NSW Ports has welcomed the Greater Cities Commission's (GCC) recommendation to safeguard industrial lands after a comprehensive review of the State's Industrial Lands Policy.
"The preservation of Sydney's industrial lands is essential to Greater Sydney's productivity and prosperity for generations to come," said NSW Ports CEO Marika Calfas.
"These lands are vital to the state's supply chains and enable the efficient delivery of the goods required by the people and businesses of NSW from Port Botany. The NSW community relies heavily on the availability of good quality industrial land supply within its population centres to keep supply chain costs low and businesses competitive."
The GCC's findings follow an almost 12-month review process in which industry and businesses across a range of sectors were consulted; more than 50 submissions were received; and online surveys were published to gain input from stakeholders and organisations.
"The GCC's protections are important, as the years preceding this policy saw significant erosion of Sydney's industrial lands due to residential and commercial development," Ms Calfas said.
Industrial and urban services lands now represent only 4 per cent of the total land in Eastern Sydney and about 8 per cent of land across Greater Sydney. Sydney also has 12 per cent less freight and logistics-zoned land than Melbourne.
And, according to CBRE, data to be released next month will show Sydney's industrial vacancy rate at just 0.3 per cent, the lowest of any city in the world.
Ms Calfas said the State's freight task continues to grow alongside its population and e-commerce trade.
"Further loss of industrial land will increase costs to consumers and businesses through increased travel distances, also adding to road congestion, environmental impacts and the need for new road capacity investment," Ms Calfas said.
"At a time when supply chain constraints and cost of living pressures are front of mind for every Australian, we are pleased that the Commission has recommended to retain protections for industrial lands.
"We call on the NSW Government, Government departments and local councils to adopt the GCC's recommendation, which will ensure NSW can continue to be an economic powerhouse that attracts business and serves its communities.
"This fantastic outcome will ensure our ports and the broader industry can meet future business and population growth needs while helping to mitigate cost of living pressures for people right across the state."