No sign of expected Defence business case on Devonport naval base shift

Northport's growth aspirations include hosting the NZ Navy, a major shipyard and dry dock. Photo / Supplied

It doesn't look like the NZ Defence Force will complete a business case on the future location of the Devonport naval base by the end of the year after all.

NZDF told the Herald in September it expected to complete an "indicative" business case by the end of this year but a spokesman now says the work is continuing, and not complete.

"The NZDF does not have a date when it will be presented to the Government."

Northland's Marsden Point, site of deepwater port Northport, is a contender for a new navy base, along with Picton.

Northport has said the relocation of the base there would bring 600 full-time jobs and support services to Northland.

Port leaders have been in discussions with the Government about the prospect, while simultaneously making a case for the development of a national marine infrastructure facility in the form of a floating dry dock and shipyard at Northport.

The two projects are seen by many as hand-in-hand because NZDF owns the dry dock at Devonport, but it is too small to handle modern vessels.

Northport, jointly owned by NZX-listed Port of Tauranga and Marsden Maritime Holdings, of which Auckland's port is a 20 per cent shareholder, has said it would not own the proposed heavy marine facility but is promoting its development there.

With construction cost estimates of up to $300 million, the proposal has so far proved too rich for the appetite of the Infrastructure Reference Group, which decides the Government's large, shovel-ready projects.

NZDF has confirmed the Devonport dry dock cannot service naval vessels the HMNZS Canterbury and the new ship HMNZS Aotearoa, or the new KiwiRail ferries.

It has leased the Devonport dry dock to Babcock Australasia, part of the global aerospace and defence company Babcock, or its legacy companies, since 1994.
The total Devonport naval base is 22 hectares and has a land value of $134.7 million, said CoreLogic last year. The dry dock is about one-third of the total area.

Northport received nearly $1m last year from the Provincial Growth Fund to do a study on developing a new dry dock and shipyard.

An initial report from the study, released to the Herald by the Ministry of Business, Innovation and Employment, said a conceptual design for the proposed shipyard and floating dry dock had been undertaken, the construction method investigated and a cost estimate produced.

All dollar and dimension figures and commercial details were redacted.

Northport has until recently kept a low profile about its hopes for national marine infrastructure and luring the naval base to Northland, but with NZ First-driven political debate about drumming up more business for the port gone with last month's election, it has been more open about its growth plans and aspirations.

These have included preparing consent applications for the shipyard and dry dock.

Northport chairman Murray Jagger has said the project would create 400 fulltime skilled jobs and support businesses.

"We have decided to pursue that project. We have a window of opportunity now. If we do nothing I suggest we will look back with regret. We believe this is a really important national and regional infrastructure project."

While Northport had plenty of greenfield development land, it would not own or operate the proposed shipyard and dry dock, Jagger said.

The project would need Government funding and discussions were under way with politicians on both sides of the House, along with the Northland community, he said.