Concrete sand supply threatens project costs in SE Tasmania, says industry

Apr 2026
Concrete warning ... a graphic of the new stadium precinct on the Hobart foreshore. Photo: www.macpoint.com
Concrete warning ... a graphic of the new stadium precinct on the Hobart foreshore. Photo: www.macpoint.com

Concrete sand supplies are posing a cost threat to future construction projects in Tasmania like the new Macquarie Point stadium precinct, the industry warns.

And it is calling for a statewide heavy construction material plan quickly in order to manage a growing pipeline of infrastructure projects.

The warning from the Cement Concrete & Aggregates Australia (CCAA) comes after it says coarse concrete sand supplies in south-east Tasmania have been exhausted.

The CCAA issued the warning after the Tasmanian Government released the masterplan for the 10-hectare Macquarie Point Site Masterplan for the Hobart foreshore which includes a covered oval stadium, homes, offices, shops and eateries.

Click here to read the master plan in its entirety.

The CCAA says it welcomes the project but says a construction materials plan is urgently needed.

CONCRETE SAND WARNING

Chief executive officer Michael Kilgariff says “cement, concrete and aggregates are fundamental” to building the infrastructure and housing in this plan.

“Ensuring their reliable supply is essential to keeping projects on track,” he says.

He points out that global uncertainty and constricting supply chains makes long-term planning more important than ever.

And he says a recent analysis of sand supply in South-East Tasmania is reinforcing the need for planning.

“A Mineral Resources Tasmania study confirmed that supplies of suitable concrete sand in South-East Tasmania are effectively exhausted,” he says.

“(This is) increasing reliance on materials transported from other
regions and placing further pressure on costs and supply chains.”

A statement from the CCAA late last year says sand may have to be trucked in from the north-east up to 300km away.

It said then that such a shift will drive up construction costs, stretch supply chains and threaten the affordability of major housing, transport and community infrastructure projects.

“A co-ordinated, whole-of-government approach will help ensure projects like Macquarie Point can be delivered efficiently and at the lowest possible cost to the community,” Kilgariff says.

The CCAA represents the country’s heavy construction materials industry, worth over $15 billion annually and employing, directly and indirectly, 110,000 people.

STATE BOON

The Minister for Macquarie Point Urban Renewal, Eric Abetz claims the project will prove to be a boon for the island and transform a “industrial wasteland”.

Up to 100 new homes can be built in a foreshore redevelopment under the masterplan.

“The Macquarie Point site has always been about more than just a stadium; it is something that benefits the community and economy,” he says.

“We are continuing to drive the urban renewal of this site and to revitalise and activate this area of the city.”

The project was opposed by the Tasmanian Planning Commission but the government took it to parliament who approved it.


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