Port Kembla Land Transformation – A Generational Shift for the Illawarra's Future

TL;DR

• The NSW Government has finalised the rezoning of ~200 hectares of non-operational BlueScope land at Port Kembla into a Special Purpose Zone, enabling advanced manufacturing, clean energy projects, research, logistics, and more.

• This is one of the most significant strategic land releases in NSW, with long-term potential to create tens of thousands of jobs and reshape the region's economic identity.

• Benefits include economic diversification, new industries, improved workforce opportunities and long-term regional uplift.

• Considerations include infrastructure pressure, planning complexity, environmental safeguards and housing demand around Port Kembla, Warrawong, Berkeley and Unanderra.

• The transformation is expected to unfold over 20–30 years, not instantly — but early positioning matters for businesses and investors.

• Buyers and investors should understand which suburbs are likely to experience long-term demand growth as the precinct evolves.

A Transformation Decades in the Making

In late 2025, the Illawarra reached a historic milestone: the NSW Government officially finalised the rezoning of around 200 hectares of non-operational BlueScope land at Port Kembla, opening the door to one of the most ambitious precinct transformations in Australia.

This rezoning marks the critical first step in transforming a once heavily industry-restricted area into a future-focused, multi-use employment and innovation precinct—while maintaining the region's steelmaking and port operations, which remain economically vital.

For the Illawarra, this isn't just a planning update. It's the beginning of a generational shift in how the region works, grows and positions itself for the next 50 years.

1. What the Rezoning Actually Unlocks

The rezoning establishes a new Special Purpose Zone (SP4) across the site, replacing decades-old industrial restrictions and enabling a broader mix of modern land uses.

A Precinct Ready for Tomorrow's Economy

The SP4 zone allows development across a wide range of industries, including:

• Advanced manufacturing and engineering

• Clean energy technologies and renewable industries

• Hydrogen, offshore wind and sustainability infrastructure

• Research, education and training facilities

• Digital and logistics operations

• Community, cultural and public facilities

This is a significant pivot away from Port Kembla's traditional industrial identity — and aligns the region with future industries driving global growth.

A Site Comparable to Major Global Redevelopments

At around 200 hectares (comparable in size to the Sydney CBD footprint), the site is large enough to accommodate:

• new employment hubs

• innovative industry clusters

• training and research partnerships

• public spaces and improved amenity

Few regions in Australia have an equivalent landholding positioned so close to an existing deep-water port, rail Network, and established industrial expertise.

Steelmaking Continues — Alongside the New

BlueScope's steel operations remain fully active. The transformation applies only to non-operational land, allowing existing industry to coexist with new business and innovation activity as the precinct evolves over several decades.

This layered, transition-friendly approach minimises disruption and protects theIllawarra'ss industrial backbone.

2. The Opportunities: Jobs, New Industries & Regional Growth

The Land Transformation is widely expected to reshape the Illawarra's economic future — and not just by introducing new land uses.

Tens of Thousands of Jobs Over the Coming Decades

Early projections suggest the precinct could support:

• 20,000+ new jobs through future industry and innovation precincts

• Up to 30,000 total jobs when linked to supply chains, support services and long-term workforce growth

This scale is unprecedented for the region and positions Port Kembla as one of NSW's major future employment engines.

Catalysing the Clean Energy Future

Port Kembla is already flagged as a potential base for:

• offshore wind operations

• hydrogen production

• green manufacturing

• sustainable transport and logistics

This aligns the Illawarra with the global clean energy transition — and future-proofs its employment profile.

Strengthening Local Skills & Innovation

With UOW, TAFE, advanced manufacturers and R&D capabilities nearby, the precinct creates opportunities for:

• training hubs

• apprenticeships

• cross-industry collaboration

• research partnerships

• expansion of high-skill jobs

The Illawarra's workforce could shift toward higher-value industries, improving long-term resilience.

Flow-On Effects Across the Region

Economic uplift at this scale typically influences:

• local housing demand

• retail growth

• infrastructure investment

• transport planning

• regional migration trends

Suburbs such as Port Kembla, Warrawong, Cringila, Berkeley, and Unanderra may see increased interest from workers seeking proximity to emerging employment hubs.

3. The Considerations: Planning, Housing & Community Impact

While the excitement is justified, balanced analysis requires acknowledging that transformation is complex.

1. A 20–30 Year Development Horizon

The rezoning is a starting line — not the finish.Major precincts of this scale evolve over decades, shaped by:

• private investment cycles

• global economic conditions

• staged infrastructure rollout

• environmental approvals

• workforce planning

Expect progress, but not overnight change.

2. The Need for Integrated Transport & Infrastructure

More jobs and activity will increase demand for:

• local roads

• public transport links

• poAccessess

• utilities

• community services

Thoughtful planning is essential to ensure the surrounding suburbs aren't left behind as the precinct accelerates.

3. Housing Pressure & Affordability

A central employment hub draws people. This can lift demand in nearby suburbs, especially those offering:

• affordability

• strong transport links

• Access to schools and shops

Warrawong, Lake Heights, Berkeley, and Unanderra may see gradual long-term uplift, but this must be balanced against affordability and infrastructure needs.

4. Environmental & Cultural Considerations

Port Kembla's industrial heritage and coastal setting are central to community identity. The transformation will need to:

• respect local cultural values

• maintain environmental protections

• ensure high-quality, sustainable design

• address community concerns transparently

The early community feedback was overwhelmingly positive — but meaningful consultation must continue as plans progress.

Local Insight: What This Could Mean for the Property Market

For buyers and investors, the long-term significance lies in:

• increased employment demand

• renewed interest in nearby suburbs

• repositioning of Port Kembla's brand

• Greater rental demand from emerging industries

• upgraded local amenity over time

While the timeline is long, early movers typically benefit most from major economic repositioning.

A Long-Term Vision Worth Watching

The Port Kembla Land Transformation represents a rare opportunity for the Illawarra — economically, socially and strategically. While the precinct will evolve gradually, the rezoning milestone marks the moment the transition truly begins.

It signals confidence in the region's ability to support future-facing industries, attract skilled workers, and broaden its economic base beyond traditional manufacturing.

For residents, buyers, investors and local businesses, this is one of the most critical regional stories of the next generation.

Check out the Press Release here

Want to Understand How This May Shape Your Buying or Investment Strategy?

Large-scale economic shifts often create pockets of opportunity — but knowing where, when and why requires local insight.

At The Shoreline Agency, we help Illawarra buyers and investors:

• Interpret long-term regional projects

• Identifies suburbs positioned for uplift

• assess value and future demand

• Buy with clarity in changing markets.

📞 Book a free 15-minute strategy call to discuss how the Port Kembla transformation may influence your property decisions.