The Queensland government is prepared to commit $75 million to the port of Townsville's expansion project. The expansion project, known as the Townsville Channel Capacity Upgrade (TCCU) would allow for larger cruise ships to enter the port, and lower freight costs for the producers and consumers of Northern Queensland. According to Premier Annastacia Palaszczuk, the project would boost tourism and the North Queensland economy in a significant way.

The project is still subject Federal Government approval and finalisation of environmental impact statements and business case assessments, but once approved the Queensland Premier hopes to gain matching commitment from the Turnbull government.

“The Townsville port is northern Australia’s primary container, general cargo and automotive port. The port handles around 10 million tonnes of product worth over AUD 10 billion each year, and services 70% of the population in northern Australia,” Palaszczuk said.

Ports Minister Mark Bailey said that this project “is one of a number of significant initiatives that will cement the port of Townsville as Northern Australia’s premier trade and logistics hub, including the Palaszczuk government’s acceleration of the AUD 55 million berth 4 upgrade, which will double the port’s container trade capacity.”