The Defence Department has secured $2.4 billion for a new logistics hub in Queensland for the Australian Army.
Key points:A $2 billion upgrade to the Canberra, WA-based Cargill plant will create 700 new jobsThe company has already spent $2bn on the siteThe Defence Department says the project will generate 2,500 new jobs over five yearsThe project is part of the Defence and Infrastructure Union’s “Project Cargills” initiative to build a military logistics centre in Queensland.
The $2,429-million project is the latest in a series of $2-billion investment announcements for the new Cargil plant, which is already one of the world’s largest in terms of capacity.
It will be the second time in the past decade that Cargillin has secured a major investment from the Government.
The company spent $1.5 billion to upgrade its Canberra, Perth and Darwin facilities to produce a range of products including armoured vehicles and other goods.
Its $2 million investment into the Canberra site will create a 700 new civilian jobs, while the $1 million investment will create 2,532 jobs in the city and surrounding suburbs.
The Government has already invested $2m in the site and the remaining $1m will be spent in the state’s west.
Cargill has already been investing heavily in Canberra, including buying the land for the Cargilling facility.
It is also investing $1 billion in its new Cogger plant in Western Australia, which will produce food, fibre, pharmaceuticals and other supplies for the Government’s agricultural industry.
“It’s a very exciting project,” Cargildor Piers, Cargilled Australia’s head of business development, said.
“There’s a lot of excitement around this project.”
The Government’s investment is part and parcel of the $500 billion Defence and Strategic Infrastructure Fund (DASHIF) announced last year, which aims to build new military facilities in key countries.
The funding is a boost for the DASHIF program, which has been criticised for its slow pace.
It has already committed $3.1 billion to Australia’s defence, with $1bn set to be released by March.
But some have questioned the value of the new infrastructure, particularly in light of the Government already spending $3 billion on its military.
Cargo ships have been an integral part of Australia’s global supply chain since the mid-20th century, and are the most commonly used container ship in the world.
It’s also a key piece of the Australian Defence Force’s logistics infrastructure, and is used to transport goods between military bases and outposts.
The new Cargell facility is part a wider plan to improve the supply chain and reduce the cost of defence procurement.
The Australian Government says the Cargeell facility will create about 700 new employment over five to seven years, and will have an impact on about 2,000 jobs across the region.
Topics:military-intelligence,government-and-politics,military-industry,military,australiaFirst posted November 01, 2019 07:51:25More stories from New South Wales