Rocks, crocs, minerals and tourists – the Territory is also set to become Australia’s new link with Asia.

	Area:	1,349,130 sq km
	Population:	197,600
	as % of total:	1.0%
	Capital:	Darwin (population 90,000)
	Gross State Product:	A$7.79bn (2000/2001)
	as % of total:	1.2%
	State Final Demand:	A$7.77bn
	SFD growth:	10.6% (2001)
	Credit rating (S&P):	Aa2
	Average weekly earnings:	A$688.90 (08/2001)
	Unemployment rate:	5.6%

The Territory’s strong underlying growth in recent years has been the result of a robust local economy backed up by thriving international trade, industrial growth and a steadily rising population.

Reported growth in 2000/2001 was 4.5%, mild compared with some recent years, although the latest State Final Demand figures show 2001 growth of 10.6%. The high growth includes defence force expansion and the significant boost associated with peak production from the Laminaria/Corallina oil field in the Timor Sea. A services trade surplus reflects strength in tourism, and expenditure by visiting defence personnel.

Meanwhile there are upcoming opportunities from the Adelaide-to-Darwin railway project, Darwin’s new East Arm port, and gas development in the Timor Sea – although there are currently questions over the planned Phillips LNG gas plant in Darwin.

Territory development
In 2001, the Territory gained its first new government since 1978. New Chief Minister Clare Martin identifies the Territory’s vibrant, diverse and energetic population, strong supply of natural resources and strategic location as key advantages, especially since, “unlike southern jurisdictions the Territory does not have a highly developed or diverse economic base. We are playing catch up. The advantage of this is that we are in a position to build an industry base that plays to our strengths and is suited to modern economic conditions.”

A new Office of Territory Development has been established under the Chief Minister’s department, led by ‘Investment Ambassador’ Bob Collins. The Office of Territory Development will play three key roles in driving economic development:

• strategic leadership to establish economic direction;
  
• investment attraction; and
  
• major project facilitation.

Growing population
The Northern Territory is one of Australia’s fastest growing areas – Darwin enjoys the second highest population growth in Australia at 10.1% (Brisbane 10.7%, Perth 9.5%).

Of its relatively small population of nearly 200,000, just over half live in and around Darwin and its satellite city of Palmerston. People are attracted to the Territory for employment, career advancement or by growth figures for business start-ups. Young people are especially attracted; the Territory provides the best employment rates in the nation for youth, and offers professional opportunities unmatched anywhere else in Australia.

The environment itself attracts a permanent population as much as tourists. Darwin’s CBD is just minutes away from lush, harbourside Charles Darwin National Park and the wallabies that live at East Point Reserve.

Logistical advantages
Logistical advantages are key to the Territory’s growth, with infrastructure developments including Darwin’s new port, energy projects and the long-awaited north-south rail link.
Darwin is the only port of any size along the whole Australian northern coast and boasts a natural harbour seven times the size of Sydney Harbour. It is often referred to as Australia’s Asian gateway, well positioned halfway between markets in southern Asia and the populous south-eastern coastal strip of the Australian continent.

The Port of Darwin, on the southern shore of the Beagle Gulf in the Timor Sea, encompasses approximately 1000km2 of open water, with deep shipping channels. Darwin City has ready access to the city port, with the central business district less than a kilometre away. Nearby at Frances Bay, an extensive complex for the fishing industry has been developed and includes a tide-free mooring basin to serve both fishing, small commercial and recreational vessels.

In the longer term, the East Arm development of the port is expected to become the nucleus of a thriving industrial centre, with Darwin an increasingly significant regional transport centre well situated to facilitate trade between Australia and the countries of South-East Asia. The East Arm project has been designed to incorporate the AustralAsia Railway, through which a powerful combination of sea and land transport via Darwin will offer substantial reductions in delivery times for cargo between South-east Asia and Australia’s southern states. The A$1.3bn Australasia Railway is the largest infrastructure project ever undertaken in the Territory, and is one of Australia’s largest ever transport infrastructure projects. The railway’s construction alone will have an immediate economic impact. The 1410km project will link with the Tarcoola to Alice Springs line, and is expected to be completed by early 2004.

The city’s airport, meanwhile, has regular services to major South-east Asian hubs and to all Australian states.

Defence growth
The expansion of the defence force has been a significant factor underpinning the healthy growth in the Territory’s onshore economy. Full-time personnel stationed in the Northern Territory have increased by more than 50% in the last five years. The economic benefits related to the defence force build-up come not only in defence supplies, foodstuffs, fuelling, docking, small-scale engineering and other technology-related support for the defence services, but in expenditure by personnel and their dependants, which also provides a major ongoing boost to the local economy. The Territory Government operates a Defence Support Unit to attract investment in expanded capability to service a wide range of defence requirements.

Oil and gas
World-scale gas resources lie just to Darwin’s north in the Timor Sea. From 2001 to 2006, more than 69 exploration wells worth A$762m have been planned in the Timor Sea fields, and the success rate so far has been 28%. Major investment plans for an LNG processing plant in Darwin may, however, fail to materialise as hoped, after Woodside’s endorsement of Shell’s alternative ‘floating’ LNG processing plant.

The value of Territory merchandise exports increased by 74% during 2000/01, due almost entirely to an increase in oil exports, with the Laminaria/Corallina oil fields in their first full year of production in 2001.

Mining
The mining industry remains the single most significant contributor to Gross State Product (17.7%). The Territory is yielding world-class deposits of bauxite, uranium, zinc, lead, and manganese, as well as gold, silver, iron ore and diamonds. Much of the Territory remains unexplored, and a A$16m five-year government Exploration Initiative is providing quality geoscientific data free of charge to industry.

Rural industries
Rural industries and fisheries account for 3.1% of GSP, and showed a 6.1% increase in 2000. They are vital in regional areas of the Northern Territory, providing economic impetus and employment opportunities. Rural industries include cattle, other livestock (including buffaloes, crocodiles, poultry and camels), horticulture (fruit, vegetables, nursery and cut flowers) and cropping (field crops, hay and seeds).

Live cattle exports are forecast to grow by 5.5% to about 250,000 in 2001, while fishing includes the harvesting of wildstock and aquaculture.

Several areas have potential for further development and include intensive horticulture, agriculture, livestock and aquaculture. Specialised cool-chain management systems and efficient supply-chain logistics offer additional investment opportunities.

Tourism
Tourism accounts for 5.6% of Territory GSP, the highest of any state or territory. Growth was strongest for overseas tourist expenditure, while domestic tourist expenditure increased, albeit at a lower rate.

The Northern Territory has always looked north for economic growth potential, and key opportunities exist for development of trade and investment between the Territory and Asia, where the strength of UK involvement may provide the possibility of joint development. The Northern Territory identifies various economic drivers it expects to underpin future growth:

• the AustralAsia railway;
  
• mining;
  
• agribusiness;
  
• defence support;
  
• tourism; and
  
• growth as a supply and service centre.

For further information, visit:
Northern Territory Government: www.nt.gov.au

Office of Territory Development:
www.otd.nt.gov.au

Other websites:
Destination Northern Territory: www.nttc.com.au

Office of Resource Development: www.nt.gov.au/ord

Department of Industries and Business: www.nt.gov.au/dib

Convention Bureau:
www.ntconventions.com.au