North needs policy stability, Ports Australia says

STABLE regulatory frameworks are required to bring about investment in key infrastructure in northern Australia, industry body Ports Australia says.

Ports Australia lodged a submission to the Joint Standing Committee on Northern Australia earlier this year, with chief executive Mike Gallacher and director of industry policy Suzanne Fosbery speaking to the committee in Canberra.

Mr Gallacher noted that as landside infrastructure became increasingly expensive, long-term investment depended upon “stable, nationally aligned regulatory frameworks that provide industry with certainty across electoral cycles”.

In its submission, Ports Australia highlighted some key projects already underway in the region, such as Lumsden Point at Port Hedland, and projects to support trade in Darwin.

“To maintain a global competitive advantage Australian ports are critical to consideration of the economic prosperity of Australia as well as efficiency of our vital supply chains,” Ports Australia said in its submission.

“With about thirty ports and terminals in northern Australia, ports are an integral part of the economic prosperity of the north.”

Ports Australia said it welcomed the opportunity to submit to the inquiry and keep “front of mind” issues within the maritime industry, “particularly where potential decisions by governments may impact not only Australia’s sovereign and economic security, but also the Northern Australian economy and sustainability of local ports”.

Ports Australia said noted the Northern Australia Action Plan 2024-2029 made several observations and recommendations that would benefit not only the maritime industry, but also northern Australia more generally.

These included:

• Build on northern Australia’s comparative advantages to harness the opportunities created by global commitments to transition to a net zero economy.
• Address higher costs of doing business in the north.
• Work with state and territory governments to understand and address current and future infrastructure needs in northern Australia.
• Work to reduce northern Australia’s vulnerability to the impacts of biosecurity threats.
• Work with industry and state and territory governments to support northern Australia accessing the skilled workforce required for economic growth.

Ports Australia noted that the Commonwealth in the 2024-25 federal budget had identified five sectors aligning with the National Interest Framework.

These were:

• renewable hydrogen
• clean energy manufacturing (such as batteries and solar panels)
• critical minerals processing
• green metals
• low carbon liquid fuels

“Northern Australia and its ports do and will play an important role in all these sectors,” Ports Australia stated.

“Government provision of financial and regulatory certainty over the medium to long term is a prerequisite for industries to invest in decarbonisation and renewable energy initiatives, particularly where the market does not yet exist.”

Read DCN's report into the northern Australia maritime sector.