Green energy, manufacturing to future-proof Townsville economy

A green evolution is set to drive the economy of Townsville, and the rest of the country is taking notice, this managing director says.

A green evolution is set to drive the economy of Townsville, and the rest of the country is taking notice, Pascoe Commercial managing director James Pascoe says.

Mr Pascoe while Townsville is well known for its mining and defence sectors, a green transformation is under way with several key sustainability projects.

“There are a number of key projects that are attracting the attention of investors from traditional markets looking for higher investment yields,” Mr Pascoe said.

“The Lansdown Eco Industrial Precinct, a hub for environmentally sustainable advanced manufacturing, processing and technology, has now secured funding from all tiers of government and has the potential to create 5000 new construction jobs and 1600 ongoing jobs,” Mr Pascoe said.

“With around $80m in funding committed, this is now a reality for Townsville and has the ability to future-proof the town’s economy by becoming a global player in the booming green energy and advanced manufacturing space.”

Projects include the $1.75bn Copperstring 2.0 transmission line, $5.4bn Hells Gate Dam and $700m Kidston pumped storage hydro project, which is under development.

A concept image by Port of Townsville showing a green energy hub, defence expansion options and Townsville Eastern Access Rail Link.

Others include the $2.25bn Australia Singapore Military Training Initiative and $232m Townsville port channel widening, which is part of a larger plan to create new wharves and land for exports such as hydrogen and ammonia.

“All of this is repositioning Townsville and the region as a future-thinking, resilient and safe option for investors looking for higher yielding investments,” Mr Pascoe says.

The transformation is driving an increased need for ancillary industrial servicing facilities.

Mr Pascoe said industrial rents were growing to $125-$135 per square metre, while land values were comparatively low around $160 per square metre for serviced blocks.

Inquiry for industrial land was booming, he said.

“Townsville is often misunderstood as just another mining town that is subject to boom and bust but we are now seeing a big focus from southern investors who are realising the robust fundamentals and potential of the region,” he said

“Commercial and industrial vacancy rates are the lowest I have seen in 20 years, and while there are some tenancies available, there is a limited pipeline of serviced sites coming to the market to cater for expected future demand.”

Mr Pascoe said the diverse economy, abundance of renewable energy, locality and capability to service the resources industry formed the economic pillars that would drive growth.

Originally published as Green energy, manufacturing to future-proof Townsville economy