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Investment Guide Beijing Seoul Tok Yo 60 00 Km Shanghai INVESTMENT GUIDE Beijing Seoul Tok yo 60 00 km Shanghai 50 00 km Taipei Hong Kong Hanoi 40 00 km Manila Bangkok 30 00 k m Kota Kinabalu 2 Brunei 00 Kuala Lumpur 0 km Singapore 10 00 k m Jakarta 0 Dili 5 0 k m Port Moresby Bali Darwin Nhulunbuy Katherine Cairns Tennant Creek Alice Springs Brisbane Beijing 6000 km Tokyo 5400 km Perth Shanghai 5064 km Sydney Adelaide Bangkok 4320 km Canberra Hong Kong 4250 km Melbourne Singapore 3350 km Manila 3150 km Melbourne 3150 km Hobart Sydney 3150 km Brisbane 2850 km Jakarta 2700 km Perth 2650 km Adelaide 2600 km Bali 1733 km INTRODUCTION Australia’s Northern Territory is set to become the centre of opportunity for northern Australia. A number of key drivers will converge over the next decade to ensure that northern Australia plays an ever-increasing role in the unfolding Asian Century. The Northern Territory (NT) boasts abundant natural resources, a dynamic mining and energy industry, major construction and infrastructure projects and a competitive business tax environment and – unlike other Australian jurisdictions – no land tax. It is recognised as an international gas hub and has a government committed to economic prosperity. Economic growth will open up a wide range of opportunities for NT businesses and their partners, taking advantage of the region’s proximity to Asia and its diversified economic base. The Northern Territory’s economy is expected to expand by around 20% over the next five years1, reflecting the construction and first years of operation of the Ichthys liquid natural gas (LNG) project, an increased defence presence and healthy construction, infrastructure and housing sectors. Over the same period, the NT workforce is expected to experience strong employment growth, creating new opportunities for existing businesses and people entering the workforce. Opportunities across several sectors should make the NT a serious investment consideration for any local or offshore business seeking to tap into the suite of options created by easy access to, and trade with, Asia. These businesses need capital, skills and infrastructure, while their employees and families require housing and education. Now is an ideal time to take a detailed look at the Northern Territory to understand what is on offer and how it will develop, so you can identify potential partners and capitalise on these opportunities in the future. This Northern Territory Investment Guide is designed to provide an explanation and overview of different aspects of the Northern Territory that might affect the outcome for potential investors. Wherever possible, it provides details of where to obtain additional information on specific topics. A separate Northern Territory Directory of Investment Opportunities describes investment opportunities in eight sectors including agriculture, energy, infrastructure, manufacturing, mining, property development, service industries and tourism. As there are significant opportunities to invest in mining in the Northern Territory there is a separate Northern Territory Mineral Investment Opportunities that contains detailed information. Visit www.investnt.com.au to view all current opportunity publications. October 2013 | Northern Territory Investment Guide © Tourism NT TABLE OF CONTENTS Why invest in Australia’s Northern Land ownership and tenure 32 Territory 1 Land Use 34 A brief overview of the Northern Major Project Status 37 Territory 3 Maps and geographic data 38 Index of individual investment influences 5 Maritime shipping services and availability 39 Aboriginal Land Rights – an overview 5 Migration options for business people Aviation access and availability 7 and investors 41 Biosecurity and quarantine 9 Native title in the Northern Territory 42 Business structures 11 Pastoral leases and permitted land Challenges common to many uses 44 investments in the Northern Territory 12 Population and population projections 46 Climate change and the potential Public-Private Partnerships 47 effects on the Northern Territory 14 Rail transport services and availability 50 Crown Land 15 Road transport services and Demographic information 16 availability 52 Electricity and power availability and Support to potential investors management 18 available from the Northern Territory Finance and access to capital in the Government 54 Northern Territory 19 Telecommunications services and Foreign direct investment 20 availability 55 Foreign ownership 21 Time zones in the Northern Territory and Australia 56 Freehold land availability 23 Water availability and management Gas supplies and domestic availability 24 for residential centres 57 Government – the different levels Water availability and management of Government and their role in for industry, agribusiness, and investment 25 conservation 58 Industry associations in the Northern References 59 Territory 28 Labour availability and cost 31 Northern Territory Investment Guide | October 2013 WHY INVEST IN AUSTRALIA’s NORTHERN TERRITORY The Northern Territory has a number of advantages that make it attractive to potential investors. Australia’s gateway to Asia Darwin, the capital of the Northern Territory, is the closest Australian capital city to Asia, providing the shortest transport routes for two-way trade between the Asian economies and Australia. The Northern Territory has one international airport, Darwin International Airport that operates 24/7. The deep water Port of Darwin provides modern freight handling facilities, a dedicated bulk liquids berth and links with an intermodal road-rail network. Reduced shipping times between Darwin and Asia give Darwin a trade advantage, particularly in relation to the export of bulk commodities. A considerable and pristine resource base There are significant mineral and energy resource precincts onshore in the Northern Territory, and in offshore waters accessed from the NT. Many of these precincts have been commercialised, with significant investment from international partners. Natural gas and petroleum exports form an important and growing sector of the local economy. There are also significant areas devoted to agricultural products such as meat, seafood, fruit, vegetables, crops, forestry and ornamental plants. The Northern Territory environment is largely undeveloped. The potential commercial benefit from native flora and fauna, food and medicines is largely untapped. Climate change may have some medium to long term benefits for the NT Research by the Australian Bureau of Meteorology suggests that the direct impacts of climate change on agricultural production in the Top End of the Northern Territory are likely to be less severe, and therefore provide more attractive investment opportunities, compared to other primary production areas across Australia. October 2013 | Northern Territory Investment Guide 1 The agricultural production systems in the NT are already designed around significant variations in climate across annual seasons, making adaptation to the future impacts of climate change easier to incorporate into existing management practices. A highly skilled and flexible workforce The Northern Territory has a highly skilled multilingual workforce reflecting a population drawn from across the globe. The pipeline of major economic developments is generating many thousands of jobs, creating opportunities for business entrepreneurs, professionals and skilled tradespeople from all walks of life. A diverse cultural mix The NT’s population of almost 250,000 includes people from more than 100 nationalities who have shared their cultures over more than a century to turn this region into one of Australia’s most cosmopolitan. This diverse mix makes it easier to do business with our international partners because there is already a strong understanding of different cultural practices and expectations. The room and capacity to grow The Northern Territory not only has the space to grow, it also has capacity to accommodate key infrastructure additions such as new roads, ports and suburbs, with fewer constraints than more highly populated areas of Australia. A highly regarded and supervised financial environment Australia is one of several countries with the highest possible AAA credit rating, reflecting the strong and diverse economy, comparatively low debt levels, good prospects for growing income from expanding export markets, and experienced financial oversight. The Northern Territory Government has an Aa1 credit rating, similar to other Australian states and territories, reflecting the level of debt required to fund the infrastructure necessary to underpin current and future economic growth. These high credit ratings are attractive to investors and fund managers who hold funds in AAA rated investment categories. Stable government(s) The quality of governance in Australia is among the world’s best, and Australia is considered among the world’s most politically stable countries. These attributes contribute to economic growth and security, and underpin business and consumer confidence. This stability is attractive to Australian firms seeking to grow, as well as multinationals expanding their businesses or considering the Northern Territory as a regional base. 2 Northern Territory Investment Guide | October 2013 © Tourism NT A BRIEF OVERVIEW OF THE NORTHERN TERRITORY Geography The Northern Territory represents about one-sixth of the entire Australian land mass at 1,350 000 square kilometres, but has only 1% of the Australian population at around 235,000 people. While the land is sparsely populated, it presents
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