The federal government will sink $1.7 million into the Mount Isa to Townsville Economic Zone: 50 Year Freight Infrastructure Plan project
By Anna Game-Lopata | July 10, 2012
The federal government will sink $1.7 million to hire a supply chain coordinator for the Mount Isa to Townsville Economic Zone: 50 Year Freight Infrastructure Plan project.
An ambitious long term blueprint for the region’s network and capabilities, the 50-year plan aims to boost almost economic activity six-fold to $84 billion a year within just five years.
Formally unveiling the plan today in
Mt Isa
Infrastructure Minister Anthony Albanese told stakeholders the government will use monies raised by its new mining tax to assist in turning the Plan’s aspirations into reality.
“Specifically, we will provide almost $1.7 million to fund the appointment of a Supply Chain Coordinator,” Albanese says.
The Coordinator’s task will be to work with transport operators, government agencies, mining companies and local councils to improve the overall efficiency of the supply chain by eliminating bottlenecks, be they caused by bad management practices or a lack of physical infrastructure.
Developed by the councils covering the vast section of Queensland between Townsville and the Northern Territory border in close collaboration with industry and local communities, the Plan takes stock of the region’s existing infrastructure and identifies what will be needed to unlock its economic potential.
It provides potential investors with an accurate forecast of demand for resources, commodities
and infrastructure capacity in the region.
The Infrastructure Plan’s model maps hundreds of mines and ore bodies, grades and likely tonnages against their proximity to road and rail.
It is designed so potential rail, road and port investors can examine the true potential of the region and make much more educated investment choices about long-term asset investments.
The newly created commodity database allows infrastructure investors to dig into viable investments, and encourages negotiations around take or pay arrangements.
Researched and collected by consultancy Juturna Infrastructure PL with support from Queensland’s Treasury and Geological Survey, the data was collated by a collaboration of organisations, the
Northern and North West Queensland Supply Chain Working Group (NNWQ).
NNWQ Chair Tracey Lines says the working group, comprising representatives from Infrastructure Australia, Queensland Treasury, the Port of Townsville and resources companies Xstrata and BHP Billiton among others, put aside political and commercial vested interests to undertake the research.
“The 50 Year Infrastructure Plan isn’t about us asking for government handouts,” Lines says.
“It’s about presenting credible commercial investment case studies to attract public, private and foreign investment to our region.
The Plan, which Lines says will be revised each year, will bring the Mount Isa to Townsville region to global prominence as a freight infrastructure investment destination and provide visibility to local individual producers.
“This initiative will change the way we look at investment,” she says.
“We also hope it will be the catalyst to rectify under-investment and capacity constraints within the region’s productive supply chains.”