Building the future trade potential of the Wide Bay Burnett
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- Byron Griffith
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1 Building the future trade potential of the Wide Bay Burnett Driving prosperity through greater infrastructure investment 11 th October 2018 Prepared in collaboration by:
2 The Wide Bay Burnett has a problem. The nation s highest level of recorded unemployment, but untapped economic potential locked away in its agricultural and mineral resources, its tourism sector and port infrastructure. Unleashing this potential will be critical in securing jobs and economic prosperity for the region.
3 Unlocking the region s potential Addressing our unique problem Wide Bay Burnett has the nation s highest level of recorded unemployment. Massive job generating, industry growth is required to address this problem. This requires industry development and infrastructure investment that connect trade opportunities with markets. Project Partners engaged Deloitte Access Economics to assess: o Global trends and industries o Infrastructure requirements o Economic impacts of inaction or delay Over 6 months consultation with industry and stakeholders across the region. Wide Bay Burnett Port of Bundaberg Bundaberg Regional Council Fraser Coast Council Gympie Regional Council North Burnett Regional Council Cherbourg Aboriginal Shire Council South Burnett Regional Council
4 Building future trade potential Where global demand meets our comparative advantage Aligning with global mega trends Digital emersion - Creating the farms of the future Planetary pushback - Future proofing our environment More with less - Using our existing infrastructure better Global demand - Providing food security Forever young - Developing new wellness products Leveraging our comparative advantage Current advantages Agriculture and food processing Mining and mineral resources Transport and logistics Marine servicing Tourism Defence and related manufacturing Future advantages Aqua culture and Agri-tech Nutraceuticals International education Connecting advantage with demand Infrastructure Regional connectivity, and a stronger Port
5 Unleashing our region s potential Connecting advantage with demand Type Road Rail Port & Marine Public infrastructure project Indicative Cost (millions) 1. Port Access Road $ Upgrades to Burnett and ISIS Highways $ Burnett River Bridge connecting State Development Area - 4. New transport depot $9 5. Rail link connecting Port of Bundaberg with Wide Bay Burnett $480 Minerals Province 6. Rail connection to Cordalba $13 7. Operational and industry-related upgrades to the Port of $55 Bundaberg 8. Port of Bundaberg berthing facilities on Western side of Burnett $120 River 9. Stage 1 of new Outer Harbour facilities adjoining State $880 Development Area outer harbour 10. Upgraded cruise ship berthing facilities at Port of Bundaberg $ Electricity infrastructure upgrades to support expanded activities $50 Energy at Port of Bundaberg and State Development Area Water 12. Upgrades to water storage and supply infrastructure $23 Total $2,696 Source: Deloitte Access Economics Pty Ltd, 2018
6 Six imperatives for a stronger Port of Bundaberg: 1. Transition from a second tier to top tier Australian Port 2. Connectivity with the Wide Bay Burnett Minerals Province and future Outer Harbour commence in realistic time frames 3. Major private sector port operator can be attracted to drive growth of the Port 4. Major industrial and or defence related uses can be attracted 5. Industrial land take-up occurs on the western side of the Burnett River 6. Associated large scale logistics operations and related infrastructure is provided within the State Development Area
7 Economic costs of delay or inaction Two potential futures for the Wide Bay Burnett Scenario One: Only $521 million of infrastructure delivered across the region, resulting in $1.95 billion in additional GRP, or 8,245 extra jobs. Scenario Two: $2,696 million of infrastructure delivered across the region, resulting in $6.05 billion in additional GRP, or 24,735 extra jobs. Opportunity cost of inaction or delay Over the next two decades, $4.1 billion of additional economic activity, or 16,490 jobs, would be lost for the Wide Bay Burnett if low levels of infrastructure is delivered across the region.
8 Delivering the region s potential Our call to state and federal government Present this work to Australian and Queensland Governments, seeking funding of infrastructure priorities. A Wide Bay Burnett Infrastructure Investment Fund is established by Australian and State Governments to deliver infrastructure priorities. Wide Bay Burnett Infrastructure Task Force is established to further investigate the case for Regional Connectivity and Port of Bundaberg infrastructure funding within 5 years Project partners pursue other innovative infrastructure funding opportunities such as the Northern Australia Infrastructure Fund, along with other funding mechanisms, to secure jobs and investment in the Wide Bay Burnett. 10 industries identified in section 3 are prioritised by the WBBROC and member Councils as priority sectors for development. The Australian Government complete a Cost Benefit Analysis on the following three route options for the Inland Rail, including Toowoomba to; Port of Brisbane, Port of Bundaberg and Port of Gladstone 4 Project partners support the infrastructure priorities outlined in this report as priorities for a Wide Bay Burnett Regional City Deal. Jobs growth to address long term unemployment across the Wide bay Burnett
9 What about the Inland Rail? Options for the final link of the Inland Rail from Toowoomba to the Port of Brisbane have been estimated at $2.5 billion 1, of a total project cost of $10 billion 2. Given the purpose of the Inland Rail to link the nation s richest farming basins with a modern network of railways and ports, could the Port of Bundaberg provide a more cost effective destination for Australia s Inland Rail than the Port of Brisbane? 1 Colliers, ARTC, 2015.
10 Vision to establish the Wide Bay Burnett as a significant player in Australia s trade of goods and services through greater investment in infrastructure that supports the region s economic potential.
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