US Marines to spend big on Osprey aircraft infrastructure in the Northern Territory

A PLANNED $305.9 million spend on infrastructure in the Territory by US Marines is another opportunity for NT businesses to claw cash from the defence industry

US Marines Corps Ospreys land at Fog Bay in the Northern Territory. The US is believed to be looking to build facilities specific to their Osprey fleet in the NT. Picture: Supplied

A PLANNED $305.9 million spend on infrastructure in the Territory by US Marines is another opportunity for NT businesses to claw cash from the defence industry.

Chief Minister Michael Gunner this week revealed the Americans were seeking the cash to build facilities specific to their fleet of Osprey aircraft.

Australian Industry Defence Network NT chief executive Kerryn Smith said the US had “very different” procurement processes than the Australian Defence Force, but with pre-planning and teamwork, there was money to be made by local businesses.

“I think this is the time we make a call to local suppliers to get engaged in the defence industry here in the region to think about how they can develop their capability and collectively come together to increase our capacity to service those opportunities,” Ms Smith said.

Australian Industry Defence Network NT CEO Kerryn Smith with NT Chief Minister Michael Gunner in Darwin on Thursday. Mr Gunner said the US had been ‘very open’ to working with Australian and Territory businesses. Picture: Keri Megelus

Mr Gunner said the US had been “very open” to working with Australian and Territory businesses.

Mr Gunner took the opportunity to call for a force posture review to evaluate Australia’s defence assets in the North.

“We’ve seen a decline in the amount of defence personnel based in the NT over recent years,” he said.

“I think it’s time to take a review of our forces here in the North and make sure we have the right people and the right equipment in the right spots … I think that’s sensible.”

The number of defence personnel stationed in the Top End fell more than 25 per cent between 2010 and 2018.

Ms Smith said it was time for the Territory to “step up and take its position within the geo-strategic defence and national security market” through projects such as the planned $400 million Darwin ship lift.

“The ship lift offers to us an opportunity to scale up our industrial base and re-establish ourselves for future investment to the region,” she said.

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The Government claims the project will create 100 construction jobs, 400 ongoing jobs and inject $260 million into the Territory economy each year but has not publicly released a cost-benefit analysis.

Despite the optimism, the Territory still isn’t clear on how it will pay for the project. An application for extra funding through the Northern Australian Infrastructure Facility is expected to be decided by the end of the year.