The Port of Townsville has undergone a major transformation through its $251 million Channel Upgrade project, completed in 2025 as the largest infrastructure investment in the port’s 156-year history. This milestone represents the first stage of an ambitious $1.6 billion Port Expansion Project designed to position Townsville as northern Australia’s premier trade hub for the next three decades.
Channel Upgrade Project Delivers Expanded Capacity
The Channel Upgrade project successfully widened the shipping channel from 92 metres to 180 metres at the inshore end, tapering to 120 metres offshore, while creating 60 hectares of reclaimed land for future port development. This expansion now allows vessels up to 300 metres in length to safely access the port, ensuring Townsville remains competitive on global trade routes. The project was jointly funded by the Australian Government ($75 million), the Queensland Government, and Port of Townsville Limited as part of the Townsville City Deal signed in December 2016.
Construction involved building a 2.2-kilometre protective sea wall using over 375,000 tonnes of rock, followed by two years of capital dredging along the 14.9-kilometre shipping channel. The dredge material was used to create the 62-hectare reclamation area behind the rock wall, with the port investing $17 million in environmental monitoring and management programs to protect the Great Barrier Reef World Heritage Area.
Economic Impact and Job Creation
The Channel Upgrade project generated significant employment opportunities, with 120 full-time equivalent jobs during construction and supporting 245 full-time equivalent positions in Queensland after completion. The wider economic impact includes supporting 8,000 jobs in industries relying on the port and delivering $580 million in present value benefits. Larger vessels create improved economies of scale, ultimately offering cheaper imports and exports for northern Australia while reducing carbon emissions per tonne of cargo.
As of January 2026, the port has also completed capacity upgrades at its busiest berths, with more than 85 per cent of the work delivered locally, ensuring economic benefits flow directly to North Queensland workers and businesses.
Future Development: Stage 2 Outer Harbour
Planning is now advancing for Stage 2 of the Port Expansion Project, a $690 million Outer Harbour Development that will construct two additional common-user berths and create a 90-hectare reclamation area. Townsville Enterprise has called for $450 million in Federal Government investment to fund this stage, which could be delivered between 2026 and 2030. The development will include construction of seawalls, dredging of berth pockets and approaches, and trunk infrastructure to meet increasing demand from mining, agricultural, and renewable energy sectors.
Together, Stages 1 and 2 will provide the full 152-hectare footprint of the Townsville Port Expansion, allowing for all future berth developments and cementing North Queensland’s position as a global trade gateway.