Phillip Island capital works hit $10m

It has nearly been five years since the Linfox company's acquisition of the Phillip Island grand prix circuit.

In that time, nearly $10m has been spent on capital improvements, as BikePoint discovered recently when we made a lightning trip to Phillip Island for a first-hand look.

The massive injection of money, driven by circuit general manager Fergus Cameron and Andy Fox, the head of the massive property arm of Linfox, have included a $1m spend on a permanent 2000m2 expo shed; $1m on corporate facilities; $600,00 on a sophisticated custom-made closed-circuit television; $550,00 on existing and new pit garages; $900,000 on a skid pan for driver training; $120,00 on a medical centre upgrade (in conjunction with the Reece Bancell Scholarship); $160,00 on a new concrete wall on Gardner Straight; $100,000 on a go-kart track which is a replica of the main circuit; and $200,00 on portable buildings for use during major events.

The catalogue of upgrades goes even further than that, all undertaken with the goal of making Phillip Island the undisputed No. 1 permanent motor racing circuit in the country.

If acquiring major events is one measure of pre-eminence, then Phillip Island has got the No. 1 title in the bag. As it stands, Phillip Island has a 10-year deal to host the pre-cursor V8 Supercar round to Bathurst, and currently has contracts locked in to host the Australian leg of the Road Racing World Championship (MotoGP) and the Superbike World Championship until 2011.

And probably one of the biggest events for Phillip Island is the annual Island Classic historic motorcycle race meeting, which pulls in about a third of a world Superbike crowd - and at only a fraction of the set-up and running costs.

There is also a huge testing calendar for national and international motorcycle teams, corporate launches, and car and motorcycle launches. The land where the circuit resides also hosts a huge rock festival over the New Year period.

According to Cameron, the future wouldn't have been so prosperoous for Phillip Island if Linfox hadn't purchased the circuit.

"The fact is, in 2004 we had no long-term contracts to host MotoGP or world superbike (WSBK), and we were struggling to renew.

"That was about the time when circuits like Losail and Sepang were opening, and our facilities were definitely second-rate compared to theirs.

"The fact is we had to take Phillip Island to the next level, because we basically had the same circuit and facilities which we started with when it re-opened in 1988. But would it be viable?

"Then Linfox came onto the scene with its model of capital improvements and building a profitable business around that.

"We've now come a long way in four years, as we've managed to cement existing agreements (MotoGP and WSBK), and late last year we signed the long-term deal with V8 Supercars.

"I think Linfox has confirmed it's more than a short-term player, because it's not going to recoup that sort of capital expenditure overnight. It's a long-term exercise.

"At the moment, the circuit is booked out for around 280 days a year, so the circuit definitely plays a huge role in terms of economic benefit for the local area, and in international exposure for Victoria and Phillip Island."

According to Cameron, nearly 115,000 people go to the circuit's visitors' centre each year, which is a massive increase over the last few years.

"The great thing about that is we're opening a doorway for people to experience motorsport who otherwise might not be exposed to it. Long-term, that's got to be a good thing."

Cameron currently has a full-time staff of 35, with about 200 casuals helping out during the year, particularly when the big events are in town.

Linfox has a massive property portfolio, which also includes airports (Avalon and Essendon in Victoria) and industrial complexes to support its national and international supply chains.

On a comparative scale, Linfox's investment at Phillip Island is miniscule compared to some of its other projects, but Andy Fox is clearly emboldened with what he's seen so far.

"Fergus has done a tremendous job over the last four years," said Fox. "It's been a huge exercise, and we also have great relationships with all our key stakeholders.

"That's helped us to lock in long-term contracts and cement the circuit's future. Further afield, we want to build a 40-45 room boutique hotel and construct a golf course designed by Greg Norman.

"We also have some fantastic circuit ambassadors (Norman, Mark Skaife and Mick Doohan) and something is always happening at the circuit. I always tell Fergus he's got one of the best workplaces there is, and I don't think he'd disagree. It's magic."

The next major event for Phillip Island will be the opening round of WSBK from February 27 until March 1, where nine Australians will compete across the superbike and supersport world championship classes.

For more information on the event, including ticketing, accommodation and transport options, click here.

To win free tickets to the round and also free camping, enter the BikePoint competition by clicking here.