ROCKHAMPTON HOUSING OPPORTUNITY an Investment in the Future PRECINCT
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The ROCKHAMPTON HOUSING OPPORTUNITY An Investment in the Future PRECINCT The Rockhampton Regional Council includes four main residential centres being: Rockhampton City, Gracemere, Mount Morgan and Yeppoon. The nearest major centres to Rockhampton are Gladstone (one hour drive to the south) and Mackay (three hours drive to the north). The Rockhampton Regional Council is estimated to have a population of 114,105 as at 30 June 2009*. This represents an increase of 2.203 persons over the prior year. The Bowen Basin is an area of coal reserves and mining related communities that extends over approximately 60,000 square kilometers of Central Queensland from the town of Collinsville in the north to Theodore in the south. This is the largest coal reserve in Australia. * Queensland Office of Economic and Statistical Research, Population and housing profile – Rockhampton Regional Council, April 2010 Operating Mines & Townships As detailed in the map* (left), the Rockhampton region is ideally placed to accommodate the fly in, fly out (FIFO) mining and mining services workforce. It is this proximity together with the significant mining investment that will underpin housing/accommodation demand in the medium term. * Central Queensland University, Bowen Basin Mining Communities Research Exchange, 2003 Infrastructure Rockhampton is also intrinsically connected to the Bowen Basin though the rail infrastructure which forms part of the Central Queensland Coal Network (depicted left*). QR National is a major employer in the region with a workforce of 3,215 in Central Queensland as at 30 June 2010*. Within the Bowen Basin proper there are 15 townships, with an estimated combined population of 93,506 (as at 31 July 2009 ). Of this number, 12.228 are considered non-resident workers*. The relatively small size of these communities creates a heavy reliance on nearby regional centres and the infrastructure that they offer. This infrastructure includes health service, retail and leisure, and onward transport (heavy rail and air). * Queensland Government Department of Local Government and Planning, Coal Transport System Map, August 2010 * QR national, Share Offer Document, October 2010 * Queensland Office of Economic and Statistical Research, Bowen Basin Population Report, April 2010 RESOURCES & Associated Demand A significant and growing contributor to the Rockhampton region’s economy is mining and mining services. Underpinning the future success of this industry are positive global demand drivers. Coal Australia is the world’s fourth largest coal Complimentary to the strong global To satisfy the global demand for coal, Australian producer and the world’s largest net exporter demand detailed above, is the rapid coal exports are expected to grow over the next due to the relatively small level of domestic growth estimated within within the Asia five years at rates in excess of the previous five consumption. The majority of the resource is Pacific region. China and India’s combined years (depicted left*). located in Queensland and new South Wales. import coal demand is estimated to grow Within Queensland this resource is sourced by an average of 8.6% per annum during The additional output will be met from both almost entirely from the Bowen Basin. the calendar years 2010 to 2015*. This is new and existing mining operations. In particularly significant given demand from Queensland there were 54 operating coal mines Global import demand for coal is expected to developed economies including Japan as at 30 June 2010. At this time, four mines be strong in the medium term with Compound (Australia’s largest customer) is expected were under construction (three of which are in Annual Growth Rates (“CAGR”) for thermal to remain stable. the Bowen Basin) and a further 28 projects coal predicted to be 3.0% over the calendar have mining leases granted or under years 2010 to 2015. For metallurgical coal the application*. CAGR for the same period is predicted to be 5.6%. Queensland is involved predominantly in metallurgical coal exportation. QR National, Share Offer Document, October 2010 Queensland Government Department of Employment, Economic Development and Innovation, Queensland’s Coal – mines and advanced projects, June 2010 Coal Seam Gas The Queensland Coal Seam Gas (CSG) industry is undergoing a remarkable transition. Explorations have confirmed that the Bowen Basin and Surat Basin have commercial CSG accumulations. Production in these Basins has increased significantly as depicted below*. Queensland Government Department of Employment, Economic Development and Innovation, Queensland coal seam gas overview, April 2010 Liquid Natural Gas Export Liquid Natural gas (“LNG”) project have the potential to further transform this growing industry. Eight plants have been announced with a collective export capacity of 43 Million tones per annum (“Mtpa”) . The project construction schedule of the five most advanced projects as at 30 June 2010 is depicted below*. Anticipated LNG Projects A summary of the Liquid Natural Gas (LNG) projects anticipated in the region follows: 01. Santos Ltd/Petronas 02. Queensland Gas Company/BG 03. LNG Limited (Gladstone LNG 04. ConocoPhillips/Origin (Gladstone Liquefied Natural Group Plc subsidiary (Queensland Project) – proposes to develop a Energy (Australia Pacific LNG Gas project or GLNG) – Curtis LNG Project or QCLNG) – LNG plant at Fisherman’s or APLNG) - proposes to proposes to develop a LNG proposes to develop a LNG plant Landing, Gladstone. develop a LNG plant at Laird plant at Hamilton Point West at North China Bay on Curtis Point on Curtis Island on Curtis Island: Island. 05. Shell (CSG) Australia Pty 06. Impel (Southern Cross 07. Sunshine Gas/ Sojitz 08. Energy World Ltd/Royal Dutch Shell Plc LNG) – proposes to Corporation (Sunshine Gas Corporation – proposes to subsidiary – proposes to develop an open access now owned by QGC) - develop a LNG plant at develop a LNG plant at LNG plant on Curtis Island proposes to develop a LNG Abbott Point Boatshed Point on Curtis Island plant at Fisherman’s Landing on Curtis Island HOUSING DEMAND The resource endowed state of Queensland is expected to experience nation leading population growth as a result of Australia’s two speed economy. Population Considerations At this juncture it is worth highlighting some of the emerging social trends in mining and the From a national perspective, these trends already associates impact on communities and populations. A 2007 study by Rolfe et al points to the impact net migration figures, with resource endowed following: states the beneficiaries of the two speed economy. Western Australia, Queensland and the Northern There is an increase trend towards block shift work patterns and a non- Territory have and are expected to grow faster than resident workforce, coupled with increased mobility and more lifestyle the other states as illustrated in the following chart “ (left*). drivers shifting or cycling people out of mining communities. These factors are causing population to concentrate in regional hubs and larger With a significant amount of new activity expected in mining towns , where the services tend to be focused*’ the Rockhampton region, a material number of skilled workers will be required to construct and operate the various projects and associates infrastructure. A selection of employee intensive works follows. Rural Society, Mining developments and Social Impacts on Communities: Bowen Basin Case Studies, Volume 19 November 3 October 2009 + Australian Bureau of Statistics, Population projections, Australia, 2006 to 2101, September 2008 Employee Intensive Works Wiggins Island Coal Export Terminal (WICET) – Located at Golding Point, Gladstone, this $4b industry funded terminal will increase export coal capacity through the port of Gladstone in the order of 80Mtpa to 90Mtpa. Stage 1 is expected to be completed in 2014*. Additional rail project will be required to support this new terminal. Moura System Upgrade - Track capacity is currently 17Mtpa with a 2010 study identifying individual projects which bring additional capacity of up to 71Mtpa*. The two year program is expected to commence in 2011. LNG Developments – The magnitude of the LNG developments proposed for Queensland has At Appendix A, we have provided resulted in Energy Skills Queensland preparing a number of documents which deal with the extracts from the ABARE list of major expected labour requirements to construct and operate the LNG plants. Should he five most mineral and energy projects. This list advanced applications proceed, a workforce in the order of 14,800 to 18,300 may be required*. details additional employment requirements (where available) and further supports the need to provide suitable accommodation in the region now and into the future. Combining this regional migration with natural changes to population creates an expectation that Rockhampton Regional Council will *Lonergan Edwards & Associates Limited, Takeover offer for Northern Energy Corporation Limited, November 2010 have a population of approximately +Construction Skills Queensland, CGS/LNG Construction Workforce Plan, November 2010 ++Queensland Office of Economics and Statistical Research, Household and dwelling 153,200 by 2031**. projections – Queensland local government areas 2010, May 2010 Demand for New Dwellings Workforce migration as a result of employment creation, coupled with underlying population growth, is expected to create significant underlying demand for new dwelling in the medium to long term.