3.1
The importance of transport infrastructure such as roads, ports and shipping, and airports and air services was explored throughout the inquiry. Submitters acknowledged the significant investment in transport infrastructure made by Australian and state and territory governments, but highlighted a number of areas for improvement. This evidence is outlined below. Evidence regarding road accessibility, in terms of northern communities having access to critical services, is discussed in chapter 5 (social infrastructure).
White Paper
3.2
The Our North, Our Future: White Paper on Developing Northern Australia (White Paper) noted that infrastructure plays an integral role in unlocking economic opportunities globally and nationally. It facilitates investment, increases accessibility to markets (especially for remote areas) and helps attract and retain workers. With considered planning, infrastructure is a fundamental driver of productivity and growth.
3.3
The White Paper noted that the road network in Northern Australia is essential for the movement of people and freight. Often the only transport link available, the reliability of the north's roads can be hampered by the climate with road closures or significant restrictions often occurring during the wet season. The quality of roads can also be significantly affected by intensive heavy vehicle use and many roads being unsealed and single lane.
3.4
The White Paper included a commitment by the Australian Government to focus on funding 'high priority public infrastructure' such as roads, and making it easier for private sector investment in infrastructure which will provide a return on investment.
3.5
The White Paper observed that in Northern Australia, the limited ground transport options and vast distances increase reliance on air transport for purposes as diverse as medical emergencies, cattle mustering and passenger and freight movement.
3.6
The White Paper stated however, air travel within the region is difficult due to a lack of demand to support commercially viable services. Low population density has resulted in the majority of aviation infrastructure being focused on connecting communities with large population centres that are often located in the south, and the services within the north that do exist are generally limited and expensive.
3.7
The White Paper also noted that remote airstrips in Northern Australia provide critical transport links for many remote First Nations communities, towns and outstations—particularly when weather conditions during the wet season make many roads impassable. These airstrips support critical services such as the Royal Flying Doctor Service and the provision of mail and essential health, food, emergency response and educational supplies.
3.8
The White Paper included a commitment from the Australian Government to provide 'ongoing certainty for the industries and communities' through the provision of funding to upgrade airstrips, and the provision of additional essential air services.
Road infrastructure
3.9
Road infrastructure is critical in connecting the dispersed communities and remote businesses across Northern Australia. The Department of Infrastructure, Transport, Cities and Regional Development (DIRDC) explained that 'better roads and land transport infrastructure enables farmers, miners and other producers to get their products to market more easily and reliably and helps grow the tourism industry'. These roads allow for the transportation of resources across Northern Australia, increased economic and employment opportunities, and improved social and health outcomes.
3.10
The following sections canvas the evidence received in relation to road infrastructure.
Government investment
3.11
The Australian Government has made a number of investments to improve road infrastructure in Northern Australia. These investments have included 'extensive road upgrades' to connect industry and producers to markets, and to make travel easier and safer in Northern Australia. DIRDC explained that such 'upgrades assist the communities and industries who rely on them for essential services, and create potential for more employment and growth in the mining, agriculture, and tourism sectors'. As such, the total Australian Government commitment in key Northern Australian initiatives in $2.98 billion, distributed in the following ways:
$1.73 million for the Roads of Strategic Importance initiative, exceeding an original $1.5 billion commitment;
$700 million for the Northern Australia Roads Program and Northern Australian Beef Roads Program;
$300 million for the Outback Way; and
$220.8 million for the Cape York Region Package.
3.12
DIRDC also noted that the Australian Government is investing $5.4 billion to deliver road initiatives and safety upgrades between Gladstone and Cairns through the $10 billion Bruce Highway Upgrade Program from 2013-14 to 2027-28.
Roads of Strategic Importance
3.13
The Roads of Strategic Importance (ROSI) initiative is intended to make it easier for regional businesses to access local and international markets and better connect regional communities. ROSI is intended to ensure that key freight roads efficiently connect agricultural and mining regions to ports, airports and other transport hubs. The initiative delivers projects such as road sealing, flood immunity, strengthening and widening, pavement rehabilitation, bridge and culvert upgrades, and road realignments.
3.14
DIRDC stated that in the 2019-20 Federal Budget, and during the election campaign, the Australian Government committed approximately $1.7 billion to upgrade 10 corridors in Northern Australia through the ROSI initiative. These 10 corridors are listed below, as well as their level of funding and the status of the project as at 22 March 2021. As intended completion dates have not been made publicly available, the forward funding dates have been listed as an indication of these projects' timeframes.
Table 3.1: Roads of Strategic Importance
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|
|
|
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Cooktown to Weipa
|
$190 million
|
Under construction, with funding forecasted to 2022-23
|
|
Cairns to NT Border
|
$50 million
|
In planning, with funding forecasted to 2022-23
|
|
Townsville to Roma
|
$100 million
|
In planning, with a portion under construction, with funding forecasted to 2023-24
|
|
Mount Isa to Rockhampton
|
$254 million
|
In planning, with funding forecasted to 2028-29
|
|
Tennant Creek To Townsville
|
$270 million
|
In planning, with funding forecasted to 2028-29
|
|
Adelaide River to Wadeye
|
$60 million
|
In planning, with funding forecasted to 2022-23
|
|
Alice Springs to Darwin
|
$162.3 million
|
In planning, with funding forecasted to 2023-24
|
|
Alice Springs to Halls Creek
|
$235 million
|
In planning, with funding forecasted to 2027-28
|
|
Newman to Katherine
|
$110 million
|
In planning, with funding forecasted to 2029-30
|
|
Karratha to Tom Price
|
$248 million
|
Under construction, with funding forecasted to 2024-25
|
Source: Funding from DIRDC, Submission 77, p. 7. Additional detail regarding project stage and forecasted funding from Department of Infrastructure, Transport, Regional Development and Communications's 'Responses to Senator Sterle's written questions' tabled during Estimates hearings on 22 March 2021.
3.15
The Department of Industry, Science, Energy and Resources (DISER) noted that as part of the ROSI initiative, all levels of government worked together with industry to identify strategic mango industry roads (Mango Roads) in the Northern Territory. The $20 million upgrade of these roads was intended to protect the quality of fruit while being transported, cutting export times and putting more profits into the hands of the producers. DISER stated that the Mango Roads project was expected to have a 9.3 per cent return on investment.
Northern Australia Roads Program and Northern Australia Beef Roads Program
3.16
Through the White Paper, the Australian Government committed $600 million to the Northern Australia Roads Program (NARP) and $100 million to the Northern Australia Beef Roads Program (Beef Roads).
3.17
All projects committed to under these programs are jointly funded with the relevant state and territory governments on an 80:20 basis. The NARP's objective is to deliver upgrades to high priority roads in Northern Australia essential to the movement of people and freight to support economic development across the north.
3.18
Under the NARP, the Australian Government committed to 19 projects (10 in Queensland, four in Western Australia and five in the Northern Territory). As at April 2021, 10 projects had been completed, eight were underway and one was yet to commence. In addition to the original 19 programs, the Great Northern Highway Upgrade Ord River North Section, was announced in 2020. It was funded using savings following the completion of other NARP projects in Western Australia. The current status of these programs, as at April 2021, is in Table 3.2 below.
Table 3.2: Northern Australia Roads Program: Project Statuses
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Flinders Highway (Townsville – Torrens Creek) (QLD)
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Under construction, with an expected finish date of 'Late 2021'
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Flinders Highway – (Charters Towers to Richmond) (QLD)
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Completed in 2018
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Capricorn Highway (Rockhampton—Gracemere) (QLD)
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Under construction, with an expected finish date of 'Mid 2021'
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Kennedy Developmental Road (Mount Garnet – The Lynd) (QLD)
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Completed in 2018
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Kennedy Developmental Road (The Lynd – Hughenden) (QLD)
|
Completed in 2020
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Barkly Highway (Cloncurry – Mount Isa) (QLD)
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Completed in 2019
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Bowen Developmental Road (QLD)
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Under construction, with an expected finish date of 'Early 2021'
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Landsborough Highway (Longreach – Winton) (QLD)
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Completed in 2020
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Peak Downs Highway (Clermont – Nebo) (QLD)
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In planning stages, with an expected finish date of 'Late 2022'
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Rockhampton (Bajool – Port Alma Road) (QLD)
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Under construction, with an expected finish date of 'Mid 2021'
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|
Plenty Highway (NT)
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Under construction, with an expected finish date of 'Mid 2021'
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|
Tjukaruru Road (NT)
|
Under construction, with an expected finish date of 'Mid 2021'
|
|
Upgrade of Keep River Plains Road (NT)
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Completed in 2020
|
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Adelaide River Floodplain Upgrade Arnhem Highway (NT)
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Under construction, with an expected finish date of 'Late 2021'
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|
Buntine Highway Road Upgrading (NT)
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Under construction, with an expected finish date of 'Mid 2021'
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Great Northern Highway Upgrade – Maggie Creek to Wyndham (WA)
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Completed in 2019
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Marble Bar Road (Coongan Gorge) (WA)
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Completed in 2019
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Great Northern Highway (Bow River Bridge) (WA)
|
Completed in 2018
|
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Broome-Cape Leveque Road (WA)
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Completed in 2020
|
|
Great Northern Highway Upgrade Ord River North Section (Stage 2) (WA)
|
Under construction, with an expected finish date of 'Mid 2021'
|
Source: DIRDC, Northern Australia Roads Program, https://investment.infrastructure.gov.au/infrastructure_investment/northern_australia_roads.aspx (accessed 9 April 2021)
3.19
In addition to the NARP, the Beef Roads program is also improving road infrastructure in Northern Australia. The objective of the $100 million Beef Roads program is to make targeted upgrades to key roads necessary for the transport of cattle to improve the reliability, productivity, and resilience of cattle supply chains in Northern Australia. In turn, this reduces freight costs and strengthens links to markets.
3.20
The Australian Government committed to 18 projects under the Beef Roads program with 15 in Queensland, one in Western Australia, and two in the Northern Territory. As at April 2021, all projects had been completed, save for the Gregory Developmental Road (South of Charter Towers), which is in planning stages and due for completion by the end of 2021. The current status of these programs, as at April 2021, is in Table 3.3.
Table 3.3: Northern Australia Beef Roads Program: Project Statuses
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Rockhampton Road Network—Road Train Access (Stage 2) (QLD)
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Completed in 2021
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Burke Developmental Road: Chillagoe to Almaden (Package 1) (QLD)
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Completed in 2020
|
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Burke Developmental Road: Chillagoe to Almaden (Package 2) (QLD)
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Completed in 2020
|
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Clermont: Alpha Road (Package 1) (QLD)
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Completed in 2018
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|
Clermont: Alpha Road (Package 2) (QLD)
|
Completed in 2019
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Clermont: Alpha Road (Package 3) (QLD)
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Completed in 2019
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|
Ootann Rd: Almaden to Kennedy Hwy (Gunnawarra) (Package 1) (QLD)
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Completed in 2018
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|
Ootann Rd: Almaden to Kennedy Hwy (Gunnawarra) (Package 2) (QLD)
|
Completed in 2019
|
|
Gregory Developmental Road (South of Charter Towers) (QLD)
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In planning stages, with an expected finish date of 'Late 2021'
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|
Richmond-Croydon Road (Package 1) (QLD)
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Completed in 2019
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Richmond-Croydon Road (Package 2) (QLD)
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Completed in 2018
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Cloncurry: Dajarra Road (QLD)
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Completed in 2018
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Diamantina Developmental Road (Boulia: Dajarra) (QLD)
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Completed in 2019
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Richmond: Winton Road (Package 1) (QLD)
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Completed in 2019
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Richmond: Winton Road (Package 2) (QLD)
|
Completed in 2019
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Barkly Stock Route (NT)
|
Completed in 2019
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|
Tablelands Highway (NT)
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Completed in 2020
|
|
Great Northern Highway Ord River North (Stage 1) (WA)
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Completed in 2019
|
Source: DIRDC, Northern Australia Beef Roads Program, https://investment.infrastructure.gov.au/infrastructure_investment/northern_australia_beef_roads.aspx (accessed 9 April 2021)
3.21
To help identify priority projects, the Australian Government actively engaged with key stakeholders, including members of the Northern Australian beef and transport industries, through a series of stakeholder roundtables held in Rockhampton, Kununurra and Darwin in late 2015 and early 2016.
3.22
DISER submitted that it is expected that the NARP and Beef Roads Programs will support more than 2,400 jobs across the three jurisdictions, including significant employment opportunities for First Nations Australians. It noted that the NARP project on the Flinders Highway (Charters Towers to Richmond) culvert upgrades that commenced in September 2017 and were completed in November 2018, supported 65 direct jobs over the life of the project.
3.23
The White Paper established a requirement for all NARP and Beef Roads projects to include First Nations employment and supplier-use targets. The inclusion of First Nations employment and business targets was intended to ensure that the Australian Government's investment in road infrastructure across Northern Australia also maximised economic and social benefits for First Nations Australians.
3.24
To ensure this measure was achieved, the Australian Government, in consultation with the relevant agencies in the three northern jurisdictions, developed the Framework to maximise Indigenous employment and business opportunities in Northern Australia. The framework outlines a methodology to establish baseline First Nations participation targets for projects delivered. All approved projects being delivered under the NARP and Beef Roads program have settled targets.
Bruce Highway Upgrade Program
3.25
DISER advised that the Australian Government is also investing $10 billion in the Bruce Highway from 2013-14 to 2027-28 through the Bruce Highway Upgrade Program including sections in North Queensland. The current status of these programs, as at March 2021, as is in Table 3.4 below.
Table 3.4: Bruce Highway Upgrade Program
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Rockhampton Ring Road
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$800 million
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In planning, with funding forecasted to 2025-26
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Mackay Ring Road (Stage 2)
|
$280 million
|
In planning, with funding forecasted to 2026-27
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|
Cairns Southern Access Corridor
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$180 million
|
In planning, with funding forecasted to 2026-27
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|
Townsville Ring Road
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$144 million
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In planning, with funding forecasted to 2023-24
|
Source: Funding from DISER, Submission 30, p. 4. Additional detail regarding project stage and forecasted funding from: Department of Infrastructure, Transport, Regional Development and Communications's 'Responses to Senator Sterle's written questions' tabled during Estimates hearings on 22 March 2021.
Outback Way
3.26
The Australian Government is investing $330 million to upgrade key sections of the Outback Way, the 2800 kilometre route that links Laverton in Western Australia with Winton in Queensland via Alice Springs in the Northern Territory. This $330 million investment is made up of a number of commitments which together are delivering upgrades to the Outback Way over a more than 10 year period. All of the Australian Government commitments were jointly funded with the relevant state government or Local Government Authority. As at March 2021, the current status of the Outback Way upgrades were:
the Northern Territory portion is currently in planning stages, with funding forecasted until 2024-25;
the Queensland portion is currently in planning stages, with funding forecasted until 2028-29; and
the Western Australian portion is currently in planning stages, with funding forecased until 2028-29.
Cape York Region Package
3.27
Cape York Region Package (CYRP) was a 5-year (2014-15 to 2018-19) $276 million program of works jointly funded by the Australian and Queensland Governments to upgrade critical infrastructure on Cape York Peninsula.
3.28
The Australian Government committed $220.8 million for the Cape York Region Package (CYRP) with the Queensland Government contributing $55.2 million. The CYRP involved a range of transport and community infrastructure projects including upgrades on the Peninsula Developmental Road, which is the main access road into Cape York from the south. As at March 2021, the sealing of the Peninsula Developmental Road is in the planning stages and has been funded to 2023-24. There is currently no intended completion date that has been publicly announced.
3.29
The Cape York Region Package consisted of 3 sub-programs:
Peninsula Developmental Road;
Endeavour Valley Road sealing works; and
First Nations community infrastructure work.
3.30
The CYRP intended to facilitate economic growth in the Cape York Region, by upgrading key roads and infrastructure to better connect areas of economic opportunity with First Nations and local communities. Key benefits from the CYRP include, but are not limited to:
Improving social outcomes for First Nations and other local communities in the Cape York Region by providing better access to health services, employment, and education and training opportunities.
Improving links in the region to support overall economic growth in the hospitality, tourism, mining and pastoral industries, and reduce freight costs.
Upgrading key access roads to ensure they are better able to withstand severe weather conditions.
3.31
Like the NARP and Beef Roads program, the CYRP aimed to support and increase First Nations employment and business use. As such, $50.5 million was allocated to the Torres Cape Indigenous Councils Alliance (TCICA) to deliver priority community infrastructure projects such as jetty and barge upgrades, footpath construction, and local road sealing.
3.32
In addition, Key Result Areas (KRAs) were developed and included in tender documentation for the Peninsula Developmental Road works. The KRAs were:
Indigenous and non-Indigenous training and upskilling;
implementation of an Indigenous Economics Opportunities Plan; and
local industry participation.
3.33
DIRDC reported that the KRAs were successful in providing economic opportunities for both First Nations people, and the broader community in the Cape York Region.
Additional roads funding
3.34
Additional northern roads investments were announced in the 2019-20 Federal Budget. As at April 2021, the amount of funding and status of these program was:
$287.2 million for Cairns Ring Road (currently listed as 'in planning', with funding out to 2026-27);
$100 million for Gladstone Port Access Road Extension (currently listed as 'in planning', with funding out to 2023-24); and
$60 million for the Tiwi Island Roads upgrades (currently listed as 'underway', with an expected finish date of 'Mid 2025').
Evidence received by the committee
3.35
The committee received a range of evidence in relation to the importance of investment in road infrastructure. AgForce Queensland Farmers (AgForce) submitted that Northern Australia faces the 'tyranny of distance' and that the 'transport of key commodities to market is often the greatest expenditure for businesses in the north, where the final destination may be hundreds, or sometimes thousands of kilometres away'. As such:
Transport of people to existing or potential tourism destinations is dependent on high-quality road infrastructure and regional communities may become socially or economically isolated without reliable infrastructure. Smart investment in key strategic routes is therefore essential to realising the full development potential of Northern Australia.
3.36
Submitters favourably reflected on programs to upgrade roads through the above mentioned government investment initiatives. For example, the NT Farmers Association noted that the Mango Roads program was 'welcomed by the entire mango industry in the Northern Territory' as it would 'improve fruit quality for consumers and improve profitability of growers within this important region'.
3.37
Similarly, Regional Development Australia Pilbara (RDA Pilbara) stated that the 'funding allocated to roads infrastructure in Northern Australia is welcome'. It noted that
The Pilbara relies on road transport to connect its towns and rural and remoter communities with essential services, as well as opening up the region to agriculture and tourism opportunities.
3.38
Regional Development Australia Townsville and North West Queensland (RDATNWQ) also offered its support for investment in road infrastructure in Queensland, particularly through the NARP and Beef Roads Programs. It stated that these are:
…important and effective investments to create jobs in the short term and drive productivity and safety benefits for years to come. Nearly $300 million was invested into northern Queensland through these programs.
3.39
AgForce stated that it is 'largely supportive of the investment in Northern Australian road infrastructure thus far'. AgForce offered its support for a number of investment programs, for example:
The Northern Australia Roads' Program delivered sorely needed funding to the Flinders and Hann Highway, where construction is now underway. The Northern Beef Roads' Program provided much needed targeted support to Queensland's beef industry. Queensland is benefiting from 15 projects worth $56.87 million. Given the vital role agricultural commodities play in the economic development of Northern Australia, AgForce recommends the development of a similar program to support the development of the northern grains industry.
3.40
Councillor Jane McNamara, Mayor, Flinders Shire Council, offered her support for initiatives which have arisen from the White Paper. In particular:
I would like to mention some of the aspects that have been very worthwhile. Of course, this would have to include the strategic road funding and the beef roads. For our area, they are the actual lifeblood of this region…These road networks are the lifeblood of this whole region—getting resources to and from Mount Isa in the North West Minerals Province as well as north-south from Cairns and the Tablelands right through to the capital cities of the south. That road funding has been absolutely integral for us, and is also very, very long overdue.
3.41
The Chamber of Minerals and Energy Western Australia (CME) noted that its member companies rely on critical infrastructure for the viability of their projects. It stated that:
Investment in, and maintenance of, public use road infrastructure with the capacity to support the variety of users across Northern Australia is fundamentally essential to the success of the Northern Australia agenda. CME recognises the importance the agenda places on major road infrastructure, and commends the Government on the funding of a number of the roads projects planned under the Northern Australia Roads Program (NARP) and the Northern Australia Beef Roads Program.
3.42
However, a number of submitters offered suggestions for areas of improvement in relation to the government funding of road infrastructure. For example, the Far North Queensland Regional Organisation of Councils (FNQROC) stated that since the White Paper, there have been a number of funding programs for road infrastructure–namely the NARP, Beef Roads, and ROSI. However, while these programs are 'very much welcomed, the direction of the funding keeps changing [and] this does not allow for the completion of any links'. The FNQROC stated:
Again, the funding is very much welcomed but the amounts allocated are not enough, often less than the cost of one project in a capital city. We understand those … living in populated areas give the government a hard time when direct funding is provided to regional, rural and remote areas however unless leadership continues to be shown for these areas the nation will not realise the significant financial opportunities offered by regions like far north Queensland.
3.43
Similarly, the FNQROC also noted that while Beef Roads funding was welcomed, it only allowed for small portions of roads to be upgraded. It argued that long term funding is required to complete necessary upgrades.
3.44
The FNQROC also expressed concern regarding the long time frames between announcements of funding, and the delivery of projects; and the pressures that these long time frames place on local governments. AgForce also called for the 'development of a timetable for the construction of identified freight routes, to provide greater certainty and assurance for producers in Northern Australia'.
3.45
The FNQROC concluded that there is a need for:
Focussed attention by the State and Federal governments on our roads,
There is a need for long term consist funding of priorities/corridors to enable forward planning, and
There is a need to consider the value of commodities being transported by road rather than just traffic volumes in prioritising funding.
3.46
The Australian Logistics Council also offered its support for projects funded by the ROSI program but submitted that:
…to further compliment the ROSI program we believe that the Australian Government should develop a timetable for the construction of key freight routes. This would assist in providing certainty for investors and producers in Northern Australia.
3.47
Mrs Danelle Dowding, Executive Officer, Regional Development Australia Kimberley similarly stated that it would appear that 'the region remains out of sight, out of mind'. Mrs Dowding stated:
The Kimberley has a low population base and a corresponding low political influence. It seems the region remains out of sight, out of mind, and the national focus on its growth and development lags well behind many other regions. Fundamental hard and social infrastructure remains underdeveloped. Upgrading key roads is essential for reliable supply chains, strengthening of links to the market, and reducing inbound and outbound freight costs for handling bulk products and consumer-end commodities across the region.
Investment priorities
3.48
The committee received evidence that there remain a large number of road corridors across Northern Australia which require upgrading and maintenance, and which should be prioritised in government funding initiatives.
3.49
Submitters particularly noted that there remain 'variable standards' across road networks including 'inconsistencies with both construction and maintenance'. The Red Meat Advisory Council (RMAC) explained that road freight is the dominant land transport mode for livestock and meat products in Australia; however, there remain challenges with access to suitable routes. The RMAC noted that it has 'provided much information to the Australian Government in relation to vehicle access and infrastructure disconnect', however, there remain 'maintenance deficits for most regional roads (in all states) with local rural roads particularly vulnerable'. The RMAC emphasised that:
Rural and regional roads are an important component of the red meat and livestock transport network. Red meat and livestock paths-to-market generally commence on rural and regional roads and insufficient infrastructure and maintenance affects current and future freight productivity and economic growth.
3.50
Similarly, the CME submitted that 'operational safety remains the number one priority for CME members' and that:
There are sections of major roads within northern WA that do not meet the minimum standard for largescale freight operations, and as a result pose a significant ongoing safety and operational concern for those who utilise them as an integral component of their ongoing operations.
3.51
The CME provided a case-study regarding the Great Northern Highway (National Highway 1) between Broome and Wyndham which is relied on by the resources sector, tourism agriculture, the pastoral industry and the local community. Despite its status as a national highway, it contains numerous single-lane bridges which pose a significant safety concern for large freight operations. The CME highlighted that between 2013 and 2017, there were more than 45 serious accidents on this section of road, with at least 20 fatalities. It stated:
The bridges of most concern to members are located at Willare (south of Derby), where the volume of traffic is concentrated by consecutive single lane bridges, and includes significant tourist traffic alongside large freight movements.
3.52
The CME noted that investment through the NARP resulted in the upgrading of one of the bridges in 2018 and it argued that such investment should expand. The CME stated:
This investment must continue to ensure this major freight highway can safely shoulder the expanding demands of the range of sectors integral to the success of the region and provide safe road infrastructure for the communities of Northern Australia.
3.53
The CME also noted the statistics regarding deaths and serious injuries in vehicle accidents in northern Western Australia, and the need to upgrade road infrastructure to reduce such risks. The CME submitted:
The killed or seriously injured rate per 100,000 populations in northern WA is 150; double that of the State's metropolitan figures. The most common road accident that leads to one being killed or seriously injured is caused by a vehicle leaving the road (39% Pilbara, 49% Kimberley). Thus undertaking proactive upgrades to reduce the risk of run-off road crashes through sealing shoulders, installing audible edge lines and additional overtaking opportunities should be a priority.
3.54
Mrs Dowding, Regional Development Australia Kimberley, also argued for the improvement of the 13 single lane bridges, as well as a range of other roads. Mrs Dowding stated:
Of particular concern to us are the 13 single-lane bridges across the Great Northern Highway and the reliance on the Kununurra Diversion Dam wall to cross the Ord river. These matters need to be addressed as a priority on National Highway 1, as do the key freight routes linking east to west, the Tanami Road and Buntine Highway, which are vital to increase and facilitate growth in all industry sectors.
3.55
The Darwin Major Business Group also called for improvements to be made to a number of road corridors in the Northern Territory and noted that a range of industries are reliant on road infrastructure. It stated, for example, that tourism in the Kakadu National Park 'will only improve when Kakadu National park roads and other supporting infrastructure provide much greater and ease of access to well-known Kakadu sites'. Similarly, the Darwin Business Group noted the 10-year rolling program for improving major road corridors such as the Jabiru to Gove Road and stated that this would 'bring significant opportunity and benefits to Gove and surrounding coast communities by opening up tourism, cheaper goods and services, health and education delivery'.
3.56
It is worth noting that many other areas in Northern Australia face similar wait times—some of even up to a decade—for vital road infrastructure to be completed. The ROSI program has works with forecasted funding out to 2027-28 (Alice Springs to Halls Creek), 2028-29 (Mount Isa to Rockhampton and Tennant Creek to Townsville) and 2029-30 (Newman to Katherine). Likewise, portions of the Bruce Highway Program will not be completed until 2026-27 (Mackay Ring Road [Stage 2] and Cairns Southern Access Corridor) and parts of the Outback Way will not be upgraded until 2028-29. Given the substantial benefits completing these works, as well as comparable works around Kakadu and Jabiru, would have, such slow intended progress seems far from optimal for the communities in these areas and Northern Australia more generally.
3.57
Mr Ashley Manicaros, Chief Executive Officer, Northern Territory Cattlemen's Association, also noted that the cattle industry would benefit from further upgrades to road infrastructure. Mr Manicaros stated:
We estimate that roughly $40 million of cattle are located along the Carpentaria Highway that would benefit from upgrades to its existing infrastructure. The Buntine Highway has been the subject of one of the beef road funding sources. Up to Kalkarindji and the entire stretch of the Western Australian border there is about $67 million worth of cattle in that space. At the moment, I think it is still a dirt track when you get further west from Kalkarindji.
3.58
Mr Manicaros, Northern Territory Cattlemen's Association, called for additional funding in the Northern Territory, particularly where so-called 'beef roads' are being shared with other industries such as onshore gas, resulting in faster deterioration of infrastructure. Mr Manicaros stated:
We have approached the federal government and the Northern Territory government to accelerate $500 million in road expenditure. They have a plan to spend that sort of money over a ten-year period. We have asked them to bring it forward over five years.
3.59
The committee received evidence from a number of witnesses who argued that the regions in which they are located have not received a 'fair share' of funding. For example, Ms Kylie Porter, Chief Executive Officer, Greater Whitsunday Alliance and Regional Development Australia Mackay-Isaac-Whitsunday Inc, told the committee that roads in the Isaac region are inadequate. Ms Porter stated:
I don't believe that our region's roads, particularly across the Isaac region, are good enough for the amount of traffic and how important they are in our supply chain. We're actually incredibly resilient—Mackay, Isaac and Whitsunday—as a region. That's one of our best characteristics, but it's equally one of our biggest failings, because we haven't ever been a squeaky gate and we possibly need to be a bit squeakier in the future to make sure that we do receive our fair share.
3.60
Similarly, the Mt Isa City Council stated that:
No specific projects or investments have been supported by the Australian Government's Northern Australia agenda in Mount Isa. However, we have witnessed…roads projects (beef roads and Northern Australia roads) funded to our north, west and east, and so on, but not in or adjacent to Mount Isa.
Barriers to investment in road infrastructure
3.61
The committee heard that there are a number of barriers slowing or preventing investment in road infrastructure. For example, Mr Drew Wagner, Executive Director, Northern Territory Division, Minerals Council of Australia, explained that barriers to investment in road infrastructure include 'red tape' and 'costs'. Mr Wagner, in discussing the Tanami Road, stated:
…until we see some of that catalytic investment, until we see the removals of some of those red tape processes that we've already spoken about, it will be very difficult to encourage that large investment…
3.62
Mr Wagner went on to explain that the barrier to improving road infrastructure in rural and remote areas 'comes down to costs. If you're looking at $1 million per kilometre, it very quickly becomes a very expensive road that's not necessarily used by a large number of people'. Mr Lyall (Jack) Bawden, Mayor, Carpentaria Shire, and Chair, North West Queensland Regional Organisation of Councils, similarly highlighted the ongoing costs faced by local councils in maintaining roads which if sealed, would require less maintenance. Mr Bawden stated:
The gravel has to be imported; that's why the bill is so high. We did it a couple of years ago—three years ago—at a cost of about $13 million, and then in the last wet it got washed away…Our view is: it's built to a standard to put seal on it; why not put seal on it? We know that you can't utilise it during the wet—everyone understands that and gets that—but the fact is that, after the wet goes, it will be still there and not washed away.
3.63
Other witnesses argued that there is a lack of cooperation or coordination between levels of government which is preventing investment in road infrastructure. For example, Ms Darlene Irvine, Executive Officer, FNQROC, stated that:
…one of the most frustrating things in this region is the clash between the federal and state governments. To be honest, I have to praise the federal government for investing more in the road network in the last seven years than I've seen in the last 20 years and significantly more than the state government. I'm so very grateful for that because, other than that, we would be struggling. We continually find that, where we get federal government support for initiatives in our region, the state government won't stand behind it.
3.64
This was echoed by Mr Simpson, RDA Pilbara, who noted that one of the largest projects in the region, the sealing of the Karratha to Tom Price Road has faced obstacles in completion. Mr Simpson explained:
I think one of key issues is that this project has been on the table for such a long time. The federal government put in nearly 90 per cent of the money on the first stage, which has been completed. The hardest part now is there's more money for the second stage, but we've just found out that the environmentals haven't been done for the second stage. So it's now holed up in the state process of them trying to get your money. I think that's a classic example of the federal government having got the money on the table and then trying to get the state government to come and get the project kicked off. You'll always hit those obstacles along the way, and the frustration of it all.
3.65
Mr Vernon Lawrence, Chief Executive Officer, Shire of Wyndham East Kimberley, also told the committee that government funding initiatives often have regulations which are difficult for councils to comply with. For example:
Because of where we are and the season to do our construction works and develop infrastructure is really only six months up here the restrictions and having to fit in with the rules and regulations around Roads to Recovery are quite difficult. It's the same with funding we get from natural disaster funding. As you know, with the rain and the monsoon events we get up here, we have a significant amount of money given to us to rectify roads, but the rules around it make it extremely difficult for us to comply.
Impact of weather events on roads
3.66
Submitters observed that Northern Australia faces a range of extreme weather events which negatively affect road infrastructure, and as a result there are significant costs associated with its maintenance and repair. It was suggested that disaster mitigation, which includes weather appropriate roads, could lower such costs. The CME stated:
The nature of the Kimberley and Pilbara regions lend themselves to regular extreme weather events such as flooding and extreme heat, contributing to significant wear-and-tear on the road network.
3.67
Similarly, the RMAC noted the findings of the Australian Infrastructure Audit 2019 which found that:
…Northern Australian is particularly prone to extreme weather and climate impacts, higher costs of living and high building costs, higher levels of risks and barriers to investment, lack of planning and investment coordination resulting in a disconnected transport network and inefficient supply chains.
3.68
Representatives of the City of Karratha gave evidence that the greatest cost associated with cyclones and other disasters in the region is to road infrastructure, as 'they're so susceptible to flooding and they've usually been done relatively cheaply'. Councillor Peter Long, Mayor, City of Karratha also argued that when a road 'gets washed out' there is an opportunity to build a 'better road', though roads are usually just repaired. Councillor Long noted that at the time of the hearing, the north-west coastal highway was 'washed out' as a result of significant rain fall. Councillor Long highlighted that if the highway had been reinstated with a bridge to allow flooding after a similar rain event 10 years prior, then 'it would have been more satisfactory'. Councillor Long stated:
There's about a quarter of a kilometre of the road totally washed out. When I say totally washed out, I mean there's a metre drop from the edge of the bitumen to the dirt. This happened before about 10 years ago. If that was properly reinstated with, for example, a bridge to allow the flooding to go through, it would have been more satisfactory; but, of course, roads are very costly, and there tends to be a repair job every time.
3.69
This was echoed by Mr Ryan Hall, Director of Development Services, City of Karratha, who remarked that 'rebuilding the same infrastructure leads to the same faults later down the track'. Mr Hall stated:
It could be a case where it's identified that a bridge could be installed instead of a road that floods and gets washed away. I think at the moment the rules are good if you just want to replace and repair—we've been doing that and no complaints there—but I think there is probably scope to identify where that infrastructure could be upgraded to avoid having to repair and replace it again in the future.
3.70
Councillor Long told the committee that the Kimberley region receives significant rainfall each year, and roads require regular repairs and that funding is insufficient to make them 'flood proof'. Councillor Long stated:
As you know, the Kimberley gets huge amounts of rainfall at this time of year and everything floods and everything goes green and then it dries off. Every year, their roads get washed out and they repair them. They're lucky if they can actually repair them before the next wet season and there's never money to actually make them flood-proof. It's an ongoing problem. I think that needs to be addressed. It would be terrific if we could do that.
3.71
Councillor Long also reflected that replacing existing infrastructure with weather-proof roads would cost more than simply repair damaged infrastructure, but that it would prevent damage in the long term.
3.72
The RMAC suggested that the Northern Australia Infrastructure Facility (NAIF) could play a greater role in funding adaptive infrastructure. This recommendation was based on Infrastructure Australia's report An Assessment of Australia's Future Infrastructure Needs: The Australian Infrastructure Audit 2019. The assessment found that:
The right infrastructure can unlock growth in regional industries, but delivery can be challenging due to low populations, challenging weather, changing markets and high building costs. Boom-and-bust economic cycles add more difficulty, but adaptive infrastructure can help stabilise them.
Northern Australia is particularly prone to these challenges, yet it has significant economic potential. Infrastructure can help access this opportunity. Governments can support development by drawing on:
current research, including from CSIRO and Geosciences Australia
lessons from past development efforts.
3.73
The assessment also stressed the importance of improving infrastructure more generally throughout Northern Australia, as it 'can catalyse quality of life and productivity by improving connectivity and efficiency' and highlighted the importance of drought-proofing the water sector throughout Australia.
Rail
3.74
Several witnesses and submitters noted how increased rail throughout more parts of Northern Australia would aid with development, due in large part to the ability of rail networks to move large amounts of freight. This includes the movement of materials for the minerals and resources industry, as well as freight associated with agriculture and agricultural processing (such as the production of sugar). Additionally, rail provides transportation options that can further tourism. The rolling manufacture of rail stock is also, in and of itself, a significant construction industry.
3.75
When submitting to the committee, AgForce Queensland Farmers aptly described some of the benefits of rail networks:
Rail plays a critical role in the transport of cattle and bulk cargo such as grains and coal and would therefore be an important investment in the development of a northern grains industry. Further, investment in rail eases maintenance pressure on regional roads, as well as limiting carbon emissions. Given this, the development of a rail improvement and maintenance investment program similar to the Roads of Strategic Importance program would be welcomed.
3.76
Rail networks can also open up previously inaccessible natural resources and make new businesses possible. Mr Glendon Graham, Chief Executive Officer, Mount Isa to Townsville Economic Zone Inc described to the committee how there is a well-known deposit of iron ore at Westmoreland, which is located on the Northern Territory border near Burketown. Mr Graham explained how, at present, these resources could not be utilised:
Because of its isolation, it's sort of a forgotten resource. It's just too far to be able to access. It's still in the ground; it's still there for the future. But the story of that deposit is that you can't put in ships to carry iron ore out, as they do in Western Australia, because the water up there's too shallow. So it would need some sort of rail-road solution for that to happen.
What I'm saying is: along that route out in that direction, there are a number of other deposits that could all benefit. It's pretty much the same as what they're talking about now with the rail line from the Galilee Basin into Bowen. It's a rail line that should be used for a number of mines rather than the one to make it more viable.
3.77
However, despite the potential benefits of rail, it requires a large initial outlay of funds. Mr David Malone, Chief Executive, Master Builders Northern Territory, described his perspective on the matter:
A key challenge for new investors in the NT is the limited base of infrastructure in the region. Everybody is a pioneer, many times having to build not just their own project but also the infrastructure needed to get their particular product to market. This route to market challenge is one of the key negatives in terms of trying to get investment across the line. If you're trying to put a project together and you've got to build $100 million dollars of rail infrastructure to get your product to the main line or you've got to put extensions into the port, that's got to be paid for in some shape or form.
Current and proposed projects
3.78
There are a number of large-scale rail projects currently being undertaken in Northern Australia. In DISER's supplementary submission to the inquiry, the Department noted that the NAIF is funding a 90-kilometre rail spur to connect Verdant Minerals Limited's phosphate ore mine at Ammaroo with the Alice Springs to Darwin railway line. Up to $160 million has been set aside for the project, and it has been forecasted to support 300 construction jobs, as well as 150 ongoing jobs in the area. Additionally, a new multi-user rail loading facility at Cloncurry has been granted development approval.
3.79
However, there was an additional proposal that was of interest to a number of submitters. The Australian Logistics Council submitted that a railway from Mount Isa to Tennant Creek would significantly drive growth in Northern Australia and that the project ought to be a priority for investment. Figure 3.1, below, depicts this proposed link.
3.80
The Australian Logistics Council described the rationale behind this proposed new link:
Unlocking the Barkly tableland would significantly assist in driving economic growth in Northern Australia. 16 mines in the Northern Territory are currently in development, and the locality of Katherine is also developing an agricultural logistics hub on the north/south rail line. These projects, as well as the development of mining projects in South Australia, will contribute to providing an incentive to invest in rail infrastructure in Northern Australia.
The economic case for the construction of the Mt Isa to Tennant Creek Railway has been further strengthened by the rise in importance of lithium and cobalt to the global economy, and the potential of Darwin and Townsville as major export hubs to the US and Asian markets.
3.81
Mr Glendon Graham, Chief Executive Officer, Mount Isa to Townsville Economic Zone Inc also expressed support for this proposed rail link, as did the Mount Isa City Council.
Townsville: a case study
3.82
The network of road and rail around Townsville was raised by witnesses are a particularly relevant example of a successful network, as it has allowed the construction of the new Lansdown Eco-Industrial Precinct and also weathered substantial natural disasters. Councillor Jane McNamara, Mayor, Townsville City Council, described how the Townsville area is served by a combination of road and rail:
The Flinders Highway is a huge network. It is the only highway in Australia that has a railway line beside it. You can put resources on at one end and they're delivered to the port of Townsville. It's really important that that link is made stronger. This was brought out earlier this year with the February flooding, when that railway line was washed away and the Flinders Highway was cut for several weeks.
3.83
Likewise, Councillor Jenny Hill, Board Member, Local Government Association of Queensland, and Mayor of Townsville, noted that what Northern Australia requires is a system of roads and railways that complemented each other. Councillor Hill also noted that having a cohesive transport network was also vitally important in her area during 2019 floods:
One of the advantages for us with the Lansdown precinct was that during the floods—and we had close to 400 millimetres of rainfall in that catchment—the road network remained open all the way through to the port and that section of the rail network remained open. So, for anyone who wants to invest or put a business in that region, it gets a big tick because, if it survived one of the worst rainfall events we have ever seen, you know that you can put your business there and it is not going to suffer.
3.84
The committee notes the role that rail has played in Townsville's economic development, as well as how the comprehensive rail-road network in the area managed to continue to function during the 2019 floods. This represents a significant success story of road and rail infrastructure in Northern Australia.
State and federal cooperation
3.85
Mr Lyall (Jack) Bawden, Mayor, Carpentaria Shire and Chair, North West Queensland Regional Organisation of Councils, noted his frustration that, at present, state governments seemed to be prioritising urban roads over regional and rural links, despite the Federal Government being willing to back the project:
We continually find that, where we get federal government support for initiatives in our region, the state government won't stand behind it. Their focus seems to be on 'This is my opinion on South-East Queensland,' and it seems to be focused on spending money on commuter use. An example is the Cross River Rail. If we had the same investment of $6.7 billion in northern Australia, the return on investment would be significantly higher, long term and growing compared to what I call commuter route investment in Brisbane.
3.86
This point was also made by the Australian Manufacturing Workers' Union, which noted that states too often 'go it alone' in terms of rail procurement. The union subsequently recommended that 'Commonwealth and state governments should maximise the benefit to regional communities from the significant investment in rail infrastructure that will be made over the next decade'.
Aviation infrastructure
3.87
The committee received a range of evidence in relation to aviation infrastructure in Northern Australia, and its importance in providing reliable transport for both passengers and goods.
Government investment
3.88
The Australian Government implements a range of policies designed to facilitate a 'viable, competitive, and safe aviation industry which contributes to the prosperity of the economy and wellbeing of the community'.
3.89
To assist connectivity in regional centres, including in Northern Australia, the Australian Government provided $100 million in grant funding over four years from 2019–20 for the Regional Airports Program. This program is a key enabler of regional transport for regional communities, and supports employment in the regions. The Regional Airports Program provides assistance to the owners of regional airports to undertake essential works which promote aviation safety, and access for communities.
3.90
The first round of the Regional Airports Program contained $41 217 096 for specific projects. Of the 61 funded projects from the first round, none are located in the Northern Territory or in the north of Western Australia.
Table 3.5: Regional Airports Program: Round 1 funding
|
|
|
|
|
|
Whitsunday Regional Council
|
Bowen, QLD
|
$250,000
|
Resurfacing of the runway, repair of turning nodes and cracks
|
|
Gladstone Airport Corporation
|
Gladstone, QLD
|
$722,372
|
Drainage works
|
|
Gladstone Airport Corporation
|
Gladstone, QLD
|
$876,121
|
Resealing and redesign of the northern apron, linemarking
|
|
Gladstone Airport Corporation
|
Gladstone, QLD
|
$136,750
|
Rejuvenation of runway
|
3.91
At the time of writing, funding for Round 2 of the Regional Airports Program is yet to be announced.
3.92
As part of the Regional Aviation Access Programme, the Australian Government is investing in upgrades to remote airstrips in isolated outback communities through the Remote Airstrip Upgrade program. The Remote Airstrip Upgrade program is intended to enhance the safety and accessibility of aerodromes in remote areas of Australia. It also facilitates improved delivery of essential goods and services such as health care. The Australian Government is also delivering the Extension to the Remote Airstrip Upgrade (RAU), program and additional support for the Remote Air Services Subsidy (RASS) Scheme ($39.6 million) measure under the White Paper.
3.93
The RAU Program provides assistance for safety and access works at eligible remote aerodromes across Australia, including those in Northern Australia. The RASS subsidises regular weekly air transport for the carriage of passengers and goods to communities in remote areas of Australia. This measure has been delivered with 65 projects funded under RAU.
3.94
The Australian Government continues to support the upgrade of remote airstrips including those in Northern Australia through the RAU program and to deliver air services to 372 remote communities through the RASS Scheme.
3.95
Under rounds 4, 5 and 6 of the RAU program, over $21.9 million for 63 projects have been committed to Northern Australia. Projects include:
upgrading runway surfaces;
safety equipment such as runway lighting and navigation aids; and
other infrastructure such as animal proof fencing.
3.96
The program is currently up to Round 8. The results from Rounds 6 and 7 are publicly listed online. From these rounds, 28 grants were made in Queensland, 12 in the Northern Territory and 16 in Western Australia.
3.97
On 13 June 2020, the Deputy Prime Minister announced $9 million in funding for 45 access and safety upgrade projects across Australia, under round 7 of the program. Twenty-nine of the 45 projects were based in Northern Australia totalling $6.9 million.
Evidence received by the committee
3.98
Submitters offered their support for government investment in aviation infrastructure. For example, RDA Townsville and North West Queensland stated that it has 'welcomed the investments in remote airstrips that have ensured on-going connectivity for residents and service delivery and access to health and education services'.
Cost and reliability of services
3.99
The committee received evidence in relation to the cost of air travel in Northern Australia, including the cost of airfares, and the impact of having limited services.
3.100
Mr Tony Simpson, Chief Executive Officer, Regional Development Australia Pilbara, told the committee that the cost of air travel in the north west of Western Australia has 'always been a struggle' with prices between $600 and $800. Mr Simpson noted that while 'competition will always do well to keep prices down', there are only two carriers providing services in the region and 'the prices are not much different to each other. They sort of bat off each other'.
3.101
Mr Mark Davis, Manager, Community and Economic Development, Shire of Broome, in discussing the cost of airfares told the committee in the past there had been a 'downward trend in seat availability and an upward trend in the price of airfares'. However, in recent years there had been a 'significant downwards trends in the prices of airfares'. Mr Davis stated that the Western Australian government has worked with both Qantas and Virgin over the 'last few years' and that the introduction of capped pricing 'has certainly been effective in increasing flight tourism and also making the costs of travel more effective for community members'.
3.102
However, Ms Janine Hatch, Economic Development Coordinator, Shire of Broome, expressed concern that 'the state government is subsidising airfares, which is going to be unsustainable in the long run'.
3.103
In addition, witnesses expressed concern regarding the impact of cancelled or delayed services on rural and remote communities. For example, Groote Eylandt and Bickerton Island Enterprises (GEBIE) told the committee that the unreliability of air services is 'having a dire effect on business in the region and personal passenger movements'. GEBIE explained that services provided by Air North are regularly cancelled or delayed and that the 'nascent tourism industry on the Groote Archipelago' is being negatively affected. GEBIE explained:
The Lodge has two fishing charter boats to host domestic and international clients who come to Groote to fish and observe the pristine wilderness in all its beauty, to see the local Indigenous arts and crafts, visit cave paintings and other relevant landmarks. This is becoming difficult as at least one sector flying in/out is cancelled. Then there is the inevitable negative feedback posted on sites like Trip Advisor. There is no Regulator to force Air North to provide the basic services but we wish there was.
3.104
A solution to the costs faced by aviation providers was proposed by Mr Vernon Lawrence, Chief Executive Officer, Shire of Wyndham East Kimberley. Mr Lawrence stated that a lifting and/or reduction in cabotage restrictions could open up 'enormous opportunities'. This suggestion was also supported by the Torres Shire Council, although the Council did note that any changes of current arrangements should not be undertaken in a 'laissez faire' manner.
Aviation during COVID-19
3.105
The COVID-19 pandemic has had a substantial impact on both international and domestic aviation, with regional airlines facing particular challenges. The Senate Rural and Regional Affairs and Transport References Committee's Inquiry into the future of Australia's aviation sector in the context of COVID-19 and conditions post pandemic received public submissions on this topic, which are considered in this report due to the particular relevance of this issue to Northern Australia.
3.106
Airservices Australia submitted that the COVID-19 pandemic had caused 'unprecedented disruption' in the sector, with the impact being far worse than the impacts on the sector following September 11, the collapse of Ansett Airlines or the SARS pandemic. Indeed, Airservices Australia has forecasted that a return to 80 per cent of pre-COVID traffic is not predicted until around 2024. Queensland Airports reported the direct impact of the pandemic on airports in the region:
In the year ended 30 June 2020, 6.3 million passengers were recorded across Gold Coast, Townsville, Mount Isa and Longreach airports. This was 25 per cent less than the year before, with a significant drop off in travel from mid-March. At our largest port, Gold Coast Airport, about 1.5 million fewer people travelled in the last three months of the year, or 99 per cent fewer people supporting the tourism and business sectors in this region.
3.107
Queensland Airports submitted that the pandemic had obliged them to restructure, resulting in a staff reduction of 30 per cent, and that they had experienced an 80 per cent fall in revenue from April to November 2020.
3.108
In March 2020, the Australian Government announced its Australian Airline Relief Package. The $715 million package included the refunding and ongoing waiving of:
the aviation fuel excise,
Airservices charges on domestic airline operations, and
domestic and regional security charges.
3.109
Many aviation industry groups benefitted from the Australian Government's JobKeeper initiative. Queensland Airports submitted that JobKeeper had assisted them to retain as many staff as possible. However, Queensland Airports highlighted that the majority of Australian Government support has gone to airlines, as opposed to airports and other segments of the aviation supply chain:
Much of this funding covered the cost of essential flights for airline operators, particularly through the Domestic Aviation Network Support (DANS) and Regional Airline Network Support (RANS) programs, while airports like Gold Coast Airport kept terminals open to support these flights and operated at a loss.
3.110
These matters are being examined further via the Senate Standing Committees on Rural and Regional Affairs and Transport's Inquiry into the future of Australia's aviation sector, in the context of COVID-19 and conditions post pandemic, which is due to table on 13 May 2021, as well as the Rural and Regional Affairs and Transport Legislation Committee's inquiry into Australia's general aviation industry, which is due to report by 30 November 2021. This committee anticipates that these reports will make further commentary on the difficulties faced by the aviation sector in Northern Australia and Australia more generally. Accordingly, the committee has refrained from going into detail in these areas, given that other inquiries are focusing specifically on these matters.
Maritime freight
3.111
Over half of Australia's sea exports are undertaken via Northern Australia, including the exportation of minerals and agricultural products, meaning that maritime freight is a key area for the economic development of Northern Australia. For some areas, such as in the Torres Strait and the Mornington Shire, communities are entirely dependent on coastal shipping to supply heavy freight that includes fuels, machinery and business construction materials, as well as general cargo and fresh produce.
3.112
Currently, maritime freight is regulated via the National System for Domestic Commercial Vessel Safety, which is delivered by the Australian Maritime Safety Authority. According to the DIRDC, 'this consistent set of standards and safety services allows operators, seafarers and vessels to move seamlessly between jurisdictions, and supports confidence and safe employment across sectors such as marine tourism, transport and fishing'.
3.113
The DIRDC submitted that the National Freight and Supply Chain Strategy, which was agreed to by transport ministers on 2 August 2019, would 'aim[]for better linkages from major regional and remote areas to key freight corridors, trade gateways (ports and airports), and improved all weather access to export gateways, including in Northern Australia'. The Coastal Trading (Revitalising Australian Shipping Act) 2013 provides for the licencing of domestic interstate shipping, which is an essential part of the supply chain for regional and remote coastal communities.
3.114
Large amounts of freight are moved from Northern Australia by sea. For example, Wilmar Sugar Australia submitted that Sugar Australia ships approximately 235,000 to 260,000 tonnes of bulk raw sugar annually from Queensland to its refinery at Yarraville in Melbourne and that Wilmar Sugar itself ships 40,000 to 50,000 tonnes of sugar cane molasses annually from Queensland to fermentation and animal feed markets in Victoria. Wilmar Sugar stated that coastal sea-freight is 'the only viable transport method for large quantities of bulk molasses to this market'.
3.115
Additionally, Regional Development Australia Far North Queensland and Torres Strait submitted that moving freight by sea is far more carbon effective than moving freight by road or rail, observing that it is 'up to 100 times more carbon effective per tonne moved' and that freight by sea' offers all year‐round project support as road and rail access across Northern Australia as access can be cut during the wet/monsoon season'.
3.116
Regional Development Australia Far North Queensland further submitted on the rising importance of freight by sea in Northern Australia:
The vast distances between remote major centres across Northern Australia, combined with the restricting effects of the climate change movement on the nation's development agenda and the benefits of sea freight over road/rail transport will drive the growth of sea transport options across the North and compel port and micro port development to unlock infrastructure development potential. Rather than ports in the north being outward or export focused, many will need to re‐focus on being importers of packaged goods to service regional centres or communities via a land based "hub and spoke" model.
3.117
Regional Development Australia Far North Queensland proposed that a review of policy ought to take place 'for ports development across Northern Australia with a view to expanding existing facilities and installation of micro‐ports as import hubs' in order for the full benefit of freight by sea to by realised.
3.118
However, there are substantive difficulties in this area. AgriFutures Australia noted that, at present, there is a significant cost associated in moving farm produce through domestic and international freight chains. Further, the benefits from freight are not always passed on to nearby communities. The Town of Port Hedland reported that 'the people of Port Hedland watch the traffic of innumerable freight ships entering and leaving the world's largest bulk port, accumulating wealth for companies, the state and the nation, while they access aged infrastructure and their living standard declines'.
3.119
The Torres Cape Indigenous Council Alliance submitted that its communities had raised the issue of freight subsidies for many years as a way to reduce costs, particularly in the Torres Strait and Mornington Island areas. The Alliance proposed that a scheme like the Tasmanian Freight Equalisation Scheme, which helps to reduce the costs of transporting goods by sea, would both address high living costs and open the region to greater development and market opportunities.
3.120
The Northern Territory Farmers Association likewise raised the concept that Northern Australia could have a dedicated freight subsidy scheme. The Association submitted that:
A valuable opportunity to support the development of export capacity from Northern Australia would be the consideration of a Freight Subsidy Scheme. As part of this modelling there needs to more consideration for the remoteness of Northern Australia and what this means to access domestic and international markets: the tyranny of distance and high transport and handling costs inhibit development of key manufacturing industries and sustainable agricultural and aquaculture products.
3.121
The Northern Territory Farmers Association stated that a Northern Australia Freight Equalisation Scheme, like the Tasmanian Freight Equalisation Scheme, would reduce the cost impost of doing businesses in remote regions.