Australian Government secures acquisition of common user facility


The Australian Government has reached an agreement for the acquisition of the common user facility and its surrounding land from the South Australian Government.    

The State Government has accepted the terms for the sale of Techport to a Federal Government Business Enterprise for a sum of $230m, which will enable swift commencement of submarine, frigate and patrol vessel construction programmes.

As part of the $89bn naval shipbuilding programme, the current deal will enable the government to significantly increase the size of its ship and submarine building facility in Osborne, South Australia.

Finance Minister Mathias Cormann said: “The acquisition of land and facilities at Osborne marks the successful completion of the first stage of the structural separation of the ASC.

“This is a critical step in the Coalition Government delivering on its commitment to a historic, $89bn continuous naval shipbuilding programme in Australia.”

Cormann said that the purchase deal will play a major role in setting the organisational foundation for the shipbuilding programme.

"The acquisition of land and facilities at Osborne marks the successful completion of the first stage of the structural separation of the ASC."

The expanded facility will be wholly owned and operated by the Federal Government following the acquisition, and will be made ready to begin construction of the offshore patrol vessels (OPVs) in 2018.

Australian Defence Industry Minister Christopher Pyne said: “The Turnbull Government is solely committed to delivering its $89bn naval shipbuilding programme on time and on budget in order to deliver the jobs and economic growth to South Australia as soon as possible.”

“The purchase of the common user facility and associated parcels of land at Osborne is an important step in delivering on our commitments to naval shipbuilding.”

Pyne noted that the State Government has agreed to assist the Commonwealth in carrying out the development of the Osborne shipyards.

The State Government support will also involve assisting with relevant approvals, road, rail and emergency services access, and providing utilities and services, in addition to stamp duty relief.