Several significant infrastructure projects planned or under construction across the greater Darling Downs region will be a game changer for Queensland’s economic growth.
As outlined in the latest Colliers Radar: Paddock to Port, these projects will positively impact upon the agribusiness and industrial property sectors and lead to a seismic shift in the food supply chain distribution network.
The key projects in the region are Brisbane West Wellcamp Airport, which is already operational, Toowoomba Second Range Crossing, due for completion in 2018, and the Brisbane to Melbourne Inland Rail, with expected completion in 2024.
“Queensland is already the nation’s most valuable state in terms of agricultural production, and well placed to realise long term growth as a major exporter of agricultural products over the coming decade,” said Rawdon Briggs, National Director of Rural & Agribusiness at Colliers International.
“Driving this demand is change in the global market and consumer preferences which is contributing to the rise in demand for Australian agriculture products, particularly from Asia’s middle class.
“These infrastructure projects will further add to Queensland’s growth by creating employment, improving access to road, rail, air and port facilities and ultimately leading to increased productivity and export capability. With the gross value of Australian farm production at $58.4 billion in 2016-17 this sector now needs the ability to shift output from the paddock to port seamlessly.
“They will create cost efficiencies in distributing food perishables and high value product through reduced transportation time and associated costs, and in turn reduce carbon emissions and congestion on major arterial roads,” Mr Briggs said.
Helen Swanson, Research Manager at Colliers International and author of the report said there has been strong demand and take up of industrial property around these key infrastructure projects which is reshaping the Toowoomba industrial market.
“Examples of the national and global companies already committing to new developments in the region’s top transport and logistics and industrial parks are Schlumberger, Boral, Au Lait Australia and Nature One Dairy, Saxon Energy, Vinidiex, Inplex and Speicapag just to name a few.
“There is strong evidence pointing toward the positive correlation of demand for industrial property in a region and the emergence of new infrastructure projects.
“Additionally, the importance of these projects in improving accessibility of freight to the area is likely to directly impact the potential rental and land value growth rates for industrial property in the region.
“In summary, industrial precincts that have allowed for easy access to major arterial roads, inland ports and inland rail will always have a competitive edge,” said Ms Swanson.