The Northern Territory government's $515 million ship lift project, which had previously faced significant cost overruns and delays, is now progressing as planned. A contract has been awarded to a US company to construct the facility. Construction has commenced at the Middle Arm site, with the ship lift expected to be operational by the end of 2026.
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00:00A half a billion dollar view with a checkered history the government says is now over.
00:08We're determined to have a quality, high quality, shiplift here in Darwin and that's the work
00:13that's underway.
00:14After almost a decade of delay, Darwin's embattled shiplift project, which has seen costs blow
00:21out from $100 million to more than $500 million, is now pegged to see large vessels docking
00:27for maintenance and repairs in two years.
00:30Today we're talking about a $48 million tender that's going to Pearlson, shiplift contracting.
00:36The government says the taxpayer funded facility will be a big boost to the economy.
00:42We think it will be a money maker.
00:43We see it as an industry that's going to grow across Australia, grow worldwide.
00:49It's a project both sides of politics back.
00:52We are in a great place in the Northern Territory and defence wise in a very strategic location.
00:58And a project this size now into the future will certainly benefit the Territory but we
01:02need to make sure that the business case stacks up.
01:05The Navy was a critical and early supporter of the project.
01:09Its ongoing commitment now uncertain with the Chief Minister unable to confirm a contract.
01:15Some of those discussions are happening now.
01:18This Darwin-based defence expert says the project is critical for Australia's security.
01:23It is a response to changes in the geopolitical situation but while I don't think there's
01:28necessarily an immediate threat, the issue is it's an important part of strengthening
01:33defence infrastructure around the country.
01:35Right now larger defence and allied vessels would need to go elsewhere in the country
01:40to have major repair works conducted.
01:43The government says the project will be a jobs boost for the Territory, requiring up
01:48to 250 workers for the construction phase.