maritime, and manufacturing industries,” said Mr Yan.

“Instead, Labor turned it into a fiscal disaster.”

Mr Yan said that despite the spiralling price tag, Labor pushed the Territory past the contractual point of no return in February 2024.

The project is backed by a $300 million concessional loan from the Northern Australia Infrastructure Facility which the Northern Territory must pay back in addition to the NT government’s direct contributions.

Darwin Ship Lift artist's impression.

“Territorians deserve transparency, they deserve to know why Labor allowed this project to run off the rails,” Treasurer Yan said.

“The referral is necessary given the Territory’s rising debt trajectory with net debt forecast to reach $13.9 billion by 2028–29, this is exactly the kind of project that deserves additional scrutiny

“The Finocchiaro CLP Government is committed growing our defence and maritime industries and this project has significant benefits to the local economy.

“We want to be open and transparent with Territorians on the costs of the project and ensure steps are taken to minimise further delays and cost blow outs,” he said.

The PAC is expected to conduct public hearings and table its findings by September 2025.

Originally published as Soaring costs: Finocchiaro Government orders Darwin Ship Lift project investigation