The Australian Defence Force will receive enhanced capability and protection following the selection of preferred tenderers for the supply of new field vehicles and trailers.

The total project, part of Project Land 121 Overlander, is worth in the order of $3 billion.

Subject to successful negotiations, the preferred tenderers are Haulmark Trailers Australia (for trailers), Daimler Chrysler Australia/Pacific (for unprotected lightweight and light vehicles) and BAE Systems Australia, (for medium and heavy vehicles).

A further 250 Bushmaster Protected Infantry Mobility Vehicles will also be purchased from Thales Australia.

Many specialist vehicle modules, trailers and all the Bushmasters will be produced in Australia. This Australian portion is worth approximately $800m.

The new vehicles and trailers will be used to transport personnel and supplies, carry and deploy weapon systems, deliver humanitarian assistance and aid, and evacuate casualties.

The project, which includes small four wheel drive vehicles, medium and heavy trucks and large semi-trailer style vehicles, will replace the existing fleet acquired between 1959 and 1994.

When deployed on operations the vehicles will be capable of being fitted with enhanced protection to reduce the risk to our service men and women from threats such as suicide bombers, improvised explosive devices, land mines, bullets and other projectiles.

A subsequent Phase 4 of the project will consider further specialised protected light vehicles, with a procurement decision expected in 2010. This phase will involve a potential additional investment of approximately $1.2 billion.

In 2012 the Government will consider the final phase of the project to provide commercial vehicles to augment the fleet for Australian training activities, at a cost of about $300m.

These capabilities will help ensure that our land forces have sufficient firepower, protection and mobility to provide a clear advantage in any likely operation in defence of Australia or our immediate region.