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House of Assembly - Fifty-Fifth Parliament, First Session (55-1)
2022-11-17 Daily Xml
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Public Works Committee: East Grand Trunkway

Mr BROWN (Florey) (11:56): I move:

That the 11th report of the committee, entitled East Grand Trunkway, Stages 2A and 2B, be noted.

This public works proposal from Renewal SA aims to create six serviced industrial lots as an extension to the Grand Trunkway Estate in Gillman. The Grand Trunkway Estate project offers master-planned industrial allotments suitable for a range of potential uses in an emerging key industry area. The estate is located at the western edge of the northern economic corridor and has strong transport links to Outer Harbor, the interstate main rail line and the upgraded expressway system through the Port River Expressway.

In 2015, Renewal SA completed stage 1 of the development, comprising seven filled allotments totalling 7.54 hectares and one unfilled allotment of 5.24 hectares. In June 2020, Renewal SA terminated its agreement with Veolia Environmental Services to deliver the Veolia Energy Park proposal. That proposal was intended to supply development-ready industrial land to the market from the 2021 financial year onward under a private sector development model.

As a result of the terminated agreement, the planned land supply did not occur. Sales of developed lots averaged one allotment per year between the 2019 and 2021 financial years. However, in the 2022 financial year, four allotments were transacted and further demand for allotments was received. Given the limited land supply in the area, there is a need for Renewal SA to invest in the creation of serviced, development-ready land to meet private sector demand and to facilitate private sector investment in the area.

The proposed public works, labelled stages 2A and 2B, aim to provide four serviced and development-ready, and two serviced unfilled, allotments for release to the market in an area of high demand. In addition, the works will continue the construction of Newhaven Road, as part of the subdivision that could ultimately be extended to become a connector road between the Port River Expressway and Inner Harbor East. In addition to the stage 2 works, the design facilitates a future third stage, which will involve subdividing another 14 hectares to create an additional 10 allotments.

Totalling approximately 500 hectares, Renewal SA holds significant lands in the suburbs surrounding the stage 2 development area, including Gillman, Port Adelaide and Dry Creek. It is expected that the development of stage 2 and the future development of stage 3 will satisfy the foreseeable demand and spur future demand for industrial land in these suburbs. As a result, land values are expected to increase, which will improve the financial feasibility for the development of the surrounding land. This is expected to underpin a cost-effective program for the ongoing supply of industrial land to the market.

The creation of serviced allotments across stages 2A and 2B will include the placement of approximately 140,000 cubic metres of engineered allotment fill, the installation of a stormwater network with two pollutant traps, the creation of approximately 600 lineal metres of road, and service connections for each allotment, including sewer, water, electricity and stormwater. The total project capital cost for stages 2A and 2B is estimated to be $10.734 million, excluding GST. State government funding for the project was committed as part of the state budget for 2022-23.

Based upon the evidence considered and pursuant to section 12C of the Parliamentary Committees Act 1991, the Public Works Committee reports to parliament that it recommends the proposed public works.

Motion carried.

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