Sydney's Southern Enterprise Corridor: A Battle for Space and Economic Power
Sydney's southern enterprise corridor, a stretch of prime land from the southern end of the city's CBD to the airport and Port Botany, is a quiet economic giant, generating $33 billion for the state's economy each year. This area, which includes the Tech Central precinct and other innovation hubs, is under increasing pressure from competing development, illustrating the growing friction between jobs and housing across the city. In my opinion, this is a fascinating and critical issue, as it highlights the delicate balance between economic growth and urban development.
The corridor's economic value is higher than that of similar areas in Adelaide and Parramatta, making it a crucial engine room for the city's economy. However, the dominance of the industrial sector in the area is waning, with a 17% drop in transport and logistics jobs between 2016 and 2021. This raises a deeper question: how can we balance the need for housing with the preservation of employment and industrial zones?
One thing that immediately stands out is the tension between the need for housing and the preservation of industrial lands. The NSW government is facing a dilemma as it seeks to balance the retention of employment and industrial zones with its uphill battle to deliver 377,000 homes by mid-2029. Personally, I think this is a complex issue that requires a nuanced approach, as building over the city's strategically significant industrial lands could cause more harm than good.
The southern corridor includes densely populated residential precincts and suburbs close to heavy rail or metro train stations, designated for greater density. However, the industrial sector's dominance of the area is waning, which could have significant implications for the city's economy. Sydney Airport chief executive Scott Charlton warns that pushing freight and industry away from the port and airport could lead to a drop in efficiency, rising costs, and harder-to-run supply chains.
From my perspective, this highlights the importance of finding a balance between economic growth and urban development. We need to understand the needs of businesses and industries that are key to our future economic growth, and have a clear economic strategy for Sydney's role in Australia's long-term prosperity. The NSW government's long-term draft Sydney Plan and industrial lands policy, as well as its innovation blueprint, are steps in the right direction, but we need to work out how these two marry up.
In my opinion, the key to success lies in finding a balance between economic growth and urban development. We need to support businesses and industries that are key to our future economic growth, while also ensuring that we don't solve one problem by causing another. The southern enterprise corridor is a prime example of the challenges we face, and it's crucial that we get the balance right across the whole city.
