Changes in mineral concentrates supply impacts port trade

The number of motor vehicles and containerised goods imported through the Port of Townsville has surged

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A SURGE in the number of motor vehicles and containerised goods imported through the Port of Townsville has helped deliver a small rise in profit in the face of another challenging year.

The port’s 2020-21 annual report, tabled in state parliament, shows it delivered a net profit after tax of $14.3m, up 3.3 per cent on the previous year, despite the impacts of the Covid-19 pandemic. 

While overall trade dropped to 7.7 million tonnes, compared to 8.2 million tonnes in the previous year, containerised trade rose 17 per cent and motor vehicle imports increased 34 per cent.

The port also recorded increased trade in exports of fertiliser and refined metals and imports of cement, fertiliser and petroleum products.

Port of Townsville CEO Ranee Crosby said the result was positive as the global landscape continued to be redefined by uncertainty.

“As the world changes, we have maintained a strong focus on keeping vital trade moving to support the people and the economy of North Queensland,” Ms Crosby said.

“An overall decline in trade was driven by changes in mineral concentrates supply chains, with refineries sourcing larger volumes from mines in the region instead of overseas. This highlighted the strength of the North West Minerals Province to service refineries in our region.

“We welcomed strong growth in containerised and motor vehicle imports, and North Queensland’s resilience in such times demonstrates how vital it is that we continue to facilitate trade for the diverse range of industries.

“On top of that our continuing capital works program will guarantee our region’s growth for the years to come.”

The Port of Townsville’s investment in trade throughout 2020-21 included:

Continuation of the largest infrastructure project in the port’s history, the $232m Channel Upgrade project. Construction of the 2.2km rock wall and 62ha reclamation area is now complete and capital dredging is due to begin in late 2021;

Completion of the $30m Berth 4 Ship-to-Shore Crane and Cargo Area to grow container and general cargo trade in the region;

Completion of a $4.5m truck staging area to reduce congestion and improve safety and efficiency of truck movements;

Commissioning the new $3.3m custom-built pilot vessel, Mantaray; and

Signing a Memorandum of Understanding with Origin Energy to export hydrogen to Asia, and

advanced investigations with a number of other proponents including Ark Energy and Edify Energy to develop clean energy projects that could drive significant economic growth for the region.

Bowen Rail Company locomotives destined to haul coal for Adani's Carmichael Mine arrive at Port of Townsville. From left to right: Resources Minister Scott Stewart, Adani Australia chief executive Lucas Dow, Federal Resources Minister Keith Pitt.

During the year, the port increased its commitment to sustainability with the release of Port Vision 2050 strategy.

It included a $50,000 Port Community Fund, a commitment to become carbon neutral for port operations by 2025, planting one million additional native trees by 2050 and delivery of the $1.6bn Port Expansion Project by 2050.

ANZ takes prime CBD corner position

The ground floor tenancy of a two-level office building on the corner of Sturt and Stanley St is to be the new home of the ANZ Bank in Townsville’s CBD.

The bank, which currently trades at 121 Sturt St, has announced it will relocate and open at the new location on November 10.

E-Property Consultants NQ agent Steve Whaling said the move would mean a return of banking to a location which has served at least three banks.

Bendigo Bank last traded at the site about two years ago until it closed in the CBD, a move which has been replicated in other centres including Cairns.

National Australia Bank has also previously traded in the Sturt St location.

Mr Whaling said it was a premium CBD tenancy in a key location.

“The 519 sqm vacancy had languished on the market for some time before being short-listed by ANZ for its obvious positional advantage,” Mr Whaling said.

“Although larger than their initial brief, we were able to offer attractive commercial terms to make it viable for the tenant for an initial five-year commitment.”

He said ANZ were introduced to E-Property Consultants NQ by Michael Quinlan at Quinlan Property Group, while E-Property Consultants NQ short-listed properties to suit the bank’s needs and negotiated lease terms.

He said the bank had taken advantage of the better exposure and better position.

While the bank required a lesser area of around 300 sqm, an incentive was offered for the larger 519 sqm office.

“The rate was competitive so they were happy to take up more space for a lower rate,” Mr Whaling said.

Mr Whaling said the leasing market was picking up on the back of an improving local economy which had been spared, at least to this point, the disruption caused by the Delta variant of Covid-19 in southern states.

He said there was a lot of movement occurring with companies either downsizing or requiring larger premises to accommodate growth.

Also, a lot of owner-occupier businesses were taking advantage of market conditions to buy their own premises.

“Across the board the market is improving,” Mr Whaling said.

The site is opposite the Woolworths supermarket and City Lane development.

It has plate glass frontage and generous branding opportunities, including naming rights to the building.

According to Herron Todd White’s latest Townsville in Focus report, the CBD office vacancy rate is around 31 per cent, including 22.8 per cent for A grade premises.

EXERCISE PHYSIOLOGISTS OPEN EMPOWER HEALTH NQ

Three James Cook University graduates in exercise physiology who have worked in the health sector for other employers have teamed up to open their own clinic.

Joel Newman, Jason Di Betta and Max Tink are operating Empower Health NQ.

They have leased a 250 sqm tenancy in Charters Towers Rd, Hermit Park.

Mr Newman said, collectively, they had broad experience working with a range of injuries and health conditions.

“As exercise physiologists we use exercise-based rehabilitation to treat and manage muscle and joint-related injuries as well as chronic diseases like diabetes, heart disease and stroke,” Mr Newman said.

“Our large open plan floor space also allows us to offer services to local sports teams for injury prevention and management.

“Our goal is to become Townsville’s most reputable exercise physiology business.”

When searching for a location, some of the factors they considered included access to the building and parking, especially for the elderly and clients with disabilities.

The Charters Towers Rd location was also ideal for exposure to a busy road.

Mr Newman said the size of the tenancy gave them an incredible opportunity to have state of the art equipment, ample space for large group classes and the ability to grow the clinic with more services in the future.

The services they offer includes hydrotherapy, falls prevention, strength and conditioning and pre and post-surgery rehabilitation.

Collies commercial and industrial agent Shaun McLaren said the property provided easy on-site and street parking and good exposure to Charters Towers Rd with about 19,000 vehicles passing daily.

“It’s good to see another local business operating in these times,” Mr McLaren said.

Other tenants in the building include Tropical North Day Spa, About Town Real Estate, Hodkinson Accounting and Northern Body Corporate Management.

KNIGHT FRANK CALLS FOR UNIT DEVELOPMENT INCENTIVES

VERY high housing occupancy, strong employment levels and very good ongoing employment demand across North Queensland require a collective focus on creating new households as soon as possible, Knight Frank says.

Craig Stack, senior partner at Knight Frank, says the high demand for employees means we need a variety of skilled and unskilled labour making North Queensland home.

“The need to create new housing as quickly as we practically can has to be understood by councils and state agencies, and embraced by the development industry,” Mr Stack said. “Having employment growth in front of us is far better than the alternative but with residential occupancy rates above 99 per cent from Rockhampton north to Cairns, a lack of housing supply is an issue that can impact the whole of North Queensland and needs focus.”

Knight Frank estimates there are more than 2000 construction jobs yet to be released with more projects likely to be announced in the next six months

“It is the operational workforces these projects will then require, along with the employees already needed in established local businesses in North Queensland, that will likely create a major housing challenge, and a challenge shared is a challenge halved,” Mr Stack said.

He said less than half the number of houses and units were approved for urban areas in North Queensland in the past five years than in any other five-year period in two generations so development capacity needed to be increased quickly.

A focus toward medium density housing was part of the solution for getting as many households constructed in the shortest amount of time.

“There have been very few new medium density projects created in North Queensland in the past decade because the viability for development has not existed,” Mr Stack said.

“Prices are now rising in North Queensland and viability will steadily return but this could still be several years away and new households are needed sooner than that.”

Knight Frank believes a three-year moratorium on infrastructure charges for medium density development in well serviced suburbs with capacity is the first step that councils can make to bring forward development viability.

“We need the development industry to step up as quickly as possible and this type of encouragement is necessary,” Mr Stack said.

“The last time this happened was in the mid-2000s and the state government began buying land for development for affordable accommodation and the federal government then created the National Rental Affordability Scheme.

“It would be far better for the community if the private sector created the new households that are urgently needed.

“This is a genuinely strong opportunity to enhance economic sustainability in North Queensland and the worst thing that can occur is if people are attracted to relocate north because of work and cannot be accommodated.”

PLANET FITNESS TO OPEN AT WILLOWS SHOPPING CENTRE

A LOW-cost gym promising to “democratise” fitness is opening at Willows Shopping Centre.

Planet Fitness, heralding from the United States, is one of the largest and fastest-growing global franchisors and operators of fitness centres.

In Australia, Planet Fitness is owned and operated by Bravo Fit Pty Ltd.

Bravo Fit managing director Tanner Halton said they offered more than 200 pieces of state-of-the-art equipment, a 30-minute express full-body circuit, luxurious locker rooms and showers, HydroMassage beds, massage chairs, spray tanning and red light therapy.

He said they were offering memberships now with no joining fee at $5 per week or

$7.95 per week for a PF Black Card membership, payable when they opened.

“We are grateful to bring Planet Fitness to Thuringowa,” Mr Halton said.

“Today, only 15 per cent of Australians have gym memberships. Since its inception, fitness has been focused at the financially and physically elite, an expensive and intimidating experience. Planet Fitness aims to democratise fitness, making it fun and affordable to all Australians.”

Mr Halton said they were home to the Judgement Free Zone where members could experience a non-intimidating environment and world-class facilities.

Their mission was to enhance people’s lives by providing a high-quality fitness experience in a welcoming, non-intimidating environment.

The facility would be open and staffed 24 hours a day Monday to Friday and 7am to 7pm Saturday and Sunday.

They planned to open in December.

Willows marketing manager Donna Schifilliti said Planet Fitness would strengthen the leisure and lifestyle offering at Willows providing even more experiences for the community to enjoy.

They will be one of the new tenants taking space vacated when the Target discount department store closed earlier this year.

Founded in the small New Hampshire seaside town of Dover in 1992, Planet Fitness now has more 15 million members and 2059 stores in the US, Australia, Puerto Rico, Canada, the Dominican Republic, Panama and Mexico.

More than 95 per cent of the centres are independently owned and operated.

For more info go to https://www.planetfitness.com.au/

RETAILERS JOIN VINCENT CENTRE

The time of the neighbourhood centre has come, according to a property agent who is reporting good trading conditions and increased inquiries from retailers.

Louise Slater provides management and leasing services for Vincent Market Place which has two new traders, cafe Bell’s Kitchen and Takeaway and discount store operator Prices Plus.

Ms Slater, retail leasing manager for Geon Property, said she was busy fieldings calls, particularly from businesspeople in southern centres who were either looking to relocate to Townsville or open another outlet in the city.

She said the 5000sq m Vincent centre had two vacancies although with casual tenants trading in those spots it was essentially full.

“The centre itself is trading exceptionally well. There has been steady growth across all operators within the centre since last year’s Covid (disruption),” Ms Slater said.

“Also, there is strong inquiry from people looking to move from the southern areas affected by Covid wanting to start or relocate their businesses.”

Louise Slater (right) with Belinda Rodwell in Bell's Kitchen and Takeaway at Vincent Market Place.

For Bell’s Kitchen trader Belinda Rodwell, the cafe is her first taste of operating a business after having worked for other food business owners for much of her working life.

Ms Rodwell said it was her daughters, including one who had survived cancer and studied to become a teacher during her recovery, who had been her inspiration.

“My girls, they give me so much strength,” Ms Rodwell said.

Cooking was her passion, she said.

The cafe provides all home or store-cooked foods including some of the largest hamburgers in town, lamb, beef and chicken roasts, corn beef fritters and some of Belinda’s mother’s homemade cakes and biscuits.

Prices Plus has returned to the centre after an absence of about two years.

Ms Slater said they had doubled the floor size of their previous shop to 500sq m with the added benefit of having a tenancy with rear loading access.

“The landlord is investing in the centre with improvements with car park lighting and overall centre facilities,” Ms Slater said.

She said the upgrade of council footpaths and landscaping of the centre’s immediate area had also improved the street appeal and customer experience.

Vincent Market Place is on the corner of Fulham Rd and Nathan St and is anchored by a Woolworths supermarket.

Originally published as Changes in mineral concentrates supply impacts port trade