Public inquiry finds Darwin ship lift costs exploding

THE DARWIN ship lift project costs have escalated from $100 million to $820 million, according to an NT Public Accounts Committee Inquiry.

The committee has flagged significant budgetary exposure, including potential break costs if the project is paused or redesigned, but it also found existing contracts signed before the August 2024 election locked the NT into obligations that limit flexibility.

It was assessing the possibility of making changes without breaching contracts.

The committee was told that dredging for the project was 50% complete, the first caisson template had been lowered and sheet pile driving was underway. The work was originally scheduled to be completed late in 2024.

Key submissions to the committee came from the Department of Trade, Business and Asian Relations, Paspaley Pearls Group, Department of Defence, Department of Logistics and Infrastructure, and construction company Clough BMD.

While Clough’s submission was confidential the other submissions were generally in favour of work continuing on the ship lift.

The Department of Trade was supportive of the continuation of the project which it said would provide strategic infrastructure for NT’s maritime sector, had potential to attract offshore energy and defence contracts, and emphasised long-term economic benefits despite the cost blowout.

Paspaley was cautiously supportive and said the ship lift would reduce reliance on overseas dry docks, although it was concerned about delays impacting fleet maintenance, and asked for clarity on commercial access and pricing.

Defence was neutral but recognised the potential for servicing Border Force and Defence vessels but had made no formal commitment to use the facility and asked for updates on security protocols and operational readiness.

Department of Logistics believed the cost increases were due to scope expansion and market conditions, but claimed governance mechanisms were in place, albeit under strain.

Clough says on its website that the scope of works will include a 26-metre-wide ship lift, 103 metres long and six metres deep, with a lifting capacity of 5500 tonnes.

It will include wet berths (wharves), and additional hard stand area for ship repair and maintenance works.

Clough said the ship lift will have the capacity to lift vessels such as the new fleet of offshore patrol vessels procured by the Australian Defence Force.

It will feature two separate areas, one which will be privately operated and one which will be a common user facility that will enable vessel owners to choose and manage their own service and maintenance providers, which Clough said will enable multiple providers to operate concurrently at the facility.