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Brisbane Economic Series April 2014

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Brisbane Economic Series April 2014 investbrisbane.com.au BRISBANE ECONOMIC SERIES APRIL 2014 KEY INFRASTRUCTURE 4 PROJECTS Focus on Infrastructure Key Projects List New Guide to Hotel Investment BRISBANE ECONOMIC SERIES APRIL 2014 Brisbane is entering an exciting era of grand-scale infrastructure development and this edition takes a look at some of the projects either underway or in the planning stages. While attention is often concentrated on the more obvious infrastructure projects in the CBD, there is widespread activity happening in the suburbs and across this great city. All of this, in different ways, affects the lives of Brisbane residents, generates interest among visitors, and importantly, attracts the attention of domestic and international investors who see the huge potential Brisbane has to offer. Brisbane is at the centre of one of the fastest growing regions in Australia, and we need to ensure we have the necessary provisions in place to support this growth. Brisbane City Council along with the other levels of government and various independent bodies are building the vital infrastructure needed to accommodate more cars on the road, improve public transport, increase flight traffic at Brisbane airport, create new community hubs and introduce new planning polices to guide future development. Some of these projects are featured in this edition. Brisbane is vibrant and friendly ‘new world city’, and I want to do everything I can to protect our unique way of life by ensuring we are proactive in meeting the city’s future demands. I hope you enjoy reading this special edition of the Brisbane Economic Series. Lord Mayor Graham Quirk 2 | WELCOME BREAKING NEWS Pages 20-22 CONTENTS 4 Feature: Infrastructure 6 Brisbane Airport Corporation 7 Port of Brisbane 8 Case Study: Legacy Way 10 Research Centre 11 Brisbane industrial market 12 4 Key Projects New guide to Brisbane’s 14 hotel investment market 17 Choose Brisbane campaign Economic trends for 18 Queensland and Australia The Insider: 19 1 question, 4 experts 20 Breaking News Investment Attraction 23 column Cover Image Legacy Way Project as featured on page 8 CONTENTS | 3 Brisbane’s Changing Landscape AN INFRASTRUCTURE INVESTOR’S PARADISE If the measure of a city’s infrastructure development can be crudely calculated by the number of cranes on the skyline, there is every reason to believe Brisbane is experiencing a tidal wave of major building projects. Multi-billion dollars’ worth of major 25 bridges, and resulted in more than 7km infrastructure projects, either under of new road. The Airport Link is Australia’s construction or in the planning stage, are longest road tunnel. rapidly changing the face of Queensland’s These projects were undertaken with capital and this unprecedented building current and future needs in mind. Building surge is creating widespread interest among for the future, where possible, eliminates international and domestic investors. the need for playing an expensive catch-up In this edition of the Brisbane Economic game down the track. Series we look at some of the projects On page 11 of this issue, MacroPlan Dimasi dominating Brisbane infrastructure CEO Michael Tilt writes about the Brisbane development, with contributions coming industrial market and comments on key from some of the major players in this period drivers and global forces affecting the of sustained growth. market. Mr Tilt believes understanding the primary Sound foundations drivers and how they relate to the industrial There is no doubt Brisbane has entered market is imperative for future growth in a new and exciting development phase this sector. and this is building on what has already He predicts globalisation will restructure occurred in recent years. metropolitan and regional Australia, One of the biggest series of developments particularly in terms of freight and logistics, that will produce long-term benefits has and believes that in this context, and involved the road network. on the back of significant infrastructure investment, South-East Queensland is well For example, the Port of Brisbane’s positioned to respond. operations have become more efficient and streamlined with the completion of the Massive projects $385 million Port Connect motorway early last year. The connectivity to major arterial One of the most exciting and long-awaited roads for trade customers and transport new projects is the $1.3 billion parallel logistics partners was greatly improved by runway being undertaken by the Brisbane this project. Airport Corporation (BAC). Commuters, industry and commerce have A decision was taken in 2013 to commit to all benefited from other multi-billion dollar the project with $50 million worth of site projects such as the Gateway duplication works already underway. “ The project will lay the (now called the Sir Leo Hielscher Bridges), BAC describes the second runway as Airport Link, and the Clem 7 tunnel. foundation for a sophisticated, a critical component of a multi-billion The $2.12 billion Gateway Upgrade Project dollar investment into capacity-building international-standard, ‘turn was one of the largest bridge and road infrastructure. up and go’ transit system projects in Queensland’s history and was It is being built 2km west of the existing for South-East Queensland. completed in 2010. main runway and when completed by 2020 The $5 billion Airport Link tunneled toll will deliver the capacity needed to meet It is expected to cost about road connects the Brisbane CBD and the predicted continued growth in flights $5 billion. The Queensland the $3.2 billion Clem Jones Tunnel to the in and out of Brisbane. Importantly, more Government is working in East-West Arterial Road which leads to the flights will be able to arrive and depart Brisbane Airport. It was built in conjunction over Moreton Bay, reducing noise exposure, partnership with Brisbane City with the Windsor to Kedron section of the particularly at night. Council to deliver the project.” Northern Busway. The new runway will be 3.3km long, 60m wide, and will have more than 12km of Department of Transport and Main Roads The Airport Link and busway projects March-April 2014 newsletter involved 15km of tunneling including the taxiways, plus navigational aids, airfield road (6.7km of twin tunnels), busway infrastructure, and hundreds of hectares of tunnels, and connecting ramps, as well as airfield landscaping. 4 | INFRASTRUCTURE The project will have significant short and $AU30B worth of mining and development The redevelopment area is state-owned long-term benefits. It will deliver a regional projects are now planned or underway, land, generally located between the economic benefit of about $5 billion a year to international gateways via the Port Brisbane River and George St and between by 2035. of Brisbane and the labour and services Alice and Queen Sts. supply market in south-east Queensland. BAC CEO Julieanne Alroe talks about this Around the river bend and a bit further project on page 6 of this issue and points Registration of interest in the project down the river is the site for another major out that, as one of Queensland’s largest closed on March 7 and attracted more project, the redevelopment of the Howard private investors in infrastructure, BAC has than 60 interested parties. Contract Smith Wharves. invested more than $1.3 billion in the past 10 award is expected in early 2015, followed years with a further $2.5 billion planned for shortly after by the construction stage of Situated at Petrie Bight below the Story the next decade. the project. The TSRC is expected to be Bridge, the 3.4ha site is a prime riverside A project that is firing up the imagination completed in mid-2018. location that, when redeveloped, will of Brisbane residents, and certainly the provide Brisbane with yet another enticing The Kingsford Smith Drive upgrade is tourist lure characterised by international planning and construction industries, is the another major council project that will flavour and quality. Brisbane Underground Bus and Train (BaT) reduce traffic congestion and improve project. safety in that corridor for all road users, Brisbane City Council has a very clear The BaT project is a proposed new 5km including cyclists and pedestrians. picture of what it wants to see when the north-south tunnel that will deliver rail redevelopment is completed: The road is also classified as a and bus together in a world-first design. primary freight route, and demand for It combines a railway and a busway in transportation of freight on Kingsford Smith a single, double-decked, 15-metre-wide Drive is expected to grow rapidly. tunnel beneath the Brisbane River and Brisbane’s CBD. Construction of stage one of the project, The BaT project will run from Dutton Park which widened part of Kingsford Smith “ The Howard Smith Wharves in the south to Victoria Park at Spring Hill in Drive from four to six lanes, was completed will be vibrant, sustainable in mid-2011. the north with new underground stations at and iconic. It will reactivate Woolloongabba, George Street and Roma The preferred option for the remainder Street. of the project involves widening another and re-energise a culturally It will be a critical new link in South-East major section to six lanes, and constructing important precinct. At Queensland’s public transport network, out into a section of the Brisbane River. delivering the combined benefits of Planning will continue throughout 2014. its heart, Howard Smith previous rail proposals and Brisbane City Wharves will provide a high- International recognition Council’s Suburbs 2 City bus project. quality public realm that The project will lay the foundation for a Another world-class development now in sophisticated, international-standard, ‘turn the planning stage, Queen’s Wharf will help celebrates its history and up and go’ transit system for South-East give the city international recognition.
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