Australia Secures First Vessel for National Strategic Fleet
Australia has secured the first vessel for its new strategic fleet designed to restore Australian-flag shipping and provide critical capacity in times of emergency. The move fulfills a pledge made by the government of Prime Minister Anthony Albanese during the 2022 campaign to restore Australia’s national shipping capacity.
Like many countries, Australia has seen a strong decline in its national fleet. Union officials point out that the country went from a peak of 100 or more flagged commercial ships down to just nine currently.
The government ran on a promise to rebuild the fleet by securing 12 vessels to be operated by private industry under the Australian flag. The plans call for them to be registered in Australia, crewed by Australians, and to grant the government access in times of emergency.
Transport Minister Catherine King said that the current crisis with the closure of the Strait of Hormuz had added a new urgency to the plan. Critics had said the government had failed to move forward with the program after conducting studies on how best to implement the national fleet. The idea for the national fleet gained support during the COVID-19 pandemic when Australia, like many countries, had supply chain problems.
The government will announce on Friday, May 29, an agreement to charter the ANL Kokoda, a 23,314 dwt containership with a capacity of 1,740 TEU. Originally operated by German shipping interests, the ship, which was built in 2011, has been sailing since 2022 for ANL Shipping Singapore with routes that included Australia.
The agreement brings ANL full circle to its origins. The carrier focused on Oceania was established by the Australian government in 1956, but became part of the larger CMA CGM Group in 1998. It still calls itself an Australian-based carrier, although the containership is registered in Malta.
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The plan calls for the ship to be re-registered in Australia, and she will have a 36-member crew. The Transport Minister estimated that it will cost an additional A$7 million (approximately US$5 million) annually to maintain the operation under the Australian flag. However, they believe the value to the country and the ability to requisition the vessel provide critical benefits to Australia.
The Minister is saying the ANL Kokoda is the first of three vessels that will be secured in a pilot phase of the program. She said the search is underway for additional ships and that the government remains committed to the goal of securing 12 ships for the national fleet.