Even as challenges arise, South Australia is taking advantage of opportunities with new infrastructure, innovation and transport investment
These words from a poem by Miss M G Leask, published in the South Australian Register to mark SA’s 50-year jubilee (as a self-governing colony) in 1886, capture a sense of optimism.
The fortunes of South Australia have risen and fallen but whenever one door might be seen to have shut, another one opens. At times its economic focus has been on wool, then manufacturing and then perhaps niche areas such as tourism and winemaking.
Speaking with DCN, Associate Professor Xin Deng from the University of Adelaide said SA had adjusted well to the end of the car manufacturing sector a decade ago, a development that was reported with much dread at the time.
“The impact of the car manufacturing sector on the economy was overstated and the demise of the car manufacturing sector was largely because it was financially unsustainable and consumed too much public resources,” Professor Deng said.
“Holden’s operation was heavily supported by federal and state subsidies and it was a huge price to pay for 1700 jobs [in SA].”
A/Prof. Deng said SA had rebounded well since the end of the pandemic.
“GDP has grown steadily since the September quarter of 2020 with positive growth rates for every quarter except for the December quarter of 2023,” she said.
She noted a similar story when it came to looking at job numbers, with the total number of employed persons increasing from 855,000 in the 2020 December quarter to 997,500 in the same quarter of 2025.
Meanwhile unemployment decreased from a recent high of around 6% for most of 2021, compared with 4% or just under for most of the 2024 and 2025 calendar years.
Australia is well-positioned to experience the economic turbulence, so we may see some headwinds, but I think SA’s economy will be resilient
Associate Professor Xin Deng
A/Prof. Deng said geopolitical uncertainties and inflation remain the challenges for the SA economy.
“I believe good macroeconomic policies are needed to increase productivity and improve the business environment to mitigate external shocks,” she said.
“I remain positive about the outlook for the SA and Australia’s economy despite the shock brought by the [Middle East] war. We are likely to see inflation continue to rise and more interest hikes from the RBA.
“But Australia is well-positioned to experience the economic turbulence, so we may see some headwinds, but I think SA’s economy will be resilient.”
Flinders Port Holdings, the key maritime terminal operator in SA, continues to demonstrate what management says is “measurable momentum in a market defined by rapid change and rising expectations”.
Via a combination of strategic investments, operational refinement and customer focused initiatives, the business is seeking to not only strengthen its core offerings but also expand its footprint. One of the most significant expansion initiatives currently underway is the GatewaySA Program of Works at Flinders Adelaide Container Terminal (FACT), which is progressing at full pace.
In October 2025 Flinders Port Holdings (FPH) finalised a contract with Austrian crane manufacturer Künz to acquire a cantilever automated rubber-tyre gantry (ARTG) crane, marking a step towards advancing the company’s operational capabilities.
The ordering of a cantilever ARTG represents, according to management, “a significant milestone for the GatewaySA Program of Works, with the ARTG forming the basis of a Proof-of-Concept (PoC) test area”.
This will enable FPH to test the crane and relevant interfaces in a simulated operational environment.
According to FPH, last year marked “a significant step forward” for another two projects within the program of works, with contracts secured for two new state-of-the-art super post Panamax ship to shore (STS) cranes alongside a next-generation terminal operating system (TOS). Detailed design work on the STS cranes is now well underway, while technical specifications for the TOS are progressing through rigorous review — laying the groundwork for a smarter, more efficient terminal operation.
The Berth 6 extension project at Flinders Adelaide Container Terminal. Image: Flinders Port Holdings
The Berth 6 extension project is also said to be progressing well. In late 2025 the team successfully coordinated the delivery of 81 tubular piles. Working collaboratively with the FACT operations team, they managed 24/7 unloading to enable the early commencement of tubular piling. Tubular piling began prior to Christmas and remains ongoing, in addition CFA and anchor wall piling are complete.
According to management, looking ahead, 2026 is set to see continued progress across major work fronts, including combiwall pile installation, pavement and rail revetment works, tie-rod installation and backfilling and the construction of both front and rear rail beams.
“The program of works represents FPH strategic investment in enhancing FACT’s operational capacity and efficiency, ensuring the terminal is equipped for future growth, innovation and technological advancement,” a spokesperson said.
FACT also saw an additional service to Outer Harbour with the start of the ‘Koala service’. This service is operated by MSC to enhance connectivity between Asia and Australia. It provides the region with a direct shipping solution by linking southern and northern Chinese ports and Indonesia, supporting trade and supply chains across the region. The service currently operates on a twice weekly basis on a southbound and northbound rotation. With the addition of Melbourne late last year, the services also provide an important eastbound link to Melbourne, allowing connections through the MSC global network. The service operates with seven vessels and turns in 49 days.
In early March, FPH announced it had been working with Lineage (NASDAQ: LINE), an international cold storage organisation based in Edinburgh Parks to provide a Department of Agriculture, Fisheries and Forestry (DAFF) plant-registered establishment for fruit export and cold treatment which can store fresh produce for international markets.
Until now, South Australia has not had a DAFF-accredited cold storage facility to handle fruit and vegetables from the state’s produce-growing regions, which has limited the export opportunities from regions such as the Riverland. With Lineage now being DAFF accredited, it can now satisfy all export and cold storage protocols ensuring there is an alternative supply chain solution for the region.
Across the portfolio of FPH businesses, a comprehensive suite of technology upgrades and enhancements are being delivered, setting a new benchmark for the region.
“These initiatives include the replacement of the terminal operating system, vessel booking system and vessel traffic services system; the digitisation of rostering and contractor management platforms and significant upgrades to the human resources information and maintenance and asset management systems,” a spokesperson said.
“The business has also deployed a private 5G network, implemented proximity detection and worker safety technologies and advanced its capabilities in data, video and AI. These improvements are underpinned by a strengthened cloud environment and a renewed focus on digital resilience, cyber security and robust data governance.”
As with all ports, operations are not without challenge, impacted by industry-wide conditions both nationally and globally.
“Despite these challenges, FPH remains focused on resilience, adaptability and creating long-term value for all FPH partners and customers,” the spokesperson said.
“The organisation continues to respond proactively to external pressures while maintaining a clear strategic direction focusing on safety, innovation and operational excellence.”
Through ongoing investment in infrastructure, technology and partnerships, FPH is seeking to position itself to meet the evolving needs of global trade and the communities it serves.
“The progress of the GatewaySA Program, alongside expanded services and enhanced supply chain capabilities, reflects a business that is not only responding to change but actively shaping its future,” the spokesperson said.
“As the industry continues to evolve, FPH stands well-placed to capitalise on emerging opportunities, strengthen its role as a critical gateway for South Australia and continue to deliver benefits for customers, stakeholders and the broader economy.”
Air cargo is an important component of the SA freight sector and for that reason Adelaide Airport is crucial.
According to management, Adelaide Airport’s freight growth is being driven by a combination of stronger international connectivity and a trade mix that is well suited to air freight.
“The return and expansion of international services (particularly wide body aircraft) has significantly increased available belly hold cargo capacity and improved exporters’ ability to access global markets directly from Adelaide,” an airport spokesperson told DCN.
“At the same time, South Australia’s export profile is increasingly weighted to high value, time critical products—including machinery and equipment, premium seafood and chemical products—which benefit from fast, reliable air freight options.”
Aerial view of the Adelaide Airport — Airport Junction freight precinct. Image: Adelaide Airport
Work is well underway to develop the Adelaide Airport – Airport Junction freight precinct.
Spanning 27 hectares in total, the precinct unlocks a substantial pipeline of development-ready land suitable for freight, logistics and industrial uses in the heart of Adelaide’s Inner West.
Airport executive general manager - property, James Sangster, said the realisation of Airport Junction demonstrated Adelaide Airport’s capacity to plan, deliver and invest in large scale industrial precincts.
Airport Junction is sufficiently sized to support major freight and logistics operators, including DHL and FedEx, while also accommodating a complementary mix of advanced manufacturing, warehousing, technology and service-based users.
“This diversity is intentional. By clustering operators within a single, well serviced precinct, Airport Junction strengthens the broader airport ecosystem—creating supply chain efficiencies, improving access to specialist services and supporting workforce attraction and retention,” Mr Sangster said.
Of the total 27ha, about 22ha will be capable of development, providing AAL with an opportunity to release land suitable for employment uses in a location where there is significant undersupply and strong demand.
“From an aviation perspective, an efficient, well designed freight precinct is also a powerful enabler of new airline services,” Mr Sangster said.
By clustering operators within a single, well serviced precinct, Airport Junction strengthens the broader airport ecosystem
James Sangster
“Airlines increasingly assess cargo demand and freight handling capability alongside passenger demand when considering new routes.
“By offering fast, reliable and scalable freight infrastructure at the airport doorstep, Airport Junction helps build the cargo base.
“This creates a positive cycle: stronger freight capability supports airline sustainability, which in turn delivers greater passenger connectivity, more cargo capacity and broader economic benefits for South Australia.”
Mr Sangster said a major opportunity was to strengthen direct cargo flows from Adelaide by reducing ‘leakage’, where freight is trucked or flown interstate to access international uplift.
Mr Sangster said a key challenge for air freight was ensuring sufficient and consistent uplift to match market demand.
A recent and unexpected challenge has been the algal bloom off SA’s coast, with some impact upon the seafood sector.
“Public reporting and government evidence indicates the bloom has affected parts of the marine industry through closures and localised impacts and it remains an area of active monitoring,” Mr Sangster said.
“At the same time, broader air freight export reporting shows South Australia has continued to achieve strong performance in high value seafood exports — particularly lobster — supported by improved direct international connectivity through Adelaide.
“From Adelaide Airport’s perspective, this reinforces the importance of resilient supply chains, strong export handling capability and expanding direct services so South Australian producers can access global markets quickly and reliably.”
Early last year, DCN reported on an announcement by shipping line ANL and rail company Aurizon to move containers from the Asia-Pacific region to Adelaide via Darwin Port.
At the time, ANL’s general manager intra Oceania trades, Lincoln Dundas, said this would provide customers with “optionality and the potential to deliver material time savings, with a reliable and efficient, alternate supply chain”.
“The new service offers customers shipping from Asian Pacific ports to Darwin, with direct rail connection to Adelaide and southern Australian destinations as required,” Mr Dundas said.
Aurizon’s group executive containerised freight Gareth Long said it would leverage “existing assets of efficient track infrastructure and double-stacked container freight trains”.
Asked for an update, Mr Dundas said they were seeing “strong customer interest in the Darwin–Adelaide landbridge, with customers responding positively to the differentiated and faster transit times it provides into Adelaide”.
“This solution is offered as a complementary option to our existing direct services, delivering added flexibility and resilience for cargo moving into South Australia,” Mr Dundas said.
A spokesperson for Aurizon said they had seen “positive customer interest in the new landbridging service via Darwin, particularly from customers looking for additional supply‑chain resilience and alternative pathways into Australia”.
“While it is still early in the service’s development, more than half of the volumes moved to date have originated from China, which reflects the strong potential for North Asian trade flows,” he said.
“We see further growth opportunities as awareness of the service builds.”
This article appeared in the April | May 2026 edition of DCN Magazine