Mackay region strong economy, liveable region

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With its expanding employment prospects, strong investment and sound development opportunities, the mackay region is recognised as an economic powerhouse. these dynamic attributes are perfectly balanced with a host of attractive lifestyle attributes

making mackay a desirable place to work, live and visit. mackay regional council strives to maintain and strengthen the region’s accessibility, connectivity, vibrancy and

prosperity for current and future generations.

strong economy, liveable regionWelcome to the Mackay region. Firmly fixed in a long-term cycle of positive growth and demand, the region’s buoyant economic climate is aptly complemented with a host of natural and built attractions, all of which add to its growing reputation for liveability.

Located midway between Brisbane and Cairns, the region boasts an enviable lifestyle with strong employment opportunities.

High levels of employment, productivity and exports have allowed the region to become a significant contributor to both the Queensland and Australian economies. Mackay region also supports new technologies that provide vital energy supplies (including energy from renewable sources) and sustains agriculture in one of Australia’s leading food-producing regions. Underpinning current and future growth in national employment, the region’s efficient productivity levels fulfil burgeoning export markets and growing global demands.

This positive future outlook presents an unprecedented window of opportunity which is driving strong business investment and growth. Council is working with all levels of government to position Mackay at the best possible standpoint to maximise current resource cycle returns and deliver long-term prosperity for the region and its residents. There’s no doubt in my mind that our Mackay region will continue to go from strength to strength. This document offers relevant information about Mackay region with a focus on activity drivers and identified areas for growth and investment. To gain a first-hand understanding of and a genuine feel for our prosperous, sustainable and vibrant region, I encourage one and all to take the time to visit Mackay; I know you will be warmly welcomed to, what I consider to be, a most dynamic and liveable part of Queensland.

message from the Mayor

Message froM the Mayor 3

about the Mackay region 4

regional growth 5 PoPulation growth 6-7 Mackay region: DynaMic, connecteD 8-13- transport and logistics - mining and engineering - agribusiness Digital econoMy 14

housing anD construction 15- building approvals

tourisM 16-17- tourism opportunities

a liveable region 18-25 - active centres- mackay city centre- sarina town centre- northern beaches- liveable region- festivals and events- mackay entertainment and convention centre further reaDing & contact Details 26

Councillor Deirdre Comerford Mayor, Mackay Regional Council

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RegIonAL growthThe Mackay region is the service hub for the wider Mackay-Isaac-Whitsunday Region (MIW). MIW is a solid economic performer and contributor to the health of the national economy. During the global Financial Crisis, MIW actually grew strongly and has continued this trend, demonstrating the resilience for which this region is known. In 2010/11, the resources sector in Mackay region contributed at least $460 million in wages and salaries to 3977 direct full-time employees (not including contractors) and $2607 million in voluntary community contributions and purchases of goods and services from employing local businesses (including contractors). of this $3066 million in direct spending, Mackay indirectly contributed $5767 million in additional goods and services purchases and 39,912 additional jobs. The total economic contribution (direct and indirect) from the resources sector in 2010/11 amounted to $10,686 million in output/turnover or $6167 million in value added (i.e. contribution to gross Regional Product or gRP), 43,889 full-time equivalent jobs, or 71 per cent of the entire workforce in this region; for every resource-sector job created, another 10 indirect jobs are created in the Mackay region. *Information source: Queensland Resource Council (queenslandeconomy.com.au)

ABoUT THe Mackay regionoften referred to as “Queensland’s economic powerhouse”, the Mackay region is underpinned by significant coal-mining deposits in the Bowen and galilee basins and is home to one of Australia’s largest sugar growing and milling industries.

expanding employment, investment and development opportunities, a buoyant economy and a host of liveability aspects are only a handful of the many attributes that allow Mackay to shine brightly in the national spotlight. The region offers an accessible, connected, vibrant and prosperous economy with a host of attractive lifestyle benefits, making Mackay the perfect place to live and visit.

average daily temperature range: 17oc to 26.7oc

average rainfall per annum: 1724mm size: 7622 km2 or 0.4 per cent of Queensland

closest capital city: brisbane estimated resident Population: as at June 2011, 115,677 people

Projected average Population growth to 30 June 2031 2.2 per cent

new dwelling approvals 12 months ending march 31, 2012: 1176

Unemployment (smoothed) march quarter 2012: 4.1 per cent

miW gross regional Product: $17.6 billion as at 2010/11 (reDc)

The Mackay region boundary aligns with the Mackay Local government Area (LgA). The region acts as the service hub for the wider Mackay-Isaac-Whitsunday Region (MIW).

significant major projects in the Mackay region include> $120 million Cogeneration Plant: To be located at Racecourse Mill, this power plant will ultimately supply 30 per cent of Mackay city’s power requirements. This project is running on-track and on-budget with test runs scheduled for october 2012. The Cogeneration Plant is scheduled to start commissioning in early 2013.> $12 billion Dudgeon Point Coal Terminals Proposal: Three new coal terminals will be constructed to complement Dalrymple Bay Coal Terminal (DBCT) and Hay Point Coal Terminal (HPCT), all of which will service the mines of Central Queensland. When complete, this expanded port will export between 250 and 300 million tonnes per annum.> $405 million Mackay Base Hospital Redevelopment: This new three-storey hospital (being redeveloped on the current hospital site) will accommodate up to 318 beds, provide emergency and outpatient departments, renal support services, day oncology, a dental services unit, birthing and delivery suites, special-care nursery and an intensive care unit.> $200 million Andergrove Lakes residential/shopping community: To be situated between Andergrove and Beaconsfield, this development will provide accommodation and residential living options as well as retail, café and restaurant facilities. The development will progress through six stages to produce standard residential lots.

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With an estimated resident population of more than 115,677as at June 2011, Mackay is one of the fastest-growing locations in Queensland.

Based on State government projections, Mackay is expected to sustain continued, strong growth over the years ahead. over the next two decades, positive growth forecasts indicate the region’s population will near 200,000.

By 2031, the wider Mackay-Isaac-Whitsunday region, currently home to more than 175,000 people, is tipped to grow strongly and reach close to 300,000 residents.

At the heart of the MIW region, Mackay is strategically located to gain benefit from future population growth within its established business service area.

While accelerated growth is of course beneficial for the region in terms of business and industry opportunities, Mackay is faced with significant challenges to provide and maintain vital infrastructure that will adequately service this rapid rate of expansion.

Physical infrastructure — particularly the region’s arterial roads and water and sewerage networks — requires substantial additional financial support in the short-to-medium-term to maintain this high level of growth. In response to this, council has allocated $100.4 million in its 2012/13 budget for roads, maintenance, footpaths, bikeways, bridges and other assets, and $137.3 million for water and waste services.

PoPULATIon growth

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> TRAnSPoRT AnD LogISTICSThe majority of inputs to and exports from the MIW region enter via Mackay. The Port of Mackay is a significant source of bulk input commodities that support regional industry, such as petroleum products (mining and agriculture), chemicals (mining), fertiliser (agriculture) and concrete (construction).

The Port of Mackay has a long history as an export port for bulk commodities of sugar, grain and ethanol and is Queensland’s fourth-busiest, multi-commodity port in terms of cargo throughput.

The Port of Hay Point, located near Sarina, is one of the largest coal export ports in the world and hosts two coal terminals – Dalrymple Bay and Hay Point. Both of these coal terminals are staging development programs designed to boost port capacity.

Based on initial requests from industry, it’s likely the Port of Hay Point will need to approximately double its current coal export capacity (from a current port capacity of about 130 million tonnes per annum) within the next five to 10 years. To meet this demand, two or three new coal terminals will need to be built. Two companies – the Adani group and DBCT Management Pty Ltd – have been selected to work with north Queensland Bulk Ports (nQBP) to lead the development of the Dudgeon Point Coal Terminal (DPCT) project. The proposed DPCT project involves the development of two new coal terminals with a combined export capacity of 180 million tonnes per year – almost exactly the amount of coal exported out of the entire state from 2009 to 2010. This massive project is potentially worth between $10 billion and $12 billion in investment and stands to deliver another 5000 construction jobs.

The Adani group is an Indian conglomerate developing the $10 billion Carmichael Coal Mine which includes potential for $6.8 billion worth of rail and coal-handling infrastructure to service Hay Point operations. DBCT management is the lessee of the existing coal terminal.

MACkAy RegIon: DynaMic, connecteDonly an hour’s flight from Brisbane, the Mackay region is a logistics centre for Queensland’s mining and agricultural provinces. Sugar, coal, petroleum, bio-fuels and other renewable-energy sources, as well as contract services and supplies, all centre around Mackay. Safe and efficient functioning of the region’s transport network ensures continued connectivity, economic prosperity and enhanced production capabilities.

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> MInIng AnD engIneeRIng

The worldwide demand for resources continues to create local growth opportunities across a range of sectors which have caught the eye of many potential investors and financiers. Mackay serves the world-class mining provinces of the Bowen and galilee basins which, when combined, contain much of the state’s coal reserves including virtually all of Queensland’s prime coking-coal reserves.

With 50 coal mines currently in operation and a number of new mines planned here and across Central Queensland, this increase in production will continue to fuel further demand within this world-class sector.

The potential of the galilee Basin as a coal precinct has attracted a level of local and international attention, second only to the far-more-famous Bowen Basin. At least six major companies and consortia are at various stages of detailed mine planning for the galilee. The addendum to this prospectus details planned expansions in the mining resource areas surrounding Mackay.

Mackay is home to major service industries that specialise in the fabrication and maintenance of large-scale mining equipment for mines in the hinterland and beyond. Specialised maintenance services are provided by a host of engineering workshops located in the Mackay industrial area of Paget. The expertise developed at Paget is recognised both nationally and internationally as a leader in the field.

every two years, Mackay proudly plays host to the Queensland Mining exhibition. This prestigious event gains national exposure for the entire region, adds value to the local economy and opens doors for future investment.

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The local sugar industry has underpinned the region’s economy for more than 120 years. Four sugar mills operate within the Mackay region — Farleigh, Marian, Racecourse (Mackay Sugar Limited) and Plane Creek (Sucrogen).

Australia’s largest sugar refinery is co-located at Racecourse Mill. First commissioned in 1994, its output is regarded as the best quality-refined sugar in Australia.

Mackay Sugar is supported by 1000 family owned farms producing tonnes of cane per annum on 85,000 hectares of quality agricultural land. It also currently contributes around $300 million per annum to the local economy through grower shareholders and employees.

ongoing planned investment into various sugar industry diversification projects will inject hundreds of millions of dollars into the Mackay region.

Current ventures in the local sugar industry include a planned Cogeneration Plant (valued at $120 million) which will supply up to one-third of Mackay’s electricity needs, ethanol and bio-fuel production. It will also manufacture yeast and citric acid.

> AgRIBUSIneSS

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HoUSIng AnD constructionPopulation growth results in a forecast of strong demand for Mackay’s residential construction sector. Between 1200 and 1500 new dwellings are required each year in Mackay’s Local government Area (LgA) to meet forecast growth estimates. While construction setbacks can occur during periods of wet weather (as experienced in early 2011), Mackay is proving a hot spot for new residential construction. In the six months to March 31, 2012, Mackay recorded 696 new dwellings. This figure surpasses the larger centres of Ipswich (613) and Townsville (612) over the same period.

More new dwellings are required each year to meet demand, thus there is a growing emphasis on the diversification of accommodation styles on offer. A choice of well-located apartments and studios, town houses and smaller suburban lots offsets traditional four-bedroom or rural residential living options to better cater for a wide range of price points and individual wants and needs.

Local government Area

Total new Dwelling Units(a)

Total residential building value (b)

Total building value (b)

number $000

Brisbane (C) 2,652 937,336 1,936,592

Bundaberg (R) 187 46,300 51,688

Cairns (C) 241 79,803 115,210

Fraser Coast (R) 182 46,285 58,724

gladstone (R) 632 181,397 329,629

gold Coast (C) 904 268,019 550,881

Ipswich (C) 613 145,702 305,165

Logan (C) 746 147,432 186,509

Mackay (R) 696 210,155 325,463

Moreton Bay (R) 1230 292,842 339,228

Redland (C) 270 72,061 84,152

Rockhampton (R) 271 78,912 127,579

Toowoomba (R) 456 113,829 154,050

Townsville (C) 612 182,622 426,717

QueenslanD 12,228 3,555,539 6,153,899

building approvals for new dwellings by selected local government areas - six months to March 31, 2012

DIgITAL econoMy> MACkAy AnD THe DIgITAL eConoMyA high-speed digital connection for Mackay will spur innovative solutions across mining services and food production and be of immense benefit to industries in the marine and education arenas. It will also assist Mackay businesses with their continued efforts to contribute to the national economy.

The national Broadband network (nBn) rollout is currently underway in Mackay. one of the first areas to be connected to the nBn will be Mackay’s industrial hub, Pa-get. Work will also be happening in the suburbs of ooralea, South Mackay and West Mackay in mid-2012. other areas to receive this upgraded service in the next three years include Mirani, Seaforth and Sarina.

high-speed digital connections for Mackay and its mining and agricultural hinterland service areas means> enhanced connectivity to improve healthcare and quality of life for the elderly.> More Australians will be able to easily access a greater level of education wherever they live. > Improved access to a broad range of business services and entertainment choices including: Internet connected-television streaming video-on-demand services and high-quality video calling.

The nBn for Mackay region will utilise three technologies — optic fibre, fixed wireless and next-generation satellite.

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ToURISMBoasting some of the world’s best beaches, the great Barrier Reef and a famously warm climate, Queensland continues to be one of the most popular tourist destinations in Australia. overall visitor numbers to Mackay region grew strongly (27 per cent) in the year ended March 2012. These strong figures are partially the result of a recovery in tourism after the 2011 floods that occurred across Queensland. Mackay domestic visitor numbers were up 30 per cent from the previous year which more than compensated for a slight fall in international visitor numbers (4 per cent). Business and holiday travel to the region strengthened, with accessibility to the region restored since the 2011 floods.

growth was recorded in intrastate travel, driven by those visiting friends or relatives. This trend reflects the budget-conscious mindset of domestic travellers who are essentially opting for affordable travel choices. Resource-industry travellers contributed to intrastate holiday travel figures by taking their fly-in-fly-out holidays in the Mackay region. For more information about tourism, contact Mackay Tourism Limited (www.mackayregion.com) or Mackay Whitsunday Regional economic Development Corporation (www.mwredc.org.au).

> ToURISM oPPoRTUnITIeSThere are clear opportunities and a high local-industry capacity for investment in the development of hotels in Mackay. Market conditions for investment in the development of new hotels region wide are ideal; latent demand for accommodation currently exists while the supply of accommodation declines. This is a truly unique situation where accommodation supply does not meet demand.

The Mackay region performs extremely well compared to many other Queensland destinations and consistently outperforms similar cities within Australia, making investment in a new hotel a unique and attractive financial proposition.

With a high room rate of $158 and a stable room occupancy of 77.1 per cent (Tourism Queensland, Mackay Regional Snapshot, year ended March 2012), Mackay is the ideal location for hotel/accommodation investment and development.

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oUR region, oUR centres, oUR hoMe

mackay is the key service centre and gateway for the north, a hub for industry, services, education, administration and business visitation. Quality urban centres and environments are vital for the region’s growing community. improvements to the physical amenity of mackay region serves to enhance quality of life and provides a foundation for the region’s long-term, sustained economic development by attracting investment and increasing business activity. council supports and encourages development within the region’s city centres; key urban enhancement projects are designed to offer inviting and attractive public places and spaces for locals and visitors alike.

> ACTIve CenTReS

> MACkAy CITy CenTRe

A LIveABLe region

Mackay City Centre is the CBD for the fast growing Mackay-Isaac-Whitsunday region. It’s the focal point for finance, administration, hospitality and retail and even boasts a major shopping centre. It’s a place where residents and visitors can meet and enjoy a relaxed, tropical public space. Locals and visitors converge in Mackay City Centre to work, shop, learn, eat, be active and relax. Council’s innovative Public Realm Concept Plan provides effective methods of addressing streetscape improvement across the broad city centre canvas. This plan details a number of catalyst projects framed within the “green grid” of the CBD street hierarchy. These first-step improvement projects (to be implemented at key locations within the CBD) represent small-scale doable interventions that will result in an immediate boost to wider-scale city centre improvements.

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> SARInA ToWn CenTRe

> noRTHeRn BeACHeS

sarina is the second-largest urban centre in the mackay region. located 34 kilometres south of mackay on the bruce Highway, the sarina area is well positioned to capitalise on considerable growth occurring in the wider region.

recent consultation for the sarina town centre Plan highlighted the community’s desire to upgrade its main street (broad street) through the creation of “place”. the goal is to create an attractive, pedestrian-friendly, safe, family orientated, liveable, entertaining, business-focused and investment-friendly environment for all to enjoy.

council is committed to supporting community facilities in growth areas such as mackay’s northern beaches. infrastructure and services, such as libraries and other places and spaces that facilitate community interaction, are encouraged within both private and public development.

BUCH

AN

GROUP

KERB BUILD-OUT GARDENS TO RAILWAYSQUARE CROSSING POINT

MEDIAN ISLAND WITH BOLLARDS

MEDIAN ISLAND FOR TOWNSHIPIDENTITY ELEMENTS

REALIGNED KERBFOR FOOTPATH TREES AND DINING

FOOTPATHTREES IN

GRATE

BOLLARDS

CROSSINGPOINT

PRECINCTTOTEM

BOLLARDS FOR FOOTPATH SAFETY

CROSSINGPOINT

CROSSINGPOINT

SHELTER

FOOTPATH TREES TO LAWN

NEW TREE PLANTING

THEMED SIGNAGE ELEMENTS

CROSSINGPOINT

The intersection upgrade planned for victoria and Macalister streets includes interactive signage, advanced shade trees and intergrated seating.

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> LIveABLe RegIonFeaturing unspoilt beaches, picturesque botanic gardens, a family friendly lagoon, world-class art gallery and multi-purpose Mackay entertainment and Convention Centre (MeCC), the Mackay region’s tourist attractions and areas of natural beauty have caught the eye of holidaymakers, property investors, families and job seekers alike.

Dining out in the city will prove a mouth-watering experience. Whether you are partial to Asian or Italian delights, traditional Aussie fare or fresh seafood straight from the trawler to your plate, the city has a range of restaurants to suit a variety of cultural tastes. Alfresco dining is also on offer at many locations around the CBD to showcase the city’s spectacular surroundings.

Located on the fringe of the city’s CBD is the spectacular Bluewater Lagoon — a three-tiered free-of-charge swimming sensation and popular Queensland icon. Take a bike ride along the Bluewater Trail or walk along the banks of the Pioneer River at dusk to experience one of the most breathtaking sunsets over Mackay’s exquisite blue river. Located south of the Pioneer River in Mackay are the suburbs of Mackay City, east Mackay, ooralea, Planlands, South Mackay and West Mackay. north of the river are the suburbs of Andergrove, Beaconsfield, glenella, Habana/nindaroo, north Mackay, Mount Pleasant and Slade Point. Mackay’s northern Beaches includes the suburbs of Blacks Beach, Bucasia, Dolphin Heads, eimeo and Shoal Point. once sought-after holiday destinations, these areas are now popular residential suburbs where young families make the most of coastal living. A string of sublime tropical beaches, collectively known as The Hibiscus Coast, can be found about half an hour north of Mackay. Thirty minutes on the southern side of Mackay is the township of Sarina which features a vibrant community surrounded by beautiful beaches. The Pioneer valley (half an hour’s drive west of Mackay) encompasses the eungella Range which is world famous for its platypus and national parks. Predominantly rural in nature, the area does include seven small townships spanning 328,000 hectares.

located on the fringe of the city’s cbD, the spectacular, free-of-charge, three-tiered bluewater lagoon is a must-see Queensland attraction.

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Since its opening in July 2009, Mackay entertainment and Convention Centre (MeCC) has become an outstanding success and earned rightful acclaim. This facility is attracting a wide range of prestigious conferences and events to the region.

Due to its size and significance, the MeCC has a dedicated marketing program to ensure continued growth for the wider tourism industry and accommodation providers within Mackay.

> MACkAy enTeRTAInMenT AnD ConvenTIon CenTRe

Mackay offers a full calendar year of enticing festivals and events that complement and celebrate the region’s lifestyle. exciting events happening throughout the year include the Mackay Region Festival of Arts (one of Queensland’s most vibrant artistic and cultural celebrations), global grooves, the g&S engineering Wine and Food Festival, River Sessions, Wintermoon Music Festival and the easter Laneways Festival which showcases Mackay City Centre.

Mackay Regional Council prides itself on hosting festivals and events that showcase the very best of creative and performing arts, food, live music and cultural entertainment and strives to provide events that everyone can enjoy.

> FeSTIvALS AnD evenTS

Held annually, the Mackay Region Festival of Arts is one of Queensland’s most vibrant artistic and cultural celebrations.24 25

Interested in business in the region?

Join council’s free business networks

Keep in touch with the latest business updates, news and invitations for a range of industry events across the region!

Join council’s free business networks today: > city centre, sarina focus and regional focus.

register now > visit www.mackay.qld.gov.au/economicdevelopment or phone 1300 Mackay (1300 622 529).

> further reaDing & contact Details

Further information on the Mackay region can be obtained by visiting the economic Development section of Mackay Regional Council’s website: www.mackay.qld.gov.au. Publications listed on this website include:

• Mackay Region Statistical Profile• Mackay Region economic Snapshot• Mackay Region e-Business guide

contacts:

• Mackay Whitsunday Regional economic Development Corporation (ReDC) www.mwredc.org.au

• Mackay Tourism Limited (MTL) www.mackayregion.com

Mobile: 0418 887 756email: greg.martin@mackay.qld.gov.au

Mackay regional council tourism & economic Development portfolio councillor greg Martin

• Mackay Regional Council economic Development program www.mackay.qld.gov.au/business/economicdevelopment www.mackaycitycentre.com.au

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1300 MACkAy (1300 622 529) www.mackay.qld.gov.aucouncil@mackay.qld.gov.au

> MACkAy RegIonAL CoUnCIL

September 2012 This publication was produced by Mackay Regional Council’s economic Development program.