Alice Springs Investment Profile by pengxiang

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									A Region with Potential
The Alice Springs region is a special place in which            A new convention centre attracts events, concerts
to live and do business. At the heart of Australia, it is       and international symposia. The town’s new Desert
famed for its Indigenous art, its proximity to tourism icon     Knowledge Precinct has become a centre of excellence
Uluru, the Flying Doctor Service, School of the Air, the        for research into Indigenous knowledge systems and
annual Camel Cup, and a movie or two.                           desert lifestyles, the town is a ‘solar city’ and hosts a
                                                                Centre for Appropriate Technology, and there is a range
The town that was settled by explorers and pastoralists         of tertiary education facilities.
is still a rich pastoral region, with a growing horticultural
sector. But Alice is also an important service and              ‘Alice’ sits at the hub of Australia’s air routes, has an
supply centre for miners and oil and gas explorers with         international airport, and is the half-way point for road
its highly prospective, but largely unexplored minerals         and rail transport between Adelaide, in the south, and
provinces that include uranium, vanadium, rare earths,          Darwin, in the north of Australia. A former railhead, it
gold, garnets and who knows what else.                          is now a popular destination for tourists on the famous
                                                                transcontinental Ghan passenger service.
Alice Springs is also a service town that attracts young
professionals who want to contribute to Indigenous              Above all, Alice is home to a strong community spirit
health, education and business enterprise: budding              that welcomes newcomers. Its residents are proud
doctors, nurses and teachers who rub shoulders with             of their town’s strengths, and work together to create
tourists, the large contingent of defence personnel             an environment and the infrastructure that support
                                                                investment and a unique lifestyle.
serving at the Joint Defence Facility Pine Gap and
old time Centralians with their yarns of pioneering             They would love to talk to you further about the
frontier days.                                                  opportunities in this region of potential.
Investment Opportunities
Primary industry                                   Mining
ƒ   Pastoral production                            ƒ   Labour hire
ƒ   Horticulture – fruit and vegetable crops       ƒ   Supply of goods and services to mines,
ƒ   Native bush food crops                             including Newmont
ƒ   Weed and environmental management              ƒ   Heavy haulage
ƒ   Live transport services                        ƒ   Rehabilitation and environmental services
ƒ   Wild harvesting of camels                      ƒ   Accommodation support
                                                   ƒ   Tanami Road upgrades and maintenance
                                                   ƒ   Supply of goods and services to the mining
Defence support                                        and Petroleum industries

ƒ   Support services including general
    supplies, freight, transport and information
    technology to Defence Support Facility
                                                   Construction
    Pine Gap                                       ƒ   Residential and rental properties
ƒ   Accommodation support                          ƒ   Architectural and drafting services
ƒ   Equipment and systems support and              ƒ   All construction trades
    maintenance
                                                   ƒ   Solar demonstration facility
                                                   ƒ   Alice Springs Cultural Precinct
Tourism                                            ƒ   Aquatic Centre
                                                   ƒ   CBD upgrade
ƒ   Wayside stops and service stations along
    the Red Centre Way
ƒ   Accommodation and tourist facilities along     General
    the Red Centre Way and Larapinta Trail
ƒ   Cultural and nature-based tours                ƒ   Training and mentoring to get Indigenous
                                                       people into the workforce
ƒ   International air charters
                                                   ƒ   Childcare and children’s services
                                                   ƒ   Mental health services
                                                   ƒ   Industrial site at Brewer Estate
                                                   ƒ   Short-term accommodation
                                                   ƒ   Aged care


                                                   It is noted that these investment opportunities would
                                                   require feasibility assessment and appropriate due
                                                   diligence.
Industry Profile
Primary industry                                    Defence
ƒ   The pastoral industry is a major contributor    Twenty kilometres outside Alice Springs is Pine
    to the Central Australian economy, with about   Gap Joint Defence Facility. This facility is a major
    70 properties in the Alice Springs region.      contributor to the economy. About 2000 American
    The industry is supported by reliable water     defence staff and their families live in Alice
    supplies from underground bores and dams        Springs, injecting about $12 million a year into the
    and good road and rail access to interstate     local economy.
    and live export markets.
ƒ   Pastoral production for the region was worth
    about $53 million p.a., with about 300,000      Tourism
    cattle comprising 19% of the Territory’s
    production.                                     ƒ   Each year about 800,000 tourists visit Alice
ƒ   Horticultural production in 2005-06 was             Springs, MacDonnell and Petermann.
    worth about $10.2 million, with 2218 tonnes     ƒ   In 2005-06, the region hosted 892,000
    produced by about 14 enterprises.                   tourists, with an average stay of 3.1 days.
ƒ   Table grapes are the main fruit crop industry       This is an increase of 2.4% from last year,
                                                        especially in holiday visitors.
ƒ   Hay, silage and crop production was worth
    an estimated $1.3 millon, with 6860 tonnes      ƒ   About 45% of visitors were from overseas,
    produced.                                           46% were from interstate and the rest were
                                                        from the Territory.
ƒ   Many horticulture crops thrive in the
    desert environment, current crops are;          ƒ   Tourism is predicted to grow in 2008-09, with
    flowers, citrus, figs, dates hydroponics and        international tourists staying 3.3% more nights
    bushfoods.                                          a year and spending 3.5% more..
ƒ   There is significant good quality land and      ƒ   Interstate visitors are predicted to grow
    water for horticulture development in the           2.8% a year, with a 2% increase in nights
    region, particularly on Indigenous land.            spent in the region and a 3.7% increase in
                                                        expenditure.
Mining                                                   Real Estate
ƒ   The Northern Territory Government Geological         Real Estate Institute of the Northern Territory data for the March
    Survey Division provides free geophysical            quarter 2007:
    data showing prospective minerals areas. The
    government is investing $12 million over four         House                                  Flats/ Units/ Townhouses
    years to encourage investment and growth in           Residential                            Residential flats/Units/   62 ($14.8
                                                                              99 ($30 million)
                                                          house sales                            Townhouse sales            million)
    the resources sector, facilitating exploration and
    efficient processing of mineral and petroleum                             $297,000 (up                                  $230,000 (up
                                                          Medium house
                                                                              5.5% over last     Medium unit price          16.8% over last
    title applications.                                   price
                                                                              year).                                        year)
ƒ   Valuable resources in the region include                                                     Flats/Units/
    the Newmont and Tanami gold mines,                    House vacancy
                                                                              3.6%               Townhouse vacancy          3.2%
                                                          rates
    uranium, natural gas and petroleum deposits.                                                 rates
    Companies are coming from around the globe            House rental
    to explore and mine in the Territory. The             yield ((based                          Flats/Units/
                                                                              5.8%                                          5.9%
                                                          on 3 bedroom                           Townhouse rental yield
    Government has sponsored several trade
                                                          house)
    visits to China, promoting joint ventures and
    investment in the Territory.
ƒ   In 2005-06, mining production in the Alice           Utility Costs
    Springs region was worth about $277 million.
    This represents 14% of minerals and energy                          Business                           Home
    production in the Northern Territory.                 Power         $56 connection fee                 $56 connection fee
                                                                        $0.1714 per kWh                    $0.1501 kWh
Proposed mines include:                                                 Fixed daily charge $0.4621         Fixed daily charge $0.2959
ƒ Moly Hill - tungsten, molybdenum                                      “Contestable Customers”
                                                                        can negotiate directly with
ƒ Nolans Bore – rare earths, phosphate, uranium                         PowerWater.
ƒ Harts Range – garnet sands                              Water         $55 connection fee                 $55 connection fee
                                                                        $0.7246 per kL                     $0.7246 per kL
More than $2 million in new business was                                Fixed daily charge per metre       Fixed daily charge per metre
generated from the second annual Mining Services                        size:                              size:
Expo and Supply Seminar in March 2007.                                  - Up to 25 mm, $0.3026             - Up to 25 mm, $0.3026
                                                                        - 26 - 40 mm, $0.7746              - 26 - 40 mm, $0.7746
                                                                        - 41 - 50 mm, $1.2077              - 41 - 50 mm, $1.2077
                                                                        - 51 - 100 mm, $4.8794             - 51 - 100 mm, $4.8794
Taxation                                                                - 101 - 150 mm, $10.8914           - 101 - 150 mm, $10.8914
                                                                        - 151 - 200 mm, $19.3674           - 151 - 200 mm, $19.3674
ƒ   The Northern Territory Government is                  Sewerage      Fixed annual charge is based       Fixed annual charge is $344.97
    stimulating local business by cutting taxes,                        on the number of sanitary          regardless of the number of
    spending on infrastructure, improving                               fittings:                          sanitary fittings per residence.
                                                                        - 0 - 2 fittings, $344.97 total
    procurement processes and building a skilled                        - 3 - 24 fittings, $234.85 each
    workforce. This will make the Territory one of                        fitting beyond 2
    the most competitive business environments in                       - 25 - 49 fittings, $220.30 each
    Australia.                                                          - 50 - 99 fittings, $204.54 each
                                                                        - 100 149 fittings, $190.05 each
ƒ   On 1 July 2006 the payroll tax free threshold                       - 150+ fittings, $184.02 each
    for business rose to $1.25 million, making the
    Territory the lowest taxing jurisdiction for small   Gazetted Tariffs: Tariffs effective from 1 July 2007.
    to medium business in Australia.                     For more information visit the PowerWater website www.powerwater.com.au



                                                         Government Services
                                                         Education
                                                         ƒ Good public and private options for primary, middle years and
                                                            senior education, transition to Year 12.
                                                         ƒ Charles Darwin University offers tertiary courses in,
                                                            accounting, business, commerce, law, engineering,
                                                            environmental management, information technology, nursing
                                                            and tourism management.
                                                         Health
                                                         ƒ A modern and well-equipped hospital provides allied health,
                                                            physiotherapy, speech therapy, dietetics, mental health,
                                                            maternity, special care nursery, and paediatric services, with
                                                            three operating theatres
                                                         ƒ Six medical centres
Economic Development Activity
Desert Knowledge Precinct                                    International air charters
ƒ   The Desert Knowledge Precinct houses research,           ƒ   The Northern Territory and Australian Governments have
    education, and the business network centre                   allocated $312,000 towards permanent infrastructure to
                                                                 support the growing air charter industry
ƒ   Desert Knowledge Cooperative Research Centre is
    based at the precinct and researches desert knowledge    ƒ   This included grant funding to the Central Australian
    opportunities                                                Tourism Industry Association to purchase x-ray equipment
ƒ   Desert Knowledge Australia supports a range of           ƒ   CATIA is working with NT Airports to buy a ‘tug’, or cart
    business network activity                                    that pushes out planes in preparation for take off
ƒ   The Desert Peoples Centre is an education hub for        ƒ   Tourism NT spent $80,000 with Japanese wholesalers in
    fostering desert knowledge skills and know how.              2006/07 to promote air charters


Red Centre Way                                               Residential & Industrial land availability
The Red Centre Way is a multi million dollar project to      The Stirling Heights subdivision has been completed by
provide new visitor and regional development opportunites    developers. Negotiation has begun with native title holders
to the region, it consists of:                               of Mt Johns Valley. Construction of the headworks for Stage
                                                             1 land release is expected to start in 2007. Industrial land
ƒ Road sealing
                                                             is available at the Brewer Estate about 20 kilometres from
ƒ New product development i.e. Red Centre Way Visitor        the CBD.
     Centre
ƒ Potential investment opportunites
ƒ Indigenous business development opportunities
                                                             Construction
                                                             Construction projects accounted for $91.5 million in 2006.
                                                             This included government funding of $58.3 million and private
Tanami Road upgrade                                          investment in major construction projects worth $33.2 million.
$2 million has been allocated to upgrade and seal priority   Private sector investment includes:
sections of the Tanami Road to improve access to services    ƒ Retail chain stores Rivers, Harvey Norman and Gloria
and the transport of goods from Alice Springs to Newmont         Jeans opened in 2007
Mine.
                                                             ƒ Upgrades to both the Alice Plaza and Yeperenye shopping
                                                                 centres in 2007
Mining Development                                           ƒ New Imparja Television building with state-of-the-art digital
Current mining activity for Alice Springs region includes:       technology
ƒ Callie Deposit (Tanami Region) - gold                      ƒ Quest Apartments will open in 2007
ƒ Mud Tank (north, north-east of Alice Springs) -            ƒ New Child Care facility within the CBD due to open in 2007
   vermiculite                                               ƒ Target retail store due to open in October 2008
ƒ White Range (north-east of Alice Springs) - gold           ƒ Plans are well advanced for an investor to spend $30
                                                                 million to convert backpacker accommodation into a luxury
Three new mines (Moly Hill, Nolans Bore and Harts Range)         resort.
are proposed, with an estimated $90 million to be invested
in setting up the three projects
Regional Demographics
ƒ     26,000 people or 66% of the region’s population live                                                                                                    Nhulunbuy
      in Alice Springs. (1)                                       DARWIN
                                                                                                               Jabiru
ƒ     The estimated regional population was 39,559 in                                       Adelaide
      2006, an increase of 559 people from 2001 to 2006.                                    River
                                                                                                                                                           Alyangula
                                                                                                                        Bulman
ƒ     The 2006 Australian Bureau of Statistics Census                     Nauiyu
                                                                                                       Pine Creek
      reported that 35 311 people usually live in the region.                                              Katherine(T)
                                                                         KATHERINE                         Barunga      Roper
                                                                                                                                                 Numbulwar
ƒ     By 2021 the population is expected to rise to 44,635,                                                     Beswick
                                                                                                                        Bar Ngukurr

      based on medium growth predictions. (2)                                                          Mataranka
                                                                               Timber                               Jilkminggan
ƒ     The median age is 30 for the region and 33 for                           Creek                                                           Bing
                                                                                                                                               Bong
                                                                                                                      Larrimah
      the town.                                                                                                                             Borroloola
                                                                                                                      Daly Waters
ƒ     The 13,528 Indigenous people comprise 38.3% or of
      the population.                                                                                                                              Cape
                                                                                                                                                   Crawford
ƒ     About 70% of the region, or 24,879 people, are of                  Daguragu
                                                                                         Kalkarindji                    Elliott
      working age - between15 and 64 - with 17,100 living
      in Alice Springs (T).
ƒ     The median weekly household income is $1139,                                   Lajamanu
      which is $112 above the Australian average of
      $1027. The town’s median weekly household income
                                                                                                                                  Tennant                 Barkly
      was $1236.                                                                                                                                          Homestead
                                                                          Tanami                            TENNANT               Creek (T)
ƒ     The median housing loan repayments are $1300 a                                                        CREEK
      month, for both the region and the town.
                                                                                                                                  Ali Curung                  Alpurrurul
ƒ     The average regional household has three people,                                           Willowra
      compared to 2.6 for the town.
ƒ     Rental properties accounted for 44.9%, or 5,525                                       Yuendumu                                       Ampilatwatja
      dwellings. About 3,384 were in Alice Springs (T).                                                     Ti Tree
                                                                          Nyirripi
ƒ     Median weekly rent for the region was $100,                                                                                        Harts Range

      compared to $180 for Alice Springs (T).                                            Papunya
                                                                                                                           ALICE
                                                                  Kintore
                                                                                             Hermannsburg
                                                                                                                           SPRINGS
                                                                                                                                  Santa Teresa
(1) ABS 3218.0 - June 2006. (2) ABS Regional Statistics                     Kings Canyon          Areyonga
    2006: NT 1362.                                              Docker
                                                                River                                                        Titjikala

(2) Other data is sourced from the ABS 2006 Census of                                                    Imanpa
                                                                               Yulara                                              0             150              300
    Population and Housing.
                                                                                     Mutitjulu
                                                                                                          Kulgera                          kilometers
                                                                Source: DBERD Economic Development Division
                                                                                    Source: DBERD Economic Development Division



    For more information
    Investors are encouraged to visit the web site at www.nt.gov.au/business to read a more
    comprehensive accompanying document, Alice Springs Investment Profile or contact the Alice
    Springs office of the Department of Business, Economic and Regional Development on 08 8951 8510

								
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