Regional Economic Development

Canavan welcomes Federal Court decision on Adani

FEDERAL Minister for Resources and Northern Australia, Matt Canavan has welcomed the Federal Court decision to dismiss the Australian Conservation Foundation’s challenge to the federal approval of the Adani coal and infrastructure project.

“The Adani project is a vote of confidence in the Central Queensland economy and in the Australian resources sector,” Mr Canavan said. 

“This is a $16 billion project that will create thousands of jobs and further consolidate Australia’s role as a global resources superpower.

“The project has undergone a lengthy approval process, which includes 36 of the strictest environmental conditions in Australian history.

“Yet activists continue to run their ideological agenda against the project, despite the economic growth it will bring for regional Australia and the clear benefits it will have in delivering energy security to millions of people in developing countries.

“Our mining industry is advanced and innovative, and it abides by the rules and the robust regulatory conditions that Australians expect.

“It’s time for green activists to do the same.  They should accept the decision and stop the grandstanding to prevent economic development in the resources sector.”

www.industry.gov.au

 

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Could Australia’s mythical Inland Rail finally be on track?

INLAND Rail has been spoken of in almost mythical terms for generations in Australia – but a recent commitment of  $594 million by the Federal Government seems to make it a serious prospect for the first time.

The joint announcement of the funding, to open up the corridor for inland rail to begin construction, was made in early May by Federal Finance Minister Mathias Cormann, Infrastructure and Transport Minister Darren Chester and Regional Development Minister  Fiona Nash.

“Inland Rail is a truly transformational project that will open up the freight corridor between Melbourne and Brisbane, via regional New South Wales, and boost productivity for decades, Mr Cormann said.

“The economic benefits of Inland Rail will be felt across the nation. The east coast freight corridor between Melbourne and Brisbane already generates 75 percent of Australia’s gross domestic product.  It is responsible for commodity exports of more than $260 billion each year.

“Inland Rail will deliver almost $22.5 billion of direct and indirect benefits to Australia. Inland Rail will be a huge boon for industry, including the mining and agricultural sectors in eastern Australia, helping to meet the long-term Melbourne to Brisbane freight challenge.

“It will reduce the strain on other infrastructure in our national network, providing a freight solution capable of carrying the eight million tonnes of extra freight expected to be travelling between Melbourne and Brisbane in 2050,” Mr Cormann said.

“This is equivalent to taking 200,000 trucks movements off the road each year, with every interstate train on Inland Rail the equivalent of approximately 110 B-double trucks. This will improve safety for all road users along the corridor.

“After years of planning, the government is moving ahead to acquire the land necessary to construct Inland Rail. With funding now set aside for land acquisition to commence in 2017, communities will be given certainty as the alignment is decided and the project gets shovel-ready.”

The Inland Rail development is through the Australian Rail Track Corporation (ARTC) in partnership with the private sector. Mr Chester said the Federal Government would now begin market testing for private sector involvement in the project.

He said ARTC was well advanced with planning and pre-construction works right across the 1,700km corridor “and this decision provides a green light for ARTC to advance the project”.

“During the construction phase, Inland Rail will create up to 16,000 jobs during the peak of construction,” Mr Cormann said. “Once the line is fully operational it will provide 600 ongoing jobs.

“Once built, Inland Rail will also connect with the transcontinental east-west rail corridor at Parkes, connecting South East Queensland directly by rail to Melbourne, Adelaide and Perth, avoiding the need for freight to transit through the congested Sydney network.”

 http://infrastructure.gov.au/rail/inland http://infrastructure.gov.au/rail/inland/(link is external)

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FEC joins Queen’s Wharf partners to develop luxury hotels

FAR EAST Consortium (FEC) is working with partners in Brisbane’s transformative Queen's Wharf development to create two new luxury hotel developments for The Star Entertainment Group's properties in Sydney and on the Gold Coast.

FEC Australia has entered into two memoranda of understanding with its Queen’s Wharf Brisbane partners, Hong Kong-based Chow Tai Fook Enterprises Limited and The Star Entertainment Group Limited – formerly known as Echo Entertainment Group Ltd – to develop a 200m tower located on the ocean side of The Star's existing Jupiters Integrated Resort at Broadbeach. The development will create 700 hotel rooms and apartments.

The partners will also create a 200m hotel and apartment tower at The Star in Sydney, featuring a Ritz Carlton hotel and an extension linked to the existing property which includes new food and beverage outlets.

"We have been operating in Australia for more than 20 years and we are excited to be involved with these projects,” Far East Consortium managing director Chris Hoong said.

“Economic growth in China and the burgeoning affluent middle-class demographic has opened the doors of opportunity for Australia. There is long-term sustainability in that market but also potential on a broader global tourist front."

The Star managing director and CEO, Matt Bekier said the group’s partnership with Chow Tai Fook Enterprises and Far East Consortium would help the group realise its vision to become “Australia's leading integrated resorts operator”.

The hotels are Chow Tai Fook Enterprises’ first major developments in the Australian market.

“We have forged a strong relationship with The Star Entertainment Group and Far East Consortium in what are our first significant forays into the Australian market,” Chow Tai Fook Enterprises CEO, Patrick Tsang said. “The Queen's Wharf project was the starting point, but we see the potential in both the Gold Coast and Sydney projects as outstanding opportunities to complement our involvement in Brisbane.”

Far East Consortium International Limited listed on the Hong Kong Stock Exchange in 1972. The group concentrates on property development and investment, hotel operation and management, as well as car park and facilities management, with its ‘Chinese wallet’ focus on business extending beyond Hong Kong and Mainland China to Australia, Malaysia, Singapore, the United Kingdom and New Zealand.

www.fecil.com.hk

www.starentertainmentgroup.com.au

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Townsville is HQ for ‘northern’ research

TOWNSVILLE is to be the headquarters for the Northern Australian Cooperative Research Centre (CRC).

This Federal Government announced in May that the new CRC will direct at least $150 million, including an investment of $75 million from the Australian Government, into commercialising research in areas including tropical health, food and agriculture to boost productivity across Northern Australia. 

The CRC for Developing Northern Australia will build on existing research, expertise and networks to quickly identify areas where collaborative research can deliver real-world outcomes that will benefit industries in the nation’s north, the CRC’s interim chair, John Wharton said.

Mr Wharton recommended the North Queensland city of Townsville as the best location for the centre’s administrative headquarters.   

Announcing Townsville as the centre’s base, the Minister for Industry, Innovation and Science, Christopher Pyne, said extensive consultations over the last four months with industry, research and government stakeholders had also identified the key areas of research for the CRC.

“The CRC will fund research to support the development of technologies and automation for agriculture and aquaculture aimed at addressing challenges unique to the north,” Mr Pyne said.

“It will also focus on improving human health and models of care in the tropics, and identifying the potential for exports and value chain support and development.” 

Resources, Energy and Northern Australia Minister, Josh Frydenberg, said it was important the CRC focused on areas where the north had particular strength.

“With Asia's burgeoning middle class on its doorstep, significant opportunities exist to commercialise research and develop and establish new industries in these fields.” Mr Frydenberg said.

He emphasised that funding for the CRC would not be restricted to the CRC’s headquarters, but would be used to support industry-led collaborative research projects across the region.

The Minister for Northern Australia, Matthew Canavan, said the CRC would form a consortium of partners from industry, the research community, government jurisdictions and international organisations.

“The CRC will also work closely with the Industry Growth Centres, sharing knowledge, experience and resources to improve the competitiveness, productivity and sustainability of northern Australia’s industries,” Mr Canavan said.

“This investment is a vote of confidence in the future of Townsville. It builds on Townsville’s strengths in education and industry, and it is just the kick-start that the Townsville economy needs to create jobs.”

The interim chair, Mr Wharton, is progressing detailed discussions with interested industry and research parties to form a consortium to establish the CRC and confirm its initial research priorities.  The CRC is expected to commence in mid-2016, Mr Pyne said.

Ewen Jones, the Member for Herbert, praised the Federal Government’s announcement as a big win for Townsville.

“This shows the government’s commitment to Northern Australia. Now that the Northern Australia CRC has been established it joins the Northern Australia Infrastructure Facility – based in Cairns - and the Office of Northern Australia – based in Darwin - as the three forces driving productivity and boosting jobs and growth in the north,” Mr Jones said.

“Townsville was not chosen for any other reason than we are the obvious place for the CRC to call home. With world class universities, CSIRO, TropWATER and NQ Dry Tropics all based here, the drive we will provide to get the best results in agriculture, and to care for our environment are of paramount importance to my government and I.

"Townsville will be at the forefront of our drive to develop policy which will see industry and agriculture flourish while protecting our land and the Great Barrier Reef.”

www.industry.gov.au

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CouriersPlease develops $40 million Brisbane industrial base

BRISBANE’S economy is getting a boost this year from a new CouriersPlease $40 million base development in the industrial precinct at Salisbury, south-west of the city. CouriersPlease is owned by Singapore Post.

CouriersPlease chief executive officer Brian Roberts said, “This is a significant investment for our company into the Brisbane economy. 

“Our business has grown significantly over recent years both in Queensland and interstate. This new warehouse will not only provide new capacity for the next 15 years, it will lead us through the transition of the courier industry through e-commerce, supply chain visibility and information sharing.”

The new distribution facility got both the approval and the ‘thumbs-up’ from re-elected Brisbane Lord Mayor Graham Quirk.

“The national success story based in Brisbane, has outgrown its current Coorparoo facility, and this next-generation warehouse and logistics facility will more than double the size of the company’s warehouse capacity,” Cr Quirk said.

“The 11,800sqm facility will replace the former facility and is the first investment into Australia by owners of CouriersPlease, Singapore Post.

“There’s no doubt Brisbane’s western corridor is destined for massive growth over the next 20 years, with substantial population increases predicted for the area in line with the rest of the state’s south-east corner.

“This new investment by CouriersPlease will attract new investment and new business to the area, and will be a catalyst for existing business expansion and industrial growth.”

Cr Quirk said this development would prove a major driver of the economic progress for the region, and the investment demonstrated the significance of this project.

“Last year on my visit to Sydney I sat down with CouriersPlease about their plans for Brisbane – I’m pleased to say we are now seeing the importance of these relationships with the business community,” he said.

“This expansion comes off the back of our visionary Brisbane 2022 New World City Action Plan, which is a blueprint to make Brisbane a city of opportunity and an Asia-Pacific destination for capital over the next seven years.”

Cr Quirk said all predictions pointed to consistent, sustained economic growth for South-East Queensland, and especially Brisbane, over the next 15 to 20 years.

“Greater Brisbane’s economy has seen rapid expansion,” he said. 

“It’s now estimated to be worth $146 billion, which is almost half of Queensland’s economic output, and is on track to reach $217 billion by 2031.

“The investment attraction division of economic development board Brisbane Marketing is successfully attracting and facilitating investment to Brisbane and this is an ideal asset to add to Brisbane’s offerings.”

The distribution centre is expected to be operating by September this year.

www.brisbanemarketing.com.au

www.couriersplease.com.au

 

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Seven major trends in Australia's construction industry

EXTRA >>

CONSTRUCTION Skills Queensland (CSQ) has identified seven major trends in the construction industry that are having an impact right now in the state – and elsewhere in Australia.

From this research, to help construction companies plan ahead, Construction Skills Queensland’s Evidence and Data Team put together a list of hot trends likely to shape the industry in 2016. 

Return of new builds – Traditionally new builds account for about nine out of 10 building projects in Queensland, with the balance coming in the form of additions, alterations and conversions. In the years following the Global Financial Crisis (GFC), many people opted to renovate instead of build new, so the proportion of new builds dropped to as low as 80 percent. Data indicates the historical pattern is being restored, and CSQ predicts the share of new builds will stabilise around the 90 percent norm in 2016.

Healthy residential sector – Residential building has been picking up the slack left by the steep wind-down in mining construction in recent years. Both 2014 and 2015 saw double-digit growth in building starts in Queensland. While this trend will soften in 2016, CSQ expects solid single-digit growth for Queensland building starts, probably around 5 percent.

Labour surplus to peak – The decline in total construction activity across Queensland in recent years led to a surplus of construction workers. There are simply fewer projects than people ready to work. CSQ predicted this surplus would peak in 2016, and begin its return toward balance. It is estimated the number of unemployed construction workers in Queensland will average around 16,000 in 2016, about 8 percent of the construction workforce.

Prefabrication and modular homes – An increasing amount of both residential and commercial construction work will be completed in controlled building environments. Prefabrication has the potential to offer time and cost savings over conventional construction methods. CSQ is already starting to see whole townhouse communities built using modular components.

Timber resurgence – Cross laminated timber (CLT) or ‘tilt up timber’ is popular in Europe and North America. On the back of some recent successful trials here in Australia, CSQ expects this technology to be adopted more widely by the industry. Strong and lightweight, CLT offers a stylish alternative to concrete and can be used to form complete floors, roofs and walls. As a timber product, CLT is also often a more sustainable choice.

Smart homes – Home automation platforms are making it easier than ever for homeowners to centrally control entertainment, air-conditoning, lighting, appliances, alarm systems and locks from their tablets. These systems are becoming more common in new homes and often require complex electrical work to install.

Opportunities in installation services –  The Australian Government Department of Employment expects building installation services to become a substantial source of jobs growth over the next five years. The number of workers in the category, which comprises awnings, curtains, elevators, escalators, flywire screens and insulation, is set to jump by 20.7 percent over the next five years.

www.csq.org.au

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Research opens up greener pastures in Northern Australia

CSIRO research on future agriculture prospects across Australia’s north is underpinning early action in the region.

The CSIRO reports are being used to help drive investment in Northern Australia agricultural development, at events such as the recent Northern Australia Food Futures conference in Darwin on April 12, attracting more than 300 industry and government representatives. Image: UQ Gatton.

Northern Australia, comprising 40 percent of Australia’s land mass, is already the world’s fifth largest beef and sugar exporter, with 12 million cattle and 3000 sugar farms bringing in more than $3 billion each year.

According to the Australian science agency, CSIRO, this represents a only fraction of the region’s agricultural potential.

"With its highly variable landmass and four distinct climatic zones, northern Australia can support all sorts of agriculture and horticulture," CSIRO research director Peter Stone said.

Dr Stone said following the release of the Federal Government's Developing Northern Australia and Agricultural Productivity White Papers in June last year, CSIRO has been focussed on unlocking the potential of the area that stretches from the Pilbara to Rockhampton.

“More than 100 researchers are currently supporting the Australian Government to deliver on these commitments – looking at opportunities to innovate along the entire value chain, from the soil and water availability through to expanding market opportunities,” Dr Stone said.

The Northern Territory Farmers Association convened the Darwin conference, featuring expert panellists discussing topics such as regional and global investment, crop production and supply chains.

CSIRO chief research scientist Andrew Ash said a number of opportunities had stimulated renewed interest in agricultural development for Northern Australia.

“These include proximity to Asian markets, increasing global demand for food and natural fibre as well as the development of economically sustainable regional communities,” Dr Ash said.

"Understanding the agronomic opportunities and constraints in conjunction with development and operating costs and market drivers is crucial for northern Australia’s developing irrigated agriculture sector to be competitive and profitable.”

Dr Ash and his team are currently investigating development opportunities for irrigated agriculture in the region including sugarcane, cotton, peanuts and grains.

The inaugural Northern Australia Food Futures Conference was staged in 2014.

www.csiro.au

www.ntfarmers.org.au

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