BEATTIE GOVT BACKS MULTI-BILLION DOLLAR SHIP-BUILDING BIDS

Hemmant: The Beattie Government wants to create hundreds of jobs in the maritime industry by winning a big chunk of $8 billion in naval ship-building contracts.

Acting Premier Anna Bligh detailed today that the State Government is taking a lead role in ensuring Queensland is best placed to snare the contracts.

“Just as we have done creating thousands of jobs in aviation over the past eight years we aim to do the same with modern ship building,” Ms Bligh said.

The Acting Premier said the Queensland Government wants a world-class Common User Facility (CUF) established at Hemmant.

The CUF would be a large, sophisticated fabrication and assembly facility that will act as the base for major heavy engineering contracts such as the upcoming naval tenders.

“We are working with Viking Industries and the Brisbane Marine Industrial Park to make sure that this happens.

“Through an industry assistance grant we are making sure they are competitive with the other states,” she said.

Dovetailing with Hemmant is the existing Cairnscross dry-dock, at Morningside, which is already among the largest of its kind in the Southern Hemisphere and one of only two dry-docks in Australia capable of handling large vessels.

“Having the new CUF at Hemmant along with Cairncross, apart from the obvious geographic link, will be strategically important to Queensland’s bid for lucrative Defence Department’s sub-contracts worth $8 billion,” said Ms Bligh.

The two projects Queensland is eyeing are $6 billion for Air Warfare Destroyers and $2 billion for the Amphibious Ships projects.

“In particular, we are targeting the module-fabrication work to be used in building these ships,” Ms Bligh said.

“Queensland, with our ship-building heritage, and because of our proven capability of delivering heavy engineering and steel fabrication projects, is ideally placed to win.

“The valuable experience gained in off-site module-styled construction for Gladstone’s Comalco Alumina Refinery means we are well positioned to capture contracts related to construction, fit-out, systems and through-life support for the ships.”

The Air Warfare Destroyers contract has been awarded to a South Australian firm, with up to 70% of vessel modules to be made outside of that State.

And the successful Amphibious Ships projects tender is expected to be known early next year.

“Queensland is after as much of the work from both contracts as we can get. Our Common User Facility, to be established in conjunction with Viking Industries at Hemmant, will lead the way.”

Local MP, Member for Lytton and Transport Minister Paul Lucas said that the new facility will provide the necessary infrastructure to enable the complete assembly of modules for both the naval ship-building projects.

The modules, up to 500 tonnes each, will be built at Hemmant and then barged or transported to either Cairncross or interstate for final assembly and consolidation.

“Viking Industries Ltd is no new comer. It is a leading provider of facilities and services to the marine industry.

“Its wholly-owned Brisbane Marine Industry Park at Hemmant has been an integral part of the marine industry in Queensland since 1995,” Mr Lucas said.

Ms Bligh said: “The value-added economic impacts for Queensland from winning these two contracts are conservatively estimated at $500-$550 million – $250 million plus for the Amphibious Ships and $200-$300 million for the Air Warfare Destroyer contract.

“But it’s not just the economic gains. The spin offs from the two major contracts have the potential to directly generate about 540 full time jobs each year over the five-year life of the contracts.”

State Government and industry representatives have been in Canberra in recent weeks pushing Queensland’s case hard.

She said that this is an exciting opportunity and we want to ensure that Queensland has the best possible shot at it.

“The two projects should be done in Australia – and in our view as much as possible here in Queensland. We have geared up our skills base for this and other opportunities, and we are keen to now secure the work.

“The Commonwealth should do all in its power to make sure these projects lead to as many jobs for Australians as possible,” said the Acting Premier.

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