Transport and Roads

Transport and Roads MINISTERIAL BRIEFING NOTE

ORGANISATION

DELEGATION CONTACT

DELEGATES ATTENDING

DELEGATE ISSUES

WEBSITE LINKS

ATTACHMENTS Cairns TNQ Convoy to CapitalQ

Advance Cairns, Tourism Tropical North Queensland and Cairns Chamber of Commerce are leading the region’s largest ever business delegation to Brisbane. The delegation includes more than 50 business leaders over a two-day period (February 18-19), representing 12 key business sectors to meet with State MPs and attend the Speaker’s Cocktail Reception.

Further information: Nick Trompf, Executive Chairman Advance Cairns E: nicktrompf@advancecairns.com | M: 0412 786 719

T ransport and Roads:

Michael Delaney

1. Michael Delaney, Partner Tax & Advisory BDO & Deputy Chair Advance Cairns 2. Barbara Ford, Managing Director Airfreight Handling Services 3. Cr Jack Bawden, Mayor Carpentaria Shire Council & Chair North West Queensland Regional Roads Group 4. Cr Warren Devlin, Mayor Etheridge Shire Council 5. Nick Masasso, Executive Project Officer Cairns Regional Council 6. Luis Perez, Chief Commercial Officer Aviation North Queensland Airports

Attached are bios on each delegate.

Transport and Roads issues to discuss:

• Cairns Ring Road • National Highway A1 • Gulf Savannah Way

Attached are briefing papers on each issue.

• www.advancecairns.com • https://www.facebook.com/AdvanceCairns/

• Attendee biographies • Briefing papers

MIC HAEL DELANEY PARTNER, TAX & ADVISORY BDO & DEPUTY CHAIR ADVANCE CAIRNS

Michael is a Tax & Advisory Partner with BDO (Nth Qld). As an active enthusiast within the Cairns community, his passion extends throughout his client base.

Michael has developed a specialisation in forensic accounting and due diligence, being called as an expert witness in cases in the Magistrates, District, Supreme and Family Courts. He has undertaken numerous assignments in due diligence, business valuation and insurance claims. Michael is also an experienced adviser to small business and, in particular, family business.

Michael commenced in public practice in 1987 and has worked in the audit and business services areas since. He has been a Partner of BDO and attendant firms for over 30 years.

BARBAR A FORD MANAGING DIRECTOR AIRFREIGHT HANDLING SERVICES

Barbara is the owner of Air Freight Handling Services (AFHS), a company based in North Queensland for 14 years. Employed at State and National Manager level with an express courier and airport freight operator for the 1990’s, Barbara started her own business and moved back to North Queensland in mid-2005.

AFHS operates at the Cairns and Townsville Airport’s, handling Qantas and Jetstar domestic and all international airline import and export cargo in both airports. AFHS also has a courier division including high priority medical and other urgent goods, together with a Dangerous Goods division for packing and paperwork completion and authorisation.

Currently employing 40 full time team members the business is looking to expand, further enhancing capabilities for additional freight export.

AFHS recently received funding from the State Government to build a Trade Distribution Centre based at Cairns Airport. Opening in late 2021, this will assist industry to provide solutions for freight distribution and opportunity for export cargo for existing and any potential new airlines entering the Cairns market.

C R JACK BAWDEN MAYOR CARPENTARIA SHIRE COUNCIL & CHAIR NORTH WEST QUEENSLAND REGIONAL ROADS GROUP

Jack Bawden is the Mayor of Carpentaria Shire Council. He is also Chair of the North West Queensland Regional Organisation of Councils and a member of the North West Queensland Regional Roads Group.

In his day job Jack runs a mechanical work shop in Normanton in the Carpentaria Shire. He is very familiar with the opportunities, possibilities and challenges of the region having lived in North West Queensland all of his life.

Born and bred in Boulia (Maryvale Station) and educated in Boulia, Mount Isa and Charters Towers he has lived and worked in Mount Isa, Richmond, Karumba and Normanton and worked in most areas of the North West Region. This practical exposure to the challenges faced by the communities gives him a perspective that could not be acquired by academic qualifications.

He actively promotes the needs of the region at every forum and level of Government and believes that a common sense approach to development of the right infrastructure at the right time is needed to increase the sustainability and viability of key industries such as tourism, agriculture, transport and mining.

CR WARREN DEVLIN MAYOR ETHERIDGE SHIRE COUNCIL

Warren Devlin was born in Camden NSW, grew up in Nimbin then moved north to Georgetown in his late teens. He and his Father pegged several mining leases in the Etheridge Shire and commenced Gold Mining as a family operation giving Warren approx 30 years’ experience in the mining industry and a firm understanding of operating and managing a business. This business acumen has proved to be invaluable throughout Warren’s life.

In 2003 Warren completed building the Georgetown Roadhouse / Supermarket and has continued to grow his business portfolio in recent years diversifying into the industrial and grazing industries.

Warren was elected as Mayor of the Etheridge Shire in 2008. He immediately set about putting together the Gilbert River Irrigation Scheme and put in a submission to the federal govt to build a bridge across the Einasleigh river, addressing the issues of flooding and road closures during our wet seasons. This has been an economic stimulus to the whole of the gulf region.

Warren is currently serving a second term as Mayor of Etheridge Shire, having been re-elected in 2016. He is continuing to drive economic development into the Gulf region with a number of projects.

NICK MASASSO E XECUTIVE PROJECT OFFICER CAIRNS REGIONAL COUNCIL

Nick is Cairns Regional Council’s Executive Project Officer and a member of Council’s Executive Management Team.

Nick oversees Council’s Economic Development Department and inbound (from State and Federal Governments) grant funding streams. He also works directly with the Mayor’s and CEO’s office on advocacy initiatives relevant to Council’s operations. He has previously held senior management positions with KPMG, Grant Thornton, First Great Western Trains (UK) and GE Capital.

Nick has broad finance, management and economic development experience across a range of industry sectors in Australia and the UK. A Chartered Accountant by profession, Nick also holds an Associate Diploma in Applied Finance and Investment from the Securities Institute of Australia.

Nick is a past Treasurer of the Cairns Chamber of Commerce and a casual lecturer with James Cook University. He is a third generation North Queenslander having grown up on a family farm located on the Atherton Tablelands.

LUIS PEREZ CHIEF COMMERCIAL OFFICER AVIATION NORTH QUEENSLAND AIRPORTS

Luis Perez, Chief Commercial Officer – Aviation, is responsible for growing airline services and passenger numbers to Cairns and Mackay Airports by working with airlines and the travel/tourism industry.

An international aviation executive, Luis has over 20 years’ experience in airline, strategy and commercial management roles, and has a deep understanding of travel, trade, tourism and route development. Luis has had an extensive career that has included roles leading air service development at Dallas Fort Worth International Airport, Houston Airport Quito, Ecuador and V ancouver.

Most recently, Luis had spent over a year and a half living in China prior to starting at North Queensland Airports as an Aviation Consultant in Liaocheng University.

COUNCIL: CAIRNS STATE ELECTORATE: CAIRNS FEDERAL ELECTORATES: LEICHHARDT, KENNEDY ENABLING INFRASTRUCTURE

CAIRNS RING ROAD

BRIEFING NOTE SUMMARY

• It is anticipated that the National Highway A1 will be extended from Cairns to Smithfield, providing much better links between the CBD and the Cairns sea port, Cairns airport, the northern beaches and southern access route.

• As Stage 1 of the Cairns Ring Road, Federal investment of $287.2 million has been committed, which has been matched by State investment of $71.8 million.

• The Western Arterial section of Cairns Ring Road intersects with the northern point of National Highway A1 and urgently requires State funding of $365.5 million for essential upgrades as Stage 2 of the Cairns Ring Road.

• When the Captain Cook Highway is flooded, the Western Arterial Road is the only flood free access route between Cairns, the northern beaches and Kennedy Highway.

THE ISSUE Access to the Cairns airport and seaport from the north, south and west is adversely impacted by a highly inefficient road network, with all directions constrained by the need to travel directly through the Cairns CBD. There is significant traffic congestion on the Captain Cook Highway and along the Cairns Western Arterial Road, both of which lead from the northern beaches into the city, and this makes the transport of freight to, from and between the key port locations difficult. While there is significant potential to expand export activities for the Tropical North Queensland (TNQ) region, particularly to Asian markets, connectivity between ports is a critical enabling factor in the future development of Cairns as an export and service hub. The need to upgrade Captain Cook Highway to enhance connectivity was acknowledged by the Queensland Minister for Transport and Main Roads, Mark Bailey, who wrote to the Deputy Prime Minister, Michael McCormack on 19 September 2018 to request an extension of the national highway in Cairns during the 2018-2019 National Land Transport Network (NLTN) Determination Review. The extension will free-up State Government funding that would previously have been required for Captain Cook Highway upgrades. However, the State-owned Western Arterial section of the Cairns Ring Road carries 36,550 vehicles per day and is not included in the 2018 National Land Transport Network extension request. Upgrading this section is essential to connecting Cairns’ freight routes with the region’s premier agriculture producing areas (Atherton Tablelands, Cape York Peninsula and Mossman), while also meeting demand for daily commuter traffic.

BACKGROUND The Bruce Highway is part of the National Highway A1, providing the vital link between Cairns, other Queensland coastal cities and Brisbane. The National Highway A1 currently terminates in the Cairns CBD at the corners of Comport and Draper Streets, but the Federal Government is expected to deliver on its promise to extend the Highway to the intersection of Captain Cook and Kennedy Highways and Mount Milman Drive, Smithfield, north of Cairns, leading to a major upgrade of the Captain Cook Highway. However, the effectiveness and safety of the road transport network in and around Cairns will be adversely impacted until the Stateowned Cairns Western Arterial Road is also upgraded. The Cairns Arterial road network has been underfunded for many years in terms of capacity upgrades, with residential and industrial land development outpacing road project investments. In January 2019, Cairns Regional Council identified a number of underfunded State-owned roads and listed them as priority infrastructure projects for the region. The Cairns Western Arterial Road is a significant component of this list as the road is heavily congested on a daily basis and when the Captain Cook Highway is flooded during wet season or natural disaster, is the only flood free access route between Cairns, the northern beaches and Kennedy Highway.

NEXT STEPS Investment in key roads infrastructure is critical to ensuring sustained economic growth for the region, which will lead to greater diversity in incomes and job security.

The required infrastructure upgrades can be achieved through: • Creating Stage 2 of the Cairns Ring Road by upgrading the Bruce Highway and linking the northern-most part of the National Highway to the Cairns Port and Airport; • Upgrading three major intersections along the Western Arterial Road through a combination of overpass, traffic signal and slip lane projects; • Duplicating the full length of the road to increase traffic lanes from 1 to 2 in each direction; • Duplicating the Barron River Bridge at Kamerunga and the Redlynch overpass; and

• Constructing the McCoombe Street connection road between Ray Jones Drive and Mulgrave Road. It is estimated that a $365.5 million investment is required to cover the cost of the Western Arterial Road upgrades. A combined State and Federal investment of $359 million has already been indicated in the Queensland Transport and Investment Road and Rail Program for Cairns Ring Road Stage 1. However, the funds have not been committed in the Capital Budget Statements and remain indicative only. While an initial investment of $12.5 million has been committed by the State over 3 years for detailed planning for the Cairns Western Arterial Road, the remaining $353 million is yet to be confirmed.

OUR RECOMMENDATION

• That the Queensland Government include capital funding of $437.3 million for the Cairns Ring Road and Cairns Western Arterial Road projects in the 2020 State Budget, to be invested over four years to 2023-2024.

• That the Queensland Government fast-track detailed planning of the Cairns Western Arterial Road to ensure plan completion by December 2020.

• That the Federal Government commit to commencement of capital funding of $287.2 million for Cairns Ring Road in the 2020 Budget, to be invested over three years to 2023-2024.

• That the Commonwealth Government confirm in the forthcoming amendment of the National Land Transport Act 2014 its promised extension of the Highway A1 to the junction of the Kennedy and Captain Cook Highways at Smithfield.

RECOMMENDED INVESTMENT

Estimated total project cost $749m

State Investment Federal Investment 2020-2021 2021-2022 2022-2023 2023-2024

COUNCIL: CAIRNS, MAREEBA, CASSOWARY COAST, HINCHINBROOK, TOWNSVILLE STATE ELECTORATE: BARRON RIVER, CAIRNS, MULGRAVE, HILL, HINCHINBROOK, TOWNSVILLE FEDERAL ELECTORATES: LEICHHARDT, HERBERT, KENNEDY ENABLING INFRASTRUCTURE

NATIONAL HIGHWAY A1

BRIEFING NOTE SUMMARY

• TNQ’s road transport system is under pressure due to population growth, particularly on the road network in and out of Cairns which is the main distribution hub for the region.

• The Bruce Highway is one of Australia’s highest-risk roads and in the 5 years to 2017, there were 328 casualty crashes and 22 fatalities on the stretch between Cairns and Townville.

• The Kuranda Range Road has already exceeded its capacity of 9,500 vehicle movements per day, catering for up to 10,000 daily traffic movements.

• While the Bruce Highway has seen unprecedented State and Federal investment since 2013, many future TNQ projects are scheduled for commencement after 2023. It is essential these be brought forward to 2019- 2023 to address critical congestion and safety issues.

• A strategic transport plan linking Cairns and Townsville is required, together with a significant upgrade of Kuranda Range Road.

THE ISSUE An integrated and efficient road transport network is critical for economic stability and growth in northern Australia. In Tropical North Queensland (TNQ), the road network underpins the economy and is vital to the resident population of 278,080, ensuring accessibility to health, education and community services. Due to rapid population growth, TNQ’s road transport system faces increasing pressure, particularly on the road network in and out of Cairns which acts as the main distribution hub for the region. Meeting the growing demand for freight has strained existing infrastructure, impacting transport costs and service levels across the supply chain. The strain has been exacerbated by uneven population dispersion, the shared passenger transport task on TNQ roads, and resilience gaps in the road network which is frequently impacted by weather events. Via road, the city of Cairns is serviced by four main arterial roads, two of which are critical freight routes – the Bruce Highway and the Kennedy Highway. The Bruce Highway is part of the National Highway A1, providing the vital link between Cairns and Townsville, other Queensland coastal cities and Brisbane. The highway supports the transport of freight into and out of the region and currently ends in Cairns at the sea port.

2020 STATE ELECTION PRIORITIES FOR TNQ The Kuranda Range Road (Kennedy Highway, Cairns/Mareeba section) links Smithfield with Kuranda and is the coastal gateway to Mareeba, Atherton Tablelands, Cape York Peninsula and the Gulf Savannah. It is a critical link for commuter, commercial and visitor traffic in TNQ and a vital strategic corridor linking the Atherton Tableland, North Tropical Coast and Cape York to the Cairns Airport. Both the Bruce Highway and Kuranda Range Roads underpin the commercial viability of primary industries, producers and exporters in the region. However, both are operating at or near capacity with safety and traffic efficiency now at critical levels for action. While unprecedented State and Federal funding has been allocated for Bruce Highway upgrades between Cairns and Townsville, to maintain and grow TNQ’s competitiveness through improved productivity a number of catalytic projects are still needed. These include a strategic transport plan to deliver a transport plan linking Cairns and Townsville, together with a significant upgrade of Kuranda Range Road. This need is supported by the 2009-2031 Far North Queensland Infrastructure Plan, which recommends that the Department of Main Roads plan for and preserve transport corridors to construct bypass roads around Innisfail, Ingham, Cardwell and Tully, and plan for and construct the duplication of Kuranda Range Road.

BACKGROUND Over the past decade, the Bruce Highway has consistently been rated one of Australia’s highestrisk roads. In 2016 the highway accounted for 48% of Queensland casualty crashes and more than half of the State’s fatalities. Nationally, this equates to more than 17% of fatalities on only 7.5% of the entire national network. On the 299 km section between Cairns and Townsville, which carries an estimated 17,250 vehicles per day, in the 5 years to 2017 there were 328 casualty crashes and 22 fatalities. To address the significant safety issues, in 2013 the Federal Government introduced the $12.6 billion Bruce Highway Upgrade Program, which has led to step-change investments in north Queensland sections of the highway. Together with the State Government, to date this has delivered: $595 million for Stages 1 to 4 of Cairns Southern Access upgrades with another $226 million committed for Stage 5; $20 million committed for Innisfail bypass planning and to improve flood immunity between Cardwell and Ingham; $48 million committed to plan for upgrades to the Cardwell Range; and another $63 million committed for Townsville Northern Access upgrades. In contrast to the Bruce Highway, the Kuranda Range Road has been the subject of multiple impact assessment and design studies dating back to 2000 but is yet to see significant investment. The road has already exceeded its capacity of 9,500 vehicle movements per day, catering for up to 10,000 daily traffic movements. And in the 10 years to August 2018, the Cairns to Mareeba section of Kennedy Highway experienced 493 unplanned closures with total closure time of 1,111 hours and an average close time per incident of 2 hours and 15 minutes. While the need to upgrade the road was identified in the 2009-2031 Far North Queensland Infrastructure Plan, more than 10 years on this remains a critical infrastructure project but is yet to secure significant funding.

NEXT STEPS A number of significant investments have been announced that will continue to address safety and efficiency challenges on the TNQ road network. However, many of these projects are scheduled for commencement after 2023. To address the critical congestion and safety issues faced on the road transport network, it is essential that the following key projects be brought forward and commenced in 2019-2023: 1. KURANDA RANGE ROAD: Undertake Strategic Assessment of Service Requirements ($1 million) and Preliminary Evaluation and Business Case ($20 million) with a view to completion by 2021. 2. KURANDA RANGE ROAD: Commence development of the Cairns to Northern Tablelands access strategy ($1.25 million) with a view to completion by 2021. 3. BRUCE HIGHWAY, INNISFAIL BYPASS: Continue to preserve the existing bypass corridor and commence transport project planning ($9 million) with a view to completion by 2022. 4. BRUCE HIGHWAY, INGHAM TO CARDWELL RANGE DEVIATION: Continue to preserve the existing transport corridor and commence transport project planning ($48 million) with a view to completion by 2023. 5. BRUCE HIGHWAY, TOWNSVILLE NORTHERN ACCESS INTERSECTIONS UPGRADE: Commence transport project planning ($72 million) with a view to completion by 2023. 6. BRUCE HIGHWAY, CAIRNS TO TOWNSVILLE: Undertake Strategic Assessment of Service Requirements and Preliminary Evaluation and Business Case with a view to completion by 2024.

RECOMMENDED INVESTMENT

Estimated project cost $21m

State Investment Federal Investment 2020-2021

Kuranda Range Road SASR Kuranda Range Road Business Case $0.5m $10m

OUR RECOMMENDATION

• That through the Roads of Strategic Importance Fund, in 2020-2022 the Queensland and Federal Governments commit $21 million (shared 50:50) to undertake the Strategic Assessment of Service Requirements, preliminary evaluation and Business Case for Kuranda Range Road.

• That through the Bruce Highway Upgrade Program, the State and Federal Governments bring forward their commitments to upgrade north Queensland sections of the National Highway A1 to 2019-2023, and commit to developing a strategic transport plan linking Cairns and Townsville.

COUNCIL: BURKE, CARPENTARIA. DOOMADGEE STATE ELECTORATE: TRAEGER FEDERAL ELECTORATES: KENNEDY ENABLING INFRASTRUCTURE

GULF SAVANNAH WAY

BRIEFING NOTE SUMMARY

• The Gulf Savannah Way stretches for 3,700 km and is considered to be one of the top 10 Great Australian Drives, linking Cairns in Tropical North Queensland to Broome in Western Australia’s Kimberley.

• Drive tourism delivers $69.8 million into the Gulf region annually, with 38% of visitors entering the Savannah Way via Cairns.

• Large segments of the Queensland section of the Savannah Way are unsealed and flood prone, isolating communities during the wet season and limiting the economic value of this northern road link.

• Sealing the Queensland section of the Gulf Savannah Way is estimated to require a total investment of $186 million, split 80:20 between the State and Federal Governments.

• Federal investment of $50 million was allocated in 2019 through the Roads of Strategic Importance – next priorities initiative. To ensure this funding is matched 80:20 by the State, sections of the Savannah Way require formal declaration as a State-controlled road.

THE ISSUE The Gulf Savannah Way traverses Northern Australia, linking Cairns in Tropical North Queensland to Broome in Western Australia’s Kimberley. The route is approximately 3,700 km long, crossing 15 National Parks, five World Heritage areas and a variety of natural routes across the Top End. Considered to be in the top 10 greatest road trips of Australia, the self-drive tourism market delivers $69.8 million annually into the Gulf region, with 38% of visitors starting the journey in Cairns. The North West Queensland section of the Gulf Savannah Way takes in 313km with almost 60% of the road already sealed, however there are critical missing links that require pavement upgrades, bitumen seal, minor realignment of substandard curves, concrete causeways and four major river crossings. As large sections of the Savannah Way remain unsealed and flood prone, communities become isolated during the annual wet season which limits the economic value of this northern road link. Upgrading the Queensland segment of the Gulf Savannah Way will require replacing existing substandard infrastructure with a 7.5m wide bitumen sealed pavement, with concrete causeways through creek crossings and raised floodways (using 1.2m high culverts) through major river crossings.

BACKGROUND Normanton to Burketown is approximately 221km with about 50% unsealed. This section requires pavement augmentation and bitumen sealing to 7.5m wide, some minor realignment, concrete causeways and a major culvert crossing at the Leichhardt River. Burketown to Doomadgee is approximately 88km long and fully sealed but has two major river crossings at the Gregory River and Nicholson River which require some minor pavement, alignment and causeway improvements. Doomadgee to NT Border is approximately 104km long with only 30% sealed. This section requires pavement augmentation and bitumen sealing to 7.5m wide, minor realignment and concrete causeways plus a major river crossing at Branch Creek. In recognising the need to seal the Gulf Savannah Way, in 2019 the Federal Government committed $50 million to road upgrades through the Roads of Strategic Importance – next priorities initiative. However, large sections of the Savannah Way have a Regional road designation, meaning formal declaration as State-controlled road is required to ensure this funding is matched by the Queensland Government under the 80:20 Commonwealth State Roads funding model.

NEXT STEPS Sealing the remaining Queensland sections of the Gulf Savannah Way is estimated to require a total investment of $186 million. Completing the project over a 10-year period with funds made available to local councils each year will allow the retention of a local workforce. The estimated investment breakdown is as follows: • Normanton to Burketown - $100 million to be constructed progressively over 10 consecutive years. • Burketown to Doomadgee - $30 million funded over 4 consecutive financial years (equally in years 1-4).

• Doomadgee to NT Border - $56 million to be provided in equal instalments over the 10-year project period. • The project will extend across North West Queensland, travelling along the Gulf of Carpentaria from Normanton to the Northern Territory boarder, passing through Burketown, Doomadgee and Hell’s Gate in Queensland and connecting to Wollogorang in the Northern Territory.

OUR RECOMMENDATION

• That the Queensland and Federal Governments support the sealing and improved flood resilience of the western Queensland section of the National Highway by providing 80:20 project funding in accordance with the Commonwealth State Roads funding model.

• That during 2019- 2020 the Queensland Government work with local Councils to amend the Queensland Transport Infrastructure Act (1994) to declare all Queensland sections of the Gulf Savannah Way as Statecontrolled road.

• That allocation of funds be distributed to the controlling Local Government Authorities in equal portions over a 10-year period from 2019- 2020.

RECOMMENDED INVESTMENT

Estimated project cost $136m

State Investment Federal Investment

2020-2021 2021-2022 2022-2023 2023-2024*

$3.7m $14.88m

$3.7m $3.7m $3.7m $14.88m $14.88m $14.88m