IN FOCUS NSW. Developing Western Sydney
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1 IN FOCUS NSW Developing Western Sydney
2 DEVELOPING WESTERN SYDNEY Introduction Western Sydney is one of the fastest growing regions in Australia. Traditionally infrastructure expenditure and development has struggled to keep up with population growth in the region. It is clear that the six states and Federal authorities have identified the region has one of the key drivers of economic growth in both the state and national economies. Industry and commerce have also increasingly identified the opportunities with a number of local and international companies establishing a presence in the region. The Western Sydney region has more workers than jobs with around 300,000 Western Sydney residents that leave for work whilst 100,000 workers arrive each morning for work and as population grows the transport infrastructure will continue to struggle to keep up with demand. Why Western Sydney: Western Sydney s region has extensive family-based cultural connections with Asia as more than 300,000 of the region s residents were born in Asia; Western Sydney has the largest manufacturing sector, with the capacity to produce and distribute goods and produce, process and deliver the food demanded by the Asian market; A large and increasingly skilled working age population, and world-class education institutions are located in Western Sydney Region s abundance of land and highly skilled labour market. Industries such as financial services/personal wealth management, construction transport and logistics, personal and amenity services and retail government administration will benefit from the growth in the following industries: Industry mix: Health and Education are among the region s most effective sectors; Manufacturing is Western Sydney s largest employment sector; Agribusiness is a mix of small family-owned farms, and businesses with larger holdings with poultry meat production and processing and food and beverage sector International education; Tourism, with the number of international visitor arrivals in Australia increasing by 6.6% over the previous year driven by a growth in the development of key tourism assets, such as the Western Sydney Parkland, multiple Olympic legacy facilities, Sydney Motorsport Park and the Blue Mountains National Park; Professional services; and Cultural industries. Transforming Western Sydney will require getting the economic settings right, by investing in infrastructure, recreational facilities, changes and initiatives to attract business owners and investors and educating students and workers that need to be re-skilled. 7 key drivers in creating jobs, delivered via 25 strategies, have been identified: 1. Build better connectivity between town, jobs and residential centres, 2. Focus on health, education and manufacturing sectors; 3. Up-skill and educate the region for the future;
3 4. Improve the resources of job centres; 5. Leverage the spread of multiculturalism; 6. Develop and drive new innovation policies; and 7. Increase workforce participation rates, and provide training and work to disadvantaged groups Source: Shaping Future Cities Designing Western Sydney The Governments $35 billion of total projects currently in the pipeline include: Western Sydney University. New campus to open in Liverpool in 2018 and in the Bankstown CBD in The campus in Liverpool will accommodate up to 2,500 students with a focus on nursing, social work and anthropology, criminology and policing. Based on current demographics, by 2030, Western Sydney University will conservatively have enrolments across the Liverpool-Bankstown corridor in excess of 15,000 students. Redevelopment of Westmead, Blacktown and Mt Druitt hospitals. The Westmead precinct has a full time workforce of more than 17,000 people, which is expected to increase to 25,000 by The Acute Services Building is due for completion in 2020 and will include new operating theatres, extra inpatient beds and new adult and paediatric emergency departments. $95 million for The Children s Hospital at Westmead. $72 million for car parking, including a six-storey car park with 1250 spaces, due for completion mid next year. It will take the campus capacity to more than 5400 spaces. More than $700 million has been committed for the redevelopment of Blacktown and Mount Druitt Hospitals over two stages. The Blacktown and Mount Druitt Hospitals (BMDH) Redevelopment project Stage 1 is now complete. Stage 2 redevelopment will see Blacktown Hospital transition from a facility stet its local community, to a major metropolitan hospital servicing North Western Sydney. The project also includes upgrades and the provision of new and increased services at Mount Druitt Hospital. $3.6 billion for planned roads infrastructure, such as the WestConnex and NorthConnex developments The government has begun work to upgrade road infrastructure to support and provide vital links to Western Sydney Airport. Westconnex is 33 kilometres of a motorway from Arncliffe to Parramatta and is currently under construction. NEW SOUTH WALES
4 WestConnex will also create more than 10,000 jobs, including hundreds of apprenticeships, also providing training and skills development for thousands of employees across Greater Sydney. Local communities will have over 18 hectares of new open space, over 14 kilometres of new cycle and pedestrian paths and public transport lanes on Parramatta and Victoria roads. NorthConnex is a 9 kilometre tunnel which will link the M1 Pacific Motorway at Wahroonga to the Hills M2 Motorway at West Pennant Hills and it will be the longest road tunnel project in Australia. The project is funded through toll charges with a contribution from the NSW and Federal Government of up to $405 million each. $5.3 billion Investment for Western Sydney Airport at Badgerys Creek In April 2014, the Federal Government announced that Badgerys Creek will be the site of the Second Sydney Airport. Turnbull Government has committed up to $5.3 billion over 10 years in the Budget to build Western Sydney Airport through a Government-owned company, WSA Co, which will be responsible for construction of the airport. With plans to open in 2026, Western Sydney Airport is a project that will generate economic activity, provide employment opportunities closer to home for people in the Western Sydney region, and meet Sydney s growing aviation needs. The airport is expected to support almost 28,000 direct and indirect jobs by 2031, five years after the airport opens. 2. Source: Western Sydney Local Health District (WSLHD)
5 The Sydney Metro North West and South West Rail Link The proposed Western Sydney Orbital Rail (WSOR) corridor will link the North West and South West Rail Links, via St Marys and the airport at Badgerys Creek. The centrepiece would be Sydney s new Central Station, located at Parramatta. Western Sydney Innovation Corridor The Corridor would be based on the existing innovation entities, such as Campbelltown Integrated Health Hub, Western Sydney Aerotropolis, South West Growth Centre, Sydney Science Park, Oran Park Town, Camden Veterinary Science, Western Sydney Science Centre, Sydney IQ, North West Growth Centre and Hawkesbury AgriPark. (664,000 new homes that will need to be built by 2031). Conclusion The impact of this infrastructure expenditure, in particular the Wesconnex and the Western Sydney Airport represents an unique opportunity for business in the decades to come. In an environment where there are limited opportunities and increasing competition for opportunities in traditional industries many businesses are looking at repositioning their strategies to take advance of the likely continued growth of the area. For more information, please contact your local Hall Chadwick office: NEW SOUTH WALES Level 40, 2 Park Street Sydney NSW 2000 Tel: sydney@hallchadwick.com.au VICTORIA Level Collins Street Melbourne VIC 3000 Tel: hcm@haallchadwickmelb.com.au QUEENSLAND Level 19, 144 Edward Street Brisbane QLD 4000 Tel: brisbane@hallchadwick.com.au WESTERN AUSTRALIA Level 11 Allendale Square, 77 St Georges Terrace Perth WA 6000 Tel: perth@hallchadwick.com.au NORTHERN TERRITORY Paspalis Business Centre Level 1, Smith St Darwin NT 0800 Tel: darwin@hallchadwick.com.au Disclaimer This is not advice. Clients should not act solely on the basis of the material contained in this Newsletter. Items herein are general comments only and do not constitute or convey advice per se. Also changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of the areas. The Newsletter is issued as a helpful guide to clients and for their private information. NEW SOUTH WALES
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