PORT EXPANSION PROJECT - STAGE 2

Growth Opportunity

The $1.6 billion Port Expansion Project (PEP) is a long-term development plan for the Port of Townsville - Northern Australia’s largest multi-cargo port.

The project comprises channel widening (currently underway), land reclamation, and the development of a new outer harbour, wharves, and associated infrastructure.

The Port of Townsville facilitates the trade of more than 30 commodities, worth more than $8 billion per annum on global markets. This figure is projected to increase three-fold by 2050, creating enormous economic prosperity and generating significant employment opportunities for the region.

BACKGROUND:

Stage 1 of the Port Expansion Project is the $232 million Channel Upgrade Project which will deliver a wider shipping channel and a 62 hectare port reclamation area. The Channel Upgrade Project is currently on track for completion in 2024. Once complete, larger commercial, cruise and defence vessels (up to 300m long) will be able to access the Port to service our region’s existing and emerging industries and growing trade demands.

Future Stages of the PEP will increase the reclamation area to

158 hectares and see the construction of new port infrastructure.

Stage 2 of the PEP requires the remainder of the rock wall for the PEP footprint to be built and a detailed business case for future development to be undertaken to ensure the PEP delivers optimal outcomes for a multitude of port users and the growth of the North.

BENEFITS:

The Port Expansion Project has the potential to provide common user facilities and/or the exclusive use of vital port infrastructure for a multitude of priority projects for the north, including:

Australian Defence Forward Mounting Base Capability. Specifically accommodating future Army amphibious base requirements and new Navy facilities to support enhanced strategic projection in the Asia Pacific Region.

Enabling growth in the supply chain from the North West Minerals Province through to the world. There has been in increase in potential for new trade through the port supported by developments and growth in:

Demand for critical minerals to support the decarbonisation effort.

Demand for fertiliser products.

Development of the Landsdown Eco-Industrial Precinct.

The storage and export of green hydrogen from proponents of the NQH2 Hydrogen Consortium.

Additionally, the PEP will provide enhanced capacity to meet the growing demand of existing trade including mining, agriculture, motor vehicles and project cargo, fuel and bulk liquids, containerised goods, Defence and cruise.

Building the remainder of the rock wall for the PEP footprint will enable the Port to develop new berths in the outer harbour and respond to the strong demand for Port access in a timely manner. This key piece of infrastructure is critical to creating a safe harbour for access and forms part of the next logical step in the development of the Port.

STATUS:

The Port Expansion Project has been through rigorous environment impact assessments by both the Queensland and Australian Governments in accordance with legislation over the course of a decade before it was granted approval.

This provides certainty that the environmental impacts have been fully considered and will be controlled through conditions on development.

The Environmental Impact Assessment (EIS) for the Port Expansion Project was assessed and approved with conditions by the Australian Government on 5 February, 2018.

Stage 1 of the project was funded through the Townsville City Deal with contribution from State and Federal Governments as well as the Port of Townsville.

Stage 2 of the project is being proposed now so it can commence prior to the completion of Stage 1.

What We Need

$100 million from State or Federal Government for the Rock Wall and $10 million Port Expansion Project Business Case.

Co-funding is requested to progress the Rock Wall and Business Case in a timely fashion to benefit a multitude of users.