Skip to main content

Regional Economic Development

Western Sydney Airport to lift economy – Infrastructure Australia

INFRASTRUCTURE Australia (IA) has predicted a substantial economic boost from the development of the Western Sydney Airport – and the effect may have already begun.

According to Federal Minister for Urban Infrastructure, Paul Fletcher, the Western Sydney Airport Business Case report showed the facility would clearly deliver “net benefits to the Australian economy”.

“Infrastructure Australia’s independent analysis demonstrates that the Western Sydney Airport Business Case is robust and confirms that the project provides net positive long-term benefits for Western Sydney, NSW and the nation,” Mr Fletcher said. “The Business Case finding is that the project would deliver in excess of $11 billion to the national economy.”

IA pointed out that the airport would have an expected benefit:cost ratio of 1.9.

Mr Fletcher said this showed a Western Sydney Airport could deliver real benefits to the Western Sydney community and its economy. 

“It will create jobs, encourage investment and be a source of economic growth for decades to come,” he said.

“Infrastructure Australia's assessment of the Business Case is yet another important step towards making a Western Sydney Airport a reality. Airport business cases are rare globally and this represents a major project milestone.”

Construction is expected to commence in 2018, with operations beginning in the mid-2020s. The business case estimates the cost of the Stage 1 development at around $5 billion.

Mr Fletcher said, “Before earthworks begin, work will continue to be undertaken to prepare the site and ensure meticulous implementation of the strict environmental conditions ahead of any development, including heritage management activities, biodiversity offsets and the $10 million seed collection program.” 

www.westernsydneyairport.gov.au

ends

New portal links Aust and NZ infrastructure

THE Australian and New Zealand Governments have launched the Australia and New Zealand Infrastructure Pipeline (ANZIP),an online portal reinforcing Trans-Tasman collaboration, open markets, innovation and investment in infrastructure.

The online portal, developed and hosted by Infrastructure Partnerships Australia (IPA), provides a forward view of public infrastructure activity across Australia and New Zealand. 

"The infrastructure pipeline will sustain the current global focus on Australian and New Zealand infrastructure, right at the time that both countries need more investment and more projects," IPA CEO Brendan Lyon said.

He said the Pipeline would improve the visibility of the Australian and New Zealand infrastructure markets, attracting further private sector investment needed to fund both countries’ infrastructure needs.

“The comprehensive view of the Australian and New Zealand infrastructure markets offered by ANZIP will increase certainty around the forward work program for investors, constructors and governments alike,” Mr Lyon said.

Australian Treasurer Scott Morrison said, “This initiative reflects the importance of trade and open markets in delivering continued economic growth, more jobs, security and prosperity for our people.

“Both nations have ambitious infrastructure building programs,” said Treasurer Morrison.

“As part of our national economic plan, the Australian Government is investing a record $50 billion in infrastructure to support economic growth. There are over 1,000 projects currently underway across Australia, including roads, airports, bridges and passenger and freight rail.”

New Zealand Finance Minister Bill English said, “The launch of ANZIP signals a joint commitment to building a more integrated infrastructure market between the two countries. 

“ANZIP will help grow foreign direct investment in both countries, as well as giving greater visibility of future investment opportunities.”

The website expands on information currently available through the National Infrastructure Construction Schedule (NICS), which provides information on major infrastructure projects committed to by local, state, territory and Commonwealth governments.

www.infrastructurepipeline.org

ends

Sustainable office trust attracts major new investor

UNITING Financial Services (UFS), has joined the Clean Energy Finance Corporation (CEFC)  in a program to help drive Australia’s commercial property sector towards a higher-performance future in sustainability.

UFS, the treasury and investment services arm of the Uniting Church in Australia Synod of NSW and the ACT, has committed $25 million to the High Income Sustainable Office Trust (HISOT). The CEFC has already made a cornerstone $125 million equity commitment to HISOT.

HISOT is designed to refurbish up to a dozen decentralised city office buildings, giving them a new lease on life through improvements that increase their sustainability and reduce their carbon emissions. 

Real estate fund manager, EG Funds Management (EG) is the HISOT manager and is targeting a $400 million portfolio.

CEFC corporate and project finance director, Rory Lonergan, said the CEFC’s commitment to HISOT reflected its broader strategy to drive Australia’s commercial property sector towards carbon neutral buildings.

“For our cities to be competitive and dynamic business centres in the future, it is imperative that we act now to boost the energy performance of buildings so they are equipped to handle the demands of a clean energy economy,” Mr Lonergan said.

“High cost CBD office spaces, infrastructure constraints and urban regeneration are all major factors contributing to increased demand for higher performing commercial office space in outer metropolitan areas. The decentralisation of government departments is also driving up demand.

“Through the HISOT we’re looking to develop and refurbish buildings in these outer areas so that they have increased performance and lower carbon emissions. Energy efficient buildings have lower operating costs and have the potential to provide higher net operating income and have lower vacancy rates, providing clear benefits to building owners, investors and tenants.”

UFS is the first institutional investor to support HISOT, alongside the CEFC and EG. As HISOT grows it will purchase eligible buildings and reposition them.

HISOT intends to improve the energy efficiency of properties to the equivalent of at least 4.5 stars under the National Australian Built Environment Rating System (NABERS).

UFS executive director for treasury and investments, Warren Bird said UFS invests according to the Uniting Church’s ethical investment policies and recognises the ongoing environmental and social benefits of revitalising decentralised city office buildings.

“The Uniting Church Synod of NSW and the ACT is one of the earliest adopters of ethical investment principles,” Mr Bird said. “We are deeply passionate about investment opportunities that have positive environmental and social benefits and meet our rigorous Ethical/ESG investment due diligence process.”

EG executive director Roger Parker said securing UFS as an investor would enable HISOT to commence investment activities, acquiring properties with significant potential to achieve environmental re-ratings and improved value.

“We see a strong future for our partnership with the CEFC and UFS,” Mr Parker said. “Improvements in the NABERS rating are proven to have a positive impact on attracting blue-chip tenants to formerly low income generating office buildings, as well as revitalising office space for future use.”

www.eg.com.au

www.unitingfinancial.com.au

ends

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

 

ends

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)

ends

 

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

ends

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

ends

 

 

 

ends

More Articles …