Lord Mayor’s Brisbane Economic Snapshot

Fourth quarter 2014 – key factsLocal Government Area Greater Brisbane

Value of the Greater Brisbane2 economy (June 2012)

Not applicable $135 billion4

Per capita income – Greater Brisbane (June 2012)

Not applicable $63,4324

Population (30 June 2013) 1,131,1911 2,171,314Population projections (30 June 2036)5

1,440,223 3,315,184

Employment (September 2014)

821,9003 1,152,300

Brisbane Economic SnapshotBrisbane continues to hold its position as a high employment growth city. With more than 22,000 additional jobs created over the past 12 months, Greater Brisbane delivered 39% of total employment growth generated in mainland state capital cities. Employment in the Brisbane Local Government Area (LGA) has grown by 2.9% over the past 12 months, reaching total employment of more than 821,000 people in September 2014. Unemployment in the Brisbane LGA is 5.2%, below national and state trend levels of 6% and 6.2% respectively6.

This quarter’s snapshot examines some of Brisbane’s key international trade strengths with a special focus on Australia TradeCoast (ATC). Both the Port of Brisbane and Brisbane Airport are vital infrastructure within ATC, making the area a key industrial precinct for Brisbane.

For the year to August 2014, total trade through the Port of Brisbane increased from 6.63 million tonnes to more than 13 million tonnes. This twofold increase in total trade was driven by strong import growth7. Brisbane Airport, Queensland’s largest and Australia’s third-busiest airport, hosted 21.8 million passengers in 2013. It also saw strong export growth of 7% in 2012-13, reaching 45,241 tonnes8.

Cruise shipping is a growing sector for Brisbane and brings increased value to the city with a number of cruise ships choosing Brisbane as their home port. This not only brings tourism to Brisbane but provides economic benefits as the cruise ships use local businesses to supply onboard provisions. Brisbane and Sydney are the only two ports in Australia that currently ‘home port’ cruise ships. In May 2014, Royal Caribbean International announced that Brisbane will be home to their ship, Legend of the Seas, for the 2015-16 summer cruise season. Introducing this ship to Brisbane is expected to increase inbound tourism, with an estimated economic impact of $25-30 million9.

In September 2014, Cruise Down Under released the 2013-14 economic impact assessment report for the Australian cruise ship industry. Overall, the industry is growing, with increased ship visits and increased passenger capacity. These factors have contributed to an increase in expenditure within local economies that host cruise ships. The direct expenditure for Brisbane has risen to almost $364 million, making the city second only to Sydney for direct expenditure10.

Australia TradeCoastAustralia TradeCoast (ATC) is one of Queensland’s most significant industrial areas, hosting a range of manufacturing, transport and warehousing, wholesaling and supporting businesses. ATC encompasses 8000 hectares of industrial and commercial land, and is one of the most highly concentrated industrial precincts in Australia.

A key strategic advantage of the area is its large holdings of industrial zoned land which is able to support the future expansion of Brisbane’s industrial economy. It is also highly accessible, with Brisbane Airport anchoring it on the northern side of the river and the Port of Brisbane located on the southern side.

According to Census (2011) journey to work estimates, there were 73,593 people working in the ATC area in 2011. Four industries employ approximately two-thirds of ATC workers (see Figure 2).

The ATC area is characterised by a strong specialisation in manufacturing, wholesale trade and transport, postal and warehousing. ATC is also characterised by a higher proportion of medium and large businesses than the Brisbane Local Government Area, based on both employment and annual turnover.

ATC is part of a series of complex local supply chains where businesses import through the port, manufacture or consolidate within ATC and then distribute products to major markets.

ATC has a range of attributes that make it attractive and highly valued by its tenants, importers and exporters.

The key advantages of an ATC business location are its accessibility to a large workforce, customer catchment and major freight or transport infrastructure. As a result of these advantages, two-thirds of ATC businesses reported increases in turnover over the past three years.

Figure 1: Map showing Australia TradeCoast (ATC) borders.

ATC is South East Queensland’s premier industrial area, hosting 32 industry precincts including a number of well-recognised businesses such as:

Caltex RefineriesHarcourtsArmaguardAustralia Post LogisticsAPA GroupTNT.

Map provided courtesy of Australia TradeCoast and Guerrilla Digital Agency Australia.

Visit www.australiatradecoast.com.au for information on each of the 32 precincts.

Port of BrisbaneThe Port of Brisbane is expanding rapidly. It is Queensland’s largest general cargo port handling 37.2 million tonnes of freight in the 2012-13 financial year, following 19 years of continual growth.

Brisbane’s trade consists of a range of containerised, bulk and break-bulk cargoes. The major commodities traded through the port include oil (crude 23% and refined 12%), coal exports (22%), iron, steel and agricultural products.

Figure 2: Top-employing industries within Australia TradeCoast.

Brisbane AirportAn estimated 20,000 people work on the airport site in 430 aviation and non-aviation related enterprises.

Brisbane Airport forecasts that its annual contribution to the Queensland economy will grow from $5.3 billion to $13.4 billion, in gross value added terms, by 2034. Annual passenger volumes are expected to more than double to nearly 50 million, while international freight volumes are also expected to more than double, to 200,000 tonnes per year.

The futureThe high Australian dollar has led to a transitional period for the Port of Brisbane. Although exports have remained steady, imports have surged. This has generated increased investment in transport and logistics activities, demonstrating that the port is capable of dealing with higher volumes of import trade. There is also potential for the import/export balance to have a stronger export focus if the Australian dollar returns to historic levels.

The ATC area is expected to become increasingly attractive as a location for businesses engaged in trade-related exporting or importing activities, due to its proximity to Brisbane Airport and the Port of Brisbane.

A strong cluster of industrial businesses has been progressively established in the ATC area. It is expected that the area will continue to support future investment as new players seek to capitalise on the advantages enjoyed by existing businesses.

ATC businesses anticipate improved economic conditions in the future. In a recent survey, more than 80% of these businesses reported that they expect their sales to grow over the next three years.

Business news

Lord Mayor’s Business Excellence WorkshopsBrisbane City Council is partnering with Queensland Leaders to deliver the Lord Mayor’s Business Excellence Workshop series. These workshops feature presentations from Queensland business leaders and give you the opportunity to ask questions and network with other local businesses in a small group setting.

Case studies are featured and topics include innovation, leadership, brand, structure and growth. Upcoming workshops will be held at:

Newnham Hotel, Upper Mount Gravatt, Wednesday 4 March 2015 Summit Events Centre, Paddington, Thursday 21 May 2015.

Workshop numbers are limited and registration is essential.

To register for upcoming workshops, visit www.brisbane.qld.gov.au/business or email economic_development@brisbane.qld.gov.au to receive business information and event updates.

References1Refers to the Brisbane City Council Local Government Area.2Greater Brisbane includes all of Brisbane City Council, Logan City Council, Redland City Council, Ipswich City Council and Moreton Bay Regional Council.3The LGA employment figure is a Brisbane City Council estimate of people working in Brisbane, which includes commuters living outside of the Brisbane LGA.4Source: Brisbane City Council estimate.5Figures sourced from Queensland Government Statistician’s Office medium series population projections by Local Government Area (March 2014). Source (all other): Australian Bureau of Statistics.6All employment figures in paragraph one, page two of this document, are Brisbane City Council estimates based on Australian Bureau of Statistics, Labour Force, Australia, cat. no. 6291.0.55.001, September, 2014.7Port of Brisbane, Monthly Trade Report August 2014, viewed 29 October 2014, www.portbris.com.au/tradelogistics/trade-statistics8Brisbane Airport Corporation, BAC Holdings Limited Annual Report 2013, viewed 29 October 2014, www.bne.com.au/publications

9Royal Caribbean International, Royal Caribbean International to base its first ship in Brisbane, 7 May 2014, viewed 29 October 2014, www.royalcaribbean.com.au/content/en_OC_reg/pdf/legend-of-the-seas-brisbane.pdf10Cruise Down Under, Economic Impact Assessment of the Cruise Shipping Industry in Australia, 2013-14, Executive Summary, Cruise Down Under, September 2014, viewed 29 October 2014, www.cruisedownunder.com/sites/default/files/cdu_cruise_shipping_eia_2013-14_executive_summary_0.pdf