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Northern Queensland Strategy

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Northern Queensland Strategy NORTHERN QUEENSLAND Far North Queensland and Torres Strait Townsville and North West Queensland Mackay-Isaac-Whitsunday Fitzroy and Central West NORTHERN QUEENSLAND STRATEGY BUSINESS CASES FOR INVESTING IN REGIONAL ROADS, DEVELOPING AGRICULTURAL DISTRIBUTION HUBS AND SUPPORTING REGIONAL AVIATION AND AIR FREIGHT FOR EXPORTS FINAL REPORT 6 August 2014 NORTHERN QUEENSLAND STRATEGY NORTHERN QUEENSLAND STRATEGY BUSINESS CASES FOR INVESTING IN REGIONAL ROADS, DEVELOPING AGRICULTURAL DISTRIBUTION HUBS AND SUPPORTING REGIONAL AVIATION AND AIR FREIGHT FOR EXPORTS Ref : CE J2754 June 2014 REGIONAL DEVELOPMENT AUSTRALIA NORTHERN QUEENSLAND Far North Queensland and Torres Strait Townsville and North West Queensland Mackay-Isaac-Whitsunday Fitzroy and Central West E: [email protected] W: www. http://rda.gov.au/my-rda/qld Disclaimer This report was produced on behalf of the four RDA Committees of Mackay-Isaac-Whitsunday, Fitzroy and Central West, Townsville and North West Queensland, and Far North Queensland and Torres Strait. It does not necessarily represent the views of the RDA Committees and Australian Government, its officers, employees or agents. Whilst all efforts have been made to ensure the content is free from error, no representation or warranties are made as to the contents or accuracy of the information and recommendations contained in this report. The RDA Committees and Australian Government disclaim liability to any person or organisation in respect of anything done, or omitted to be done, in reliance upon information contained in this report. June 2014 Ref: J2754 3/147 NORTHERN QUEENSLAND STRATEGY CONTENTS Special Terms and Abbreviations .............................................................................................................. 7 SUMMARY OF MAIN FINDINGS ............................................................................................ 8 INTRODUCTION .................................................................................................................................. 8 INVESTING IN REGIONAL ROADS ..................................................................................................... 10 DEVELOPING AGRICULTURAL DISTRIBUTION HUBS ........................................................................ 13 SUPPORTING REGIONAL AVIATION AND AIR FREIGHT FOR EXPORTS .............................................. 17 OVERALL RECOMMENDATIONS ....................................................................................................... 20 1.0 BACKGROUND ...................................................................................................... 21 1.1 The Northern Queensland Strategy – Business Cases .................................... 21 1.2 Northern Queensland ....................................................................................... 22 1.2.1 Background .................................................................................................................. 22 1.2.2 Underlying factors leading to growth ............................................................................ 22 1.2.3 An outstanding contribution to the Australian economy ............................................... 26 1.3 Supporting a New Era of Growth ...................................................................... 27 1.3.1 General ......................................................................................................................... 27 1.3.2 Primary Industries – A further major growth phase ...................................................... 28 1.3.3 Mining – New growth potential ..................................................................................... 32 1.3.4 Tourism – A new wave ................................................................................................. 41 1.3.5 Regional population, manufacturing and services ....................................................... 46 1.3.6 Potential return on investment ...................................................................................... 47 2.0 BUSINESS CASE – INVESTING IN REGIONAL ROADS .......................................................... 48 2.1 General ............................................................................................................ 48 2.2 Current Regional Road System ........................................................................ 49 2.3 Traffic Volumes ................................................................................................ 51 2.4 Internal Road Needs to Support Additional Development ................................. 52 2.5 Improving External Connectivity ....................................................................... 54 2.6 Summary of Road Needs Identified.................................................................. 55 2.7 Road Funding .................................................................................................. 58 2.7.1 Queensland roads ........................................................................................................ 58 2.7.2 Funding compared with other areas of Australia .......................................................... 58 2.8 Return on Investment ....................................................................................... 59 2.8.1 General ......................................................................................................................... 59 2.8.2 Value of attending to underlying deficiencies in the current road system .................... 59 2.8.3 Economic activity dependent on improving the regional road system ......................... 62 2.9 Regional Roads Recommendations ................................................................. 64 June 2014 Ref: J2754 4/147 NORTHERN QUEENSLAND STRATEGY 3.0 BUSINESS CASE – DEVELOPING AGRICULTURAL DISTRIBUTION HUBS ....................... 65 3.1 General ............................................................................................................ 65 3.2 Historical Importance of Transport & Distribution Systems ............................... 65 3.3 Factors Affecting Agricultural Distribution Systems .......................................... 65 3.3.1 General ......................................................................................................................... 65 3.3.2 Evolutionary changes in distribution systems .............................................................. 67 3.3.3 Local distribution systems ............................................................................................ 68 3.3.4 Wider distribution systems............................................................................................ 69 3.3.5 Export – Market access constraints ............................................................................. 69 3.3.6 Disinfestation plants ..................................................................................................... 71 3.3.7 Sea transport of perishables ........................................................................................ 72 3.4 Target Markets ................................................................................................. 73 3.5 Other Production & Input Costs ....................................................................... 75 3.5.1 Electricity and fuels ....................................................................................................... 75 3.5.2 Extreme weather events ............................................................................................... 75 3.5.3 Water availability .......................................................................................................... 75 3.6 Industry Perspective ........................................................................................ 75 3.7 Transport Services & Infrastructure Needs....................................................... 77 3.7.1 General ......................................................................................................................... 77 3.7.2 Meeting the needs of new agricultural development areas .......................................... 77 3.7.3 Developing direct container export shipping ................................................................ 78 3.8 Return on Investment ....................................................................................... 91 3.9 Agricultural Distribution Hubs Recommendations............................................. 92 3.9.1 General ......................................................................................................................... 92 3.9.2 Strategy to improve penetration of local Australian markets ........................................ 92 3.9.3 Strategy to further break into overseas markets .......................................................... 92 4.0 BUSINESS CASE – SUPPORTING REGIONAL AVIATION AND AIR FREIGHT FOR EXPORTS ... 94 4.1 Introduction ...................................................................................................... 94 4.2 Overview of Airports & Their Development ....................................................... 97 4.2.1 General ......................................................................................................................... 97 4.2.2 Main and regional airports and airport projects ............................................................ 97 4.3 Internal Connectivity Issues ..........................................................................
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