NQ economy well on mend

Port project stimulates growth

THE North Queensland economy is on a steady path to recovery on the back of projects like the $ 193 million Townsville port channel widening project, according to the Townsville Enterprise September quarter Snapshot.

The port project involves the building of rock walls for a new reclamation area near the outer harbour and dredging to widen the channel.

The report, compiled by AEC Group, says the project will generate $ 580 million to the regional economy during construction and operation and create 120 full- time equivalent construction.

“The Port of Townsville Channel Capacity Upgrade Project will provide the safest, most cost effective and environmentally sustainable solution for meeting the freight requirements of North Queensland,” the report says.

Townsville Enterprise di- rector policy and investment Michael McMillan said business confidence, although fragile, was improving on the back of such projects.

“Projects like the Hells Gates Dam will feed into and be supported by the activity at the port and the growth of our capacity and linkages to key markets overseas,” he said.

The report finds the rental market is tightening with renewed buyer interest in property but that dwelling approvals, at 694, dipped 22.5 per cent in the year to July.

By contrast, the worth of non- residential approvals, valued at $ 481.8 million and helped by projects such as the North Queensland Stadium, soared 47.2 per cent.

In agriculture, the report says there is rising interest in industry consolidation and diversification towards horticulture, oilseeds, grains and pulses due to strong demand.

But a reduction in sugar prices, combined with concerns about consumption in the long term, are impacting the outlook for sugarcane growing.

In mining, improved prospects are making for a return to sustainable growth.

Projects moving to production include the Dugald River zinc and Capricorn Copper mines in the North West Minerals Province, while a revised Adani Carmichael coal project will lower capital costs by funding a rail link to the existing Aurizon network rather than develop a new corridor to Abbott Point coal terminal.

“The regional economy is expected to recover over the coming years, however, the pace and scale of recovery will be contingent on securing major projects currently under consideration,” the report says.

Proposals include a lithiumion battery manufacturing plant at Woodstock, Stage 2 of the Haughton Pipeline Duplication and agricultural expansion associated with the Hells Gates Dam initiative.