No tenders yet announced under Australian Government's "strategic fleet" program

Containership at the Port of Brisbane
Containership at the Port of BrisbaneIFM Investors
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The Australian Government's plan to introduce a "strategic fleet" of commercial ships sailing under the Australian flag and crewed by Australian sailors has fallen behind schedule, local media outlet ABC News reports.

The federal government's plan entailed introducing a fleet of newly constructed civilian ships and having these be readily available to support emergencies, crises, and other requirements as stated by the Australian Defence Force (ADF).

Although the ships would be civilian-crewed, these could be requisitioned by the ADF if and when needed. When not requisitioned, the vessels will continue with their regular commercial operations.

A competitive tender was launched and selection of the winning bid had originally been scheduled for early 2025. However, the government has not yet made any announcement to that effect.

The government has also earmarked around AU$21.7 million (US$14.4 million) to be paid to private operators to cover the costs of the vessels over a period of five years.

Angela Gilham, Chief Executive of local advocacy group Maritime Industry Australia, remarked that the delay was "frustrating," though she believes the federal government, "is still behind the project."

Dr Neil Baird, Co-Founder of Baird Maritime, had earlier expressed his concerns regarding the federal government's strategic fleet program.

"As one who has been closely involved with the Australian maritime industry for half a century...I am amazed that no one in government has thought to look at the depressing history of similar arrangements in the past," wrote Dr Baird.

"There have been two examples federally and several in the states. All have had the same catastrophic outcomes for Australian taxpayers. Given what has so far been revealed about this latest proposal, it is impossible to imagine that its outcome will be any different."

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