What started as a $100 million vision in 2015 has ballooned past $515 million. And that’s just the official figure from 2022. Further overruns are possible, according to recent government statements.
When the Darwin Ship Lift was first proposed, it was introduced as a $100 million investment in Australia’s maritime capabilities. Today, it’s back in the spotlight and it is not for its construction progress, but for the rising costs and the government’s decision to review how the project is unfolding.
Sitting on Darwin Harbour’s East Arm, the ship lift promises to handle vessels up to 5,500 tonnes. That includes navy patrol boats, commercial fishing vessels, pearling boats, and even massive energy-support ships. Once complete, it will be able to hoist them out of the water for repairs, servicing, and upgrades work that's currently shipped elsewhere.
For the Northern Territory, it’s more than a piece of infrastructure. It’s about positioning Darwin as a maritime hub, creating jobs, and strengthening Australia’s northern defence capabilities.
But here’s the main thing.
What started as a $100 million vision in 2015 has ballooned past $515 million. And that’s just the official figure from 2022. Further overruns are possible, according to recent government statements.
Part of the cost escalation stems from changes in project scope, supply chain pressures, and contractor issues. The collapse of Clough, a partner in the original construction consortium, also caused delays and additional costs.
In May 2025, Treasurer Bill Yan referred the project to the Northern Territory’s Public Accounts Committee. The review will examine the reasons for cost increases, the terms of contracts, and the governance processes in place.
The decision follows earlier findings from the Auditor-General, who raised concerns about gaps in documentation, procurement processes, and the management of agreements with private sector partners.
If the ship lift succeeds, it could transform the Top End into a go-to repair and servicing hub for vessels operating across northern Australia and into Asia. That’s more trade, more jobs, and more strategic muscle.
If it fails to deliver value? It risks being remembered as one of the territory’s most expensive lessons in project management.
Despite the review, the Northern Territory government has confirmed it will continue with construction. Budget allocations include $305 million across 2025–26 and 2026–27 to keep work on track, with the goal of having the ship lift operational in 2026.
New measures, such as improved budget tracking systems and clearer lines of accountability, are also being introduced to strengthen oversight.
If the Darwin Ship Lift delivers as planned, it could make the Top End a central hub for vessel servicing and maritime trade in northern Australia. This would mean more work staying in the region, growth in related industries, and potential long-term economic benefits.
However, with public funds heavily invested and costs still under scrutiny, the coming months will be crucial in determining whether this project becomes a strong economic driver or a case study in the challenges of large-scale infrastructure delivery.
Acknowledgment: Information sourced from Territory Stories’ press release.
Media Gallery