Territory Stories

Budget 2013/14 Northern Territory Economy



Budget 2013/14 Northern Territory Economy

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Tabled paper 295


Tabled papers for 12th Assembly 2012 - 2016; Tabled papers; ParliamentNT




Tabled by David Tollner


Made available by the Legislative Assembly of the Northern Territory under Standing Order 240. Where copyright subsists with a third party it remains with the original owner and permission may be required to reuse the material.




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Department of the Treasury and Finance

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184 Transport and Communication 2013-14 Budget International travel is sensitive to exchange rates and conditions in key tourism markets. With the Australian dollar at historic highs and continued economic weakness in tourism markets, the flow of international visitors to the Territory from key source markets is likely to remain subdued. AliceSprings passenger numbers are particularly sensitive to these factors, as a significant proportion of passengers are tourists. The re-establishment of two TigerAirways services from Sydney and Melbourne to AliceSprings, along with a new Jetstar service to Yulara, will diversify the choice of travel to Central Australia, however, demand is ultimately dependent on market forces and global economic conditions. International passenger numbers are expected to grow as the number of services from DarwinInternationalAirport increase. Darwins close proximity to major travel destinations in SouthEastAsia will make the airport an important link in regional travel. AirAsia has announced it will recommence the Darwin to Bali service from 1 July 2013, which will operate four times weekly and increase capacity at Darwin International Airport by 1500seatsper week. DarwinInternationalAirport can also expect an increase in interstate passenger numbers attributable to fly-in fly-out workers engaged in the resources sector and the construction phase of the Ichthysproject. The transport sector will be a major beneficiary of increasing output from the mining, construction and manufacturing sectors in the forward estimates period between 2013-14 and 2016-17. Construction activity is forecast to peak in 2014-15 primarily driven by the development of the Ichthys project and gas pipeline to Gove before declining to long term trend levels in 2016-17 (see Chapter 11: Construction). Mining production is expected to rise significantly over the forward estimate period due to increasing zinc and gold production, which are expected to utilise rail and sea transport to transfer the minerals to final destinations (see Chapter 10: Mining and Manufacturing). Airline passenger traffic to and from the Territory is also expected to grow significantly over this period, mainly attributable to increasing numbers of business travellers and workers associated with the major projects, particularly the Ichthys project, which will use a high number of workers employed on a fly-in fly-out basis. As pipeline transport falls under the transport classification for the purposes of the ABS, it is expected that the construction and use of the pipeline would have a substantial impact on the transport sector in the Territory. In February 2013, the Territory Government announced that it would supply gas to the Gove alumina refinery for its operations. Gas infrastructure in the Territory is expected to be expanded through the construction of a pipeline from Katherine to Gove, a distance of 600kilometres. The pipeline would transfer gas extracted by Eni Australia at the Blacktip Field in the BonaparteBasin, currently supplied to Power and Water Corporation. The total value of construction in the Territory is estimated to be $600million for the pipeline and $150 million of work upgrading the refinery in Gove and installing a plant at Wadeye to facilitate the transfer of gas. The project is expected to commence in 2013-14. Pipeline to Gove

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