Investment Overview
Massive New Economic Activity (Mines & Infastructure), Driven by the Abbot Point Port Expansion, will make Bowen The Next BOOM Town in Queensland (Think Gladstone & Mackay.)
Bowen is a small town in the Whitsunday Shire, ideally positioned to benefit from the massive mining and development boom in Northern Queensland, a boom fired by multi billion dollar construction, mining and infrastructure projects.
Arguably the most important regional center in the Queensland Governments 'Northern Economic Triangle Infrastructure Plan' (commonly referred to as the NET); Bowen is set to BOOM - and it's close proximity to Abbot Point is the main reason it will be of enormous significance to savvy investors in 2011.
If you a property investor, you are no doubt aware of the incredible gains that can be made by those who have the foresight to buy into developing markets early in their growth cycle. The two most recent examples of this in North Queensland are Mackay and Gladstone.
So what was it that catapulted these former sleepy coastal towns into two of Australia's most lucrative investment hotspots'?
+ Close Proximity to A Major Sea Port
+ A Sea Change Lifestyle
= Incredible Growth
This same formula now playing out in Bowen, and savvy investors that get in now are likely to benefit from high capital growth and strong rental returns. But this isn't exactly news. After all, Bowen has seen very strong growth over the past 5 years and with the expansions of Abbot Point and the strengthening minerals led recovery, the best growth is probably just around the corner.
This is the Right Development in the Right Place at the Right Time, the Crucial Triggers are The Massive Mining Projects opening up in the Galilee and Bowen Basin and The Northern Missing Rail Link, because The Massive Coal and Infrastructure Developments these Projects will Channel Through Bowen and Abbott Point is nothing short of Phenomenal.
Verify the oppourtunity for yourself, with so much confirmed and proposed Investment coming, the few remaining buy off the plan fixed price building contracts in the Seabreeze Estate look destined to provide everything a property investor wants; great capital growth, high rents and low tenancy vacancies.
The Australian coal industry has been suffering from shipping constraints over the past decade, unable to keep up with Asia's insatiable demand for minerals.
In terms of the global economy, coal exports are so important, they actually allowed Australia to bypass the economic bullet that decimated almost every other developed nation during the recent 'global financial crisis'.
(1) Abbot Point Port Expansions - The Fastest Growing Deep Water Seaport in Queensland
Just 25 KM north of Bowen is the Abbot Point Seaport, a facility that is being upgraded to relieve the export bottleneck of coal in the Bowen and Galilee Basins. The recent upgrade construction has increased the ports export capacity to 50 Mtpa has just been completed. The investment in this upgrade was $1 billion dollars.
Additional upgrades to increase capacity to 300 Mtpa are currently being planned by other major coal mining companies who have made commitments and signed contracts with Asian markets in advance.
For Property Investors or Blue collar workers looking to buy in the area, the strategic significance of Abbot Point cannot be overstated.
No current port in the region has natural deep water like Abbot Point, along with large tracts of land that are flat and undeveloped. As a consequence, any expansion of Port facilities within the NET, capable of accommodating Cape sized vessels, ie 200,000 DWT, will have to occur at Abbot Point.
Other Ports in the NET are only capable of handling Panamax vessels, ie 72,000 DWT or less, in other words vessels with less than half the capacity of those that can be loaded at Abbot Point!
Consequently, Abbot Point is destined to become the pivotal sea port in Northern Queensland.
An array of associated infrastructure and mining projects will become viable as a direct result of Port expansions at Abbot Point, making it the key to massive economic activity and job creation for at least the next 30 year,
As these projects come to fruition and investments increase, the population of Bowen is set to explode!
According to the Regional Economic Development Corporation (REDC) there are currently 19.63 Billion dollars in proposed major Development Projects* in the Shire of the Whitsundays alone. Include the neighbouring Shires of Mackay and Issac and the number becomes 47.48 Billion*, ie over forty seven thousand million dollars.
( N.B. A billion dollars is a thousand million dollars, to give you an idea of just how much a billion dollars is, if you wanted to pay down a billion dollar debt, paying one dollar a second, it would take 31 years, 259 days, 1 hour, 46 minutes, and 40 seconds. Multiply that by 17 or 45 and you will understand the magnitude of existing, proposed or committed development in the area).
(2) Northern Missing Link Rail Project
Abbot Point is the major driver behind the long awaited and recently completed Northern Missing Link rail line, which now connects the Northern Goonyella rail system with the Newlands Abbot Point rail line, allowing Northern Bowen Basin Coal mines and new coal mines in the Galilee Basin to export through the Abbot Point Port.
(3) Abbot Point State Development Area
Abbot Point forms a key part of the Queensland Government's Northern Economic Triangle Infrastructure Plan 2007-2012. A key objective of the plan is to develop a new industrial precinct for large scale industries at Abbot Point.
The Abbot Point State Development Area was declared by the Governor in Council on 19 June 2008.
Deputy Premier and Minister for Infrastructure and Planning Paul Lucas said. "This area has the potential to become an industrial powerhouse to rival Gladstone, with huge economic benefits not just for Bowen but the whole of Queensland," Mr Lucas said.
"Establishing the Bowen area as Queensland's newest industrial powerhouse will foster the growth of industry across the northern half of the State over the next 50 years."
This declaration has reserved the land around Abbot Point for industrial developments "The protection of strategic industrial land at Abbot Point and other SDAs near Gladstone and Townsville will ensure our economy continues to boom". Deputy Premier Lucas said.
This declaration can only mean one thing. Even more multi billion dollar developments around Abbot Point, and even more high paid blue collar jobs just up the road from the Seabreeze Estate.
(4) China First Project - Waratah Coal
This $A9.22 billion dollar project was contracted on 6th February 2010 and will be the largest coal project in Australia, producing 40Mtpa of thermal coal, with construction beginning in 2011 (subject to environmental approvals). Significantly, the Metallurgical Corporation of China, which is 100% owned by the People's Republic of China, has guaranteed to purchase 30Mtpa from the mine over 20 years. Revenues from the mine will be 4 billion per year, and royalties to the Qld Government over the life of the project will be $280 million p.a.
Speaking about the project at a Whitsundays Bowen Business Information Forum (in October 09) The Chief Executive Office of Waratah Coal, Peter Lynch told the business forum "the China First Project will create 1500 jobs in Bowen during the construction stage alone." Bowen Independent 9-10-09.
He also suggested that the completed project would double the Abbot Point ports current operational workforce. Clive Palmer in announcing the deals signing said it would create 7500 jobs directly and between 50-70,000 jobs in flow on effects.
http://www.miningaustralia.com.au/Article/Palmer-secures-QLD-future-with-massive-export-deal/510804.aspx
http://news.theage.com.au/breaking-news-world/australias-resourcehouse-signs-60-bln-deal-with-china-20100206-njhd.html
(5) Hancock Prospecting
There are two projects mooted, the Alpha Coal Project http://www.hancockcoal.com.au/go/current-projects/the-alpha-coal-project and Kevins Corner. http://www.hancockcoal.com.au/go/current-projects/kevin-s-corner Each project is a 30Mtpa coal mine. Documentation on the website for the Alpha Coal Project says the expected expenditure for the project is 7.5 billion, 3 billion for construction of the mines, 2.5 billion for the construction of the rail and 2 billion for Port Development.
The preferred Port for the projects is Abbot Point. That means a further 2 billion in infrastructure development 25 km up the road from the Seabreeze Estate! The target date for the construction is 2011 and the first shipments of coal are expected in 2013.
(6) Carmichael Coal Mining nad South Galilee Coal Mine
Indian company Adani Mining is driving the The Carmichael Coal project, which may become the biggest coal mine in Australia. The mine plans to export a massive 60 Mtpa by 2020 and is hoping to commence operation in 2014.
The expected life of the mine is 150 years and the project includes building rail facilities to Abott Point and Hay Point, the total investment is 10.1 billion and the estimated employment it will create is 5000 jobs during construction and 4000 jobs in the mining phase.
The South Galilee mine project is another huge project being run by AMCI (Alpha) Pty Ltd (AMCI) and Alpha Coal Pty Ltd (Bandanna Energy) and is a 4 Billion dollar project expected to produce 20Mtpa of thermal coal, with an expected life of over 40 years.
(7) The Multi User Port Facility at Abbot Point
The Port of Abbot Point Multi Cargo Facility project (the MCF) involves the construction of a protected harbour at Abbot Point, capable of handling multiple cargoes. This will be a second Port facility, separate to the existing Abbot Point Port and Port Expansions.
This proposed development confirms the Queensland Government and major Enterprise see Abbot Point as THE site most suitable port for servicing Northern Queensland's major industrial hub.
The project involves the dredging of up to 12 new multi cargo berths, including a 10-berth tug base, a maneuvering basin and an approach channel. The project also includes a new infrastructure corridor in the Abbot Point State Development Area. The capital cost of Stage 1 of the project is expected to be approximately $1.25 billion.
When the MFC development goes ahead, it will open up Abbot Point to many new industries as well as expanding the range of heavy mining-related industries that could use the port, and it will undoubtedly establish Bowen as the new economic powerhouse in Queensland's north.
(8) Water For Bowen Project
SunWater is conducting a two-stage feasibility study to re-examine the technical and commercial viability of bringing water from the Burdekin River to the Bowen region. So far 3.2 million dollars has been provided by the state government and the Whitsundays Shire.
The Water for Bowen Project aims to supply water for industrial and agricultural use via a new channel and pipeline system extending 150 kilometres from the Burdekin River south across the coastal plains to Bowen and surrounding areas. The extra 60,000 liters delivered by the project would support increased agricultural production and industry mooted in the area.
SunWater has commenced Stage Two of the project which involves feasibility level engineering, an environmental impact study as well as finalising route selection for the channel and pipeline system. This is the last stage of investigations required before SunWater's Shareholding Ministers decide whether to proceed to construction, based on the project's feasibility.
http://www.sunwater.com.au/current_projects_Bowen.htm#Community
(9) Conquest Mining Silver Hill Gold Mine
In 20011 Conquest Mining is scheduled to begin mining it's Silver Hill Gold Mine. The project is expected to bus in and out it's workforce and is only 90Km, or less than 1 hours drive from Bowen. The mine will have a workforce of about 160 people.
Seabreeze Estate
Queens Beach, Bowen
Site Address:
Access via Gilbert
& Strickland Streets
Queens Beach, Bowen, QLD
Contact Us
Post:
PO Box 686
Brentford Square VIC 3131
Phone: Peter Comben, Manager Seabreeze Estate 0408 342 729