Defence will partner with Viva Energy Australia to manage the HMAS Cairns fuel facility as part of the government’s efforts to transform the Defence fuel network.
The $46 million contract is part of a targeted investment from the Government to transform the Defence fuel network, and includes the operation and maintenance of the facility and the provision of fuel back to Defence.
Viva Energy was selected as part of a competitive tender process and will formally take over the fuel facility on 1 October 2019. The contract is for an initial term of six years, with two three year extension options.
Commander Joint Logistics, Rear Admiral Ian Murray welcomed the partnership and the benefits that this collaboration will bring to both Defence and local industry.
“This is a significant milestone for the Defence fuel transformation program, as we aim to generate greater industry collaboration across our fuel network,” Rear Admiral Murray said.
“The partnership with Viva Energy will generate local employment opportunities and provide industry with the capacity to grow their business within the Defence sector.”
“The partnership will deliver significant savings to Defence over the coming six years as we implement commercial fuel industry standards and introduce best practices,” RADM Murray said.
“By working in collaboration with industry experts, we will deliver a safer, simpler and assured Defence fuel network.”