Transport
Remoteness, geographical size and dispersed population mean long distance transportation and storage become increasingly important as the Northern Territory economy and population continue to expand.
Growth in the mining sector, along with increased freight volumes and tourist numbers to the Northern Territory, continues to develop and contribute to the Territory economy. Transport and storage activity accounted for around $779 million or 4.5% of the Territory’s GSP in 2009-10.
The transport and storage industry includes all entities engaged in providing passenger or freight transport by road, rail, water or air; terminal facilities for passengers or freight; services related to transport such as car parking, stevedoring, harbour services, navigation services, airport operation; booking, travel, freight forwarding, crating or customs agency services; and storage facilities. It also includes entities mainly engaged in operating pipelines for the transportation of oil or gas, on a contract or fee basis.
Key Facts
- Geographically, Darwin is Australia’s closest port to the Association of South East Asian Nations (ASEAN) markets.
- Transport and storage contributed 4.6% to the Northern Territory’s gross state product (GSP) in 2009-10.
- Transport and storage activity accounted for around $779 million to the NT’s gross state product during 2009-10.
- The Northern Territory road network consists of more than 36 000 kms of road.
Road
The Northern Territory is served by three national highways which provide links to Queensland (Barkly Highway), South Australia (Stuart Highway) and Western Australia (Victoria Highway). The national highway network is the backbone of the road network system across the Northern Territory and provides sealed road links between the Northern Territory and the rest of Australia. The NT road network consists of more than 36 000 kms of road.
Rail
Rail continues to provide the primary line-haul service along Australia’s central freight corridor connecting the Northern Territory with freight services in South Australia and other states.
The value of the railway to the development of the Northern Territory economy is demonstrated by continued growth in both bulk and general freight. The railway continues to demonstrate its long term potential to the economic development of both South Australia and the Northern Territory. Total freight on the railway in 2009-10 increased 24.9% to 3.8 million tonnes.
Sea
The Port of Darwin is a naturally occurring deep water port. Geographically, it is Australia’s closest port to the Association of South East Asian Nations markets, making it Australia’s northern gateway. This strategic geographic location is fundamental to the high volume of trade flowing through the port in recent times and will play a significant role in growth into the future.
The port facilities at East Arm are connected to the national rail network through the Adelaide to Darwin railway to allow seamless movement of goods, including bulk mineral and bulk liquid trades. Integration of port facilities with the railway supports the Northern Territory Government’s vision of establishing Darwin as a regional transport and logistics centre and an integral part of the AustralAsia trade route.
Darwin Port is well equipped to handle container and general cargo, bulk minerals and bulk liquids including petroleum, live cattle and offshore oil and gas rig services. OZ minerals recently completed construction of a copper concentrate facility at East Arm and loaded their first shipment.
The Darwin Port Corporation also operates facilities for non-trading vessels. These include cruise, naval, fishing and pearling vessels. The port plays a significant role as a supply, service and distribution base supporting research and exploration of the oil and gas reserves in the nearby Timor Sea.
The port is the location of the Darwin Liquefied Natural Gas (LNG) facility. LNG production in the region is responsible for 3 million tonnes of export trade annually, making it Australia’s second major LNG hub.
Feedstock gas and petroleum remain the dominant import cargo, accounting for 62% of total goods imports.
In 2009-10 total trade through the port of Darwin increased 21.3% to 4.6 million tonnes.
Air
Air transport continues to be an important enabler of economic growth in the Northern Territory. Major airports capable of jet aircraft operations are Darwin, Alice Springs, Ayers Rock and Gove (Nhulunbuy). Darwin airport is an international gateway and capable of handling the largest aircraft currently in operation. Alice Springs airport receives international charter flights from Japan on a seasonal basis.
Airports are critical infrastructure and play a key role in generating economic growth. Total international passengers through Darwin in 2009-10 increased 11.3% to 395 000. Scheduled international services fly to Singapore, Ho-Chi Minh, Bali, Dili, Manilla and Kupang.
Total domestic passengers for 2009-10 increased 6.2% to 1 744 309. Domestic services operate to all Australian capital cities and some regional centres.
The Northern Territory Government ensures emergencies are catered for through aero-medical evacuations and through the Northern Territory Police Airwing. The government maintains a strategic network of 72 regional airports and airstrips servicing all major communities in the Northern Territory.
Source: 2011-12 NT Budget.
General Aviation
The Northern Territory also hosts a number of private and commercial general aviation fixed wing operators as most communities depend on charter aircraft for carriage of passengers and freight... Local flying clubs and schools in both Darwin and Alice Springs provide training and facilities.
Rotary Wing
Helicopter operations play a vital role across the Northern Territory in linking fixed bases with off-shore oil and gas installations as well as providing critical search and rescue functions to the Territory.
Pipelines
Pipelines are the fastest and safest method of transporting large volumes of natural gas over long distances. In the Northern Territory, they provide a vital energy link for power generation and industry.
The Bayu-Undan field, located in the Joint Petroleum Development Area in the Timor Sea, approximately 500 kms north of Darwin and 250 kms south of Timor-Leste, currently produces more than 100 000 barrels of liquids per day. The gas product is sent through a 502 km subsea pipeline to the Darwin Liquefied Natural Gas (LNG) plant where it is processed into LNG to be shipped by specially built transport tankers to Japan for the Tokyo Electric and Tokyo Gas companies.
NT Gas Pty Limited, in its capacity as trustee of the Amadeus Gas Trust, operates and manages over 2000 kms of high pressure natural gas pipeline and facilities in the Northern Territory.
Envestra Limited, Australia’s largest distributor of natural gas, owns 8800 kms of pipeline distribution networks in South Australia, Queensland and the Northern Territory. Envestra operates the natural gas transmission pipeline that connects the Palm Valley gas field to Alice Springs. The 200 mm diameter pipeline supplies gas to the Northern Territory’s Power and Water Corporation for power generation in Alice Springs.
Future Developments and Investment Opportunities
The Northern Territory transport industry continues to grow and shows no sign of slowing. With new road projects totalling almost $130 million and further investment in air, rail and sea infrastructure projects, the outlook is positive.
Continued expansion of, and upgrades to, the road network including bridges, means more of the Northern Territory is open all year round. The ongoing goal of connecting regional communities with sealed roads means the Northern Territory is becoming more accessible to the transport industry.
Industry Representative Bodies
Australian Trucking Association Northern Territory
The Australian Trucking Association Northern Territory is a non-profit body representing the all sectors of the road transport industry in the Northern Territory including companies, suppliers, owner/drivers and drivers.
Tel: +61 8 8947 7161
Fax: +61 8 8947 7157
Email: atant@iinet.net.au
Web: www.atant.asn.au
Northern Territory Industry Capability Network
The Northern Territory Industry Capability Network is a proactive business organisation that identifies, develops and matches opportunities to Northern Territory and Australian businesses.
Tel: +61 8 8922 9422
Fax: + 61 8 8922 9430
Email: info-nt@nticn.com.au
Motor Trades Association of the Northern Territory
The Motor Trades Association of the Northern Territory is a peak body representing the retail, service and repair sectors of the automotive industry in the NT.
Tel: +61 08 8947 6990
Fax: + 61 08 8947 6995
Email: mtant@octa4.net.au
TRANZnet Association Inc
Trainers from Australia and New Zealand Network is a non-profit organisation which allows training professionals to meet and exchange views and evaluate new initiatives affecting the transport, distribution, construction, plant and mining industries.
Tel: +61 08 8947 6990
Fax: + 61 08 8947 6995
Email: mtant@octa4.net.au
Web: www.tranznet.org
Government Support
Australian Transport Safety Bureau (ATSB)
ATSB is an operationally independent body within the Australian Government Department of Infrastructure, Transport, Regional Development and Local Government and is Australia's prime agency for transport safety investigations.
Transport Policy and Planning Division
The Transport Policy and Planning Division provides transport related research, analysis, planning, economic evaluation, policy and legislative advice and development to the Department of Lands and Planning and the Northern Territory Government.
Content current at 23 May 2011.
