THE announcement of a $1.5-billion investment in port infrastructure in the Northern Territory has been received with concern for the health of the surrounding community.

The investment was outlined in the 2022-23 Federal Budget, delivered on 30 March, as part of a $7.1-billion investment pipeline targeting regional industries.

Under this investment, $2.6 billion has been allocated to infrastructure projects in the Northern Territory, largely focused on developing the Middle Arm Peninsula, located near Port of Darwin.

Planned port infrastructure for Middle Arm includes a wharf, an offloading facility, and dredging of the shipping channel, which is expected to boost the region’s importing and exporting ability.

In addition to the $1.5 billion investment in port infrastructure, $300 million has been committed to support low emissions LNG and clean hydrogen production at Middle Arm, together with associated carbon capture and storage infrastructure.

And, $200 million has been allocated to develop the Middle Arm Sustainable Development Precinct, including a rail spur and a new road network through which the government intends to strengthen supply chains.  

But, an article from the Australian Associated Press suggests the gas, hydrogen, and minerals processing and export facility has raised concerns for the community.

According to the AAP, the proposed development also includes a petrochemicals plant for plastic, pesticide, and fertiliser production.

A risk assessment reportedly outlined issues such as deterioration of air, soil, and water quality; and adverse impacts on threatened animal species and sensitive vegetation.

The AAP said the report highlighted potential damage to the seabed and marine ecosystems during dredging, infrastructure construction, and shipping operations.

Indigenous sacred sites may also be impacted during dredging, shipping, and industrial operations.

Beyond the development of the port, funding has also been committed to three new logistics hubs across the Northern Territory, equating to a $440 million investment.

“To make Australia as strong as possible as quickly as possible, we must continue to produce and sell products that create wealth,” Deputy Prime Minister and minister for infrastructure, transport and regional development Barnaby Joyce said in a statement last week.

He said the investment in infrastructure in the Northern Territory would create the mechanism by which businesses can make money from the products they produce.

“Whether it’s $1.5 billion to build port infrastructure at Middle Arm, or $440 million for logistics hubs, we are delivering the projects that will support the growth of industries that make our nation grow,” Mr Joyce said.

“Only by having stronger and more efficient freight connections can the gold, zinc, bauxite and gas from the Northern Territory continue to generate the income that underpins our standard of living.”

Under the investment targeting logistics hubs, $216.8 million has been allocated to a multimodal hub at Tennant Creek, $160 million to a logistics and agribusiness hub at Alice Springs, and $63.2 million to a logistics and agribusiness hub at Katherine.

The federal government expects the new facilities to ensure valuable commodities such as gas and critical minerals reach ports and international markets faster, generating greater export income.

A further $110 million in funding was committed to upgrading and sealing the Tanami Road, which would better connect mining, resources, tourism, and agribusinesses between the Northern Territory and Western Australia.