New procurement milestone reached on $515m Darwin Ship Lift Facility Project

Darwin is a step closer to becoming a thriving hub for the maritime services industry for both local and global markets as major construction on the new Darwin Ship Lift facility draws near. 

Since the appointment of the head contractor – the Clough BMD Joint Venture (JV) – last year, the project has reached several milestones including contractors environmental and project development approvals as well as the finalisation of the key design elements for the facility. 

Now, the $515 million Darwin Ship Lift Facility Project has reached a new milestone with the award of the first $16.9 million subcontractor package to local Northern Territory business Wilga Indigenous Corporation. This contract will get the subcontractor to supply approximately 430,000 tonnes of rock for the construction of the facility. 

Over the coming weeks, the head contractor will award more subcontractor packages for further quarry supply, site surveying, site facilities and plant equipment and hire. 

In addition, the Clough BMD JV will continue works on site this month. The head contractor will carry out site clearing activities, dilapidation survey, establishment of temporary fencing and preparation of the dredge disposal ponds at East Arm Port. 

At peak construction period, the project is expected to employ more than 250 workers and an average of 100 workers will be seen on site throughout this stage. Once the Ship Lift is completed, it will help maintain hundreds of local jobs within the maritime support sector, which in turn will help boost the region’s economic growth and stability. 

“The Clough BMD JV is delivering the Darwin Ship Lift Facility Project with a local first approach, and we’re committed to making a positive impact across the Territory through education, jobs, business opportunities and community initiatives. 

“Today, we are proud to showcase our commitment to this approach by announcing the first subcontractor package being awarded to Wilga Indigenous Corporation for one of a number of quarried material supply packages required for initial construction activities. The balance of quarry material supply packages are anticipated to be awarded in the coming weeks. 

“We’re looking forward to getting boots on the ground, with on-site works including site establishment and preparation to commence from early April, to support subsequent initial construction activities of dredging, rock placement for reclamation works and sheet piling for caisson construction. 

“Clough BMD JV’s focus remains on concurrently progressing procurement activities, working closely with the Territory Government to provide opportunities for Territorians to be involved in this milestone project and world-class facility,” Clough CEO Peter Bennett said. 

More work packages are due to be awarded this month, including the contracts for the supply of ship lift and vessel transfer equipment. The upcoming contract awards resulted from a 12-month long international procurement process that shortlisted three international vendors capable of providing the specialist equipment requirements for the Darwin Ship Lift Facility. 

The ship lift and transfer system supply contracts will deliver the new winch system and transfer vehicle to lift ships up to 5,500 tonnes and manoeuvre them around the facility. The highly specialised equipment will be manufactured outside Australia and then shipped to Darwin. 

Over the past 12 months, the project’s engineering consultant WGA worked with the Northern Territory Government along with facility operators Paspaley and the Australian Navy to finalise the design of the Ship Lift through vigorous value engineering, constructability and feasibility reviews. 

The more than half-a-billion-dollar project will deliver: 

• A ship lift 26 metres wide, 103 metres long and with a vessel lifting capability of 5,500 tonnes 
• Wet berths to allow vessels to undertake in-water maintenance 
• Hard stand areas for ship repair and maintenance works 
• Self-propelled modular transporter (SPMT) units that transport the ships around the facility once they are out of the water 
• An administration building, SPMT shed and Blast and Paint Facility 
• East Arm utilities upgrades to support the ship lift and broader marine industry park development 

The Darwin Ship Lift Facility Project is funded by the Northern Territory Government’s $215 million commitment and a concessional loan from the Northern Australia Infrastructure Facility (NAIF) of up to $300 million. 

Several components of the ship lift facility are due to be completed in early 2025 and the balance of work completed in 2025-26. 

“The Territory Labor is investing and creating long term quality infrastructure which will open a new industry within the NT. Getting the project underway has taken time. This is because we have needed to get the best deal for Territorians and make sure we are ready to go full steam ahead on the project. 

“The first $16.9 million subcontractor package has been awarded to a local Territory business, with more to follow shortly. This is the effect major projects like the Ship Lift have on our economy. A positive flow on effect, which will bring millions into the economy each year. It will employ 250 workers at the peak of construction, and will generate and maintain hundreds of local jobs in the maritime support sector. The ship lift is also a key enabling infrastructure for the Territory’s future marine industry park. 

“Work is continuing on the Ship Lift project. It will be built, and create ongoing economic benefits for Territorians,” Chief Minister and Minister for Territory Development Eva Lawler said. 

Source: Northern Territory Government Newsroom; Investment Territory