The population of Townsville has grown by 2.5 percent per annum over the past five years and projections are that a rate of increase of over 2 percent will continue for the next 20 years.

According to the Queensland Government’s Planning and Forecasting Information Unit, this once sleepy tropical outpost is set to reach a population of 200,000 by 2026.

But it won’t be all due to the defence forces’ build up in the area, although that will be significant. The army’s 3rd Battalion, Royal Australian Regiment, consisting of 1500 soldiers (along with their families), is due to relocate from Sydney to Lavarack Barracks in 2008.

And a $20 million upgrade of the Townsville’s RAAF base has also been announced to handle operations of the new MR-H 90 helicopters.

Gross Regional Product for the northern region grew 12 percent from 2004 to 2005 reaching $10.2 billion, with Townsville standing out as the trade centre for the vast North Queensland minerals province.

Townsville is home to three major metal refineries. The QNI Nickel Refinery, owned by BHP Billiton, is in the final stages of a US$450 million extension project due for completion in
early 2007.

In addition, Townsville has been short listed for the establishment of an alumina refinery by Chinese aluminium producer Chalco. The refinery would draw on raw product from the Arukan bauxite deposit in Cape York.

That development alone would require a capital investment of some $2.1 billion and generate something in the order of 11,500 full time jobs.

So, it is not surprising that Price Waterhouse’s Business Confidence Index for Townsville remains at record highs.