TerritoryLife Magazine - Issue 03

Northern Australian Development

territorylifemag.com

ISSUE 3 - 2014

Mines and Energy Minister

Rum Jungle Resources Vanguard of developing a Territory fertilizer industry

Darwin Lord Mayor Katrina Fong Lim ‘Pivot Point’

30

Getting TER R I TORY LI FEthe job Leasel Avila

Lance Collyer

50 done

Publishers / Directors Leasel Avila and Lance Collyer

safely

Publishing Assistant Danielle Lee-Ryder

There are no excuses – if a rigging or transport

Danielle Lee-Ryder

job can be done safely, then Richard’s Crane Hire Editorial / Advertising & Logistics are the ones to turn to. From lifting spas to penthouses to moving equipment at mine leasel@territorylifemag.com sites no job is too big or small for this long time Territory company. +61424153240

A

Photographer George Fragopoulos www.xsight.com.au

s a young man, Richard Malmstedt trusted his instincts and never shied away from hard work or a challenge.

Over the years, this has paid off and he is a true Territory success story.

In less than 20 years he’s gone from a working rigger to owning the multimillion dollar company, Richard’s Crane Hire & Logistics that counts the ‘who’s who’ of mining, marine and construction as clients.

George Fragopoulos

Designers Gil’s Graphic Solutions A big thank you to Krys, Julius & Ruth Website www.territorylifemag.com Twitter TerritoryL_Mag

Blair Martin | Editorial/Advertising

Facebook Territorylifemagazine Postal address PO Box 4635 Darwin NT 0801 Australia

Stephanie Griggs | Editorial/Advertising

45 GROWING THE TERRITORY PORT OF DARWIN

DARWIN PORT CORPORATION PLAYS A VITAL ROLE IN ATTRACTING INVESTMENT AND SUPPORTING THE GROWTH OF NUMEROUS INDUSTRY SECTORS, WHILST MANAGING THE STRATEGIC DEVELOPMENT OF ITS INFRASTRUCTURE AND SERVICES TO BUILD CAPACITY FOR NORTHERN AUSTRALIA’S ECONOMIC EXPANSION.

Outside of Sydney, Darwin is our primary focus. We want to be part of this city’s future and we are here for the long haul.

Fabrizio Perilli

CEO, Development & Construction

CON 60TEN TS

PIVOT POINT

Darwin has become a key staging point for businesses looking to exploit economic opportunity in South East Asia, and as big investors move in Lord Mayor Katrina Fong Lim is working hard to balance economic opportunity with the city’s treasured lifestyle.

TRAVELLING AROUND the

DARWIN IS A LIVELY HARBOUR CITY WELL-KNOWN AS AUSTRALIA’S GATEWAY TO WORLD-CLASS NATURE AND CULTURAL ACTIVITIES AND EXPERIENCES. WITH A POPULATION IN EXCESS OF 100,000, IT IS A DESTINATION RENOWNED FOR ITS TROPICAL CLIMATE AND COLOURFUL CHARACTERS. While the seasons of the Top End are generally referred to as the ‘wet’ and the ‘dry’, the traditional Aboriginal people of the area, the Larrakia people, have up to six traditional seasons in Darwin. Their seasons correspond to which bush foods are available at that time.

Gudjewg in January and February makes up the bulk of the Top End’s tropical summer, considered by many as the most beautiful time of year. As the heavy rains begin to ease during Banggerreng, across March and April, rivers subside and the transition from wet to dry begins. Yegge arrives in May with relatively cool weather bringing crisp nights and misty mornings. Wurrgeng from mid June to mid August is ‘cold weather’ time with daytime temperatures of around 30° Celsius. Birds in their millions converge on waterholes and rivers during Gurrung from August to October as the reduction in rainfall forces waterholes to contract, and from October to December, Gunumeleng’s dark threatening clouds roll across the sky, but rarely deliver rain. This is the season of spectacular electrical storms.

86

PUBLISHERS INDEMNITY Those who make advertising placement and/or supply copy material or editorial submission to Territory Life Magazine, undertake to ensure taht all such material does not infringe any copyright, trademark, defamation, libel, slander or title, breach of confidence, does not contain anything obscene or indecent, or does not infringe the Trade Practices Act or other laws, regulations or statutes. Further to the above mentioned these persons agree to indemnity the publisher and/or its agents against any investigations, claims or judgements. Territory Life Magazine Pty Ltd. April 2014.

PUTTING

TER R I TORYL IFE

NORT H ER N A US T R A L I A

FI RS T

SHIFTING

THE BALANCE

On site at Australian Agricultural Company’s abattoir construction site in Virginia

IN THE TERRITORY

TO THE IMPORTANCE OF MINING

‘DRILLING’ DOWN

Fighting for Darwin and Palmerston in the Federal Parliament

With Prime Minister Tony Abbott at Port of Darwin in February

TURNSNORTH

12

I’m often amazed that northern Australia is, in some cases, still wildly misunderstood by my parliamentary colleagues down south.

WORDS BY DANIELLE LEE-RYDER

CO NTEN TS

A N AT I O N ’S F O C U S

BY NATASHA GRIGGS

While I acknowledge there are differences – we’re a laid back bunch, less caught up in the rat race – anyone would think the Territory was on another planet going by some of the comments I’ve heard.

A recent exchange with a former Darwin resident from the mid-1990s was illuminating.

He described our capital city as ‘15 suburbs and an airport trying to find a CBD’.

I told him to jump on a plane, clean the dirt off his glasses and have a look at us now. I doubt he’d recognise the Darwin and Palmerston he knew 20 years ago.

I often say to my colleagues that I live closer to Asia than any of the southern capitals.

They struggle to believe it’s cheaper for me to fly to Bali at $105 one way than it is to fly pretty much anywhere on the mainland.

There’s s no doubt that the first two centuries of Australia’s development since European settlement has been centred around the eastern seaboard.

But the Prime Minister and other senior Coalition members believe it’s time to redress that imbalance and build on some of the enormous potential that we have up north.

Federal Parliament’s Joint Select Committee on Northern Australia was established after last year’s election and as a member I want to know what direction the Darwin-Palmerston community want the Territory to go.

The concept of northern Australian Development means different things to different people.

To some it’s about developing a food bowl in the tropical north. To others it’s about a trade hub linking Asia with the rest of Australia. Then there are those that reckon Myer or Ikea stores in Darwin would put us on the map.

For me it’s about jobs. It’s about having the employment opportunities right here in the Territory so our kids don’t have to travel south to pursue their career of choice.

The development of Conoco Phillips a decade ago made a huge mark on Darwin.

Before that project kicked off the Top End economy was in a bit of a slump, the real estate market was sluggish and the population was, quite literally, heading south.

That substantial gas project turned things around – and now INPEX is set to take the Top End’s economy to a another level again.

Oil and gas will be the foundation stone for growth in the north and Darwin, with its existing gas infrastructure, is perfectly placed to accommodate an expanded gas industry

as opportunities arise.

But my vision for the Territory also includes how we can build on the assets we already have.

As the Member for Solomon I am particularly focused on how Darwin and Palmerston can be developed in ways that are sustainable and that put people first.

It was a pleasure in February to stand beside Lord Mayor Katrina Fong Lim and Chief Minister Adam Giles for the launch of the Darwin CBD Master Plan.

This mapped out a vision for the future of Darwin over the next twenty years.

One of the plans strengths is its flexibility. It doesn’t just rely on what governments alone can do to develop community infrastructure but instead puts the onus on partnerships with business and the community.

One of the features of the plan is for development of an education hub in the CBD which I would like to see tap into our proximity to Asia and develop as an international school as well as one that educates home-grown students.

Charles Darwin University already fulfils a similar role and I could see that being expanded.

It’s my view that CDU is a community asset that has the potential to grow both for the benefit of Darwin and the Asia-Pacific region.

This unique facility – it’s a secondary school, TAFE and university rolled into one - has grown from its inception as Casuarina Community College 40 years ago to being a serious player in preparing students for careers in the oil and gas industry and medicine.

Port of Darwin is another important piece of infrastructure with room to grow and expand.

It wasn’t a coincidence that when the Prime Minister came to Darwin in late February he toured East Arm Port before launching the terms of reference for the forthcoming Northern Australia White Paper.

The port and the Alice Springs to Darwin railway – a great example of public private partnerships building infrastructure for the future – hold the key to fulfilling the vision of Darwin as the gateway to Asia.

The Free Trade Agreement already signed off on with South Korea and others being

U

pon meeting Willem Westra Van Holthe the first thing you notice is that he’s a man as comfortable in high powered meetings as he is getting grubby on site as part of his Ministerial duties.

Mr Westra Van Holthe is the NT Member for Katherine (which is about 350 kilometres south of Darwin) and the fourth biggest town in the Territory after the capital, Palmerston and Alice Springs.

20

POSITIONING

FOR PROSPERITY DEVELOPING THE NORTH

New Deloitte research has shown that the Northern Territory is well positioned to continue growing as it capitalises on a coming wave of super-growth sectors linked to Asia’s evolving boom.

negotiated between Australia, China and Thailand have the potential to give the port and railway an expanded role in regional trade.

It’s worth pointing out that the railway was negotiated at a local level by politicians with vision like Barry Coulter, Shane Stone and Denis Burke with the backing of Liberal Prime Minister John Howard.

For so-called conservative politicians, these men all had an eye on the big picture and a nose for opportunity.

Despite the damage done by Julia Gillard’s ban on live cattle exports to Indonesia, I believe this sector still has an enormous amount to offer the Territory in terms of jobs and developing export markets.

I’m also a big fan of the Top End’s horticultural sector which I believe is well positioned for expansion.

Horticulture currently makes up about 3 per cent of our primary industry output and in 2012-13 its value to the Territory economy was $217 million.

Certainty of supply, our constant climate and availability of land has plenty of appeal for investors.

Talk of the Top End being the nation’s food bowl is understandable but premature – the jury is out on the Territory’s capacity for development of broad-acre crops such as rice and wheat.

The Top End grows more than $60 million in mangoes annually and is fast becoming Australia’s major mango supplier.

Bananas, citrus fruit, melons, tropical exotic fruits, vegetables and cut flowers also come out of the Top End. The iconic crocodile – both for its tourism value as well as its appeal to European fashion houses – also has a role to play in north Australia’s future. Thanks go to the NT News for relentlessly pluging the croc and putting ‘ownership’ of the reptile fair and square in the Territory.

All industry sectors know that finding an available workforce will be a challenge to overcome – as will meeting our future housing needs.

But with the right policy settings, the support of Government and the eyes of Canberra looking north, the future for Darwin, Palmerston and the Territory looks better than ever.

34

Territoria Civil is one of the Northern Territory’s biggest construction companies.

170 Coonawarra Road, Winnellie. Northern Territory | Tel: 08 8943 1000

Territoria Civil works on a diverse range of contracts in the Territory, including road construction, building, resources, rail and marine infrastructure.

Our team has a strong history of working on multi-discipline projects, both large and small, and is well placed to deliver quality results for our customers and the Northern Territory community.

We are committed to supporting the Territory and providing local jobs for local people.

BY: ALEXANDRA TIDY | DRAKE INTERNATIONAL

BRINGS NEW RECRUITMENT CHALLENGES Australian mining production is expected to soar by 41 per cent in the next five years, according to economic forecaster, BIS Shrapnel. This will, of course, increase demand in certain mining and heavy industry roles.

Planned new projects mean these sectors are facing new, unprecedented challenges in recruiting and retaining staff.

Organisations and industries that are already facing skills and talent shortages will need to be innovative in their strategies to resource and recruit in what could be the greatest demand for staff that these businesses have ever seen.

According to the Australian Bureau of Statistics, the current unemployment rate of 6 per cent means that there is a further tightening of the candidate market, therefore increasing the skills shortages already felt across the country.

For many businesses within the mining industry, managing their own recruitment has had a major impact on the productivity of their business. As these companies encounter hiring, and therefore operational, difficulties in a market with increasing skills shortages, the result is expending high levels of effort on the recruitment process in

addition to having unfilled positions within their operations.

Many of the roles within the sector require highly skilled personnel. This is a challenge compounded by the often remote locations of mining and resources sites. More than 75 per cent of the industry is located across the Northern Territory, Queensland and Western Australia, which is in complete contrast to the general spread of the Australian population.

All of these factors have created a highly competitive employment landscape between companies within the sector for attracting talent, resulting in a spike in wages compared to the average of all other industries. In some cases, personnel are earning more than double what they would in other fields. This is a challenge for both companies in the mining industry who need to ensure they maintain profitability, as well as businesses who are competing for the available talent.

In order to be successful, organisations will have to focus not only on finding staff, but create new solutions to engage, retain, and develop their workforce.

The necessity of these new levels of staffing means that businesses must

10

be prepared to onboard the volume of personnel required in a short span of time. Companies should also put a strong emphasis on creating an employee retention plan in order to develop their staff, therefore encouraging high levels of productivity.

To remain attractive to new recruits in this competitive industry, organisations need to offer not only excellent induction, training and salary, but consider the benefits of providing access to various courses to upgrade their skills, an Employee Assistance Program, and team-building assessments to encourage working together both comfortably and efficiently. This will not only keep your staff engaged with their team, but will keep them motivated and productive, therefore increasing the performance of your business.

Drake International has offices in Darwin and across Australia that specialise in mining, oil and gas, construction, engineering, and a wide variety of other industries to meet the permanent and flexible recruitment and HR needs of our clients. We focus on the people, productivity and performance of our clients organisations, and are available 24 hours a day, 7 days a week.

What Colour is Your Collar?

Blue or white, Drake has candidates for all collars!

Whatever staff you are looking for, the Drake Darwin team can help you in your search.

We are not just the provider of choice for white collar positions, but also an excellent source of blue collar staff.

Drake Darwin has great candidates available now, including: • Front Loader Operators

• Excavators

• Mechanics

• MR and HR Drivers

• Electricians

• General Labourers

• Trades Assistants

If you are looking for staff you’ll love, contact your local Darwin team today.

Call (08) 8924 3333 or visit us at Suite 6, 90 Ross Smith Avenue, Fannie Bay, Darwin 8000

SHIFTING

THE BALANCE I’m often amazed that northern Australia is, in some cases, still wildly misunderstood by my parliamentary colleagues down south.

On site at Australian Agricultural Company’s abattoir construction site in Virginia

Fighting for Darwin and Palmerston in the Federal Parliament

With Prime Minister Tony Abbott at Port of Darwin in February

A N AT I O N ’S F O C U S

TURNSNORTH

BY NATASHA GRIGGS

While I acknowledge there are differences – we’re a laid back bunch, less caught up in the rat race – anyone would think the Territory was on another planet going by some of the comments I’ve heard.

A recent exchange with a former Darwin resident from the mid-1990s was illuminating.

He described our capital city as ‘15 suburbs and an airport trying to find a CBD’.

I told him to jump on a plane, clean the dirt off his glasses and have a look at us now. I doubt he’d recognise the Darwin and Palmerston he knew 20 years ago.

I often say to my colleagues that I live closer to Asia than any of the southern capitals.

They struggle to believe it’s cheaper for me to fly to Bali at $105 one way than it is to fly pretty much anywhere on the mainland.

There’s s no doubt that the first two centuries of Australia’s development since European settlement has been centred around the eastern seaboard.

But the Prime Minister and other senior Coalition members believe it’s time to redress that imbalance and build on some of the enormous potential that we have up north.

Federal Parliament’s Joint Select Committee on Northern Australia was established after last year’s election and as a member I want to know what direction the Darwin-Palmerston community want the Territory to go.

The concept of northern Australian Development means different things to different people.

To some it’s about developing a food bowl in the tropical north. To others it’s about a trade hub linking Asia with the rest of Australia. Then there are those that reckon Myer or Ikea stores in Darwin would put us on the map.

For me it’s about jobs. It’s about having the employment opportunities right here in the Territory so our kids don’t have to travel south to pursue their career of choice.

The development of Conoco Phillips a decade ago made a huge mark on Darwin.

Before that project kicked off the Top End economy was in a bit of a slump, the real estate market was sluggish and the population was, quite literally, heading south.

That substantial gas project turned things around – and now INPEX is set to take the Top End’s economy to a another level again.

Oil and gas will be the foundation stone for growth in the north and Darwin, with its existing gas infrastructure, is perfectly placed to accommodate an expanded gas industry

as opportunities arise.

But my vision for the Territory also includes how we can build on the assets we already have.

As the Member for Solomon I am particularly focused on how Darwin and Palmerston can be developed in ways that are sustainable and that put people first.

It was a pleasure in February to stand beside Lord Mayor Katrina Fong Lim and Chief Minister Adam Giles for the launch of the Darwin CBD Master Plan.

This mapped out a vision for the future of Darwin over the next twenty years.

One of the plans strengths is its flexibility. It doesn’t just rely on what governments alone can do to develop community infrastructure but instead puts the onus on partnerships with business and the community.

One of the features of the plan is for development of an education hub in the CBD which I would like to see tap into our proximity to Asia and develop as an international school as well as one that educates home-grown students.

Charles Darwin University already fulfils a similar role and I could see that being expanded.

It’s my view that CDU is a community asset that has the potential to grow both for the benefit of Darwin and the Asia-Pacific region.

This unique facility – it’s a secondary school, TAFE and university rolled into one - has grown from its inception as Casuarina Community College 40 years ago to being a serious player in preparing students for careers in the oil and gas industry and medicine.

Port of Darwin is another important piece of infrastructure with room to grow and expand.

It wasn’t a coincidence that when the Prime Minister came to Darwin in late February he toured East Arm Port before launching the terms of reference for the forthcoming Northern Australia White Paper.

The port and the Alice Springs to Darwin railway – a great example of public private partnerships building infrastructure for the future – hold the key to fulfilling the vision of Darwin as the gateway to Asia.

The Free Trade Agreement already signed off on with South Korea and others being

negotiated between Australia, China and Thailand have the potential to give the port and railway an expanded role in regional trade.

It’s worth pointing out that the railway was negotiated at a local level by politicians with vision like Barry Coulter, Shane Stone and Denis Burke with the backing of Liberal Prime Minister John Howard.

For so-called conservative politicians, these men all had an eye on the big picture and a nose for opportunity.

Despite the damage done by Julia Gillard’s ban on live cattle exports to Indonesia, I believe this sector still has an enormous amount to offer the Territory in terms of jobs and developing export markets.

I’m also a big fan of the Top End’s horticultural sector which I believe is well positioned for expansion.

Horticulture currently makes up about 3 per cent of our primary industry output and in 2012-13 its value to the Territory economy was $217 million.

Certainty of supply, our constant climate and availability of land has plenty of appeal for investors.

Talk of the Top End being the nation’s food bowl is understandable but premature – the jury is out on the Territory’s capacity for development of broad-acre crops such as rice and wheat.

The Top End grows more than $60 million in mangoes annually and is fast becoming Australia’s major mango supplier.

Bananas, citrus fruit, melons, tropical exotic fruits, vegetables and cut flowers also come out of the Top End. The iconic crocodile – both for its tourism value as well as its appeal to European fashion houses – also has a role to play in north Australia’s future. Thanks go to the NT News for relentlessly pluging the croc and putting ‘ownership’ of the reptile fair and square in the Territory.

All industry sectors know that finding an available workforce will be a challenge to overcome – as will meeting our future housing needs.

But with the right policy settings, the support of Government and the eyes of Canberra looking north, the future for Darwin, Palmerston and the Territory looks better than ever.

PUBLISHERS’ NOTE Developing northern Australia is the buzz term on everyone’s lips at the moment. There has been a national push to bolster the region and position Darwin as the true gateway between the well-looked after southern states and the powerhouses in Asia.

T

he time is ripe for the Territory. It has been a long time coming, but a new era has arrived.

Our economy is the envy of many, unemployment is low and investment and trade is healthy. With many major projects in the Northern Territory either underway or about to start, an exciting period of development and economic vitality lies ahead.

Oil and gas, tourism, cattle, agribusiness, education and Defence are major contributors to the Territory economy.

That combined with its proximity to the region’s fastest growing economy South East Asia puts it firmly in the spotlight with many investors keen to get in on the action. The nation’s prosperity also arguably hinges upon

northern Australia’s success making it important and the impetus behind the Federal Government’s pledge to develop northern Australia.

To ensure that is reality, and to unlock the economic potential of northern Australia in the decades ahead, the Federal Government has committed to producing a White Paper on Developing Northern Australia by the end of 2014, which will define the nation’s policies to develop the region.

We at Territory Life are proud to be the media partner to the upcoming ‘“Developing the Territory’ conference in June where many key stakeholders will come together to discuss the issues that confront us in this period of growth. We are also proud to be part of this exciting chapter in the Territory’s history.

w w w . t e r r i t o r y l i f e m a g . c o m

WHY INVEST IN AUSTRALIA’S NORTHERN TERRITORY The Northern Territory has a number of advantages that make it attractive to potential investors.

Australia’s gateway to Asia Darwin, the capital of the Northern Territory, is the closest Australian capital city to Asia, providing the shortest transport routes for two-way trade between the Asian economies and Australia.

The Northern Territory has one international airport, Darwin International Airport that operates 24/7. The deep-water Port of Darwin provides modern freight handling facilities, a dedicated bulk liquids berth and links with an intermodal road-rail network. Reduced shipping times between Darwin and Asia give Darwin a trade advantage, particularly in relation to the export of bulk commodities.

A considerable and pristine resource base There are significant mineral and energy resource precincts onshore in the Northern Territory, and in offshore waters accessed from the NT. Many of these precincts have been commercialised, with significant investment from international partners. Natural gas and petroleum exports form an important and growing sector of the local economy.

There are also significant areas devoted to agricultural products such as meat, seafood, fruit, vegetables, crops, forestry and ornamental plants. The Northern Territory environment is largely undeveloped. The potential commercial benefit from native flora and fauna, food and medicines is largely untapped .

Climate change may have some medium to long term benefits for the NT Research by the Australian Bureau of Meteorology suggests that the direct impacts of climate change on agricultural production in the Top End of the Northern Territory are likely to be less severe, and therefore provide more attractive investment opportunities, compared to other primary production areas across Australia.

The agricultural production systems in the NT are already designed around significant variations in climate

across annual seasons, making adaptation to the future impacts of climate change easier to incorporate into existing management practices.

A highly skilled and flexible workforce The Northern Territory has a highly skilled multilingual workforce reflecting a population drawn from across the globe. The pipeline of major economic developments is generating many thousands of jobs, creating opportunities for business entrepreneurs, professionals and skilled tradespeople from all walks of life.

A diverse cultural mix The NT’s population of almost 250,000 includes people from more than 100 nationalities who have shared their cultures over more than a century to turn this region into one of Australia’s most cosmopolitan.

This diverse mix makes it easier to do business with our international partners because there is already a strong understanding of different cultural practices and expectations.

The room and capacity to grow The Northern Territory not only has the space to grow, it also has capacity to accommodate key infrastructure additions such as new roads, ports and suburbs, with fewer constraints than more highly populated areas of Australia.

A highly regarded and supervised financial environment Australia is one of several countries with the highest possible AAA credit rating, reflecting the strong and diverse economy, comparatively low debt levels, good prospects for growing income from expanding export markets, and experienced financial oversight.

The Northern Territory Government has an Aa1 credit rating, similar to other Australian states and territories, reflecting the level of debt required to fund the infrastructure necessary to underpin current and future economic growth.

These high credit ratings are attractive to investors and fund managers who hold funds in AAA rated investment categories.

Stable government(s) The quality of governance in Australia is among the world’s best, and Australia is considered among the world’s most politically stable countries. These attributes contribute to economic growth and security, and underpin business and consumer confidence. This stability is attractive to Australian firms seeking to grow, as well as multinationals expanding their businesses or considering the Northern Territory as a regional base.

OPEN FORUM

T E R R I T O RY L I F E

LETTERS l e a s e l @ te r r i to r y l i f e m a g . com

A Special Economic Zone for Northern Australia

Given the rapid and large scale rise in living standards in our Asian neighbours, now is the time to implement broad, substantial, and long-lasting reforms to ensure Australia’s prosperity.

One of the most effective mechanisms to encourage development in underdeveloped areas is the use of ‘Special Economic Zones(SEZ)’. SEZ’s are zones carved out of existing political jurisdictions that provide the economic and regulatory conditions to encourage development.

SEZ’s have been recommended as mechanisms to spur urban and rural development, as a way to encourage migration and investment, and act as catalysts for long-term growth through internationally competitive taxation and regulation. Australia appears to be the only inhabited continent without a dedicated SEZ. A SEZ in Northern Australia would allow entrepreneurs to grow the economy and provide job and life opportunities for people without the dead-hand of government stifling opportunity.

The idea of a low-tax, low-regulation, high-migration area on the Australian mainland should not be controversial but it is. This shows how accustomed Australians have become to substantial government intervention and regulation.

There is also the belief that SEZ’s are experimental or untried policy - which they are not.

Australia should have a SEZ in Northern Australia.

ANDEV’s Futurist scenario for the North of Australia looks like this: Funded by an major expansion in Foreign Direct Investment, tax incentivized infrastructure bonds, Federal Government tax incentives (lower personal tax or tax rebates and in some areas like the NT possibility of no income and corporate tax for a certain period, no payroll tax, no FBT, no stamp duty.), sensible regulation all administered locally in a one stop shop, infrastructure bonds with tax incentives, increased land supply for housing and industry, the following industries can flourish: Universities, medical schools, food production and processing, mineral production, mineral processing, energy down streaming industry, population expansions with for example a new era high technology 200,000 population city at Lake Argyle and expansions of existing cities in north of WA, NT and NE Queensland, new dams, food production on pastoral stations, abattoirs, Defence

bases and port and many multiplier industries establishing to support the export industries that result in generating self sustaining growth.

Recently Future Directions International released its Northern Australia Future concepts paper. In it they foresee an opportunity to of regeneration of up to 300 million hectares of northern and inland Australia. Through the innovative use of existing water, this may also lead to a significant reduction in fire risk, carbon footprint, a trebling of the cattle industry to up to 100 million head.

All of this ANDEV sees as best accomplished in SEZ’s set up across the North as one or a series with their own characteristics to suit their specific conditions. China’s unprecedented economic growth began with the first SEZ set up in Shenzhen in 1978 and they continue to use SEZ’s to drive growth- In October 2013 they set up a service Sector liberation SEZ in Shanghai. The World bank in its report estimated that 3, 000 SEZ’s have been used in the world. Why not Australia?

Imants Kins Imants Kins BEc MA

Co Chair ANDEV

AVAILABLE EVERYWHERE ALL OVER THE WORLD

FREE online to your computer, ipad, tablet, iphone or Android phone.

Like us on Facebook, follow us on Twitter and Instagram, we are everywhere!

DOWNLOAD FREE NOW

www.territorylifemag.com

CONTAINER SHELTERS ALLSHELTER makes it easy

iNpeX

NEW RANGE NEW SIZES CASA – WIDE

project supplier

When widths are important WIDTHS 6 TO 20m – HEIGHTS 1 TO 5m View our CASA - WIDE Range at www.allshelter.com.au

CATA – TALL

When heights are important WIDTHS 5 TO 17m – HEIGHTS 2 TO 7m View our CATA - TALL Range at www.allshelter.com.au

CALS – EXTRA WIDE

When widths really do matter WIDTHS 20 TO 30m – HEIGHTS 4 TO 8m View our CALS - EXTRA WIDE Range at www.allshelter.com.au

CALT – EXTRA TALL

When heights really do matter WIDTHS 18 TO 30m – HEIGHTS 9 TO 14m View our CALT - EXTRA TALL Range at www.allshelter.com.au

Have we got it right?

Have your say, visit our website.

www.allshelter.com.au

PH: 1800 08 2244

S H E LT E R C O V E R M A Y B E L E F T O N I N A C Y C L O N E

20

‘DRILLING’ DOWN

IN THE TERRITORY

TO THE IMPORTANCE OF MINING

WORDS BY DANIELLE LEE-RYDER

U

pon meeting Willem Westra Van Holthe the first thing you notice is that he’s a man as comfortable in high powered meetings as he is getting grubby on site as part of his Ministerial duties.

Mr Westra Van Holthe is the NT Member for Katherine (which is about 350 kilometres south of Darwin) and the fourth biggest town in the Territory after the capital, Palmerston and Alice Springs.

21

I

mportantly, he is the Minister for a number of crucial portfolios for the Northern Territory in this period of growth – Mines and Energy, Primary Industries and Fisheries, Essential Services, and Land Resource Management.

Pretty important and complex portfolios for anyone, and Mr Westra Van Holthe has taken to his duties with an unbridled passion.

Since the nation turned its focus to developing northern Australia, and with the wealth of discovered and untapped resources in the Territory and subsequently the potential economic windfall for the region and the nation, mining has become an important focus.

“There are two things about the Northern Territory geologically,” Mr Westra Van Holthe said. “One, is its underexplored and two, it is underdeveloped.” However, that seems to be changing with four mines opening in the last two years and 16 projects in construction or in the approval process.

The 16 projects represent a potential capital investment of over $3.3 billion, up to 2,500 jobs for the construction phase and 2,000 jobs for operations.

So it’s big business, and the Territory’s

22

largest industry and key driver to its economic growth.

“We are very resource rich and there is a great diversity in our resources,” he said.

“There is bauxite, manganese, gold, uranium, pot ash, iron ore, phosphate, diamonds and we even have salt. As more exploration is done it is exciting to see how much potential exists.”

Mr Westra Van Holthe said the NT Government approved an ilmenite mine in the Roper River region, east of Mataranka last year. “This was the first greenfields mine to be approved in the Northern Territory in seven years,” he said.

Other mining developments listed include a small phosphate mine near Batchelor, approval to trial a new extraction method for a diamond mine

CONTINUED FROM PREVIOUS PAGE

near Borroloola, a manganese mine north of Tennant Creek, and a number of iron ore mines near the Roper River. “The Roper area is almost becoming an iron ore province – it’s potentially the ‘Pilbarra of the NT’,” he said.

Mr Westra Van Holthe then turned his attention to the oil and gas sector. “It’s relatively young in the Territory,” he said. “The onshore petroleum and gas industry is continuing to increase in importance in the Territory. Our onshore industry is experiencing an unprecedented expansion for both conventional and unconventional petroleum and gas.”

A recent development in the industry is a production license being granted for the development of an oil field in the Amadeus Basin this year. “This was the first new license to be granted in the Territory in more than 30 years – hopefully it’s a sign of more to come.”

Mr Westra Van Holthe continued, “An application for a production license has been submitted to develop the field and construction of a pipeline to Alice Springs. This along with the Santos’ drilling project suggest increasing production from central Australian petroleum fields over the coming years.”

So given these industry developments, what is the NT Government

23

H

owever, in saying that we also take our environmental responsibility very seriously.

It’s about getting the right balance.�

24

CONTINUED FROM PREVIOUS PAGE

doing to support it as it’s undoubtedly one of the main contributors towards the Northern Territory’s economy outstripping most others? “First and foremost, we are cutting green and red tape overall,” he said. “We will not take short cuts - but we are speeding up the approval process and making reporting easier.”

“For example, we have changed the requirements for the mining companies submitting full mine management plans, which were quite onerous and time consuming, to multi-year plans. It’s similar to supplements or addendums.”

“It is still transparent and much of it is available to the public except for commercial in confidence – and importantly, it saves time and money.”

One of the ways the NT Government is also helping exploratory and junior ventures is by facilitating introductions to potential investors. It takes big bucks to get some of these mines progressing through the stages to production, so Mr Westra Van Holthe said the government has been taking delegations overseas in an effort to get funding.

“In the current global market, finance is tight and raising funds can be difficult,” he said. “So I have taken mining companies to Asia to introduce them to potential investors.”

And it must be working - from two

25

Ministerial-led delegations, one company has successfully secured funding. “As a result of our delegation in 2012, a Territory junior mine has been able to negotiate $21.25 million from a Chinese investor.”

The NT Government is leading another two delegations this year – one in May to Korea and Japan, and the other to China in October. “Even if it’s just one company from each delegation, then that is good news for all,” he said.

Other initiatives implemented to encourage and support mining companies include the creation of CORE (Creating Opportunities for Resource Exploration), which co-funds eligible exploration companies in return for their geological data and provides an impetus for them to act faster on their discoveries before it is made public. The government has also launched a reference publication, Geology and Mineral Resources of the NT, which is a detailed analysis of the geology and mineral and petroleum resources of the Territory, as well as an online system detailing past explorations.

Mr Westra Van Holthe said the NT Government is determined to do all it can to support the industry. “We support the mining and oil and gas industries because of its obvious economic benefits,” he said.

Dili TIMOR LESTE JOINT PETROLEUM DEVELOPMENT AREA

TIMOR

GREATER SUNRISE

ABADI

EVANS SHOAL SOUTH

EVANS SHOAL KELP

Sahul Platform

BULLER Northern CORALLINA Endeavour LAMINARIA

BUFFALO KITAN

KUDA TASI JAHAL KRILL ELANG / KAKATUA HINGKIP

BLACKWOOD

BAROSSA CALDITA

CHUDITCH HERON

BAYU-UNDAN

THE PRINCIPAL NORTHERN TERRITORY OFFSHORE AREA

Darwin Shelf

BRONTOSAURUS TENACIOUS OLIVER AUDACIOUS KATANDRA JABIRU

Money Shoal Basin

CHALLIS / CASSINI

SWAN VESTA

TALBOT BILYARA MONTARA SWIFT SWALLOW SKUA

DARWIN

Bonapar te Basin PROMETHEUS

Jabiru

PETREL

ne

s pipeli

win ga

to Dar Ichthys

FRIGATE TERN

TIMOR SEA

N O R T H E R N

BLACKTIP TRUSCOTT AIRBASE

Kalumburu

Katherine

TURTLE BARNETT

VIENTA W E S T E R N

WEABER

T E R R I T O R Y

Kununurra

A U S T R A L I A

producing oil field

producing gas field

production storage vessel

shutdown/suspended oil field

gas discovery

platform

abandoned oil field

producing oil and gas field

oil discovery

gas pipeline

oil and gas discovery

confirmed gas pipeline

0

100km

February 2013 A13-066.ai

27

Exciting times ahead for

RUM JUNGLE RESOURCES Rum Jungle Resources is a diversified junior explorer, which has discovered phosphate and potash resources in the Northern Territory.

Darwin-based Executive Director Chris Tziolis is excited about the potential for the development of a fertilizer industry in the Northern Territory.

Rum Jungle Resources is in the transition phase - from being a minerals explorer to a fertilizer minerals producer.

28

Rum Jungle Resources discovered significant amounts of phosphate at its Ammaroo project located 200 kilometres south east of Tennant Creek.

The one billion tonne JORC resource at an average grade of 14% P2O5 is a globally significant resource and has the potential to underpin multiple decades of production. The company has also discovered the occurrence of plentiful, naturally occurring, potassium-rich brines at the Karinga Lakes south west of Alice Springs, which has the potential to produce sulphate of potash. Both of these projects are undergoing prefeasibility studies at this time.

“Potassium (potash) and phosphate are both essential for efficient agriculture and are vital ingredients for making fertilizer. There is no substitute for these two ingredients and growing middle class populations demanding better quality and higher value foods, together with a lack of arable land, particularly in Asia, will see growth in demand for fertilizers,” Chris said.

“The Northern Territory is also strategically located to leverage growing demand for fertilizers in Asia and also Australia.”

“Rum Jungle Resources’ goal is to have at least one of these projects operating by the end of 2016,” Chris said. “We are currently in conversations with potential industry partners and investors.”

Chris said the challenge is to demonstrate that the projects and the Territory is an attractive investment destination for overseas partners in comparison to

the other options they have to develop similar projects to meet their needs.

“Yes, we are geologically blessed but we are not the only country to have these types of resources,” he said. “Even though we have very high quality, global scale resources and we are a stable OECD country offering the opportunity for global fertilizer producers and buyers to diversify supply away from traditional producers in the Middle East and Northern Africa, it will ultimately be the economics – the combination of costs of labour, transport, energy, environmental regulation, access to land, and taxes; that determines whether these projects will be globally competitive and attract the necessary investment to see them developed. We are working hard as part of the study process to find the most economical way to develop these resources.”

“We are already engaging potential partners – primarily the large North American, Indian and Chinese fertilizer producers, Japanese trading houses and private equity companies focused on the agricultural business sector.

Chris said companies are waiting to see how the pre-feasibility studies pan out, and then hopefully the company will have the financial backing to progress at least one of the projects to a bankable feasibility study and development.

“Rum Jungle Resources is at the vanguard of developing a major fertilizer industry in the Northern Territory– it is very exciting times,” he said. “The potential to create a significant fertilizer minerals

business in the Northern Territory is very well aligned with government strategies to grow agricultural output in Australia, particularly the north, in addition to the potential of Asian markets.”

“The future development of the Rum Jungle Resources’ projects would contribute greatly towards regional economic development and also employment opportunities for local indigenous communities and places such as Alice Springs and Tennant Creek.”

Chris Tziolis has been with Rum Jungle Resources since late 2012. He previously held senior management roles at Rio Tinto, most recently as the Chief Development Officer of Energy Resources of Australia.

Prior to Rio Tinto, he worked as a consultant for McKinsey and Company with a main focus on strategy development and operational performance improvement for global mining companies. His early career was as an operations officer in the Royal Australian Navy and commanded a Darwin based patrol boat in 2001 and 2002.

“What really attracted me to Rum Jungle Resources was a desire to stay in the north and the potential of these resources and their alignment to agricultural growth in the region,” he explained. “That mixed with the entrepreneurial aspect of trying to create a new business from scratch really appealed to me. It’s such a great opportunity to be part of leading the development of this industry in the Territory.”

RUM JUNGLE RESOURCES IS AN ASX LISTED COMPANY. IT IS IN THE TRANSITION PHASE WITH THE POTENTIAL TO CREATE A SIGNIFICANT FERTILIZER MINERALS BUSINESS IN THE NORTHERN TERRITORY. IT IS IN THE TRANSITION PERIOD OF GOING FROM A JUNIOR MINERALS EXPLORER TO ONE THAT PRODUCES FERTILIZER MINERALS. IT HAS TWO SEPARATE FERTILIZER MINERALS PROJECTS IN CENTRAL NORTHERN TERRITORY THAT HAVE DISCOVERED PHOSPHATE AND POTASH – TWO ESSENTIAL INGREDIENTS TO MAKING FERTILIZER. THE GOAL IS TO START PRODUCTION BY THE END OF 2016.

30

Outside of Sydney, Darwin is our primary focus. We want to be part of this city’s future and we are here for the long haul.

Fabrizio Perilli

CEO, Development & Construction

31

WITH THE RIGHT SUPPORT AND VISION DARWIN COULD BE AUSTRALIA’S VERSION OF SINGAPORE AND TRULY CAPITALIZE ON ITS POSITION AS THE GATEWAY TO ASIA. ONE OF AUSTRALIA’S LARGEST PRIVATELY OWNED DEVELOPMENT COMPANIES, TOGA GROUP, BELIEVES THE FOCUS ON DEVELOPING NORTHERN AUSTRALIA IS A GOOD THING AND WILL GREATLY BENEFIT DARWIN. Chief Executive Officer, Development and Construction Fabrizio Perilli likened Darwin to Singapore and said the city is perfectly positioned to be a strong competitor in the South East Asian market.

“We need to be aspirational and have a vision for what Darwin should be and then systematically go about making that a reality,” he said.

“I think Singapore is an exceptional model that Darwin could follow in the way it has grown in the last 20 to 30 years,” he said. “There is no

reason why Darwin can’t learn a few lessons from the Singapore model.

To keep up with the changing global marketplace, Singapore kept on reinventing itself. People would say ‘Singapore is on the decline’, but Singapore kept coming back stronger.”

Fabrizio said that the focus on developing northern Australia is a good thing and can only be of benefit particularly for Darwin.

“There should be a strong focus on the development of industry, because with industry comes infrastructure,

housing and jobs,” he said. “The Territory has a proactive government that has a great vision, and with the Federal Government’s support there should be a boost to the whole of the Northern Territory.”

However, Fabrizio said for more investment and stability there has to be a future and plans for after INPEX. “The Territory currently has a lot of growth and development stemming and resulting from the INPEX commitment,” he said, “but what is really important is that there are other announcements

and commitments made beyond that which provides stability in the Darwin market.”

“With stability you will get key worker support and more people moving up to Darwin and that will lead to a much more sustainable and competitive market. People move to places that show growth and that are stable. With the right guidance Darwin will sustain the expected population boom and receive its share of Australia’s population growth. “It should have a greater population than what it currently has, a capital city like Darwin should be really around the half a

million mark and it should be in the near future,” he said.

“Its proximity to the world’s fastest growing region positions it very well to capitalize on opportunities. The Toga Group believes it’s poised for significant growth, making it an attractive investment opportunity for locals, interstate and international investors.”

However, some proponents say the level of construction and intense development of the Northern Territory’s capital is unsustainable, that it can’t last. “Not so”, says Fabrizio. “We have a very positive view of northern Australia,” he said.

“Darwin has taken big steps, and there are still great opportunities to be had. It’s still a risk, but it’s definitely one worth taking.”

“We have banked on this demand.

With the right government leadership, vision and support, together with increased industry participation and associated population growth, Toga Group want to stay beyond our current project, the Waterfront development,” he said. “Outside of Sydney, Darwin is our primary focus. We want to be part of this city’s future and we are here for the long haul.”

WATERFRONT PRECINCT UPDATE with a combined total of 138 apartments, a 4,050 square metres building that will be occupied by the Charles Darwin University’s schools of Business and Hospitality as well as 500 square metres of additional retail. The work on this stage is expected to be completed by August 2014 and all but three apartments have been sold.

Since work started on the Darwin Waterfront Precinct several years ago, it has become a place to live, be entertained, shop and stay.

It currently boasts 138 residential apartments, the 241 room Adina Hotel, restaurants, bars, the Darwin Convention and Exhibition Centre, public art and the wave pool and swimming lagoon all nestled in sprawling manicured parks with expansive ocean views.

Toga Group has lodged its development application for the next stage. This will comprise of a 20-storey residential tower at Stokes Hill Wharf and Fort Hill Wharf as well as 15 exclusive standalone residential lots.

There is more to come over the next few years. Work is nearing completion on three more residential buildings

TOGA GROUP Toga Group was set up over 50 years ago by Mr Ervin Vidor AM in Sydney. It is an active developer and builder of quality residential apartments, hotels (Medina Apartment Hotels, Adina Apartment Hotels, Vibe Hotels and the Travelodge Hotels) and mixed use developments including retail and commercial. The company now employs over 1,700 team members in Australia, New Zealand and Europe operating as an integrated property group.

33

34

POSITIONING

FOR PROSPERITY DEVELOPING THE NORTH

New Deloitte research has shown that the Northern Territory is well positioned to continue growing as it capitalises on a coming wave of super-growth sectors linked to Asia’s evolving boom.

35

POSITIONING

FOR PROSPERITY

CONTINUED FROM PREVIOUS PAGE

DEVELOPING THE NORTH

The Deloitte report Positioning for Prosperity?

Catching the next wave will form the basis of a boardroom series facilitated by Deloitte, Northern Australia Development Office and National Australia Bank where senior business and government leaders will discuss the Northern Territory growth strategy.

Mr Charlie Falanga, Regional Business Executive, NAB emphasised the importance of businesses being good corporate citizens of the NT. “As businesses we are and will always be an integral part of the Northern Territory community and have to take joint responsibility for economic development. By facilitating the discussion between businesses and government, we want to make sure our organisations play a part to help position the Territory to make the most of the future growth

opportunities.”

The findings from Deloitte’s report found that the Northern Territory is well positioned to continue growing as it capitalises on the current mining boom and the coming wave of super-growth sectors linked to Asia’s evolving boom – the ‘Fantastic Five’ of gas, agribusiness, tourism, international education and wealth management. Yet there will be more to come. A further 19 growth pockets were identified, some of which are in lower-risk niches where the Territory can build on some of its existing strengths, rather than developing new industries from scratch.

Collectively the sectors are identified as the Deloitte Growth 25 (DG25): the 25 sectoral hotspots with the greatest potential to contribute to Australia’s prosperity.

THE DG25 - GROWTH OPPORTUNITIES FOR AUSTRALIA CURRENT WAVE

NEXT GROWTH WAVES

FUTURE GROWTH WAVES

Mining

Gas Agribusiness International education Tourism Wealth management

Clean coal

Next-gen nuclear

Gas transport

Disaster management and preparedness

(the Fantastic Five)

(the 19 growth pockets)

ICT - Gateway to the future Financing the Fantastic Five

36

Residential aged care

Food processing

Retirement living and leisure

Ocean resources

Community and personal care

Next-gen solar

Mr Peter Carew, General Manager Northern Australia Development Office noted that the NT’s current focus on mining and energy, tourism and education, defence and food exports shows that the economy is already preparing for the coming shift: “The successful completion and operation of Darwin LNG, the construction underway at Ichthys and Shell Prelude FLNG supply base, as well as the potential for the Sunrise FLNG and Bonaparte FLNG projects to get underway, ensures that the NT will cash in on Asia’s demand for clean burning gas.”

“Similarly, the continuing rise of the Territory as a tourism destination, showcasing its natural resources such as Uluru and Kakadu as international tourist destinations, the falling Australian dollar and an expansion to the Darwin airport will ensure that tourism revenue continues to rise in the NT. Additionally, the construction of AACo’s meat processing facility in Livingston would add the missing ingredient to beef exports out of the region.”

Darwin Office Managing Partner of Deloitte, Hendri Mentz, added: “The Top End is enjoying some of the benefits of strong growth in Asia, accentuated by our world class resources in land, minerals, energy and our proximity to Asia, but we also have a range of ‘local heroes’ that will help drive growth in the Territory in the years ahead.”

Medical research

Preventative health and wellness Digital delivery of health Reskilling an ageing workforce Financing the future Private schooling Parcel delivery

HENDRI MENTZ

CHARLIE FALANGA

PETER CAREW

Darwin Office Managing Partner of Deloitte

Regional Business Executive NAB

General Manager Northern Australia Development Office

“NOW IS THE TIME TO MAKE SURE WE POSITION THE NORTH FOR PROSPERITY, WE HAVE EVERYTHING GOING FOR US.” In particular, the Deloitte report identifies a growth cluster at the heart of the collision of megatrends such as rising life expectancies, rising relative health care costs and tightening public sector health budgets. This group contains the biggest commercial opportunities – both nationally and for the NT. Its population may be younger than the national average, but the challenges of indigenous health mean the Territory will experience the impact of ‘ageing’ – or at least the health conditions associated with it – earlier than some other parts of Australia. This will result in a number of sectors having a significant impact on NT’s growth, including the likes of residential aged care, retirement living and leisure, community and personal care, and preventative health and wellness.

These developments will also generate exciting new possibilities in the digital delivery of health, where the potential benefits to the Territory are huge, and could fundamentally change the way services are delivered in remote communities. This mix of

new technologies with new markets could also lead to new opportunities for the Top End’s economy.

Other opportunities among the DG25 include hotspots that can extend the benefits of the resources boom.

“For example, the ongoing boom in gas has seen massive investment in new capacity – with the value of the NT’s Ichthys LNG development itself worth almost twice the value of the Territory’s annual economic output,” Mr Mentz said. “Yet there will be more to come. As is already evident, the boom in NT gas brings with it further opportunities for gas transport and infrastructure – the building and maintaining of pipelines, processing facilities and ports that will support the export of gas to emerging Asian markets.”

Deloitte has also identified smaller sectors where the ability to sell into world markets has the potential to turbocharge future Territory growth.

These are the sectors with the most to gain from new approaches and new technologies and include new ways of making the most of ocean resources –

37

ranging from farming algae to make so called ‘green oil’ to harnessing the power of wind and waves to generate electricity.

“While these sectors aren’t a big part of the NT economy today, they could emerge over the next 20 years as world markets search for cleaner and greener energy sources,” Mr Carew said.

Mr Falanga outlined that collaboration between businesses, industry associations and government is the critical next step: “Collectively we need to answer important questions: • How can we move our organisation into the best positions to capitalise on these future growth opportunities?

• How can governments enable growth in the North?

• How can we all better collaborate to drive prosperity?”

“The final ingredient is to build confidence in Northern Australia’s growth prospects. As Territorians we need to realise our natural advantages and be confident about our ability to attract investment in the NT” added Mr Mentz.

ONE BLOCK AT A TIME TERRITORIA CIVIL IS LITERALLY HELPING BUILD THE NORTHERN TERRITORY ONE PROJECT AT A TIME. ITS LATEST CONTRIBUTION IS THE DARWIN MARINE SUPPLY BASE – A MAJOR TERRITORY ASSET AND ANCHOR TO THE REGION’S GROWING OFFSHORE INDUSTRY.

Darwin’s role as an oil and gas hub for the region is set to be cemented with the completion of a marine supply base at East Arm Wharf. The base will bolster the Northern Territory’s reputation as the port to service the needs of the growing offshore industry.

The Darwin Marine Supply Base was designed and built by Territory construction and civil engineering company, Territoria Civil.

“The Darwin Marine Supply Base is another piece of major infrastructure, critical to supporting the growth of the Territory,” Territoria Civil General Manager Robert Wilson said. “It is a major piece of infrastructure that will be crucial to servicing the booming oil and gas industry. Blair Middleton, our project manager, and his team at Territoria Civil has delivered a first class project.”

Costing approximately $100 million, the facility includes a 285 metre wharf structure consisting of three berths, 1,800 square

38

metres of warehouse and associated buildings, guardhouse and ablution block as well as 35,0000 square metres of quayside laydown area suitable for offshore material storage in preparation for loading on the vessel.

a good feeling to be a real part of the development of the Territory, to be part of its past as well as its future,” he said.

“We were heavily involved in the early stages of East Arm, we built Tiger Brennan Drive (a major arterial road between Palmerston and Darwin) and we have completed numerous other projects such as the Darwin Waterfront,” he said.

“The Waterfront is probably one of my favourites, the most rewarding, seeing people enjoy something you helped build, something that adds vibrancy to our city. It is very rewarding to be an integral part of developing the Northern Territory, we are helping build it along with the support of a number of other Territory companies.”

“The project employed over 100 workers at any one time throughout the 18 month duration,” Robert said. “We dredged approximately 650,000 cubic metres of material to construct a new shipping channel and berthing pocket. The dredged material has been used as landfill by the Darwin Port Authority.”

Robert said the Darwin Marine Supply Base will be operated by the ASCO Group and used to service the growing needs of offshore and onshore operations in the region.

He is proud to be part of the Territory growth and behind another piece of major infrastructure for the Northern Territory. Robert and his team have been behind many different projects throughout the Territory’s history. “It is

170 Coonawarra Road, Winnellie. Northern Territory Tel: 08 8943 1000

39

SITZLER’S

SPEAKS FOR ITSELF TRACK RECORD

40

Sitzler is one of the largest privately owned construction companies in the Northern Territory and has delivered a number of major Defence projects ahead of time and within budget.

With an increasing military presence in the North from not only Australian troops but personnel from the United States, the Federal Government has invested in building extra accommodation for them.

In 2011, an announcement was made for a rotation of 2,500 US Marines into Darwin so they could conduct exercises and training with the Australian Defence Force. To support this the Department of Defence needed to build additional facilities at both Robertson Barracks and RAAF Base Darwin.

In the latest of a string of Defence projects, Sitzler secured the US Marine Corps Accommodation project and successfully completed it on time and within budget.

“This was no small feat,” Sitzler’s Managing Director Steve Margetic said. “Sitzler delivered the design and construction project in a mere 17 weeks. They also faced challenging conditions such as weather, accessibility to site and perhaps most significantly a key stakeholder and end user outside of the Australian Defence Force.”

So what was the project exactly? Overall the project was for two separate locations – Robertson Barracks and the RAAF Base – and was delivered concurrently. Sixty modular buildings were constructed. These buildings were designed and manufactured to support sleeping accommodation, office working accommodation, recreational, laundry, ablution and storage facilities. All buildings were connected by over half a kilometre of elevated modular walkways.

41

“Fabrication and delivery of the project was achieved in eight weeks,” Steve said. “This shows the capability of the Sitzler team and further the capabilities we have in Darwin.”

Steve said Sitzler is committed to using and supporting local subcontractors and suppliers whenever possible.

“To support the sustainable economic development of the region we sought local input, in fact all of the sub-contractors engaged on this project were Darwinbased,” he said.

In the past few years, Sitzler has built a solid reputation and relationship with the Australian Defence Force.

The US Marine Corps Accommodation project is the latest string to its bow of Defence projects.

Another major project recently completed by Sitzler for the Australian Defence Force was the Single Living Environment and Accommodation Precinct (Single LEAP) Phase 2 component in Darwin.

As part of the $240 million project, Sitzler designed and constructed 686 accommodation units at Robertson Barracks and a further 232 at Larrakeyah Barracks.

The work at Larrakeyah Barracks worth $72 million and included the refurbishment of 70 heritage units.

“It was delivered three months ahead of time,” Steve said. “This was despite the project having some very complex and challenging aspects which placed the overall development at risk.”

Steve said the team at Sitzler won a number of awards for this project.

“It was given the nod by our peers as the best Construction/Engineering Project (less than $100 million) and the Northern Territory Project of the Year at the Australian Institute of Project Management Awards,” he said. “It also took out two categories at the Master Builders Association of the Northern Territory Excellence in Construction and Building Awards.”

Steve said that work is currently underway on two other projects - one in Darwin and the other in Western Australia.

“Sitzler is currently working on the design and construction of the sewerage infrastructure for Robertson Barracks to support the additional personnel,” he said. “The $13.4 million project involves upgrades to 12 sewer pump stations, and the installation of 1.5 kilometres of gravity main and 3.2 kilometres of rising main. It is expected to be completed this September.”

Steve said the other project, which is in Exmouth, is a joint venture with GHD. “This project is facilitating the relocation and installation of a C-band radar at Harold E. Holt, which is a radar support operations building being built,” he said.

Sitzler is one of the largest privately owned construction companies in the Northern Territory. It has been operating since 1976 and has delivered many projects in the Northern Territory and South Australia including the Darwin Convention and Exhibition Centre and the New Secure Facility (Darwin prison).

Steve said being local, and a long-time highly-regarded company, holds them in good stead when competing for Territory-based projects.

“Our staff are locals and accustomed to the Territory’s conditions. The fact we have the capability, resources as well as the local and industry knowledge, expertise and experience places us in a strong position,” he said.

42

We have invested in the Territory for almost 40 years.

There are only a few local companies in the Territory that have the capabilities and local expertise to undertake many of the major projects – and we are definitely one of them and our track record with the Department of Defence is testament to that.�

43

GROWING THE TERRITORY PORT OF DARWIN

DARWIN PORT CORPORATION PLAYS A VITAL ROLE IN ATTRACTING INVESTMENT AND SUPPORTING THE GROWTH OF NUMEROUS INDUSTRY SECTORS, WHILST MANAGING THE STRATEGIC DEVELOPMENT OF ITS INFRASTRUCTURE AND SERVICES TO BUILD CAPACITY FOR NORTHERN AUSTRALIA’S ECONOMIC EXPANSION.

45

continued from previous page

GROWING THE TERRITORY PORT OF DARWIN

The Northern Territory is gaining increased international attention from investors which is reflected in the recently released 2013 Fraser Institute’s Survey of Mining Companies. On the Current Practices Mineral Potential Index the NT is ranked sixth globally out of 112 provinces and, in the Investment Attractiveness Index, the NT rose to become second in Australia. time and cost efficiencies, especially for the heavier Panamasized vessels carrying cargoes such as iron ore and containers.

“The implementation of integrated leading-edge technologies such as our new Port Management Information System and the installation of a new Vessel Traffic System this year are crucial to our growth strategies to maximise operational efficiency and productivity, manage increased vessel movements and support major projects.

“Additional capacity has been created at East Arm Wharf with the reclamation of Pond F providing an extra 2.5 hectares of premium hardstand area for additional export and project cargo and a further 7 hectares will soon be added with the reclamation of Ponds K and C,” Terry O’Connor said.

The Port’s main East Arm Wharf, located within Darwin’s East Arm Logistics Precinct, is a major service and supply hub for the region’s resource industries. East Arm Wharf provides over 775 metres of continuous deep water quay line with the flexibility to cater for multiple users from bulk liquids and dry bulk to livestock and containers. It also has the capacity to expand and cater for growing volumes within one of Australia’s largest natural deep water harbours.

Darwin is Australia’s premier live cattle export port with Indonesia its largest market, followed by China. The Corporation is continuing to work closely with the cattle industry to further grow this important export trade and to attract new emerging markets such as Vietnam and Malaysia.

During the 2013 calendar year approximately 360,000 head

The Port of Darwin is one of the Northern Territory’s key economic drivers and the Corporation is committed to ongoing investments in infrastructure, in line with its East Arm Wharf facilities Masterplan and the Government’s Framing the Future blueprint to accommodate the requirements of new clients keen to capitalise on a wide range of investment opportunities.

The Port of Darwin is strategically positioned in close proximity to important Asian markets and the region’s offshore oil & gas fields. It is the terminus of the AustralAsia Railway which connects Adelaide to Darwin, and the only Port between Townsville and Fremantle with full access to multi-modal transport services which can handle Australia’s northern development and growing trade.

Darwin Port Corporation CEO, Terry O’Connor says the Corporation continues to invest in new infrastructure, increase capabilities and improve its productivity to meet the ongoing growth in demand for its services and facilities.

“We proactively engage with our stakeholders and continue to encourage prospective clients to make early contact with us to discuss their needs so our team can work with them to identify and plan for their specific requirements,” Terry O’Connor said.

“We are currently increasing our productivity by undertaking channel enhancement works at Charles Point Patches which will expand the tidal window for access to Port facilities and allow quicker turnaround times at berths, providing welcome

46

capacity.

INPEX will be the Marine Supply Base’s first customer and the facility is on track to support the Ichthys project’s important rock load-out phase, for the commencement of the laying of its 820 kilometres underwater pipeline from the offshore gas field to the Port.

The INPEX project is continuing to bring substantial increases in cargo traffic into East Arm Wharf, including the recent module platform to accommodate the large modules soon to commence arriving for the construction phase of the Ichthys LNG plant.

The Darwin Port Corporation is exceeding its forecast trend to deliver a further increase on profits this year, primarily related to ongoing demand from major projects.

of cattle were exported out of the Port of Darwin and early this year a trial live shipment of buffalo was sent to Vietnam.

The Port of Darwin is undergoing major developments including the massive $34 billion INPEX Ichthys facility at Blaydin Point, the second LNG plant to be located in Darwin Harbour after Conoco Phillips’ at Wickham Point.

Darwin Port Corporation is working closely with ASCO, the operator of the new $110 million Marine Supply Base, expected to be operational in May 2014. Located on 8.55 hectares adjacent to East Arm Wharf, the Marine Supply Base is a support facility dedicated to servicing the growing offshore industry.

Northern Australia’s first dedicated Marine Supply Base will improve the Port’s efficiencies, provide around 300 metres of valuable additional quay line and further extend the Port’s

47

ICN THEY HAVE BUSINESS DETAILS AT THEIR FINGERTIPS

KEVIN PETERS

ICN NT CHIEF EXECUTIVE OFFICER

48

Two issues facing Northern Territory businesses when it comes to major projects are that the project office, and the procurement and contract personnel will be often based interstate.

ICN NT has a database containing details of the capability, capacity, brief project history, accreditations, etc of over 4,400 businesses across the Northern Territory. Its role is to promote these businesses by providing assistance to both private and public sector procurement and contract personnel.

Whilst there are a growing number of mining companies in particular that have their roots in the Territory often the head offices, or project offices, of proponents are based elsewhere. This applies equally to the prime contractors.

The danger for businesses here in the Territory is that those companies revert to their established supply chains and don’t explore the potential capability and capacity that exists ‘on the doorstep’ of a particular project.

There are practical economic considerations of using local expertise but having a level of capability on hand to respond quickly is invaluable. There is no doubt that local businesses need to be price competitive and demonstrate their capability but they need to be identified and given that opportunity. That’s where the ICN fits in.

Procurement and contract personnel in existing mines or other operations can change from time to time and these employees are not necessarily from the Territory.

Again, they can potentially revert back to their known interstate supply chains and thus deprive local businesses the opportunity to showcase their capability.

ICN is there to provide assistance in matching the requirements of these personnel to local capability.

Using the internet is an option, but that doesn’t always provide the level of information being sort. Websites will, and should, market a business in glowing terms but the ICN deals only in facts. The quickest and most efficient way to find a supply or service requirement is via ICN staff with the business details they need at their fingertips.

Contact ICN NT at info@icnnt.org.au 08 89229422

49

Getting the job

done safely There are no excuses – if a rigging or transport job can be done safely, then Richard’s Crane Hire & Logistics are the ones to turn to. From lifting spas to penthouses to moving equipment at mine sites no job is too big or small for this long time Territory company.

A

s a young man, Richard Malmstedt trusted his instincts and never shied away from hard work or a challenge.

Over the years, this has paid off and he is a true Territory success story.

In less than 20 years he’s gone from a working rigger to owning the multimillion dollar company, Richard’s Crane Hire & Logistics that counts the ‘who’s who’ of mining, marine and construction as clients.

50

51

“I’m still a rigger at heart, that’s what I do,” RICHARD SAID.

52

“I

got into this after working out the math and figuring I was better off working for myself, I decided to give it a go and I haven’t looked back since.”

Richard started out on his own in 1996 after he bought his first crane off family when his brother died in an accident. “My family were in the business, my first crane was a tower crane,” he said. “It had a 40 metre radius. I used it on my first job which was helping build the Goyder building – the Palmerston Police Station. That was a good job and took about 10 months to do.”

Once that contract was complete, Richard expanded his fleet and bought a 14 Tonne mobile crane. Slowly but surely he has built it up to a comprehensive fleet of 20. “There’s no job too big or too small,” he said.

“If you need a crane, we will have the one for the job.” The biggest crane in the fleet is a 160 Tonne Liebherr Crane. To put that in perspective its reach is 95 metres – or equivalent to Darwin’s tallest building of 30 storeys.

Generally, Richard’s crane are used for jobs on mining or construction sites, but they are often also used to pull down trees, and lift heavy equipment, materials and boats. “There was one time though when a

53

person asked us to lift a spa on to a balcony of a city apartment 20 storeys high,” he said. “They had no other way to get it up there to be installed, so we hauled it up there with one of our cranes. We also get asked to lift and launch boats a lot too.”

Other projects of Richard’s Crane Hire & Logistics include the erection of the steel structure of the Bridge Autos car yard, the Knuckeys Lagoon Garden’s Centre, the heritage apartments in the

city, and the Myllie Point Apartments. So who does Richard count as regular clients? “I get a lot of work from the Darwin Port, but I don’t want to single out or name clients. Put it this way, I’ve worked for most of the mine sites and construction companies and I pride myself and my team on safety and doing the job well,” he said.

Richard expanded his business into transport in 2004 - and it came about because Richard simply wanted to get a job done, and for it to be done well. “I had work down at Hudson Creek and we had a 120 Tonne crane with the required counterweight, which had to be moved,” he said. “The transport company let me down – so I went out and bought my own truck and got it done.”

And that in essence sums up Richard and his crew – no fuss, just getting on with the job. As long as it’s safe and within reason, they won’t shy away from a challenge and use their local knowledge to do the job and do it well.

RIGHT TIME RIGHT PLACE D A R W I N

C O R P O R A T E

W

ith the national focus on developing Australia’s north

P A R K

The multimillion dollar Darwin Corporate Park is perfectly positioned to take advantage of the national and the southern states, many businesses are focus on developing northern Australia. The developers saw the setting up offices in the Top End. Darwin potential and seized the opportunity to invest in building a world-class Corporate Park is where many are business park for the Northern Territory’s capital. heading thanks to its world General Manager Charles Burkitt said previously Darwin was not considered large enough for this kind of development. “However, that has changed dramatically over the years. class facilities and Darwin is fast becoming an economic leader and business destination with industries such as oil and prime location. gas, mining, tourism, Defence and agriculture booming,” he said.

“Many businesses and organisations are now wanting to set up offices in Darwin due to its proximity to the Asian economic powerhouses. Once completed this will be the perfect facility for businesses ranging from small local ones to the larger multinational organisations and Government organisations.” and Darwin being the gateway between Asia

54

“With the renewed focus on Darwin, being the main city and port for northern Australia, our timing couldn’t be better, and spaces are being leased quickly.”

A

big selling point of the Darwin Corporate Park is it is in a very central location.

55

RIGHT TIME, RIGHT PLACE

“It’s only seven kilometres to the East Arm Port and the Darwin Marine Supply Base, 4.5 kilometres to the Darwin and International airports, and nine kilometres to the city centre,” Charles said. “Berrimah, where it’s located, is now the heart of greater Darwin. If you are based at the Darwin Corporate Park, you are in close proximity to many of your client or customer base and it’s easy for them to come to you.”

Leasing rates for the Darwin Corporate Park are also very competitive. “You are getting a brand new A-grade commercial office space for a very reasonable price,” Charles continued. Rates are $350 per square metre plus outgoings per annum.

Tenancies range from 100 to 3500 square metres, and the development will be of exceptional quality and finish.

Also, secure basement parking is not an additional cost, it is part of your lease.”

Work is underway on the first stage of the $85 million development, with its completion on target for late 2014. It will be a campus style layout landscaped throughout with shaded trees and covered walkways interconnecting the park. The two and half hectare block will boast eight three level buildings,

flexible and state of the art floor space, ample parking, landscaped grounds and a range of quality facilities and amenities such as storage, a gymnasium, end of trip facilities and a fully catered café/restaurant.

Charles said they envisage the park will have a businessto-business, community atmosphere and that it will become a thriving hub.

“Due to its size and the quality of the development, Darwin Corporate Park will eventually become a landmark in its own right and will be the place to do business,” he said. “This is a unique development for Darwin and there has been nothing like this before, but now with the city being the star of northern Australia – it is definitely the right time.”

56

For further information contact Darwin Corporate Park

P: +61 8 8924 0888

e: info@darwincorporatepark.com.au www.darwincorporatepark.com.au

57

GIVING

DARWIN CITY A NEW LEASE OF LIFE If the old Woolworths complex is the heart of the Darwin City, then metaphorically speaking the CBD is about to be given a new lease of life.

After years of negotiation Gwelo purchased the site for $21 million plus GST from its previous owner in January 2014.

Gwelo Developments Director Even Lynne said the site, which is located on the corner of Knuckey and Smith streets, has very little wrong with its current infrastructure, electrical and air-conditioning.

“It’s still in good nick, in the short term we will dress it up and lease it to a mix of local businesses,” he said. “We’ve already had a number of inquiries from interested businesses and we should have it reopened within the next six months.”

Even said the company obviously has further plans to redevelop the site but needed to go through the

statutory and planning processes.

“With the current planning zone, we could potentially redevelop it to 30 storeys,” he said. “But we are still planning on what we would like to do in the long term. There are a few things we are considering.”

Even said it would most likely be a mix of retail, commercial, hotel, residential, parking and “maybe even another department store”.

“It will be good for the City – hopefully it will help draw people back to the city centre, which could only be a good thing for everyone,” he said.

Some would say that the current level of construction and development in Darwin and the greater surrounds is not sustainable. Even disagrees. He points to the

58

increase in people from Defence, and oil and gas as contributors towards continued confidence.

“People have been saying that it’s not sustainable since the 1970s and there was about 40,000 people, now we have about 135,000 – and people are still coming,” he said. “As long as people keep coming here, then we will continue to build.”

“There are always going to be ups and downs in the property industry, you just have to ride them out, and I can say I have been through a few of them.”

And Even should know having started up Gwelo Developments almost 40 years ago. His first project was building a house and through his passion and drive he is at the helm of an organisation with an impressive portfolio of residential, commercial and retail developments.

Some of his developments include the new Coolalinga Shopping Centre, Élan Soho Suites, Mantra Pandanas and Cullen Bay Serviced Apartments.

59

For leasing inquiries regarding the old Woolworths complex site please contact Matthew Knight at Knight Frank on 0413 058 020 or Ron Stevens at Gwelo Developments on 8981 0299.

PIVOT POINT 60

Darwin has become a key staging point for businesses looking to exploit economic opportunity in South East Asia, and as big investors move in Lord Mayor Katrina Fong Lim is working hard to balance economic opportunity with the city’s treasured lifestyle.

61

To that end, the Darwin City Centre Masterplan is a labour of love for Katrina. “We searched far and wide for input – this really had to be a vision everyone can get on-board with. We held public workshops, consulted the area’s Traditional Owners, local residents, urban design specialists and lobby groups.”

“Darwin has a very compact centre and a lot of the feedback we got was about making sure it’s a walkable public space that draws people in. We’re looking at parking, bike paths and public transport options. There were some very good suggestions about covered walkways and planting trees to provide shade and shelter,” the Lord Mayor enthused.

“The city centre needs to be a cool, connected and cultured place that facilitates the community - somewhere people enjoy spending time, somewhere businesses can thrive. How can we better connect the CBD and the suburbs? Should we be encouraging more residential development in the city? And how can we balance all the lifestyle factors with the needs of businesses and existing residents?”

“It’s a special place to a lot of people, and we need to recognise that. Darwin is no longer just a remote outpost, it is also now home to a sizeable population.”

Over the course of the last decade, infrastructure has expanded to meet the increased demand. Darwin Airport has increased capacity, with direct links to major Asian hubs including Kuala Lumpur, Singapore and Manilla in addition to an extensive domestic network. A new high-capacity deep-water bulk and container port is operating at East Arm, attached to a heavy industry and logistics precinct which built up around the long awaited railway link to the rest of Australia.

Amidst the economic boom, the city and suburbs of Darwin are thriving with the influx of workers and their families. Along with the development in the city, new suburban housing is springing up in Darwin’s northern suburbs and in the nearby satellite city of Palmerston.

From the newly redeveloped hub of the city, The Mall, where tourists and locals gather amid the shade sails, kiosk cafes and fountains accessing the free Wi-Fi her city has provided, Lord Mayor Katrina Fong Lim is optimistic about her city’s future. “We’ve got this beautiful cosmopolitan city, a thriving cultural scene, amazing outdoor spaces and gorgeous weather. It’s a wonderful place to call home, and the best is yet to come.”

On a small peninsula of land jutting out towards the Arafura Sea, high-rise construction cranes dot the tropical horizon. Apartments, hotels and office buildings soar upwards from formerly vacant lots.

At a street level, the pubs and shops which make up the city centre are being joined by boutique eateries, cocktail bars and high-end retail. Former industrial land along the waterfront is now apartment complexes, restaurants, bars and luxury hotels. Tourists and locals alike frolic, sunbath and relax beneath the palm trees on the beach of a swimming lagoon.

South East across a vast harbour, it’s possible to get a glimpse of one of the engines that has driven Darwin’s rapid change from a small tropical city to a critical pivot point of the global economy. Blaydin Point, once covered in mangroves and scrub is gradually making way for a natural gas refinery. The vast tanks visible through the heat haze are the tip of a $34 billion investment iceberg.

Stretching out from the plant is an 850km network of pipes, drilling rigs and sub-sea infrastructure tapping into the gas wealth of the Timor Sea for the energy hungry Japanese market, and Darwin is at the core of the project. The INPEX development is the latest, and largest, boost to the Darwin economy that has come about through its unique geographic advantage as the closest Australian city to Asia. Jobs and business opportunities are attracting local and interstate interest, and Lord Mayor Katrina Fong Lim is working to hard ensure the iconic city maintains its famous tropical and liveable feel, whilst creating opportunity and choice for its people.

“Living in Darwin is all about finding the right balance. Yes, we have major industry setting up and a lot of development happening, but the people are what makes this place special. I’m very keen to ensure we manage our city’s growth around the way of life we all enjoy.”

To that end, the City of Darwin is tapping into the collective wisdom of its citizens to find out what makes the top end lifestyle so special. Earlier this year a draft Darwin City Centre Masterplan was released, in conjunction with the Federal and Northern Territory Governments, to shape development of Darwin’s CBD. “A city can be a collection of buildings and roads, or it can be an environment that brings people together. Here in Darwin we’re about creating and maintaining a community,” the Lord Mayor said.

Ms Fong Lim said she was lucky to have inherited a very well-run and financially viable Council. “My focus is on establishing a vibrant, active city space which is what our Darwin City Centre Master Plan is expected to achieve,” she said. “I want the community spaces upgraded and utilised, and the vibrancy and safety of our city enhanced. I want our City Centre Master Plan to not be just a coffee table book, we need to bring it to life, for real actions to come out of it.”

Ms Fong Lim said she loves her hometown. “I’ve lived in Darwin nearly my whole life. Most of my family still live here. I love almost everything about it, the weather including the build up, the lifestyle, its cosmopolitan feel, and the markets that are so uniquely Darwin.

This place and the way of life we have here is in my blood and I think that helps me as Lord Mayor.”

Lord Mayor Katrina Fong Lim is a rarity in government, not only a born-and-bred Darwin local but a fourth generation Territorian. Not many current Darwinians can claim that, nor her pedigree. Her dad, Alec, was one of the most iconic and well known Lord Mayors Darwin has enjoyed. Ask any long time local about the Council, and Alec Fong Lim is probably one of the few names people would recall with much fondness and respect.

“I am very aware of the expectation that my name brings to this position,” Ms Fong Lim said. “My father was very well respected and I am committed to continuing his legacy, but also to shaping my own.”

She laughs, “I have to say my mother, Norma, keeps a sharp eye on me to make sure I’m on the right track.”

62

63

THE

NORTHERN TERRITORY

CENTURY H A S

A R R I V E D

THE NORTHERN TERRITORY IS ON THE BRINK OF A NEW ERA OF PROSPERITY.

64

With an abundance of natural resources, a rapidly growing economy and close proximity to Asia, the Northern Territory is in a unique position to generate the biggest period of growth in the Territory’s history.

The Federal Government’s commitment to developing the whole of northern Australia only adds to the possibilities.

Read on for NT Chief Minister Adam Giles’ views on a range of topics relating to developing northern Australia.

ON INFRASTRUCTURE …

The Northern Territory’s strategic position in Australia’s future security needs is an important component for the growth of the Territory

“For northern Australia to reach its full potential it will need significant investment in infrastructure. It is fundamental to realising our shared vision for developing northern Australia, and maximising trade opportunities with Asia’s economic powerhouses.

“The Territory has the room to grow and the capacity to accommodate key infrastructure growth without the constraints of more populated areas of Australia. We urgently need investment in roads, rail, aviation, sea and airport facilities to drive the growth.

“The NT Government has commissioned a Territory-wide planning study to prioritise vital infrastructure development. The study, due to be completed by late 2014, will consider what infrastructure is needed to create resource-based economic development in regional areas. It will lead to a 30-year Territory Government Regional Infrastructure Plan.

“Infrastructure is the key to the Territory’s development. It will spread the wealth into regional and remote areas and create jobs and business opportunities for everyone.”

ON ASIAN ENGAGEMENT AND TRADE …

“Northern Australia is perfectly positioned to become an integral part of the ‘Asian Century’. The Territory is the closest transport and sea port to South-East Asia. We have a deep water port and the capacity to expand with the development of a second port to meet future growth.

“There are many opportunities for foreign investment with the Territory ranked in the top 10 in the world for its attractiveness for minerals, exploration investment, agricultural and energy sectors.

“Trade with Asia is already a critical part of the Territory’s economy. Last financial year, it accounted for more than 70% of total exports worth more than $5 billion. We expect that will continue to grow at levels unprecedented in history.

Two thirds of the world’s middle class is forecast to be living in the Asia Pacific region by 2030. The demand for power, minerals and consumer goods will grow with the population. And the Territory is perfectly positioned to supply enormous quantities of gas, food, and raw materials into the region.

“We know how to do business in Asia and we now have an enormous opportunity to use that knowledge to grow like never before. The Northern Territory is perfectly positioned to become the nation’s key gateway for the future.”

ON ENERGY RESOURCES …

“While the rest of Australia is holding crisis meetings over a gas shortage, we are exporting billions of dollars of LNG to the world.”

“It is estimated the Northern Territory has 240 trillion cubic feet of unconventional gas in six reserves.

To put that in perspective that is enough gas to power Australia for two centuries.

“Renewed interest in onshore exploration will create new opportunities for oil and gas projects and with them will come new business opportunities for service and supply in regional areas. We have land available for project development, a skilled and flexible workforce and a local industry with years of experience.

“Global demand for energy will remain strong this century by the strengthening of strategic partnerships with energy importers such as Japan.

ON TOURISM …

“Tourism is worth $1.6 billion to the economy and supports around 16,000 jobs. New transport infrastructure will unlock emerging tourism opportunities in remote areas. By providing better access to our world famous parks and improving the visitor experience we expect that to grow to $2.2 billion by the end of the decade.

“More than two thirds of that growth will come from Asia. Over 97 million Chinese travelled abroad in 2013, up from 83 million in 2012, and predictions are for growth between 6.4% and 9% each year. China is Australia’s second-biggest source of tourists after New Zealand and has the largest spend per visitor.”

CONTINUED FROM PREVIOUS PAGE

THE

NORTHERN TERRITORY

CENTURY H A S

A R R I V E D

ON SERVICES …

Chief Minister Adam Giles and Prime Minister Tony Abbott have held preliminary talks about the Territory’s key role in the development of northern Australia.

“Supply and service industries already account for around 75% of activity in the Territory economy.

We have a range of businesses that supply specialised goods and services to mining, LNG and construction projects as well as the transport and defence industries.

These skills have global value.

“Our specialised regional knowledge is based around working in harsh environments and that makes our skill base very valuable in Asia. The potential to supply services and training to northern markets is significant.”

ON DEFENCE …

Almost 10% of Australia’s Defence personnel are based in the Territory. Our strategic location is opening up a range of opportunities to expand the already substantial Defence presence. The Australian Defence Force spends almost $1.6 billion in the Territory every year and that has been growing by around 11% a year over the past decade.

“The US Marine presence is growing in the Top End with 1,150 Marines and four heavy lift helicopters due to begin rotation. Their numbers are likely to grow to become a full Marine Air Ground Task Force of 2,500 personnel rotating through by 2017.”

ON EDUCATION …

The NT Government is working with education providers to create an international training hub in the Territory and build a profile in Asia. Other states have been very successful at attracting international students – we can do much better.

“The worldwide demand for education is expected to grow by 7% over the remainder of this decade driven mainly by China and India. The NT Government is working with Vietnam, Indonesia and Timor to boost that growth beyond global forecasts.

“Our world class teaching facilities will be a crucial part of training all Territorians for the economic opportunity that now presents itself for the Territory.”

66

67

DEVELOPING NORTHERN AUSTRALIA

The Chief Minister Adam Giles met with Mr Le Hoang Quan, Chairman of People’s Committee of Ho Chi Minh City in Vietnam recently. Trade with Asia is central to the Territory Government’s Northern Development Plan.

IS A PRIORITY The Nation’s eyes are firmly on northern Australia with the Federal Government committed to developing the entire region.

“Northern Australia’s best days well and truly lie ahead of us,” PRIME MINISTER TONY ABBOTT HAS SAID.

To ensure that is a reality, one of the Federal Government’s priorities is to develop policies to unlock the economic potential of Northern Australia in the decades ahead. It has committed to producing a White Paper on Developing Northern Australia by the end of 2014, which will define the nation’s policies to develop the region by 2030.

In February, the Northern Territory Government lodged its formal submission to the Federal Parliament’s Joint Select Committee on Northern Australia. In the submission, it strongly advocates for the Northern Territory to play a lead role in the development of Northern Australia.

Chief Minister Adam Giles said the Northern Territory is actively positioning itself to take advantage of this commitment.

“The Northern Territory is in an ideal position because of our central location between the booming Asian economies and Australia’s well developed and supported South,” he said.

“Our position alone is a decisive geographical advantage over the rest of the nation when it comes to Asia,” he said.

“However, there is much more to this than just our location. With an

abundance of natural resources, large amounts of undeveloped land and a pro-development attitude, it has become increasingly obvious the Northern Territory is poised to be a key contributor to the nation’s prosperity.”

Mr Giles said the NT Government will work to make sure the Northern Territory leads the national agenda for the region’s development.

“The Northern Territory is perfectly placed to take advantage of its proximity to Asia and the opportunities ahead,” he said. “Now is our time.

We need to think big and plan well to maximise our potential as the linchpin of this nation-building project across the North.”

Mr Giles said as part of his commitment to this he has created the Ministerial portfolio for Northern Australia Development as well as an office, headed by Peter Carew.

“We have a rail link to the rest of the country, a deep water port and land for agricultural development,” he said.

“No other area can beat the Northern Territory’s abundant natural resources, room for growth and existing strong trading links with Asia’s biggest economies.”

Prime Minister Abbott has said there is plenty the Federal Government

69

can do to develop Northern Australia such as cutting red tape to encourage investment and growth.

“Northern Australia has enormous potential for more investment, infrastructure, jobs and services,” he said. “I want to capitalize on Northern Australia’s existing strengths and natural advantages in agriculture, cattle, energy and resources, as well as to seize opportunities in tourism, education and health services.”

Mr Giles said this is an unprecedented opportunity to secure the vital infrastructure needed to drive the Northern Territory forward.

“We’ve made a case for needing new infrastructure and called for the Federal Government to help fund extensions to the rail network and a second port,” he said. “We’ve also called for funding for a national gas grid to connect the Northern Territory to the rest of the country.”

“Developing the North is a truly nation building project that will increase national prosperity and futureproof Australia’s position among the world’s top economies. The time for investment in the north is now.”

“The ‘Northern Australia Century’ is upon us,” he said.

CHINA

IMPACTS ON TERRITORY

ECONOMY

The strategic application of these opportunities were discussed at the Australia China Business Council networking day in Canberra in March. Prime Minister Abbott, Treasurer Hockey and Foreign Minister Bishop provided briefings on the reinvigoration of the Australia China bilateral relationship and the need for a sensible and pragmatic free trade agreement. ACBC NT President Daryl Guppy will travel as part of the Prime Ministers stream of the trade delegation to Beijing and participate in the financial services and investment forums.

Later discussions with the Chinese Minister Counsellor for Economic and Commercial Affairs Huang Rengang identified the Northern Territory, and the north of Australia as unique in their growth and investment profile. ACBC NT President Guppy told the Minister Counsellor that this offers opportunities for higher growth and investment returns because the NT is starting from a lower base and with industries which are not fully mature. Comparatively small improvements in infrastructure, including the completion of the Adelaide to Darwin railway, have a significant multiplier effect on the development of industry and service activity in northern Australia.

Darwin is a long way from China’s National People Congress but decisions made in recent weeks in Beijing have a significant impact on the Northern Territory. The meeting of the Chinese National Peoples Congress ended with a reaffirmation of the 7.4% growth target. This is an economic slow-down by design and reflects careful policy decisions and creates different investment opportunities

He said the situation in the Northern Territory can be compared to the situation in Aberdeen in Scotland with the discovery and development of offshore oil fields. These resource projects delivered unexpected growth to Aberdeen as industries directly associated with the oil field developments clustered around Aberdeen. This in turn spurred the growth of other support and services industries not directly related to the oil fields, but involved in providing services to the oilfields.

These opportunities included growth in infrastructure, in housing, in services, logistics and supply chains. Aberdeen developed into a mature economy. Darwin is now in a similar development position and offers higher investment returns as economic growth accelerates.

The investment environment for Australia has changed as shown by reactions to the reform proposals in the National Peoples Congress.

The first impact of the downgrade in Chinas growth forecast was on the value of the Yuan. The widening of the Yuan trading band to 2% is part of this move towards a market based mechanism for setting exchange rate values. The wider the trading band, the greater the degree to which a currency can move up or down. The secular

70

direction of the trend remains unchanged, but the movement within the trend requires more informed management.

In the NT this adds a higher level of currency risk to Chinese investment if the investment is priced in US or Australian dollars. This puts increased pressure for investment proposals to be written and settled in Yuan. Australia is one of the few countries which are able to facilitate trade settlement in Yuan.

The market nervousness following the National People Congress also exposed a previously unknown, and still largely unproven, link between copper prices and the Chinese shadow banking system. Its believed that Chinas move to crack down on hot money flows will lead to further falls in commodity prices. It’s yet another China crisis scenario that seems to fail two tests of logic.

The first test is posed by previous campaigns by Government to restrict the flow of hot money.

Measures taken in 2013 had a much greater impact on hot money flows than the proposed, but not yet implemented, measures hinted at during the National Peoples Congress meetings. Previous shutdown of hot money flows did not lead to a collapse in commodity prices so its seems unusual that this proposed crackdown should have such a significant and immediate impact.

The second test of logic is copper prices. Its true that prices did fall quite rapidly but copper has been in a three year downtrend since February 2011. The test of support near $3.00 a pound is consistent with this trading pattern. Its not the end of the world, the collapse of copper and the collapse of the Chinese economy. Its simply part of a longer term trend behaviour.

The copper price dropped on speculation that Chinese borrowers who had pledged copper as a security for loans were being forced to unwind

their positions, and were so accelerating the fall in the price of copper.

This market nervousness was reinforced with the collapse of an indebted solar company Chaori Solar Energy Science &Technology corporate bond default. This was the first corporate bond default in 17 years. These types of defaults are a regular part of the US financial landscape but apparently in China the first default in 17 years was touted as a Lehman’s Brothers or Bear Sterns moment presaging the collapse of the Chinese economy.

The more important feature was that the default took place. The Chinese Government did not step in with a rescue but allowed market forces to determine the outcome. This sends a strong message to an estimated 10 other funds which face similar problems. This is a positive development and signals a reduction in the moral hazard environment where companies felt they could do almost anything because Government would bail them out.

In his long press conference following the National Peoples Congress, Chinese Premier Li Keqiang was at pains to note that companies would be allowed to collapse due to market forces.

He clearly established that inefficient industries, such as some small scale steel producers, would not be propped up. China will not become a capitalist economy tomorrow, but Li Keqiang clearly indicated Governments resolve to move towards a more market driven solution.

It’s a new market world, challenging old certainties and shaking up some comfortable financial assumptions about China. It requires careful analysis to identify genuine opportunities for the NT for investments in infrastructure, agriculture and mining.

Daryl Guppy is President of the NT Branch of the Australia China Business Council.

He also provides economic and market analysis for CNBC television, mainland Chinese and Singaporean media.

71

Will Johnson AAPI Director

T 08 89414833 | F 08 89414855 M 0422 896480 | E will.johnson@htw.com.au Building 1C, Suite C105, 19 Kitchener Drive Darwin NT 0800

THE TOP END OF THE NORTHERN TERRITORY IS GOING THROUGH SOME WHAT OF A RESIDENTIAL HOUSING BOOM, CRANES IN THE CBD, TRADIES AS FAR AS THE EYE CAN SEE, AND HEAVY MACHINERY CREATING NEW SUB-DIVISIONS DAILY. THE NUMBER OF RESIDENTIAL BUILDING APPROVALS IN THE TERRITORY HAS INCREASED BY NEARLY 22 PER CENT IN THE YEAR TO JANUARY 2014. IN REAL NUMBERS THIS EQUATED TO NEARLY 2,300 RESIDENTIAL BUILDING APPROVALS IN THE YEAR TO JANUARY 2014. (MEDIA RELEASE FROM DEPUTY CHIEF MINISTER DAVE TOLLNER, MARCH 2014).

So where are these people going? The Darwin CBD has seen massive re-development, so too the outer northern suburbs of Lyons & Muirhead, along with the new Palmerston suburbs of Bellamack, Durack Heights, Johnston, Zuccoli, and don’t forget the surprise packet of 2013/14 – Coolalinga.

The Darwin CBD will see the completion of over 800 new residential apartments in 2014, this new stock will ease the considerable pressure on the rental market and providing short term and long term tenants more viable accommodation options. The future development timeline is also very positive, a number of projects will commence during the 2014 dry season and push to completion early – mid 2015.

The construction of the new outer residential areas has seen a significicant shift in the size what is considered a standard residential allotment, and the size of the end dwelling. The market has engulfed the smaller “courtyard” size allotments which are circa 300sqm. There is a range of sizing options within these new sub-divisions from the 300sqm through to “country living” allotments which are circa 4000sqm. The demand for smaller allotments is a far cry from the 1200sqm – 1300sqm allotments in the preferred inner city suburbs of Larrakeyah, Parap & Fannie Bay and may further encourage breaking up of these allotments with the Planning Commission.

These new suburbs comprise a cross section of the Darwin Demographic, Lyons & Muirhead have been developed in joint venture partnerships with Defence Housing Australia (DHA) having a 50% stake in each, as such DHA has taken approximately 50% of the allotments for the construction of housing to be occupied by defence personnel. Investors have been active within each of the new sub-divisions, so to have owner occupiers looking to build their first/second or third new home. The involvement of DHA has been positive within these locations as it stimulates immediate building activity, giving the suburbs a sense of ‘home’ very quickly. $600,000 is the magic number in many of these new areas, for house and land packages under this figure then the list of Government grants and incentives is quite significant and can be up to $25,000. When combined with the saving made of not paying full stamp duty (purchase of an existing home) it is obvious why many market participants are looking to the option of building a new home. Lyons & Muirhead have hit the market at higher levels than the Palmerston suburbs, this has resulted in higher value dwellings being completed and transacted in these two suburbs. In Q1 2014 there have been 5 settled sales over $1Million in Lyons alone, displaying the continued strength of the completed new dwelling market.

When comparing to our cousins in the southern states the cost of construction is very high in Darwin, this is driven by extra building regulations for cyclone rating, cost and availability of labour and the ever increasing cost of

material. For a new home in any of the afore mentioned suburbs the rate per square metre ranges from $1,600per sqm up to $2,250per sqm. A comparable construction type in Brisbane will be $1,000 - $1,200 per square metre.

When talking in whole numbers, the construction of a new dwelling without land is upwards from $250,000.

The rental market in the wider top end is still performing relatively well, the Vacancy Rate in Darwin (including northern suburbs) as at December 31, 2013, was 3.5% (REINT) having slightly eased .20% for the 12 months, which still places the market at stressed levels. With heavy construction underway in the Darwin area it is likely that tenants will have more options as 2014 progresses. The vacancy rate for Palmerston as at December 31, 2013 was 4.5% (REINT) having eased 2% for the 12 month period.

This has highlighted the amount of new construction that has been added to the market in Palmerston with both attached units and detached dwellings.

Like with any period of strong economic activity there is always the potential to shift, the possible handbrake to the residential construction activity is on the financing side of the equation. Interest Rates and available funds are the big unknowns. Interest rates are at historically low levels, this has enabled purchasers to borrow heavily to meet the large sale prices and use the strong rental gains to offset any interest payments. Given that much of the new construction is in “mortgage belt” locations it is likely that increases in interest rates will have a somewhat of a dampening effect on the market. Accessing funds is also likely to become tougher, with pending changes to privacy and financial history regulations any previous misdemeanours will be known by all banks and lending institutions, these extra hurdles to jump will likely limit the pool of potential purchasers.

So where to for the market? At the time of writing the lag time between purchasing an allotment to title being issued is 6 months, for any market which is fast moving like the Darwin market that is far too long. With a lack of land supply, an increasing labour market and limited housing we consider that the market will continue to perform well in the short to medium term. That means more cranes, more tradies and more heavy machinery moving dirt.

HERRON TODD WHITE DARWIN Ph 08 8941 4833 | E darwin@htw.com.au Building 1C, Suite C105 19 Kitchener Drive, Darwin, 800, NT

ROAD TRANSPORT SERVICES AND AVAILABILITY The transport industry and its functions are embedded in and essential to Northern Territory businesses, the community and the economy.

Significant investment has been made in the development of the Northern Territory’s transport systems, including the expansion of the Port of Darwin, completion of the Alice Springs to Darwin railway line, enhanced public transport services and extensive road infrastructure upgrades.

The national highway network is the backbone of the road network system across the Northern Territory and provides all-year access to Australia’s capital cities. The NT has an open access regime for road trains and a proven innovative high productivity vehicle scheme with no first and last mile access issues, as are prevalent in other capital cities and urban areas around Australia.

Importantly, this open access regime continues directly to the Port of Darwin, which is the closest deep water port in Australia to Asia. This regime delivers maximum efficiency, with minimum regulatory burden on industry, without compromising safety.

The Northern Territory is served by three national bitumen sealed highways: • • •

The Stuart Highway links to South Australia The Barkly Highway links to Queensland The Victoria Highway links the NT into the Kimberley region of Western Australia

In total, the Northern Territory road network is made up of more than 36,000 kilometres of national highways, arterial, secondary and local roads: •

•

•

Many of these roads are subject to flooding during the wet season, which can cause some communities across the NT to be isolated for weeks at a time.

Some roads also have traffic restrictions imposed such as wet season closures, weight limits or access restricted to high clearance four wheel drive vehicles only. These restrictions can apply close to urban areas, as well as to more remote areas. The restrictions are in place to minimise the potential for damage to the roads, and to protect travellers who may find themselves stranded without easy access to assistance.

70% of the road network in the Northern Territory is unsealed, and road freight/transport operators advise that their operating/maintenance costs are up to 30% higher for vehicles operating on unsealed roads.

Investors considering projects that are dependent upon reliable road access are encouraged to contact the NT Department of Transport for advice, especially if there may be a significant change in traffic volumes, and particularly if new roads and infrastructure such as bridges, drainage and intersections may be required.

Visit www.transport.nt.gov.au Additional information on the road network can be obtained from the NT Department of Transport.

Visit www.transport.nt.gov.au/ntroads Additional information on road restrictions can be obtained from the NT Road report website.

Visit www.ntlis.nt.gov.au/roadreport

Croker Island Cape Van Diemen

Shark Bay

ARAFURA

SEA

Cape Don

Wessel Is

Pularampi Murganella

BATHURST ISLAND

Cobourg Marine Park

MELVILLE ISLAND

Elcho Is

Nguiu

Maningrida

Van Dieme Gulf

Howard Is

GURIG

Beagle Gulf

Nhulunbuy Ramingining

SEA

TIMOR

DARWIN GUN POINT ROAD

Gapuwiyak

Humpty Doo

COX PENINSULA ROAD

KAKADU RO AD

DARWIN RIVER ROAD

AR

AY

ARNHE

JIM

Adelaide River

HI GH

J IM

LITCHFIELD ROAD

RD

S TU

LITCHFIELD PARK

Isle Woodah

NATIONAL

A

DORAT ROAD DALY RIVER ROAD

M

W AY

HIG

EM Batchelor

Jabiru

HW

NH

Fog Bay

R

L

T

A

U AD K

TR

PARK

KA

Daly River

N

Bulman

E C

Pine Creek Oolloo

/

Joseph Bonaparte Gulf Wadeye

Alyangula

Umbakumba

Angurugu

GROOTE EYLANDT

Mainoru Edith Falls NITMILUK Katherine NATIONAL Gorge PARK

Peppimenarti

Numbulwar

Barunga

KATHERINE

GULF

Beswick Roper Bar

Cutta Cutta Caves

Ngukurr

ELSEY NATIONAL PARK

r

North Is

AY River

H

Dry

Ro ad

PEN

Borroloola

HW

Ben

TAR

IA

Y

er

d

Ry an s

DU NC AN RO AD

Sir Edward Pellew Group

Rd

CAR

Daly Waters

NATIONAL

CARPENTARIA

Nutwood Downs

HWY

AN

GREGORY

an

R iv e

E

BU C

Bullita

IA

th

Bing Bong

HAN

Lake Argyle

TOR

OF Na

PER

IN

GREGORY NAT.PARK

VIC

Larrimah

RO

Y H WA

IG

H

W

HIG

NT

KEEP RIVER NAT.PARK Kununurra

Port Roper

Y

H IG Mataranka

BU

Timber Creek

A HW

Cr

tob

Vi

Oc

ct or ia

HI GH WAY

PARK

H IG H

Dunmarra

WAY

Cape Crawford

Mistake Creek Limbunya

Newcastle Waters

Daguragu

H IG

HWAY Kalkaringi

Elliott

Kirkimbie

Ba

E

Lake Woods

IN

rk ly

NT

ad

TABLELANDS

R iv

er

BUC HAN AN

BU

WN

e rt

C a lv

Route

Sto ck

BU TO RKT O

Ro

Nicholson

Renner Springs

ST

Lajamanu

Birrindudu

UA

Ra nk

Suplejack

en

Mittebah

HIGHWAY

RT Attack Creek

BARKLY

Ro a d

Three Ways

HIGHWAY

TENNANT CREEK Tanami

TO TOWNSVILLE AND BRISBANE

Barkly Homestead Soudan

HIG HW AY Camooweal

Wonarah Bore

TA

Avon Downs

NA

Bonney Well

M

Epenarra

I DEVILS MARBLES

DEVENPORT/ MURCHISON NATIONAL PARK

Wauchope

Ali Curung

Lake Nash

RO HI

G

AD

HW AY

Willowra

Renahans Bore

Barrow Creek Central Mt Stuart

Sandov

er

Ammaroo

er

Riv

M t De ni so n

Derry Downs

Mt Skinner

Ti Tree

Tobermorey

Ro

Yuendomu

Vaughan Springs Lake

ad

Boulia

Mackay

Lucy Creek

R

AY

VE DO

W IGH

Delny

N

(Salt)

H

SA

Alleron

Newhaven

Gurner

Jervois Ple y nt

PENTY

Harts Range Papunya

r Rive

Arltunga Glen Helen

T r o p i c o f C a p ri c o r n

WEST MACDONNELL NATIONAL PARK

Y HW

le

Lake Neal

Palm

er

WATARRKA NATIONAL PARK Luritja

(Salt)

G

Desert

Santa Teresa Simpson

River

Allambi

Riv

(Salt)

FINKE GORGE NAT.PARK

HI

Areyonga Kings Canyon

Lake Hopkins

Simpson

er

Hermansburg

Riv

Finke

rive a D

Larapint

RUBY GAP Ha

ALICE SPRINGS Todd HW AY

Tropic of Capricorn

T r o p i c o f C a p ri c o r n

Desert

River

st Giles rne

Rd

LEGEND

Maryvale

Lake Amadeus (Salt)

Road

Kaltukatjara

Tjukaruru

Road

Yulara Mt Olga

LA SS ET ER

H IG H W

Erldunda

AY

NATIONAL HIGHWAY Chambers Pillar

ARTERIAL ROADS SECONDARY ROADS Impadna Andado

Ayers Rock

NATIONAL/STATE PARKS AND RESERVES

Finke

ULURU KATA TJUTA NATIONAL PARK

ABORIGINAL LAND GRANTED

Kulgera AK April 1998

TO ADELAIDE

TO ON ERT LAV

STUART

E

AN INTERNATIONAL

EDUCATION I N

76

D A R W I N

THE DEMAND FOR INTERNATIONAL STANDARD EDUCATIONAL PROGRAMS HAS SEEN A RAPID GROWTH IN INTERNATIONAL SCHOOLS IN VARIOUS PARTS OF THE WORLD, INCLUDING ASIA. The Essington School Darwin, a Darwin school with an international view of education, has been progressively expanding its curriculum and programs and using international curricula to enhance its delivery of the Australian curriculum. This has produced outstanding results on national literacy and numeracy assessments, and also on international assessments.

The School has been an international school and member of the Council of International Schools (CIS) for sixteen years. In 2013 the School was accredited as a Cambridge International School by Cambridge University’s Cambridge Institute to delivery their courses and to be an examination centre for Cambridge Institute programs.

77

CONTINUED FROM PREVIOUS PAGE The growth of Darwin and international projects in the Northern Territory has seen an increasing number of families from overseas relocate to Darwin. Many of these are coming from international schools and are enrolling at The Essington School Darwin. The challenges for international families relocating from various countries, cultures and school curricula can provide many challenges for families. The support of the school and Darwin community has been important in assisting international students to settle in to Darwin, particularly where English may not be the students’ first language. A group of Essington mothers and staff, and new mothers from overseas have met regularly for morning tea to assist new families settling in to Darwin. This has allowed mothers to develop friendship and support groups and share information to assist families.

Families coming to Darwin from large, international cities have enjoyed the lifestyle of Darwin and the opportunities for outside play for their children. The children have enjoyed the city’s water recreation facilities and swimming pools and respite these give from our summer. They have also enjoyed the open play spaces and suburban wildlife found around Darwin that is not a normal part of life in a large city.

Along with current families, the new international families have appreciated the convenience of the on site

78

two family medical centres providing easily accessed medical services for families.

The demand for an international standard education has seen the development of new international programs and curricula initiatives at the school. In 2013 after school clubs were trialled after requests from incoming families for these programs found in international schools. In 2014 The Essington School Darwin offers, in addition to its after school care program, 18 diverse clubs based on the student’s interest. The number of clubs is expected to grow during the year. clubs include sporting clubs, language clubs, and art, dance, drama, chess, and media clubs. These clubs have been welcomed by existing families and new international families and provide a diverse range of experiences for students.

For further information about the School and its international programs, please phone the School on 8985 0100.

Enrolments are limited and early enrolment is encouraged.

79

Margaret Somerville was a House Parent on Croker Island Mission when Darwin was bombed in World War II. She famously helped evacuate 95 indigenous children to safety in 1942. It was a 5,000 kilometre, six week journey from the island to a farm just south of Sydney. After the war Margaret returned to Croker Island with the children and continued as a house mother and caregiver until 1965.

Chief Executive Officer Vicki O’Halloran said that Margaret, who turned a sprightly 101 years old last September, is an inspiration.

“Her story is inspirational and amazing,” she said. “The book ‘They Crossed a Continent’ tells the story of her epic journey, and can be purchased from Somerville Community Services offices.”

“Naming the organisation after her carries responsibility, and I believe Somerville’s Mission ‘To impact positively on the dignity and quality of life of people who are affected by social and economic disadvantage’ reflects her

As a tribute to Margaret, her legacy lives on with Somerville Community Services, a community welfare organisation based in the Northern Territory that is named in her honour. The not-for-profit organisation has offices in Darwin, Palmerston and Katherine and helps thousands of Territorians each year.

Somerville Community Services provides support, counselling, accommodation and a range of other services to people from all walks of life, with the majority facing hardship, and or are socially and economically disadvantaged.

80

programs, tax help and ‘No Interest Loans Scheme’ for eligible families.”

Ms O’Halloran said the organisation is very concerned about the lack of affordable housing for Territorians.

“With thousands of people on public housing lists and significant increases in living costs, this is becoming more of an issue, some low income families cannot even afford to stay at a caravan park,” she said. “We will continue with our advocacy work to help find ways to address this concern. It is a challenge, but we do have emergency relief programs to assist with rent assistance and bond for some of our clients.”

Somerville Community Services receives support from the NT Government, Federal Government and private beneficiaries. Without a doubt the service and its staff will continue to embody the goodness of its namesake and help Territorians in need for many years to come.

spirit. Where you give someone a fair go and work to help those in need.”

“We work hard to improve the status and wellbeing of the disadvantaged, marginalised or vulnerable through our range of services, activities and projects.”

Ms O’Halloran said she was proud of the good work the service provides. “Last year we helped and supported over 5,600 Territorians, assisted more than 1,300 homeless and managed 12 supported accommodation houses, which cares for 49 people with a disability,” she said.

Somerville Community Services has three main branches to its structure - Disability Services, Family Services and Financial Services. “There has been an increase in demand for our Financial Services with the cost of living, particularly rent and utilities, putting extra pressure on many low income families,” Ms O’Halloran said. “As part of our services, we offer financial counselling, a helpline, money management programs, financial literacy

81

THE NT GOVERNMENT WILL HOLD AN INQUIRY INTO HYDRAULIC FRACTURING AND ITS POTENTIAL ENVIRONMENTAL EFFECTS OVER THE COMING MONTHS. THE INQUIRY WILL ASSESS ENVIRONMENTAL RISKS AND ACTUAL ENVIRONMENTAL IMPACTS OF ‘FRACKING’.

H

ydraulic fracturing, or ‘fracking’, is a technique designed to recover gas and oil from shale rock. It is the process of drilling down into the earth before a high-pressure water mixture is directed at the rock to release the gas inside. Water, sand and chemicals are injected into the rock at high pressure which allows the gas to flow out to the head of the well.

The NT Government’s inquiry aims to separate the actual environment risks from the perceived risks and look into claims that have caused public concern. Minister for Mines and Energy Willem Westra Van Holthe said the inquiry is designed to provide certainty for the industry to proceed, but under a leading practice regulatory environment.

The Australian Petroleum Production and Exploration Association is confident the inquiry will reinforce the findings of previous national and international investigations which have proven that hydraulic fracturing poses minimal environmental risk.

APPEA’s Chief Operating Officer Western Region Stedman Ellis believes the inquiry is unnecessary and risked delaying the exploration activity needed to encourage shale gas investment in the Territory.

“Properly regulated, hydraulic fracturing is a safe, well-established and well-understood industry practice,” he said. “The process has been used in Australia since the 1950s without incident. Worldwide, more than 2.5 million wells have been hydraulically fractured and nowhere has the process been identified as the cause of groundwater contamination.”

“The outcomes of the numerous inquiries, reviews and studies that have already been held in Australia and overseas should be more than enough to reassure Territorians that hydraulic fracturing poses minimal risk to the environment.”

“For example, the highly-respected Australian Council of Learned Academies (ACOLA) last year released a 252-page study, peer-reviewed by the CSIRO, which is a comprehensive scientific statement on shale gas operations in Australia.”

“The ACOLA study, which had been commissioned by the Commonwealth Government, found that hydraulic fracturing, if robustly regulated and adequately monitored, presents a low risk of environmental harm.”

But the gas industry’s claims around fracking should be examined, said Stuart Blanch, from the Environment Centre NT. He said that fracking should be halted until the Inquiry is completed and its recommendations implemented.

Minister Westra Van Holthe has said that “there will be no moratorium on hydraulic fracturing in the Northern Territory”.

“I will not damage the industry nor cause uncertainty within the industry by temporarily banning hydraulic fracturing nor will it affect current approvals processes in the oil and gas sector. I want to be very clear – there will be no moratorium.”

by Danielle Lee-Ryder

82

MAKING SMALL BUSINESS m o re

p roduct ive

and

fair e r

GR E G B IC KN E L L CEO, NT Chamber of Commerce and Industry

The Federal Government will soon review legislation on workplace conditions and relations to make it fairer on small businesses as well as employees, largely thanks to the efforts of business chambers across the country.

Territory businesses are welcoming a wideranging Productivity Commission review into the Fair Work Act, with the government currently working on the commission’s terms of reference. The Chamber of Commerce NT, which is the Territory’s peak business representative, will prepare a submission once they receive the terms. It is believed the submission will be primarily advocating for more realistic penalty rates and the ability to negotiate workplace conditions for its 1,300 members.

The Chamber’s Chief Executive Officer, Greg Bicknell, said the review is expected to address the existing flaws that is harming productivity and growth. “The review will be the biggest thing that has happened to help

take away the angst of employing staff,” he said. “It is largely the result of a nationwide campaign by business chambers, ‘Too big to ignore’, in the lead up to the last Federal Election, and it is pleasing that it’s nearing completion.”

Greg pointed to penalty rates as an issue for many small businesses.

“Penalty rates are a major concern, particularly for hospitality and retail. Many small business owners don’t want to open their doors on the weekend or evenings as with penalty rates it is often not worth their while,” he said.

“In those sectors the businesses are expected to be open outside business hours – as that is often their peak period for customers – but with penalty rates it can put a strain on small businesses or the owners are working the longer hours themselves.”

Greg gave the example of when a major cruise ship berths in Darwin over a weekend. “There is an expectation that the shops in the City should be open – but in reality except for a few high end stores, souvenir places and possibly coffee shops it isn’t worth your average small business owner’s time,” he said.

“We need to make penalty rates realistic – to compensate the

83

employee – but also to not make businesses unviable. It just doesn’t make sense that a number of businesses can’t, or don’t, open their doors on weekends, evenings or public holidays. Or that small business owners and their families need to cover these times, often for no pay. Something needs to be done.”

Greg said this issue is obviously not one that simply faces Territory businesses, but rather one that affects the whole country. “It is important the review focuses on conditions for Australia’s two million small businesses, their flexibility to bargain with employees and the often damaging effects of penalty rates,” he said.

Other changes that may be considered by the government include proposals to prevent employees accruing or taking leave while receiving workers’ compensation and removing ambiguity about the application of annual leave loading on termination.

“At the end of the day if we make the workplace fairer for all and more productive, businesses will be more productive, and as a result our country will be more productive,” Greg said. “We will then all be winners.”

MAKING

Sean Mahoney Chairman of The International Business Council

P

ush for a tax-free haven as a way to develop the Northern Territory is gaining momentum, and calls to loosen up laws to attract skilled migrants is on the agenda.

The Northern Territory is one of the few regions in Australia that enjoys very low unemployment rates and a strong economy. However, due to high cost of living and its remoteness there is a skill shortage and it’s difficult to attract and retain workers. There is a push to scrap taxes and vary immigration laws to develop northern Australia and make it a more attractive place to live and work.

The International Business Council is supporting the NT Government’s push for a special migration agreement with the Federal Government as a way to help address labour shortages in the Territory.

“Australia’s migration laws are tough – there are so many impediments to sourcing and retaining staff from overseas,” Chairman of the International Business Council, Sean Mahoney, said. “We need genuine policy change to attract skilled migrants to the Northern Territory. We’ve had limited success attracting people from interstate due to salaries being only slightly higher and these salaries consumed with the higher cost of living in the Top End. If there were practical concessions embedded into the immigration laws then we would be able to attract more skilled migrants.”

Sean said the migration agreement should allow people from a wider range of occupations. “It would also be good if we could include semi-skilled occupations and lower English requirements to help fill some roles that others may not be interested in.”

Wider concessions for northern Australia as an incentive is

another hot topic as the nation focuses on ways to further develop the region.

“The Federal Government should consider abolishing taxes in the Northern Territory while the region develops,” Sean said in agreement with Gina Rinehart’s ‘think tank’ Australians for Northern Development and Economic Vision’s proposal.

“They have the right idea,” he said. “Let’s scrap the taxes for the Northern Territory. No income tax, no payroll tax, no company tax, and no land tax – that will attract both businesses and workers to the area.”

Sean agreed it was unlikely the Federal Government would agree to the proposal. “But realistically if income tax in the Northern Territory was completely abolished for a certain period of time, it would have a minimal effect on the Federal budget and create a significant spin-off in terms of new jobs and enterprises created in the Northern Territory,” he said.

“We could look at no taxation being paid by people living in the north, or perhaps by companies that are investing and continue to invest in the north for a certain period of time. That would lead to a significant long term increase in revenues for government, but also more jobs and development of the region.”

Sean said the current incentive – the zone tax rebate is outdated and “meaningless”.

“The figure has not changed in 20 years, it’s a paltry sum and in reality would not in itself lure people to move up north,” he said. “It is time for bigger incentives. If we abolished taxes for a period of time – it would make the Northern Territory a much more attractive place to work and live and definitely go towards its development.”

84

Stuart Kenny

Chairman of the NT Manufacturers Council

I

have spent time and money to help train them up, and then they often have to spend extra time and money filling the gap or replacing them.”

t is important for the future of many businesses to attract and retain talented young apprentices. They are the future face of many trades and industries. Apprenticeships are a common way for many young people to learn the ropes and get their qualifications in areas such as manufacturing, building and construction and a number of other ‘blue collar’ trades.

Stuart said the Council would like to find ways to assist employers, especially small business owners, to identify the right person from the start so their investment pays off with the young worker staying on and being a productive employee.

However, many employers are finding it tough to hold on to good apprentices with an increasing number dropping out. As a way to examine this issue and support employers, the Manufacturer’s Council with the support of the NT Government has recently commissioned a study on ‘Recruitment and retention of apprentices in the NT’.

“As an outcome of this study, the Council would like to provide specific resources and assistance to employers on the employment and retention of apprentices,” he said. “We hope to develop the ‘Employer-focused step-by-step guide’ to employing and retaining apprentices and hold a series of webinars. We want to equip employers with the right tools to select people that will last the distance. It will be rolled out across the Territory and hopefully be picked up interstate.

“Apprentices are the backbone to many businesses and the future of 100s of trades,” Manufacturer’s Council Chair Stuart Kenny said.

“We need them, particularly in times like now where there are skill shortages.”

Stuart said the Australian Chamber of Commerce and Industry had also conducted research examining non-completions from an employer perspective. “It set about principles to be implemented in the workplace and highlighted that the attitude of employers can have a positive impact on completion rates,” he said. “We will draw upon this but do more local analysis.”

“There is a growing trend of apprentices not completing their apprenticeship and this is a major concern. We need to ascertain why this is the case and find ways to better match apprentices and employers and ways to retain them.”

Stuart said the study is examining the cause, rather than the effect.

“Are we simply hiring the wrong people at the start? Or are we not giving them enough support or attention?” Stuart asked.

“Apprentices dropping out costs money to business owners. They

Skilled labour is crucial to business success in the Northern Territory and will become even more challenging over the coming years with the continued development associated with major projects.

85

TRAVELLING AROUND the

86

DARWIN IS A LIVELY HARBOUR CITY WELL-KNOWN AS AUSTRALIA’S GATEWAY TO WORLD-CLASS NATURE AND CULTURAL ACTIVITIES AND EXPERIENCES. WITH A POPULATION IN EXCESS OF 100,000, IT IS A DESTINATION RENOWNED FOR ITS TROPICAL CLIMATE AND COLOURFUL CHARACTERS. While the seasons of the Top End are generally referred to as the ‘wet’ and the ‘dry’, the traditional Aboriginal people of the area, the Larrakia people, have up to six traditional seasons in Darwin. Their seasons correspond to which bush foods are available at that time.

Gudjewg in January and February makes up the bulk of the Top End’s tropical summer, considered by many as the most beautiful time of year. As the heavy rains begin to ease during Banggerreng, across March and April, rivers subside and the transition from wet to dry begins. Yegge arrives in May with relatively cool weather bringing crisp nights and misty mornings.

Wurrgeng from mid June to mid August is ‘cold weather’ time with daytime temperatures of around 30° Celsius. Birds in their millions converge on waterholes and rivers during Gurrung from August to October as the reduction in rainfall forces waterholes to contract, and from October to

87

December, Gunumeleng’s dark threatening clouds roll across the sky, but rarely deliver rain. This is the season of spectacular electrical storms.

The peak visitor time is during the dry season, from May to October, when many festivals and events are held. Darwin is no hotter or more humid than Asian destinations such as Bali and Singapore, with yearround temperatures consistently around 32° Celsius, ensuring a fabulous outdoor lifestyle.

There is plenty to do and see around town or it’s easy to simply relax, recharge the batteries and enjoy the holiday atmosphere. There is a huge focus on outdoor activities – eating, drinking, shopping, movie-going, sailing and visiting the markets. You can eat laksa on the beach at the sunset markets, catch a band at one of many live music venues, cruise the harbour at sunset or relax in a deckchair watching a movie on the big screen under a canopy of stars.

With its diverse mixture of more than 60 nationalities Darwin offers yearround dining to suit all moods and budgets. Choose from fine dining at East Point, one of many eateries on the Cullen Bay boardwalk, lively Mitchell Street, Darwin Waterfront, the family-friendly Darwin Sailing Club and Darwin Trailer Boat Club at Fannie Bay or fish and chips on Stokes Hill Wharf... the choice is yours.

88

ARNHEM LAND IS CULTURALLY STRONG, REMOTE, PRISTINE, EASY-TO-GET-TO AND HAS SOME OF THE BEST ADVENTURE FISHING IN THE WORLD! YOLNGU PEOPLE SOLELY OWN ARNHEM LAND. YOLNGU HAVE LIVED IN THE REGION FOR AT LEAST 60,000 YEARS WITH RECOGNISED LAND AND MARINE ESTATES. CLANS LIVE THROUGHOUT ARNHEM LAND HUNTING FISH, BUSH ANIMALS AND SEASONAL BUSH FOODS. TODAY, YOLNGU RETAIN THEIR CULTURAL AND SPIRITUAL LINKS TO THE AREA. East Arnhem Land is one of the last wilderness areas on earth, yet all services can be found in the town of Nhulunbuy, located on the Gove Peninsula approximately 750 kilometres by road from Katherine and home to about 4,000 people. Alcan Gove built the town on a special purpose lease in 1971 to service its bauxite mine, despite concern from the Yolngu. However, the town is now an intricate part of the region, making it an ideal base from which to explore. Nhulunbuy has a lodge and motels in town. The Gove Airport is about 15 kilometres from town. Camping is possible at the recreation areas.

The Gove Peninsula is scenic with long white sandy beaches, azure waters and green vegetation. This is where the Gulf of Carpentaria meets the Arafura Sea and the temperature ranges between 28째 and 30째with plenty of cool breezes.

A permit must be obtained before visiting through the Dhimurru Land Management Aboriginal Corporation.

89

WHILE ITS STAR ATTRACTION IS UNDOUBTEDLY THE FAMOUS NITMILUK (KATHERINE) GORGE, KATHERINE AND ITS SURROUNDS INCLUDE GREAT FISHING, HIDDEN NATURAL WONDERS AND A RICH INDIGENOUS AND PIONEERING HISTORY. The region stretches from the Gulf of Carpentaria to the West Australia border. Around 300 kilometres south of Darwin, Katherine is set on the banks of the Katherine River.

Katherine was named by explorer John McDouall Stuart in the late 1800s after the daughter of one of his expedition sponsors, and the gorge was renamed ‘Nitmiluk’ – meaning ‘cicada place’ – in 1989 when traditional owners, the Jawoyn Aboriginal people, gained title to the land, which is now Nitmiluk National Park.

The Katherine River flows through 13 separate gorges that carve their way through the Arnhem Land plateau. You can canoe, cruise and swim between sheer cliffs to the sandy freshwater beaches of the main gorges, and view ancient Aboriginal rock paintings high on the rock faces.

90

Waterfalls and rock pools are found along more than 100 kilometres of walking tracks, beginning at the park’s visitor centre.

Katherine offers a wide range of accommodation, facilities and attractions, including museums, art galleries, character-filled pubs and historic sites. It is also home to the Tindal RAAF Base. Although the airfield was constructed in 1942, it is the Air Force’s youngest operational base and one of Australia’s most important Defence installations. Other attractions within easy reach of the town include the Cutta Cutta Caves Nature Park, the Katherine Hot Springs and Leliyn (Edith Falls).

Words supplied by Tourism Top End – for more information please visit www.tourismtopend.com.au to book online or call 1 300 138 886 or email info@tourismtopend.com.au Photos courtesy of Tourism NT

91

NT BUSINESS EVENTS AM BAS S A D O R S

MAKING A DIFFERENCE

BY ANNA STEWART

The Business Events sector of tourism generates more than $89 million in expenditure for the Northern Territory economy each year.

The term ‘Business Events’ covers conferences, meetings, seminars, incentives or product launches which, in addition to attracting visitors, can also assist to draw investment and expertise to the host destination. The Northern Territory Convention Bureau (NTCB), a business unit of Tourism NT, undertakes a wide range of marketing activities to promote the Northern Territory as a Business Events destination.

A new initiative to assist with promotion is the NT Business Events Ambassador Program, which was launched in Darwin in September last year. The program is a Tourism NT initiative undertaken in partnership with the Darwin and Alice Springs Convention Centres. It brings together 15 of Australia’s leading business and industry professionals, with NT Chief Minister Adam Giles as the founding Patron, and has the principal aim of attracting more Business Events to the Northern Territory.

92

AMBASSADORS V I SI T C E NTR A L A U S TRALIA The NT Business Events Ambassadors group recently held their second quarterly meeting in Alice Springs. The key purpose was to discuss how the Ambassadors can strategically make the most of their invaluable contact networks and knowledge to assist with the targetted attraction of Business Events. The meeting programme was designed to also enhance the Ambassadors’ awareness of the Alice Springs region, not only in relation to its Business Events offering but also from a broader business and industry perspective. Presentations at the meeting were delivered by business leaders and off-site tours were also arranged to enable Ambassadors to visit a number of innovative Alice Springs projects.

93

Alice insights O n e o f t h e p re s e nt e rs wa s N T B us i n e s s E vent s A mb assad or, Lynd on Frear son, w ho i s G e n e r a l M a n a g e r o f C AT Pro j e c t s ba sed in A lice S p r ings. C AT off er s engineer ing s e r v i c e s a n d s o l u t i o ns wh i c h a re de s i gned t o enhance t he sust ainab ilit y of rem ot e a n d u r ba n c o mmun i t i e s a c ro s s Au s t ra l ia and t he A sia P acif ic. Lynd on t ook a lead ro le t o h i g h l i g h t j us t h o w B us i n e s s Eve nt s can b e p ar t of an or ganisat ion’s b usiness m o de l. H e in t ro du c e d t he Amba s s a do r s t o som e of t he m ore innov at ive p roject s b e in g u n de r t ak e n i n Al i c e Spri ng s , i nc lud ing t he D eser t K now led ge S olar C ent re a n d t h e U t e r ne Po we r So l a r St a t i o n.

...it’s about a lot more than just getting an EDGE

Lyndon explained why he was so keen to become a founding member of the Ambassador group. “The NT Business Events Ambassador Program provides a fantastic opportunity for the NT to gain advantage over its competitors in the fiercely contested Business Events marketplace”, he said. “However, it’s about a lot more than just getting an edge. Business Events not only bring visitors to the Territory but also raise the destination’s profile to attract investment and the interest of global business and industry leaders. No organisation knows that better than CAT Projects.

A conference held in the NT enabled us to access some highly valued contacts and subsequently obtain investment for one of our renewable energy projects. I’ll be supporting the NT as much as I possibly can through the Ambassadors Program and am sure that this powerful group can really make a difference.”

The NT Government Department of Primary Industries also arranged a visit to the Arid Zone Regional Institute, where Ambassadors learned about the ground breaking research being undertaken in areas such as pastoral management and date cultivation.

94

ALICE SPRINGS C O NVE NTION CENT RE SH OWS OF F C APABIL I TY

Ambassador Program stakeholder Mr Ian Solomon, who is General Manager of the Alice Springs Convention Centre (ASPCC), was delighted to host the Ambassador group in his home town and also showcase the ASPCC’s capabilities.

The Ambassador group met at the Convention Centre and stayed overnight at its sister property, Lasseters. A cocktail function at the recently-opened ‘Tali’ restaurant at Lasseters provided Ambassadors with an opportunity for networking with local industry and business representatives. It was followed by a dinner spectacularly set up on the stage of the Araluen Arts Centre Theatre. A special moment occurred midway through the evening when

the theatre curtains were opened to “reveal” a performance by children’s drumming and percussion group, Drum Atweme. This not-forprofit group is a Corporate Social Responsibility (CSR) partner of the ASPCC, as well as the Northern Territory Convention Bureau. Ian Solomon advises that the ASPCC showcases the talents of Drum Atweme at nearly 75% of the conferences held at the centre.

Drum Atweme is made up of young people from the Town Camps in Alice Springs and provides them with a positive and popular group activity.

The ASPCC provided the VIP offsite catering at the Araluen Arts Centre dinner, for a breakfast held

95

at the Alice Springs Desert Park and at the Desert Knowledge Precinct, where a unique al fresco morning tea was served in the shade of the huge solar arrays.

Fifteen present more than 50 potential opportunities The 15 Ambassadors are collectively involved with more than 50 different associations and corporate boards.

Their invaluable connections have already led to twenty new business leads being sourced for further development and potential conversion by the NT Business Events industry. With such a powerful team effort, there is no doubt that this figure will continue to grow.

Growth on the

Horizon

L

arge scale development is rife within the Northern Territory of late, and with big name projects such as Ichthys, Darwin Corporate Park and the Waterfront precinct, many other projects within the region have undoubtedly become overshadowed. But with Central Point - a $15 million development in the heart of Katherine - one could be forgiven for not realising one of the largest residential developments taking place outside of Darwin, and indeed the largest in the small town’s history.

Katherine, being the central hub of resource settlements, tourist attractions and the nearby Tindal airbase, has always had a steady increase in

permanent residencies the number of which has doubled to over 10,000 since 2006 . Alongside the construction of Central Point, Katherine Mayor Fay Miller is still seeking further residential development for over 500 additional would-be residents. Ivan Horvat, founder of project development company Northern Reaches, had due foresight of the need for major residential development in Katherine and thus the idea for the 22 apartment, two office space complex was conceived.

“As the township grows, the stock isn’t keeping up with demand and there isn’t a huge amount of available stock in Katherine,’’ Northern Territory Real Estate Institute’s CEO, Quentin

Kilian, states. ‘‘But from investors’ perspective, Katherine offers exceptional rental yields of about 6.5 to 7% and has for some time.’’

Also in attendance of the mid-March launch were Minister for Mines and Energy Willem Westra Van Holthe and Chief Minister Adam Giles. Chief Minister Giles had the honour of participating in the erection phase of the project, which largely consists of the placement and setting of the precast concrete panels and beams, similar to those currently being used for construction within Darwin Corporate Park.

Due to the efficiency and ease of precast construction, completion of Central Point is expected in August this year.

96

WO R D S B Y RU E B E N H UM PH R IS

“As the township grows, the stock isn’t keeping up with demand and there isn’t a huge amount of available stock in Katherine,’’ N O RT H E R N T E R R I TO RY R E A L E STAT E I N ST I T U T E ’ S C E O, QU E N T I N K I L I A N, STAT E S.

Undoubtedly one of the better aspects of Northern Reach’s investment in the Katherine area is the utilisation of Territory-based architects Burling Brown, working cooperatively with Kuzman Bros Contracting NT and Versatile Precast Industries, whom are the primary builders for the project as well as the producers of precast materials. The venture will also include utilisation of local sub-contracting, having no less than 30 people employed on the site at any given time, which will also encompass an indigenous work skills program. Lee Kuzmanovic, Development Manager at Versatile Precast Industries, explains the importance of local contracting within the project.

“Local sub-contractors enable construction costs to be contained rather than flying in skills, and local people ensure there are appropriate levels of service delivery because they have access to their own resources. Repairs and maintenance also means that local sub-contractors will be able to service the building, again eliminating the need to ‘import’ skills”.

No doubt the construction of Central Point will help change many perspectives on the standards of growth in outer Territory areas and is sure to attract many more investments in the future, not least by Northern Reaches. Upon the success of Central Point, planning for another larger-scale development in Katherine is already underway for Northern Reaches. As Chief Minister Giles remarks, “In Katherine with the development of Central Point – 22 apartments and a couple of offices in First Street is an outstanding success in demonstrating the confidence in the market and a changing dynamic for growth”.

97

CR E AT I NG A

RENEWABLE FUTURE

CONFRONTING the reality of climate change warrants exploring creative, big picture ideas which can wean us off our addiction to fossil fuels and shift society away from the current course towards dangerous climate change to a healthier, more sustainable and economically viable future. The solution may be on our doorstep.

BY ROB LAW AND STUART BLANCH, ENVIRONMENT CENTRE NT

This month saw the release of the 2014 State of the Climate Report, which confirmed once again that rapid climate change is occurring across Australia, right now. In fact, Australia’s climate has warmed by 0.9°C since 1910. Across the globe, mean sea level has risen by 22.5cm from 1880 to 2012.

Scientists tell us that the rate of climate change is placing the Territory’s iconic wetlands, wildlife, lifestyle, coastal communities and economy under threat, as heatwaves become more frequent and intense, the rising sea level floods our coastline and freshwater wetlands, central Australia experiences more extreme fire weather and the costs of climate change adaptation become apparent.

If human ingenuity and technology got us into this mess, then we can get us out of it.

There are clean fuel sources available right now, including solar, wind, geothermal and tidal. The problem is that renewable energy needs to be accessed, converted and supplied to the electricity grid on a broad scale if we are to seriously wean ourselves off our addiction to gas and diesel fuels.

We often forget, but just across the ditch from Darwin, lies East Timor, Papua New Guinea and Indonesia, with a population of 238 million people. Connecting electricity grids from northern Australia to South East Asia could help to secure energy supplies for the region, reduce energy conflicts, address climate change by decreasing carbon emissions, maximise the regions’ natural advantage of renewable resources, build regional partnerships and go some way to reducing energy poverty in the region.

98

This sounds like a big idea, difficult to grasp, but it is not beyond reality. In 1872, the 3,200km long Overland Telegraph Line was built in just two years, as engineers and labourers completed the seemingly impossible task of traversing the extreme terrain from Adelaide to Darwin, dragging their supplies via camel train in the intense heat, dust and mud. From there an undersea cable was extended to Java and for the first time, Australia was connected to Asia, and the world.

The NT Government says in its submission to the Australian Parliamentary Inquiry on Northern Australia, “With its natural resources, large undeveloped land mass and its pro-development attitude, northern Australia is positioned to increasingly contribute to Australia’s prosperity.”

However, economic prosperity need not come at the expense of our environment, lifestyle or the health of our communities.

The Northern Territory already exports gas, oil and uranium all hazardous non-renewable fuels – so why not solar power?

The results of an expert workshop funded by the NT Government and hosted by Environment Centre NT and the Centre for Renewable Energy at Charles Darwin University last year show that this idea at the very least deserves further consideration.

HERE ARE SOME OF THE RESULTS OF THEIR DISCUSSION. Is grid interconnection between northern Australia to South East Asia technically feasible?

Yes. It is possible to connect between northern Australia and Indonesia/Timor Leste via High Voltage Direct Current (HVDC) subsea cable using existing technologies. However, there are significant challenges of ocean depth and distance, as the Timor Trench is up to 3 km deep and the shortest route is still 700 km long. Other challenges include energy storage, existing network capacity and maintaining grid stability.

Are there enough renewable energy resources in the region to make this idea feasible?

There are significant world class, largely untapped, renewable energy resources in the region.

Northern Australia has one of the largest solar resources in the world, whilst Indonesia and Timor have significant geothermal and tidal energy resources. A spatial regional renewable energy resource assessment should be undertaken to understand this resource better.

Has this ever been done before?

Yes, but not on this scale.

Renewable energy is exported undersea 580km from Norway to the Netherlands, and 280km

from Tasmania to Victoria.

Iceland plans to send geothermal power to Scotland. The Desertec Africa-Europe initiative aims to send solar power 3000km from Algeria to industrial Germany.

Coal rich Mongolia has just agreed to supply wind energy to Japan. Transmissions losses are now as low as a few percent per 1000km.

Is there a strong business case for grid interconnection?

It is unlikely that there is a strong business case for grid interconnection at this stage.

There are numerous financial challenges relating to the costs of renewable energy and HVDC and network cabling. However, the costs of renewable energy are rapidly falling and as subsidies from fossil fuel energy sources are reduced this is likely to become more cost competitive.

How much would regional grid interconnection cost?

A very rough estimate of the capital expenditure (CAPEX) of grid interconnection is $US8 billion, based on the current costs of HVDC cabling, network connections and 1000MW of solar power in northern Australia. Further economic analyses would need to be undertaken to determine a more realistic CAPEX.

What are the most likely routes and scale for grid interconnection?

The most economically and technically feasible route is likely to be between Darwin and West Timor; across to eastern Java via HVDC cable; and then a land cable to Jakarta. This would connect to the energy load centre of Jakarta, with the capacity to also deliver energy to Timor Leste.

Why invest in renewable energy when oil and gas are being extensively developed in the region?

Addressing climate change requires moving away from fossil fuel based energy sources such as oil, gas and coal. It is critical that the region invests more in renewable energy in order to reduce greenhouse gas emissions.

Would South-East Asian nations want to import renewable energy from Australia?

This is unknown. There remain geopolitical issues around energy sovereignty that the project will need to investigate further, and partnerships between countries are critical. However, Indonesia and nine other ASEAN countries are already working towards an ambitious ASEAN power grid action plan to interconnect electricity grids between the 10

99

countries by 2020.

Are there grid stability risks that could occur from the intermittent power provided by renewable energy?

Yes, renewable energy has challenges with providing power 24 hours, 365 days of the year, but these are not unsolvable.

Solutions would need to consider storage and or hybrid systems.

Large scale grid interconnectivity also makes it easier to manage intermittency issues in a scenario where there are distributed renewable energy sources.

What would happen in the event of cable failure?

This is a risk that would need to be managed and how cables would be repaired should be properly investigated. A single HVDC cable is faced with risks of damage and failure such as from underwater earthquakes or mudslides, strong currents or anchor strikes.

Should the grid interconnection project be investigated further?

Yes. The general consensus from the workshop was that there were significant strategic imperatives for realising electricity grid interconnection between Northern Australia and South East Asia that should promote further research and investigation.

FRAMELOCK

SHADES IS A WINNER

That’s not a shade, this is a shade! Framelock Shades take the outdoor event industry by storm.

101

102

M

any know the flamboyant Colin West as the ‘go-to’ man when you want to organise or host a fabulous or showstopping event in the Top End. He’s the one behind some of the biggest events in the Territory’s history. No event is too big – or too small for that matter - Total Event Services. However, did you know that you can add inventor to one of his many taglines? That’s right, Colin is also behind a number of innovative awardwinning products with his side company, Framelock Structures. The latest product to be heralded by the industry is the Framelock Shade, winning the 2013 NT Engineering Excellence Award.

Colin created a new Australian record for the largest area under shade when his team used it to erect a massive 8,700 square metres of Framelock Shade for the comfort of thousands of punters at last year’s Darwin Cup Carnival. The shade has also been used at other major Top End events including the V8 Supercars and Darwin Festival.

“This innovative shade structure has revolutionised outdoor events, no one else does this type of shade in Australia,” Colin said. “It was most recently used at the Adelaide Cup in March. The organisers must have seen it at the Darwin Cup because they called and said we have to use your shade structure, we’ve heard it’s fantastic.”

103

So what is so different to the Framelock Shade to other shade structures? “It is the only fully portable shade system that is fully compliant and certified to cope with extremely high wind and unpredictable weather conditions. It is believed to be the world’s first portable shade structure certified to withstand wind loads of up to 108 kilometres per hour,” he said.

“It’s not going to fall down any time soon.”

Colin said the structure is extremely easy to assemble, comes in modules of three and five metre bays and you can add on as many modules as necessary to your desired size.

“The Framelock Shade is designed with minimal anchor points and safely pinned to the ground to avoid the use of dangerous tie down ropes and star pickets,” he said.

“It uses a special aluminum portal frame structure, lowered mansard roof design and extra block shade cover that provides a SPF 43 rating to block out 97.6 per cent of ultraviolet rays – this is the highest level of sun protection.”

The shade also stays true to its heritage and comes in the Territory colours – ochre, black and white/silver.

“The shade looks good and it has a clear span so it is one of the safest shade structures in Australia,” Colin says. “It’s a great product, it’s safe and best of all it came out of the Northern Territory.”

Give your business profile a facelift with professional photography.

10% off for the months of April & May. Corporate Headshots - Profile & Website Images - Events

TEL 0406 669 555 INFO@GEORGEF.COM.AU WWW.GEORGEF.COM.AU Formerly known as

CASINO, HOTEL AND CONVENTION CENTRE CLOSE TO THE DARWIN CBD

THE CENTRE OF DARWIN Darwin Convention Centre is a symbol of the tropical harbour city’s exciting and vibrant future – a world-class venue connecting people and ideas and proudly hosting the world from a stunning waterfront setting in the Territory’s capital.

Everything centres here – whether it’s a prestigious national or global convention, gala dinner for visiting VIPs, trade exposition, rock concert, charity event, wedding or seminar.

We’re proud to say that during our short five-year history our achievements have been recognised with sought-after industry awards ranging from top notch venue design to catering excellence, outstanding events team, workforce innovation, and leadership in business tourism.

We look forward to hosting your next event in the Northern Territory.

Let’s connect.

www.darwinconvention.com.au +618 8923 9000 | sales@darwinconvention.com.au