Port Kembla Rezoning Clears Way for 200ha Business Park

A 200ha rezoning in Wollongong has been approved, paving the way for a new economic zone the size of the Sydney CBD.

The former BlueScope Port Kembla Steelworks facility on Five Islands Road, about 5km south of the Wollongong CBD, has completed a state-assessed rezoning proposal that began in April.

Under the approved plan, the steelworks’ 10,000 direct and indirect employees will be joined by another 20,000 jobs in commercial, industrial and education sectors.

The local government area supports about 102,000 jobs, and the Illawarra-Shoalhaven region is the fastest-growing population in the state, adding about 1.5 per cent a year to its 221,000 residents.

With the deepest of NSW’s three working ports, as well as private and public rail access, the new hub is also expected to become a logistics hub, according to the government.

Previous land uses on the site were restricted to heavy industry and private recreation, but 90 per cent of the 209 submissions received on the exhibition were in support of broadening allowable uses.

The steelworks alone already contributes 1 per cent of the NSW gross state product. BlueScope will continue to operate facilities at the port, with a plan to move to hydrogen-enabled green steel production and a 2050 net zero target.

The rezoning comes amid a flurry of master planning proposals for Wollongong and the region, led by state and local government.

Currently on exhibition until February 9 is the draft Illawarra Shoalhaven Strategic Regional Integrated Transport Plan (SRITP). It proposes a comprehensive approach to strategic planning for road and freight infrastructure and use, as well as public transport.

▲ Land at the Port Kembla site will now be open to a broad range of enterprise uses.

Property Council of Australia Illawarra Shoalhaven regional director Matthew Wales said that the rezoning was welcomed and that they looked forward to infrastructure to match new development activity.

“Capital follows confidence, and finalising this rezoning tells investors that NSW is prepared to back big, complex, job-creating projects with clear timelines and a credible pathway through the planning system,” Wales said.

“Transport, housing and jobs must move in step. The Port Kembla transformation and the new transport plan now need to be hard-wired together so that road, rail and port upgrades line up with where the homes and jobs will happen across the Illawarra and Shoalhaven.”

In November, the Wollongong council also exhibited its draft economic development strategy for 2025-35, with the Port Kembla transformation given the top priority among projects for the region.

The strategy also highlighted the CBD’s transformation, including a 50 per cent uplift in commercial space delivered since 2020, 30,000sq m of new A-grade offices and another 40,000sq m in the development pipeline. 

The council is also exploring other economic development opportunities at the Port Kembla facilities, including a potential cruise terminal or submarine base, as well as support for ethanol export, a container terminal or offshore wind farms.