Northern Territory Commits Additional $305 Million to East Arm Ship Lift Project Despite Escalating Costs
Darwin, Australia – The Northern Territory Government has reaffirmed its commitment to the East Arm ship lift project, approving an additional $305 million in funding despite significant cost overruns. Originally announced in 2015 with an estimated budget of $100 million, the project’s total projected cost now exceeds $820 million.
The ship lift, located in Darwin's East Arm precinct, is a critical piece of infrastructure aimed at enhancing Australia’s northern maritime and defence capabilities. Once operational, it will be capable of servicing vessels up to 5,500 tonnes, including commercial and naval fleets. The project is designed to support regional supply chains, improve vessel maintenance capacity, and provide cyclone protection for essential maritime assets.
The project has seen a series of budget increases over the past decade. In 2019, the cost was revised to $400 million, and by 2022 it had risen to $515 million. The recent commitment of $305 million, spread over the 2025–26 and 2026–27 budgets, represents a significant additional investment.
However, the soaring costs have sparked public concern and political scrutiny. The Northern Territory’s net debt forecast has risen from $10.5 billion in 2024–25 to a projected $13.5 billion by 2027–28, with estimates suggesting it could reach $13.9 billion by 2028–29. In response, the project has been referred to the Northern Territory’s Public Accounts Committee for review, with findings expected by September 2025.
Despite financial concerns, the government has emphasized the strategic importance of the ship lift. Officials argue the infrastructure will position Darwin as a critical hub for northern Australia's maritime activity, supporting hundreds of local jobs and contributing to long-term economic diversification. The project has already directed approximately $59 million in contracts to Northern Territory-based businesses under local content policies.
Increased transparency measures have also been introduced. These include a new digital budget monitoring system and executive-level accountability frameworks to ensure more effective oversight of infrastructure spending.
The East Arm ship lift is expected to become a cornerstone of regional defence and maritime logistics, supporting both national security objectives and local economic development. However, its success will be closely tied to the government’s ability to manage costs and maintain public confidence in the face of rising debt.
