From customer to catalyst: anchoring Australia’s northern marine industry through government procurement

To turn northern Australia’s marine potential into performance, the Australian government must stop acting as a passive regulator and start acting as an active customer. Procurement is power, and in thin, undercapitalised markets such as northern Australia, government spending decisions don’t just buy services—they shape ecosystems.

Darwin is no longer just a forward-operating base on the map—it’s a strategic hinge point in Australia’s defence posture. The challenge is not whether we should develop defence sustainment capability in the north; it’s how to do it rapidly, credibly and in a way that anchors long-term national resilience and commercial viability.

Despite significant investments, including the Darwin Ship Lift and Defence’s Regional Maintenance Centre North, the northern marine industry remains more promise than powerhouse. The core problem is simple: while the infrastructure is coming online, the demand signal is weak. The market doesn’t respond to vision statements; it responds to contracts.

Defence and Australian Border Force vessels deployed in the north are routinely sent thousands of kilometres south for scheduled maintenance. This approach is inefficient and sends a damaging signal to the private sector: Darwin isn’t trusted, isn’t ready, or isn’t worth the investment. The result? Hesitancy, delayed decisions, capital withheld and a fragile ecosystem.

Fixing this doesn’t require new legislation or budget allocations. It requires a shift in intent: a strategic, procurement-first approach that uses existing capability in the north as the default, not the exception. If the government wants to catalyse sovereign marine sustainment in Darwin, it needs to start writing that future into its contracts.

This means embedding Darwin-based maintenance, repair and overhaul as the preferred pathway for vessels operating in northern waters. It means using the Darwin Ship Lift and Regional Maintenance Centre as first-choice infrastructure—not fallback options. It means tying procurement to outcomes such as Indigenous participation, local workforce development, and Northern Territory content, including production and materials.

None of this requires lowered standards or acceptance of higher costs. It’s about recognising that sustainment spending is not just transactional, it’s strategic. A dollar spent on a marine contract in Darwin does more than keep a vessel afloat; it supports apprenticeships, keeps local engineering firms viable, deepens industrial know-how and builds a defence-relevant skills pipeline. It is capability creation, not just capability maintenance.

To unlock this, the Australian government should take three practical steps.

Firstly, it should adopt a Darwin-first sustainment principle for all northern operations, with local capacity used by default for all maintenance work on vessels based or operating in the north.

Secondly, it should break down large prime-led contracts into modular work packages, enabling NT-based small and medium enterprises to compete, build capability, and scale over time.

Thirdly, it should set clear and enforceable NT content targets, including Indigenous employment benchmarks and training pathways, as core contract requirements for marine work delivered in the north.

Each of these actions sends a strong market signal. They say to the private sector: Darwin is not a fringe location. It is central to Australia’s forward defence strategy. It is where opportunity lives.

This matters because sovereign capability cannot be legislated into existence. It is built day-by-day through skilled labour, companies willing to invest, planners willing to take risks, and the quiet machinery of industrial development. The government’s role is to create conditions in which those actors believe there is a future worth showing up for.

Policy doesn’t do that. Procurement does.

Border Force and Defence already have the demand. They need to resolve the issue of aligning procurement with national strategic objectives. If they do, the results will be transformative—a more resilient supply chain and a northern marine industry that underpins Australia’s Indo-Pacific engagement, regional presence and sovereign sustainment.

The opportunity is there. The infrastructure is coming online. The talent is waiting. What’s needed now is a clear and confident demand signal from the government: Darwin is not a sideline. It is the front line.