Defence Strategic Review Submission

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Defence Strategic Review Submission

Townsville North Queensland
“Included in that progress has been the necessity to give greater emphasis to potentialities of the northern part of Australia. Historically, and for various economic reasons, the development of the south has proceeded to a greater extent, but we recognise that if this continent is to be held secure, if we are to develop its potentialities then we must press on vigorously with northern development.”
Prime Minister Harold Holt at the opening of the Lavarack Barracks in Townsville, 29 July 1966

INTRODUCTION

Australia’s strategic environment is rapidly evolving as the IndoPacific region transitions to the centre of global economic and military power. Major power competition, coercion and the possibility of foreign military bases in the Southwest Pacific underscore the importance of our near region for Australia’s national security.

North Queensland is uniquely positioned on the doorstep of the Southwest Pacific as Australia’s natural theatre gateway for engagement, training and possible military operations in this vitally important region. Cairns, Townsville and Charters Towers support a comprehensive range of capability including air, land and maritime bases, advanced training ranges, port, logistics and industry necessary for mobilisation, preparation, projection and sustainment of Australian or coalition forces.

We train the future leaders of Pacific Island nations, provide a sustainment and maintenance workforce built on sovereign capability, produce food and electricity for supply chain resilience, provide strong logistical networks via air and sea, and provide Defence with the space to significantly expand its forward posture presence in the north.

We host a number of Defence primes, several of which have large presence in North Queensland. We are the home of vast ecosystem of highly capable SME and we have an enviable tropical lifestyle that is attractive to families, and world-class tourism experiences to boost the morale of Australian and visiting Defence personnel.

Our industry base and capabilities should not be taken for granted. To maintain and strengthen this ecosystem requires targeted Defence investment that is primarily focussed on building a resilient, sovereign supply chain. Coupled with long-term commitments to commercial industry partners as a strong anchor tenant, Defence will encourage significant private investment in capacity building infrastructure – think advanced manufacturing, innovation labs, shipbuilding, and specialised training – enabling North Queensland to rapidly scale-up or down to meet Defence Force demands to 2033 and beyond.

3STRATEGIC DEFENCE REVIEW SUBMISSION

TOWNSVILLE AND THE SOUTHWEST PACIFIC THEATRE GATEWAY

Colloquially referred to as a Garrison city, Townsville is the largest city in Northern Australia and home to over one third of the Army’s combat forces.

The deployable 3rd Brigade, the Amphibious Taskforce specialised landing force (2 RAR Group) and elements of the 11th Brigade (Reserve) are all located at Lavarack Barracks.

The Ross Island Barracks at the mouth of the Ross River is equipped to provide administrative, logistic and maintenance and berthing for the 10th Force Support Battalion, the 30th Terminal Squadron, the 35th Water Transport Squadron and the Army School of Transport – Maritime Wing.

The Royal Australian Air Force (RAAF) Base Townsville is a joint user airfield supporting both military and civilian aviation operations. It is a major forward operating base for all types and sizes of military aircraft. Operational capabilities include a lengthened runway for large aircraft, hardened operational loading areas for fighter and bomber aircraft and supporting facilities for surveillance aircraft and drones. The base is also home to Army’s 5th Aviation Regiment operating tactical transport, cargo and maritime support helicopters.

A central part of Townsville’s defence capability is the presence of the Australian Army Combat Training Centre (CTC), providing world best practice for combat training, and Cubic Defence Australia (Cubic), a world-leader in live, simulated, and augmented training and computing services, and command and control systems. The strategic $1bn Australian Singapore Military Training Initiative (ASMTI) in North Queensland has seen sufficient land acquired to establish a new advanced training area near Greenvale, approximately 215 kilometres northwest of Townsville and located on 310,000 hectares. These facilities are complemented by access to secure private Long-Term Evolution networks and communication for unmanned systems operations.

Defence employs over 6,400 uniformed and non-uniformed people in Townsville, accompanied by an estimated community of nearly 14,000 dependents, or 7.5% of Townsville’s population. The city is an ideal long term posting location in Northern Australia due to lifestyle, affordability, excellent schools, Northern Australia’s only tertiary referral hospital, an internationally recognised university, spouse employment opportunities and multi denominational and multiple faith places of worship.

Also significant is the high number of ex-Defence personnel. The Census 2021 has shown Townsville hosts the highest population of former ADF personnel in Australia with one in six households having a veteran compared to one in 20 in Australia. This ready veteran workforce retains defence clearances, along with highly desirable skills, experience, and qualifications of use within Defence industry.

The basic building blocks are in place for the Townsville region to be a pillar of Defence capability, but as Prime Minister Holt observed, “if this continent is to be held secure, if we are to develop its potentialities then we must press on vigorously with northern development” or in other words: only a well-developed Northern Australia is a geopolitically secure Australia.

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SUMMARY OF SUBMISSION RECOMMENDATIONS

Defence continues to invest in regional training ranges technology and infrastructure to support complex, combined international training activities that enhance ADF preparedness, interoperability and regional diplomacy.

Increase the scale of ADF logistics capability and infrastructure in North Queensland to facilitate local industry growth required to support force projection sustainment in the region.

Defence considers hardened facilities in the North Queensland region to enable dispersed fuel and ammunition storage and operations from satellite airfields.

Establish manufacturing for high yield explosive munitions in the industrial precincts within the Townsville region that offer ample land for safety buffers and efficient access to transportation infrastructure to ensure timely supply of ammunition given the short distance of deployment into the Indo-Pacfic region.

Centralise the majority of the Army Aviation capability in Townsville to realise capability, retention and cost saving efficiencies.

Base elements of the logistic support afloat capability including replenishment vessels and Army watercraft in Townsville to increase readiness and reduce costs and inefficiencies associated with long transits from southern ports.

That locally based Army aviation and maritime logistics capabilities include logistics and maintenance with Defence committing to developing long-term strategic commercial arrangements of 10 to 20 years to build the local capacity required to support and sustain military operations in the northern regions of Australia.

Develop Townsville as an Operational Test and Evaluation Hub with increased innovation and technology funding to assure personnel and equipment are suitably trained and equipped for operations in the Indo Pacific region.

Leverage the Townsville Port Redevelopment to construct dedicated military facilities to berth, stage and load equipment and dangerous cargo for multiple ADF and coalition vessels including but limited to patrol vessels when and for as long as required without impacting the regional economy.

Concentrate deeper maintenance for Army Aviation and Townsville based armoured vehicles with operational capability to retain a skilled Reserve workforce and build supply chain capability essential for rapid mobilisation of northern Queensland as a viable Theatre Gateway for short notice operations.

Defence addresses the equity disconnect between military services and supply chain partners by collaborating more closely on requirements going forward, and by examining contractual arrangements to share investment risk and build commercial viability in the region.

Complement the national security strategy and inform Commonwealth and Queensland Government North Queensland regional planning by developing an economic strategy with appropriate funding attached to deliver enabling infrastructure and sovereign supply chain resilience across North Queensland

FUTURE STRATEGIC CHALLENGES FACING AUSTRALIA, WHICH MAY REQUIRE AN AUSTRALIAN DEFENCE FORCE OPERATIONAL RESPONSE.

In many ways the deteriorating security environment in the Southwest Pacific mirrors the strategic situation in the opening years of the Second World War. In response to these threats, the US and Australia developed Townsville as a forward operating base for logistics and operational capability to defend air and sea lanes of communication. Of primary importance was an assessment of Townsville as an ideal location in northeastern Australia: not too far north to be at unacceptable risk of attack, too far south to impede the speed of initiative, but just right sitting on the route to our southwest Pacific Island neighbours.

Force preparation is enhanced by the Australia–Singapore military training initiative delivering two networked, all-weather, allseason training ranges. Located in the tropical north they enable forces to train and test equipment in the heat and humidity of possible future operational environments. Supported by the CTC and Cubic with world’s best simulation-enabled training, there is no better location to hone military skills.

These world class facilities also support Defence diplomacy through combined multinational exercises to build interoperability and regional relationships in support of wholeof-government foreign policy initiatives.

Townsville’s geography and force disposition are not enough to establish the region as a credible theatre gateway. Equally important is the ability to project and sustain the force. A deficiency is the lack of mature local logistics infrastructure and capacity. A forward operating base can have the best port, airfield and training areas in the world, but it cannot function in isolation. There is no point positioning ADF units in the north if the supporting industry and logistics are far removed in distance and time. North Queensland needs a scalable defence industry presence to support future operations in the region.

RECOMMENDATIONS LINKED TO FUTURE STRATEGIC CHALLENGES:

Defence continues to invest in regional training ranges technology and infrastructure to support complex, combined international training activities that enhance ADF preparedness, interoperability and regional diplomacy.

Increase the scale of ADF logistics capability and infrastructure in the north to facilitate local industry growth required to support force projection sustainment in the region.

IDENTIFY AND PRIORITISE THE ESTATE, INFRASTRUCTURE, DISPOSITION, LOGISTICS AND SECURITY INVESTMENTS REQUIRED TO PROVIDE AUSTRALIA WITH THE DEFENCE FORCE POSTURE REQUIRED BY 2032-2033.

Townsville’s primary economic zone stretches from Bowen in the south to Hinchinbrook in the north and Mount Isa to the west. Frequently referred to as “Queensland’s Second Capital”, the city has a secondary role as an administrative and economic anchor for the greater North Queensland region.

Since its foundation in 1865, Townsville has progressively developed as a global and national transport and logistics hub. Processing more than 8 million tonnes of cargo each year worth about AU$10.6bn on global commodity markets, the Port of Townsville is the largest multi-purpose cargo seaport in northern Australia. It’s also the Australia’s largest commercial port for Lead, Copper, Zinc, Sugar and Molasses. Future trading and supply opportunities for the region exists in new industries such as critical minerals, batteries and hydrogen production.

Connecting Townsville to the region and beyond are highcapacity road and rail systems centred on the Bruce and Flinders Highways and the North Coast and Mount Isa rail lines. These systems intersect at the Townsville State Development Area –northern Australia’s largest inter-modal logistics hub.

In a conventional, peer on peer confrontation vital infrastructure, logistics and storage facilities clustered around these transportation nodes represent an unacceptable risk for destruction from a single strike. Townsville and the adjoining Charters Towers local government areas have ample rural land available to disperse fuel and ammunition storage and logistics centres. The opportunity exists to establish industry such as the manufacture of complex ammunition and weapons systems including missiles and high yield ordinance that require considerable safety distances from people and infrastructure. Many satellite airfields from WW2 are still located in the adjoining areas and could be upgraded to provide training and dispersal facilities away from the RAAF base for rotary wing and tactical transport aircraft.

A significant advantage is these sites are located within easy access of the Flinders Highway between Townsville and Charters Towers. Stores, fuel, ammunition and equipment can be quickly loaded on trucks and transported directly to the airfield or the port via the direct link Port Access Road. Townsville is the only port on the east coast of Australia where it is possible to drive a triple trailer truck directly up to a ship, conduct a U-turn and load on any tide state.

RESPONSES TO THE DEFENCE STRATEGIC REVIEW SECTION1 2SECTION 7STRATEGIC DEFENCE REVIEW SUBMISSION

A fundamental weakness is the decentralised nature of Queensland infrastructure. While Townsville is well connected to the region, national strategic links to the south and Cairns to the north are compromised by road and rail systems limited by seasonal flooding, restricted bridge weights and rail infrastructure.

Leveraging the considerable advantages presented by Townsville as a mounting base will require a whole of government commitment to upgrade and floodproof existing transportation links. Defence runs the risk of severely impacted supply chains and logistics capability in the north if the role of supporting infrastructure is ignored through this review.

RECOMMENDATIONS LINKED TO INFRASTRUCTURE AND SECURITY CHALLENGES:

Defence considers hardened facilities in the North Queensland region to enable dispersed fuel and ammunition storage and operations from satellite airfields.

Establish manufacturing for high yield explosive munitions in the industrial precincts within the Townsville region that offer ample land for safety buffers and efficient access to transportation infrastructure.

aircraft, maintenance and logistics in one location and increasing deployable readiness by basing on a C17 capable RAAF Base close a port optimised for LHD support. Townsville is an ideal location for flying training and force preparation with an average of 320 days of clear weather per year and located close to training areas and air to ground weapons ranges.

Basing the capability in one location will not only realise significant cost savings in reduced postings requiring long distance removals but will also increase retention through stability and predictability of home station for aviation capability personnel in a city with all the required resources and amenities to raise a family.

Integral to maximising these efficiencies will be locating deeper maintenance, logistics and as much of the Systems Program Office as is practicable in the same way Air Force centralise all aspects of a capability within a FEG. This provides a logical, tailored foundation for establishing and building industry and sovereign supply chains required to truly grow the region as an effective theatre gateway.

The Integrated Investment Plan and the 2020 Force Structure Plan provide for additional naval capability including two Auxiliary Oiler Replenishment vessels, enhanced Army watercraft and port upgrades to support increased maritime activity. The replenishment and logistic support afloat capability will significantly benefit from increased readiness and reduced costs if berthed and routinely sustained from ports in North Queensland.

Consider all elements of the Integrated Investment Program and provide recommendations for the Program’s reprioritisation, particularly in light of recently announced large-scale projects, to provide Australia with the force structure required by 2032-2033.

Townsville is home to Army’s largest base at Lavarack Barracks and much of the land components amphibious capability including Army watercraft. RAAF Base Townsville is an integral enabler of Air operations in the region and home to the 5th Aviation Regiment.

Currently the Army’s Aviation Regiments are in Darwin, Townsville and Sydney with a main headquarters in Brisbane and the training school in Oakey. Deeper maintenance facilities are in Brisbane and Townsville. This is not based upon any capability or operational need and this “penny packeting’ of Aviation units limits the opportunities for economies of scale and operational enhancement achieved by the Air Force through collocating all aspects of a capability as a Force Element Group (FEG).

Concentrating Army Aviation in Townsville offers significant operational enhancements and cost savings by collocating Command and Control with operational Regiments, concentrating

As with the Army Aviation Capability, for Defence to realise the strategic advantage of an alternative maritime support network in the north, there is a clear requirement to provide a level of commitment to supporting local industry. Any future policy requires a clear vision and intent to grow supply chain partners through 10 to 20 year commercial arrangements to allow industry to grow skills and invest in infrastructure.

RECOMMENDATIONS LINKED TO THE INTEGRATED INVESTMENT PROGRAM:

Centralise the majority of the Army Aviation capability in Townsville to realise capability, retention and cost saving efficiencies.

Base elements of the logistic support afloat capability including replenishment vessels and Army watercraft in Townsville to increase readiness and reduce costs and inefficiencies associated with long transits from southern ports.

That locally based Army aviation and maritime logistics capabilities include logistics and maintenance with Defence committing to developing long-term strategic commercial arrangements of 10 to 20 years to build the local capacity required to support and sustain military operations in the region.

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Outline the investments required to support Defence preparedness, and mobilisation needs to 2032-2033.

The majority of ADF Land forces and training ranges are in Northern Australia. This disposition provides ample opportunity for training within the physical environment that will likely characterise future areas of operation. A key vulnerability to force preparation and mobilisation is the concentration of Australian industry and technology innovation in the southeast corner of the country. Project managers are often unable to access qualified and experienced troops to test prototypes during development under the battlefield conditions of the tropical Indo Pacific region. This often results in the delivery of new equipment not fit for purpose that cannot be sustained or operated in hot and humid conditions. Batteries and electronic equipment associated with increasing integration of technology are particularly vulnerable.

The North Queensland Simulation Park is a simulation, technology and test facility and industry precinct specifically designed to enable research, integration, assurance and operational test and evaluation (OT&E) near operational units and networked, instrumented ranges. Defence should consider locating OT&E organisations such as Army’s Digger Works away from the SE corner and provide investment through technology and innovation funding and enable access to troops and ranges to facilitate participation from Defence primes and industry in the process. Insuring equipment is fit for purpose is a vital function of force preparedness.

Transport infrastructure including Townsville Port is a key enabling resource for national mobilisation. Although Defence has invested in modifications to enable LHD operations, access to this berth is limited by a funding agreement for only 50 days per year. Dangerous cargo including ammunition cannot be loaded in port as the blast safety zone includes public spaces and buildings and must be transported by small boat or helicopter to be loaded at sea.

Defence can assume priority for port operations in a time of emergency as part of national mobilisation. If the emergency circumstances extend beyond a few weeks, the consequences of limiting access for commercial operations will severely impact the economy and provision of goods and services in northern Australia. To fully realise the potential of North Queensland as a theatre gateway Defence needs to consider investment in military specific port infrastructure.

The Port of Townsville is currently undertaking a once in a generation upgrade by deepening and widening the access channel and using the spoil to reclaim land for expansion of berthing facilities. This provides an opportunity for Defence to invest in dedicated facilities to berth, stage and load equipment and dangerous cargo for multiple ADF and coalition vessels when and for as long as required.

Historically a percentage of serving ADF members choose to

separate in Townsville for family stability and lifestyle rather than accept postings to southern Australia. These experienced and qualified individuals are then lost to Defence. If jobs are available within a defence industry maintenance contract, individuals can transition into these specialist roles and their skills are maintained within the broader Defence capability.

An example is CH47 Chinook maintenance located wholly in Townsville supporting a significant civilian workforce. As individuals transfer to civilian employment from full time service many choose to remain in the Reserve. Collocating maintenance and logistics with operational capability builds a pool of qualified, experienced and current reservists available as a uniformed surge capacity for rapid mobilisation.

A Logistics Support Facility for the Singapore Armed Forces will be established in Townsville as part of the bilateral Comprehensive Strategic Partnership. Singapore have expressed a desire to operate and conduct maintenance activities on a fleet of up to 1000 Armoured Fighting Vehicles (AFV). Singapore Defence Primes are discussing opportunities to partner with local engineering, manufacturing companies and educational institutions to build and grow a regional AFV maintenance capability.

Deeper maintenance for ADF AFV is conducted in southern facilities leading to inefficiencies and increased cost associated with transporting heavy vehicles over long distances. Defence should leverage the Singapore initiative to establish AFV maintenance facilities in the north and provide employment opportunities for qualified individuals in the region. As with the Aviation capability, this initiative would not only retain workforce capability within Defence industry enhancing preparedness and mobilisation but will help build supply chain capability essential for northern Queensland to be a viable Theatre Gateway for short notice operations.

RECOMMENDATIONS LINKED TO PREPAREDNESS AND MOBILISATION:

Develop Townsville as an Operational Test and Evaluation Hub with increased innovation and technology funding to assure personnel and equipment are suitably trained and equipped for operations in the Indo Pacific region.

Leverage the Townsville Port redevelopment to construct dedicated military facilities to berth, stage and load equipment and dangerous cargo for multiple ADF and coalition vessels when and for as long as required without impacting the regional economy.

Concentrate deeper maintenance for Army Aviation and Townsville based armoured vehicles with operational capability to retain a skilled Reserve workforce and build supply chain capability essential for rapid mobilisation of northern Queensland as a viable theatre gateway for short notice operations.

Outline funding needs to 2032-2033 to ensure longer-term

4SECTION 9STRATEGIC DEFENCE REVIEW SUBMISSION

strategic investments are progressed.

The majority of Australia’s population, industry and manufacturing is concentrated in five major cities in the south eastern corner of the continent. Less than 5% of the population live and work in the top half of the country. In a rapidly evolving strategic environment, the north is vitally important as a source of national wealth from resources and geo strategic location within the Indo Pacific region. With vast coastlines and enormous inland land mass, national security can only be achieved through building a strong, prosperous and secure society in northern Australia.

Developing the north will require a whole of government commitment. Defence can contribute by partnering with local industry for ADF or joint user logistics and maintenance activities. Long term investment to share investment risk and build supply chain and logistics capability will benefit Defence as the region becomes a truly viable industry hub and theatre gateway into the Pacific region.

Defence planners often express frustration with limitations and lack of key logistics capabilities in the north when required for training or operations, but no long-term planning has addressed how to remediate identified deficiencies. Future capability and investment planning and project delivery should consider and incorporate funding to build mutual benefit infrastructure and capability in Northern Australia.

RECOMMENDATIONS LINKED TO THE PROGRESSION OF LONG-TERM STRATEGIC INVESTMENTS:

Defence addresses the equity disconnect between military services and supply chain partners by collaborating more closely on requirements going forward, and by examining contractual arrangements to share investment risk and build commercial viability in the region.

Complement the national security strategy and inform Commonwealth and the Queensland Government regional planning by developing an economic strategy with appropriate funding attached to deliver enabling infrastructure and sovereign supply chain resilience across North Queensland.

5SECTION 10 TOWNSVILLE NORTH QUEENSLAND
TOWNSVILLE ENTERPRISE ABN: 58 053 020 536 151 Sturt Street PO Box 1043 Townsville Queensland, 4810 Australia Phone: +61 7 4726 2728 Email: tel@tel.com.au townsvilleenterprise.com.au

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