Transforming from Coal to Crops
Michael Sharpe
Chief Executive Officer - AUKUS Forum - National Security; Infrastructure; Nuclear Industry; Engineering; Family Office; Agtech; Transport; Agriculture
Amidst the tectonic shifts in the global energy landscape and plummeting demand for coal, the Australian state of New South Wales (NSW) finds itself at a critical juncture. The very bedrock of its economic engine is under threat as coal mining royalties are forecast to halve by 2061. This impending fiscal challenge should ignite a nationwide quest for new economic horizons, a redefining of Australia's destiny. As the old adage goes, with crisis comes opportunity. The burning question now is: How can Australia pivot towards sustained prosperity, enriching its communities and securing its economic future?
The NSW Intergenerational Report paints a sobering picture—a rapid decline in coal production within two decades. This grim forecast, compounded by an aging population and waning global coal demand, foretells slower revenue growth for the state. The state's reliance on coal mining royalties as the lifeblood of its progress has fuelled essential projects—hospitals, schools, and community welfare initiatives. Yet, with the imminent closure of 17 mines in the Hunter Valley over the next two decades, including the untimely planned early closing of BHP's Mount Arthur mine, urgency mounts to cultivate other revenue streams.
From the ashes of coal emerges the phoenix of possibility—the transformation of mining-centred communities into thriving agricultural hubs. This reimagining hinges on technology's prowess, rejuvenated infrastructure, and a steadfast commitment to sustainability. Through this time of change, regions that once extracted the earth's riches can aim to cultivate its bounty, fostering agricultural innovation and export opportunities. Such a change, if executed effectively, could not only uplift the national economy but also fortify global food security.
In a visionary move, a high-speed rail network for Australia would become a transformative force in a pursuit for our nation to be Asia's Food Bowl. The Inland Rail project, spanning from Brisbane to Melbourne, is set to carve an inland arc through regional communities including Moree, Parkes, and the Riverina. Expanding the network to incorporate high speed freight to the Inland Rail via a route stretching from the Southern NSW Riverina to Canberra, Wollongong, Sydney, Newcastle, and back to Inland Rail in North West NSW would build opportunity. This ambitious network, connecting regional Australia with major cities and ports, could reshape the nation's economic landscape.
Recently, a significant step was taken toward realising a high speed rail vision as the Board of the High Speed Rail Authority (HSRA) convened in Newcastle for the first time. This development comes on the heels of detailed briefings between the Board and New South Wales transport officials, underscoring the strategic approach taken in crafting this network.?
With its operations officially commencing on June 13, 2023, the HSRA is tasked with leading, planning, developing, coordinating, overseeing, and monitoring the construction and operation of Australia's high-speed rail network.
The potential of high-speed rail is monumental. Revolutionising interstate travel along the east coast, it offers an agile alternative for traversing between cities and regional hubs. This advancement not only supports sustainable settlement patterns but also generates economic benefits that extend far beyond major capitals' confines. Catherine King, the Federal Minister for Infrastructure, Transport, Regional Development, and Local Government, emphasises its role as a catalyst for improving lives and driving carbon reduction efforts.
Yet, the transformation from coal to crops doesn't merely reside in the east. Australia's broader agricultural potential emerges into focus, with Western Australia and the Northern Territory poised for significant growth, thanks to projects like the expansion of the Ord River System. The synergy between the diverse Ord River Irrigated Area and the established northern pastoral sector highlights the potential for unprecedented progress.?
A recently launched Cropping Enabled Cattle project in the Ord region seeks to harness irrigated crops like cotton meal and seed, maize, and other grass silage to bolster local cattle finishing systems. Furthermore, innovative strategies, including testing a sterile variety of the fodder tree, leucaena, known to reduce methane emissions from grazing cattle, underscore the comprehensive approach undertaken.
Collaboration is the linchpin of this transformative journey. The project's commitment to building research capacity in regional Western Australia through new roles and joint PhD appointments reflects a collaborative ethos. The goal is to diversify pastoral systems sustainably and unlock the potential of an expanded Ord River System, rippling benefits across Northern Australia.
In this dynamic landscape, the prospect of developing mining communities into thriving agricultural powerhouses surges to the forefront. By harnessing advanced technologies, revitalising infrastructure, and embracing sustainable practices, these regions can evolve into vibrant engines of agricultural development and export growth. The integration of a high-speed freight rail network stands as a cornerstone of Australia's agricultural revolution.?
This rail network's far-reaching implications span beyond agricultural exports, playing a pivotal role in regional development by streamlining resource imports and propelling economic growth and job creation.
Regional Australia could build a remarkable agricultural renaissance. The fertile lands have the potential to cultivate an array of crops catering not just to domestic needs but also to Asia's burgeoning demand. Moreover, water security and efficient irrigation practices are the bedrock of this transformation. Sustainable water management strategies, including water recycling and precision irrigation, are critical in optimizing water use and bolstering resilience against climate vagaries.
The success story of Australia's cotton industry illustrates this transformation's potential. By boosting cotton production and enhancing value through advanced manufacturing, Australia can tap into the global market for high-quality textiles, fostering increased revenue and job opportunities. Similarly, record-high wheat production projections underscore growth potential in grain exports. With Asia's rapid expansion, the demand for Australian wheat offers a dual benefit—revenue generation and local job support.
In addition to economic prospects, the allure of affordable housing and burgeoning career opportunities in regional areas has emerged as a powerful magnet for those seeking an improved work-life balance. The transformation of once-mining-centric communities into innovation hubs for advanced manufacturing and infrastructure development would help drive a compelling alternative to the perennial bustle of urban life. Regional living offers a tantalising prospect that urban dwellers often yearn for: affordable housing. Escaping the soaring real estate prices and congested cityscapes, individuals and families can find solace in the tranquil expanses of regional towns. With the transformation of these communities into centres of innovation, the appeal of affordable and spacious housing is heightened, providing a haven for those tired of the urban housing crunch.
The shift from mining to agricultural innovation would drive a new wave of career prospects that would resonate with both recent graduates and seasoned professionals. Innovation hubs would catalyse a diverse range of industries, from technology and manufacturing to research and development. These regions could become fertile ground for job seekers and entrepreneurs eager to contribute to the growth and prosperity of their communities. The symbiotic relationship between innovation and economic expansion fosters an environment ripe with opportunities, attracting a new wave of skilled professionals.
A Sense of Ownership and Contribution - The transformation of these regions not only offers an escape from urban congestion but also fosters a sense of ownership and contribution. As innovation thrives, residents become more than mere inhabitants; they become stakeholders in the evolution of their communities. Participation in shaping the transformation would develop a sense of pride and responsibility, knitting a tight-knit community where collaboration and common purpose reign.
The shift towards innovation and advanced manufacturing would breathe new life into the cultural fabric of these regions. The influx of diverse professionals and the infusion of fresh ideas can help pave the way for a cultural renaissance. Art, music, dining experiences, and social activities flourish in this atmosphere of transformation, enriching the quality of life for residents and visitors alike. As the balance between work and personal life becomes increasingly crucial, regional living provides a unique opportunity.?
With shorter commutes, cleaner environments, and an emphasis on community, these transformed communities would enable residents to enjoy a more holistic lifestyle. The harmony between professional aspirations and personal well-being finds fertile ground in the vision for these rejuvenated hubs.
The shift from mining-centric communities to innovation hubs for advanced manufacturing and infrastructure development will spark a renaissance in regional living. Affordable housing, thriving career opportunities, relief from urban congestion, a sense of ownership, cultural revitalisation, and enhanced work-life balance collectively position these regions as alluring alternatives to the urban grind.?
If Australia were to embark on this transformative journey, it offers not just economic revitalisation, but also an opportunity for individuals and families to embrace a lifestyle that seamlessly blends professional growth with personal contentment. The reimagined communities beckon, inviting all who seek to redefine their lives within the embrace of innovation and progress. Furthermore, honouring Indigenous contributions through collaboration would enhance environmental, social, and economic outcomes, creating a more inclusive and prosperous future.
Central to this transformation is the integration of a high-speed rail link connecting these regions to Darwin for freight. This strategic move could revolutionise export opportunities, by creating a direct connection to Asian markets via Darwin's port. Such a rail link would help slash transportation costs and emissions while fostering economic expansion and job creation.
The vision of transforming Australian regions into agricultural juggernauts hinges on innovation, sustainability, and strategic partnerships. This ambitious shift holds the potential to not only fortify the national economy but also position Australia as a critical player in the global food market. The moment for this transformation has arrived, and by embracing this vision, Australia charts a course towards prosperity that reverberates across generations. The outcome is not just economic, but also a legacy of sustainable growth, supporting local communities, and casting Australia as a pivotal player in global food security.
Michael Sharpe - August 2023
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