Industry leaders have declared 2025 a definitive 'turning point' for the Illawarra-Shoalhaven region, with the revitalisation of Port Kembla driving unprecedented momentum for economic growth and job creation.
Port Kembla Rezoning Unlocks Thousands of Future Jobs
According to Matthew Wales, the NSW Illawarra Shoalhaven Regional Director of the Property Council of Australia, a series of critical shifts last year moved key projects from the drawing board into active development. The most significant was the speedy final rezoning of more than 200 hectares at Port Kembla.
"For a region facing chronic industrial land shortages, this is the first major step in rebuilding our economic engine," Mr Wales said. He emphasised that this move unlocks the potential for thousands of long-term jobs in advanced manufacturing, clean energy, technology, and logistics sectors.
The clean energy transition, particularly hydrogen activity linked to the local steelworks, is poised to deliver a major employment boost. "We now have the bones of a locally anchored energy industry that will keep jobs here in the region," Wales stated, noting that Port Kembla provides a crucial physical base for new energy and technology businesses to establish operations.
Transport Plan and Housing Challenges Define the Path Forward
Another pivotal development highlighted was the draft Illawarra Shoalhaven Strategic Regional Integrated Transport Plan. Wales described it as an important reset that finally connects the planning for transport, housing, and employment.
With the opening of the Western Sydney International Airport later this year, the pressure is on to ensure the Illawarra becomes the premier coastal connection. "The real test for the new transport plan will be whether it delivers funded, staged upgrades explicitly tied to Port Kembla and to the housing and employment corridors that run from Nowra through Shellharbour and Wollongong," he cautioned.
He warned that if the link to the new airport remains vague or unfunded, the region will "simply watch opportunities pass us by on the M7."
However, housing supply continues to lag behind demand. Wales stressed the urgent need to speed up housing approvals and achieve a better mix of dwelling types, from well-located apartments to gentle density in established suburbs. This diversity is essential to allow residents to move through different life stages without being forced to leave the region.
A Crossroads for the Illawarra's Economic Future
Despite the positive momentum, challenges persist. Wales pointed to a continuing shortage of industrial land outside of Port Kembla, which risks diverting investment elsewhere. Attracting a skilled workforce also remains a key hurdle.
He framed 2025 as the year the Illawarra-Shoalhaven region decisively turned a corner. Wollongong's refreshed Economic Development Strategy, which charts a path for jobs in health, innovation, and advanced manufacturing, further supports this optimistic outlook.
Yet, the message from industry is clear: this momentum must be seized. "Drift, and we could waste the strongest position the Illawarra-Shoalhaven has held in a generation," Mr Wales concluded, setting the stakes for the region's future trajectory.
