The Defence Fuel Transformation Program will deliver a safer, simpler and a more assured Defence fuel network in partnership with industry.
Minister for Defence, the Hon Christopher Pyne MP, today announced the Federal Government approval of the Program, valued at $1.1 billion over the next 30 years.
“The Program will make targeted investments in the Defence fuel network to seize immediate opportunities to improve flexibility and increase the level of industry collaboration,” Minister Pyne said.
“The Defence Fuel Transformation Program will ultimately reduce network risk, improve the ability of the fuel network to deal with disruption, and reduce the cost of ownership to Defence.”
Under the Program, Defence will contract out the provision of fuel and operations and maintenance of Defence fuel facilities at selected locations.
The first tranche of the Program, worth $127 million, will be delivered over a three year period with focus on Workplace, Health, Safety and Environment risk reduction and compliance activities.
The strategy will be implemented through six pillars: risk reduction, industry collaboration, optimised footprint, clear requirements, technology-enabled network, culture of ownership and accountability.
“The Defence Fuel Transformation Program will provide significant opportunities for regional businesses, delivering on the Government’s commitment to growing Australian industry and securing jobs,” Minister Pyne said.