After seeing the region’s annual rainfall drench Townsville and North Queensland in just 10 days, the business community is grappling with the financial impacts, with early estimates suggesting the economic loss of the flooding event is at least $257M. This disaster has renewed urgent calls for government investment in critical infrastructure projects to ensure the region can “Build Back Better.”
Townsville Enterprise CEO Claudia Brumme-Smith highlighted the economic impact and what it means for North Queensland businesses.
“We have personally spoken with over 150 businesses across North Queensland, and the message is clear—this event has caused widespread financial strain across multiple industries and businesses of all sizes,” Ms Brumme-Smith said.
“The construction industry has been hit with hundreds of thousands of dollars in clean-up costs, project delays, and a month of lost productivity. Our manufacturers have been unable to receive raw materials from the Northwest due to prolonged road closures. Meanwhile, our tourism sector is forecasting $40 million in cancellations, with leisure visitors not expected to return until after Easter.”
“North Queensland is the economic powerhouse of this state and nation. We are a strategic hub for defence, manufacturing, and agriculture. Yet, once again, the flooding event has exposed the vulnerability of our critical supply chain networks. The Bruce Highway and Flinders Highway must be rebuilt to higher standards to ensure they can withstand future extreme weather events.”
“We also need to prioritise the Port Expansion Project to secure North Queensland’s role in global trade, invest in housing solutions to address the growing crisis, and upgrade infrastructure on Magnetic Island, which has long struggled with outdated sewage and road systems. The devastation in the north has further highlighted the need for projects like the Paluma to Wallaman Trail, which would not only restore but revitalise the region.”
“We’ve heard all levels of government commit to ‘building back better’—now is the time to see that commitment turned into action.”
Charters Towers Mayor Cr Liz Schmidt said that road closures from the recent flooding event had caused major disruption for the region and stressed the importance of resilient infrastructure.
“The Flinders Highway and Gregory Development Road are critical alternatives when the Bruce Highway is cut off, ensuring supply chains remain operational and communities stay connected. This event has proven how vulnerable our highways are, with serious consequences for businesses, freight, and national productivity,” said Cr Schmidt.
“Improving flood resilience on the western highway into and out of Charters Towers would ensure a reliable freight route when access to the Bruce Highway is cut. Beyond road infrastructure, securing viable access to the Macrossan rail bridge is also critical for efficient east-west freight movement across the Burdekin.”
“Manufacturing is vital to Australia’s economic future. If we want to secure sovereign manufacturing and production, we need the right environment—this includes resilient road infrastructure.”
Cameron Wright, General Manager from Morgan Transport Group, North Queensland said that Townsville acts as a logistics hub and road infrastructure is critical.
“Put simply, no freight in means no freight out,” said Mr Wright.
“When the Flinders Highway is compromised, Townsville’s ability to function as a regional logistics hub is severely impacted, disrupting essential supply chains for food, medical supplies, and other critical goods.”
“The Flinders Highway is the backbone of North Queensland’s transport network, and the Bruce Highway must also receive long-overdue improvements to prevent continuous disruptions.”
“Without urgent investment and ongoing maintenance, these essential freight routes will continue to deteriorate, threatening the stability of regional economies and the reliability of supply chains.”
Damien Scott, General Manager from Townsville Marine Logistics saw firsthand the impacts of recent road closures.
“11 Trucks this week have been held up with over 1000 tons of sulphuric acid. Although this severely affects our operation, a thought needs to be spared to the flow on effects this will have to our customers that are major resource producers and how it will affect their production capacity,” says Mr Scott.
Glen Maidment from Maidment Group emphasised the urgent need for housing investment.
“Our construction business has been forced to stop work since mid-January due to weather delays, costing us more than $100,000 in wages, clean-up and remediation,” said Mr Maidment.
“North Queensland was already facing a housing crisis, and with hundreds of homes now flood-affected, we must focus on future-proofing. This means investing in new housing developments outside flood-prone areas and improving density in the city.”
“The Queensland Government’s $2b infrastructure fund, of which they have committed $1b to the regions, holds the key. If Townsville is able to secure its fair share of this fund, we can unlock access to 14,000 new homes sites and help support our growing economy. That is what building back better looks like.”
Townsville Enterprise’s “Unlock the North” Priorities
Townsville Enterprise industry members have called for the fast-tracking of Unlock the North Priorities, highlighting four key investment ready projects that will help North Queensland build back better.
- Road and Rail Investment:
- Immediate delivery of funding commitments for the Bruce Highway in the North to rebuild and enhance connectivity and improve flood resilience.
- The same 80:20 funding commitment is needed for the Flinders Highway and improvements to the Macrossan rail bridge —this is essential, with more than $23.3 billion of investment coming to the North Queensland and Northwest in the next decade.
- Housing:
- Delivery of essential trunk infrastructure—including roads, sewer, and water systems—to support critical housing development. North Queensland’s future prosperity depends on unlocking new housing solutions that will help address workforce shortages and ensure flood-resilient communities.
- $159 million for the Townsville North Queensland housing package to be invested into the delivery of essential trunk infrastructure that will fast track and unlock the delivery of up to 14,900 residential lots.
- Port Expansion Project:
- The Port of Townsville is Australia’s largest exporter of base minerals, sugar, and fertiliser, and Northern Australia’s largest container and automotive port. Its trade volume is expected to triple to 30 million tonnes per annum by 2050. Investing in the Port will safeguard sovereign manufacturing, ensuring secure trade routes even in the face of natural disasters.
- $450 million Federal Government investment is required to fund the Townsville Port Expansion- Outer Harbour Development through the construction of 2 x common-user berths and infrastructure.
- Tourism Investment:
- Investment into the Magnetic Island Tourism Masterplan
- $46.9 million for the Paluma to Wallaman Trail unlocking an incredible 127km trail embedded in first nations storytelling.
- Investment into the Palm Island Masterplan to strengthen first nations tourism and provide additional accommodation options on the island.
“Now is the time for all levels of government to act on their commitment to build back better. North Queensland is the backbone of this nation’s economy, and we need the infrastructure to match,” Ms Brumme-Smith said.
