Export infrastructure suffering from ‘cancer of neglect’: MCA

The Australian Minerals Industry’s Infrastructure Path to Prosperity report catalogues existing infrastructure in 21 minerals growth regions and identifies what needs to be done to boost exports and maintain or grow Australia’s position as a premium global supplier of minerals and energy.
“The report highlights the need to upgrade and expand transport networks and introduce whole-of-supply-chain strategies in the planning and regulation construction of ports, railways and roads,” Hooke said.
The MCA has identified that if capacity constraints are overcome and market share expanded, Australia could be $129 billion - or 8.5 per cent of today’s national income - better off by 2020.

Major impediments to growth in Australia’s 21 minerals growth regions, according to the Infrastructure Path to Prosperity report

In Western Australia the growth regions are Kimberley, Pilbara, Mid-West, Goldfields-Esperance and South-West including Peel. Principal infrastructure shortcomings include inadequate rail infrastructure in several regions to meet future demand and inadequate port infrastructure to meet mineral export demand.
In Queensland the growth regions are Mount Isa-Townsville, Newlands-Abbot Point Bowen, Northern Bowen Basin/Mackay, Fitzroy (Gladstone) including links with western Cape York, Surat Basin and Ipswich/Moreton. Gaps in infrastructure include export supply chains for minerals products (coal, base metals and other minerals) being hamstrung due to legacy issues associated with inadequate planning, poor co-ordination between infrastructure service providers, multiple definitions of capacity based on different and at times unrealistic assumptions, and an absence of performance-based contractual frameworks.
In NSW the growth regions are Hunter, Southern and Central and Far West. Impediments to growth include rail and road networks that are unable to meet the minerals industry’s current or projected transport needs and port infrastructure that is unable to meet current or projected demand for minerals export services.
In South Australia growth regions are Northern, Eyre Peninsula and the Fleurieu/Mid North/South East/Riverland. Gaps in infrastructure include transport infrastructure that is unable to meet projected growth in minerals industry transport task, particularly ports.
Growth regions in Victoria are Gippsland and Western Victoria. Impediments to growth include inadequate transport networks (using a mixture of broad and standard rail gauges), the need for new bulk port facilities outside of metropolitan Melbourne and direct rail and road links from production regions.
Impediments in the Northern Territory and South Australia include railway spur lines, sidings, loading facilities and passing loops that are required to service new mines and mineral transport requirements. Darwin port also needs to be upgraded to handle increases in throughput of mineral products from the Northern Territory.
Impediments to growth in Tasmania include rail networks and port facilities with insufficient capacity for expected growth in minerals traffic.


For copies of the report go to: www.minerals.org.au