THE State Government has emerged as a serious contender in the bid to secure lucrative sea-swap and maintenance contracts with the US Navy.
THE State Government has emerged as a serious contender in the bid to secure lucrative sea-swap and maintenance contracts with the US Navy.
Following a meeting with US Navy officials, Minister for State Development Clive Brown has announced that WA is leading the competition to secure valuable contracts with the US Navy.
The $200 million Australian Marine Complex at Jervoise Bay south of Perth is an attractive alternative to Singapore, where the US Navy already carries out considerable maintenance operations on vessels.
Sea-swap operations involve visiting US Navy ships changing crews in port with flown-in personnel instead of travelling all the way back to the US.
These operations would provide a major boost to the already valuable contribution US personnel make to the WA economy.
Mr Brown said discussions in the US last month had led to negotiations regarding the utilisation of the Australian Marine Complex for a greater number of naval operations
“The US has been coming here for many years and it’s already a popular port for servicemen,” Mr Brown said.
“The other issue is a question of doing some work here in terms of the ships and the changeover operations.
“From my perspective there are good synergies between what the US Navy is seeking to do and benefits for WA.”
Another attraction of the Australian Marine Complex in Cockburn Sound was that there currently were no contracts in place, he said.
“It’s not like we need to build a new facility (for the US Navy), Mr Brown said.
“Here’s this facility and there’s no dibs over it.
“It’s not like we have to negotiate and push someone out of the way; we’ve already got a green fields site.
“It’s the beginning of major ship maintenance (in WA).”
In Australia the only major competition for these types of services comes from Hobart.
US Seventh Fleet Detachment WA officer in charge Commander Richard W Tilghman said the Navy could get routine maintenance done in Perth rather than Singapore or back in the US.
“We can get this work done anywhere but we’d rather come here than send a ship all the way back home,” he said.
“We’re looking at having it done here because it’s cheaper, and the other issue is also strategic.”
The maintenance work in Perth will open up doors for other major contracts, such as supplies and provisions for the vessels.
“We do a lot of maintenance in Singapore too,” Commander Tilghman said.
“But I think there’s an opportunity here because you have the infra-structure on tap and that’s very important.
“And I think every company public and private is looking at using their capital more efficiently.”
The announcement that WA is leading the bid for the supply of new operations for the US Navy comes just ahead of the announcement that two WA companies have been short listed for the contract to build the Royal Australian Navy’s replacement patrol boats.
Austal Ships and Tenix Defence, in partnership with Defence Mari-time Services, have been short-listed alongside Newcastle company Australian Defence Industries.
The State Government is disappointed that Strategic Marine in partnership with Babcock Defence Systems Australia did not make the shortlist.
Babcock Defence Systems and JB Facilities Management were recently chosen as the preferred proponent for the Australian Marine Complex.
Following a meeting with US Navy officials, Minister for State Development Clive Brown has announced that WA is leading the competition to secure valuable contracts with the US Navy.
The $200 million Australian Marine Complex at Jervoise Bay south of Perth is an attractive alternative to Singapore, where the US Navy already carries out considerable maintenance operations on vessels.
Sea-swap operations involve visiting US Navy ships changing crews in port with flown-in personnel instead of travelling all the way back to the US.
These operations would provide a major boost to the already valuable contribution US personnel make to the WA economy.
Mr Brown said discussions in the US last month had led to negotiations regarding the utilisation of the Australian Marine Complex for a greater number of naval operations
“The US has been coming here for many years and it’s already a popular port for servicemen,” Mr Brown said.
“The other issue is a question of doing some work here in terms of the ships and the changeover operations.
“From my perspective there are good synergies between what the US Navy is seeking to do and benefits for WA.”
Another attraction of the Australian Marine Complex in Cockburn Sound was that there currently were no contracts in place, he said.
“It’s not like we need to build a new facility (for the US Navy), Mr Brown said.
“Here’s this facility and there’s no dibs over it.
“It’s not like we have to negotiate and push someone out of the way; we’ve already got a green fields site.
“It’s the beginning of major ship maintenance (in WA).”
In Australia the only major competition for these types of services comes from Hobart.
US Seventh Fleet Detachment WA officer in charge Commander Richard W Tilghman said the Navy could get routine maintenance done in Perth rather than Singapore or back in the US.
“We can get this work done anywhere but we’d rather come here than send a ship all the way back home,” he said.
“We’re looking at having it done here because it’s cheaper, and the other issue is also strategic.”
The maintenance work in Perth will open up doors for other major contracts, such as supplies and provisions for the vessels.
“We do a lot of maintenance in Singapore too,” Commander Tilghman said.
“But I think there’s an opportunity here because you have the infra-structure on tap and that’s very important.
“And I think every company public and private is looking at using their capital more efficiently.”
The announcement that WA is leading the bid for the supply of new operations for the US Navy comes just ahead of the announcement that two WA companies have been short listed for the contract to build the Royal Australian Navy’s replacement patrol boats.
Austal Ships and Tenix Defence, in partnership with Defence Mari-time Services, have been short-listed alongside Newcastle company Australian Defence Industries.
The State Government is disappointed that Strategic Marine in partnership with Babcock Defence Systems Australia did not make the shortlist.
Babcock Defence Systems and JB Facilities Management were recently chosen as the preferred proponent for the Australian Marine Complex.
