Pacific 2012: Opportunity in the Territory | ADM Dec 2011 / Jan 2012
The Defence presence and opportunities for industry in the Northern Territory are set to grow following the recent announcement of Australia-US force posture initiatives. From July 2012, 250 US Marines will exercise and train in the NT on a rotational basis with the ADF. This will increase to 2,500 Marines by 2016-17. There will also be increased rotations of US aircraft through northern Australia as well as the prepositioning of equipment and supplies to facilitate this enhanced cooperation. The strategic importance of Darwin and the Northern Territory will grow further with the anticipated outcomes of the Australian and United States Defence Force posture reviews.
These Defence initiatives are likely to provide opportunities for the Defence support industry in areas of transport and logistics, construction, catering, tourism, retail and repair and maintenance. In recognition of these opportunities, the Northern Territory Government is working to align industry capabilities with the needs of Defence through initiatives such as the Defence Support Hub industry park. Located close to Army’s Robertson Barracks, the 53 hectare Defence Support Hub will enable prime contractors and the growing number of highly capable small businesses to cluster, align capability and deliver valuable support to Defence. The Defence Support Hub is also suitable for the prepositioning of equipment and supplies.
Over the past decade Defence expenditure in the Northern Territory has grown by around 11.5 per cent per annum. With just 1 per cent of Australia’s population, the Northern Territory is home to 10 per cent of Australia’s permanent Defence force personnel, 70 per cent of Australia’s Abrams Main Battle Tanks, 77 per cent of Australia’s Tiger Armed Reconnaissance Helicopters and 70 per cent of Australia’s Armidale Class Patrol Boats. There is also a large number of ASLAVs, M113AS4s, Bushmasters and artillery, and a squadron of F/A-18 Hornets.
The growth of Defence activity in the Northern Territory and the rapidly developing oil and gas opportunities are making Darwin more and more the place to be for defence support businesses.