Future NT: Major projects driving $40bn economy ambition

The undeveloped Middle Arm precinct may be the star project to drive the NT’s $40bn economy ambition, but there are more that will boost the region’s economic might. Rank how you view their importance to the Territory.

Planning is already under way to deploy the $1.5bn federal government equity to develop Darwin’s Middle Arm sustainable development precinct.

Infrastructure Minister Eva Lawler said the Territory government was delighted Labor honoured the Coalition’s March budget commitment to fund port infrastructure.

“It was great to see,” Ms Lawler said.

“We saw those announcements in the March Federal budget but that budget wasn’t passed and that was a concern to the Territory because we’d had a large amount of money that came down in that March budget.

“Now we’re working really hard with the new Labor government to make sure that those March commitments were also committed to in this budget.”

The Territory received $2.5bn infrastructure spending in this year’s budget, the country’s second largest allocation behind only Victoria which received $2.57bn.

Queensland pocketed $1.47bn, NSW $1bn, Tasmania $685m, WA $670m and South Australia $660m.

In addition to the Middle Arm money, $440m will support development of regional logistic hubs, $350m to seal Tanami Road and upgrade Central Arnhem Road and $332m towards the NT strategic roads package.

Middle Arm is central to the Territory government’s targeted $40bn budget by 2030 from its current position of $26bn.

Ms Lawler said the substantial commonwealth infrastructure spend would have long-term economic benefits.

“They (the Commonwealth) can keep paying us GST or they can help us grow the economy, develop our economy,” she said.

The Territory has by far the nation’s smallest economy and for every GST dollar paid, NT coffers receive $5 in GST payments.

Except for some small-scale clearance and sealing, much of the 1500ha sustainable development precinct at Middle Arm remains undeveloped.

The commonwealth’s cash injection will quicken the pace of development.

“The money will be spent on providing the common user facilities so whether that’s lay-down areas, roads, all the services that will be needed, there will be a number of wharves for off-loading and on-loading materials,” Ms Lawler said.

“From government’s point of view what you’ll see is sewerage, power, water, roads, hardstand areas, wharf areas. We’ll make sure all environmental assessments are done upfront

“We’ve had a large number of inquiries from industries that want to set-up at Middle Arm and make it their home.

“There’ll be a process around that and there’s guidelines being developed around those industries that will go in there but there’s considerable interest around that.

“Once that happens then we’ll know exactly whether that’s hydrogen, minerals processing, carbon capture, renewables.

“All of those industries will be looking to set-up at Middle Arm and the role of government is to facilitate that by developing land out there.”

The Territory has spent about $14m on roads at Middle Arm and about 200 site assessments.

It is setting the groundwork in preparation for a large amount of money from the federal government.

“Once private enterprise comes in they will need to put in all of the money they need to do to make it a reality for their industry,” Ms Lawler said.

The $440m allocated for logistics hubs would see rail sidings constructed in the Territory’s main centres.

“We don’t have any rail sidings where the train can pull off so it can currently only stop for three or four hours because there are other freight trains or the passenger train coming through,” she said.

“Those sidings and spurs were never put in place and the $440m is for the length of the Territory and will provide opportunities for loading and unloading facilities along the rail line.”

Ms Lawler said this would help proposed projects such as Sun Cable or onshore oil and gas industry with their development.

The Alice Springs hub would be at the Brewer Estate and in Katherine at the Ghan passenger terminus.

“Industry has told us that logistic hubs are a key component of making sure they do come to the Territory so they can get their product to the port,” she said.

“We’ve worked really hard with the federal government to secure that $440m.”