By Darian Macey, April 30 2025
As Defence infrastructure in Northern Australia enters a new phase, the sector is reflecting on two decades of investment that have reshaped once-isolated outposts into strategic national assets. But with that transformation comes a fresh set of challenges—ageing facilities, strained supply chains, and workforce constraints—raising important questions about how the next chapter of delivery will be funded, managed, and sustained.
This week I had the privilege of chairing a panel discussion at the ADM Northern Australia Defence Summit, exploring the significant challenges and opportunities facing Defence infrastructure delivery in Northern Australia. I was joined by three exceptional panellists: Raelene Lockhorst from the Australian Strategic Policy Institute (ASPI), Sudantha “Suds” Hettiarachchi from Multiplex, and Brendan Sowry from CPB Contractors.
Decades of Investment and Progress
We began by recognising how far Defence infrastructure in the Northern Territory has come in the last 20 years. From decades of neglect and minimal investment, we’ve witnessed a substantial transformation. Bases that were once little more than remote outposts have become strategically essential Defence assets, driving substantial local economic growth.
I shared a personal story about planning the Bradshaw airstrip many years ago as a young Army lieutenant. At the time, envisioning its future strategic value felt almost like fantasy—but the critical role it now plays in Defence capability is a powerful reminder of the value of foresight and sustained investment.
Current Challenges Remain
However, despite significant progress, infrastructure in the North still faces several ongoing challenges:
- Ageing Facilities: Many bases struggle to meet current operational demands, especially during major Defence exercises.
- Supply Chain Strain: Long distances, limited transport routes, and seasonal flooding frequently disrupt logistics.
- Workforce Shortages: Persistent skill gaps and a transient workforce make project delivery difficult and costly.
- Logistical Bottlenecks: Critical assets like Darwin’s port face constraints limiting Defence’s operational flexibility.
Key Insights from the Panellists
Raelene Lockhorst shared that Defence currently spends $3.9 billion annually on estate sustainment and development, with nearly half of that expenditure focused on the Northern Territory. Yet, transparency remains an issue, and Defence’s complexity and slow decision-making still frustrate industry. She called for a shift towards multi-year, programmatic contracts to increase agility and market certainty, encouraging private sector investment, including from international partners.
Suds Hettiarachchi emphasised the importance of meaningful local industry engagement. For Multiplex, recent appointment to Defence’s Infrastructure Panel–Major Contractors (DIP-MC) creates greater certainty, enabling targeted investment in skills and capabilities. But he stressed that genuine engagement with local SMEs must start well ahead of tendering—not as a last-minute effort. Local subcontractors need sustained attention and confidence-building, particularly given the unique challenges faced by small businesses entering the Defence sector.
Brendan Sowry highlighted the logistical complexity of delivering remote Defence projects. He underscored that remote delivery is fundamentally different to metropolitan construction—every element of supply chain complexity must be considered. Brendan also shared insights from his recent international travel, noting that while Australian procurement practices are comparatively mature, continued improvement is still necessary. He advocated strongly for equitable distribution of work across Tier 2 and Tier 3 suppliers to support broader capability growth.
Private Capital: An Untapped Opportunity?
The panel also explored the potential role of private capital in addressing Defence’s infrastructure backlog. Raelene noted that Defence does not need to own every asset; opportunities exist to leverage private capital for off-base or dual-use facilities. However, Defence must overcome its risk aversion and offer long-term certainty through formal agreements to attract private investment, particularly in multi-user infrastructure like ports and logistics hubs.
Looking Ahead: Collaboration is Key
The discussion made it clear that while significant strides have been made, ongoing challenges require collaborative, innovative solutions and sustained investment. Success hinges on improved transparency, early engagement with local industry, innovative contracting frameworks, and potentially leveraging private capital.
I’d like to thank our panellists—Raelene Lockhorst, Suds Hettiarachchi, and Brendan Sowry—for their insights. It’s evident the Defence infrastructure sector in Northern Australia is poised at a critical juncture: now is the time for strategic partnerships, long-term planning, and innovation to ensure readiness, resilience, and continued regional development.
To keep the conversation going, please join our upcoming online roundtable series, kicking off next Thursday. More details at decnet.com.au/roundtable.
Thanks to all who participated and attended.
Author: Darian Macey
Darian is a former Engineering Officer with the RAE with tertiary qualifications in Engineering and Project Management. He is a leading practitioner within Australia's NSI sector with previous employment in Government, project management and building contractor organisations.
