Maritime shipping is vital to Australia’s economic and social wellbeing. Recent supply chain disruptions and geopolitical events have highlighted the need for a resilient Australian maritime sector. To address this, the Commonwealth is committed to strengthening Australia’s maritime capabilities by establishing a Strategic Fleet of Australian-flagged and crewed vessels. This fleet will ensure the movement of crucial cargo, such as petroleum and chemicals, during emergencies or times of need. The Government has allocated funding in the 2024-25 federal budget to establish a five-year pilot program with three vessels.
The Pilot will be implemented through a panel arrangement. The Department of Infrastructure, Transport, Regional Development, Communications and the Arts is seeking a variety of vessel capabilities to respond to a broad range of requisition scenarios. Through a Request for Tender (RFT), the department aims to establish a standing offer panel arrangement for the pilot and enter into a deed of standing offer with one or more tenderers to provide suitable commercial cargo vessels to meet the Department’s objectives.
The scenarios in which the Department anticipates requisitioning vessels include:
- Responding to natural disasters or human-induced threats
- Assisting Australian Defence activities
- Transporting critical goods internationally (import and export) and/or domestically
Tenderers must provide detailed specifications of nominated vessels, which should not be older than 20 years and must comply with Australian and International Maritime Organization standards. Successful tenderers must register vessels in Australia, employ Australian crews, provide training berths, and comply with Australian laws and standards, including the Modern Slavery Act and the Fair Work Act.
Tenderers will be evaluated based on their:
- Ability to deliver the full scope of requirements
- Organizational capacity and past performance
- Tendered Price
- Benefit to the Australian Economy
- Compliance with legislation and policy
- Proposed corporate and company structure, and:
- Financial viability
The closing time and date for responses will remain open until the 29th of November 2024.
If you are after further advice on this topic or any tender opportunity, feel free to contact us. You can also subscribe to this newsletter for regular weekly updates.
