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Pilbara Regional Investment Blueprint (Summary Report)

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Pilbara Regional Investment Blueprint (Summary Report) PILBARA REGIONAL INVESTMENT BLUEPRINT SUMMARY REPORT 1 3 FOREWORD 24 STRATEGIC PRIORITIES 4 EXECUTIVE SUMMARY 25 REGIONAL PILLARS TABLE OF CONTENTS 6 PILBARA VISION 25 APPROACH TO GROWTH 6 PILBARA 2050 VISION & DEVELOPMENT 6 ASPIRATIONAL 26 REGIONAL PILLARS POPULATION TARGETS 26 PILLAR OBJECTIVES 8 BLUEPRINT FRAMEWORK 30 THE FUTURE ROLE OF THE RESOURCES SECTOR 8 BLUEPRINT DEVELOPMENT AND STRUCTURE 31 TRANSFORMATIONAL 9 POLICY ALIGNMENT OPPORTUNITIES 31 REALISING THE PILBARA 10 REGIONAL OVERVIEW 2050 VISION 10 GEOGRAPHY AND HISTORY 31 TRANSFORMATIONAL 12 POPULATION OPPORTUNITY SUMMARIES 13 ECONOMY 33 IMPLEMENTATION OVERVIEW 15 REGIONAL AND GLOBAL INFLUENCES 35 REFERENCES 18 REGIONAL CAPACITY FOR GROWTH 18 CAPITAL 19 SUSTAINABLE COMMUNITIES 20 CONNECTIVITY 21 COMPETITIVENESS 22 COMPARATIVE ADVANTAGES 2 Innovation and technological change are region’s economic base and building a our commitment to enable new industries, the greatest drivers of productivity and legacy that we are proud to pass on to our fast-track development and nurture the greatest sources of inspiration for the children, and grandchildren. innovative ideas. FOREWORD Pilbara’s future. More than three times the size of England In reading this Blueprint, I encourage you The Pilbara Regional Investment and accounting for 36% of the Australia’s to embrace big-picture thinking towards Blueprint is our commitment to view our exports, the Pilbara boasts a powerhouse what could be possible for the Pilbara challenges and changing environment combination of location, access to markets, of tomorrow. Collective strategic action as opportunities to be innovative in our a world-class customer base and unique will enable us to seize new opportunities thinking, and resilient as a community. natural assets that position us for future that will achieve prosperous economic growth and prosperity. It’s an exciting outcomes for the region and for Western Haul trucks will be driverless, one in four region on the cusp of new discoveries and Australia. people will be working from home and opportunities. energy will be harvested from renewable We look forward to working with you to sources; these are some of the likely Undeniably, the resources sector will make the Blueprint Vision a reality. scenarios the Pilbara, and the world, will remain the foundation of the Pilbara’s be experiencing in the year 2050. economy for decades to come; however, Chris Gilmour the region boasts numerous other CHAIRMAN Considering these scenarios, among a comparative advantages that present myriad of emerging global trends that will exciting opportunities for new industries. shape the way we live and do business These opportunities will take the Pilbara 35 years from now, has been vital in the beyond just “business as usual” and will development of the Blueprint. chart our aspirational future. “The future is not some place we are going but The success of the Government of Through our extensive consultation one we are creating” Western Australia’s Pilbara Cities initiative during the development of this report John H Schaar in addressing the land and infrastructure we have forged new relationships and needs of the growing population centres strengthened existing ones. This is the has been critical to revitalising the region. Pilbara’s plan for the future and the key It is also a great example of what is to its achievement will be our ability to possible if we work together towards a harness the momentum that has been This report is a summary of the clear, shared vision. created. Regional Investment Blueprint for the Pilbara. It is supported by a Technical While there is still work to be done, the This is a time for the Commission to Report, which contains extensive data, Blueprint heralds a new direction for the answer the call for bold leadership and research, evidence and analysis that Pilbara and the Commission as we turn meaningful collaboration, and we are forms the basis of the Vision, Pillars our focus firmly towards expanding the ready to lead the charge. The Blueprint is and Opportunities identification. 3 The Pilbara is a globally significant In the last decade the Pilbara has been Figure 2 Overview of the Pilbara mining and energy region boasting a the powerhouse of economic growth wealth of resource endowments, dynamic for Western Australia and the nation. Its POPULATION EXECUTIVE communities, rich Aboriginal culture proximity to Asia and extensive resource 67,000 and stunning natural landscapes. The endowments have resulted in the Pilbara SUMMARY Pilbara of today offers a glimpse of what being recognised as a region of global a prosperous Northern Australia could significance. LAND MASS be in the future with sustained strategic 507,896km2 investment. The Pilbara’s share of Australia’s Gross Domestic Product (GDP) has risen from 2% The Pilbara region, located in northern in the late 1990’s and early 2000’s, to 6.2% 6.2% OF Western Australia, accounts for 20% of in 2014. The size of the Pilbara’s economy AUSTRALIA’S GDP the state’s total land mass. Its 507,896km2 is approximately 55% of New Zealand’s equates to two thirds of the area of New GDP and greater than the individual GDP GDP GREATER South Wales, is twice the size of Victoria of 127 of the world’s 189 nation states1. THAN 127 COUNTRIES and more than five times bigger than Tasmania. A population of just 67,000 The Pilbara produces 95% ($62 billion) people call the Pilbara home. While the of the value Western Australia’s iron ore STATE ROYALTIES Pilbara’s Aboriginal population make production. The region also services the $5.0 billion up 12% of the total population, there is a north-west shelf oil and gas fields, which diverse mix of cultures and nationalities. produce approximately two thirds of 2 PETROLEUM Australia’s oil and gas, worth $27 billion . PRODUCTION $27 billion Figure 1 Location of the Pilbara The Pilbara will remain a significant contributor to state and national IRON ORE economies. In March 2015, Western PRODUCTION $62 billion Australia had an estimated $179 billion worth of resource projects under construction or in the committed stage of development. A further $118 billion has been identified as being allocated to, planned, or possible projects in coming years3. The majority of these projects are located in the Pilbara, such as Chevrons’ Gorgon and Wheatstone Liquefied Natural Gas (LNG) projects on Barrow Island and at Onslow respectively, the Roy Hill 4 Iron Ore mine and expansions of current require a coordinated, whole-of-business, deliver new sources of growth. Two These Transformational Opportunities will operating iron ore mines. The production government and community approach “Transformational Opportunities”, that will be catalysts for projects that will drive timeframes for these projects range from to achieve a sustainable future for the achieve significant positive economic and transformational change and map an even years to many decades. Pilbara to 2050 and beyond. community outcomes for the region, are brighter future for the region. identified Regional Pillar. However, the rapid growth and heavy The continued growth and sustainability of reliance on resource exports resulted in Pilbara communities will rely on our ability Table 1 Transformational Opportunities a range of challenging outcomes – the to attract people to live, work and invest in region has a high cost structure, it is highly the region. A diverse local economy with APPROACH REGIONAL PILLAR TRANSFORMATIONAL OPPORTUNITY exposed to commodity price fluctuations, attractive job opportunities and lifestyle Normalised Property Market and Land Access and regional towns do not possess the options will be key to this. Land Access and Economic critical mass to support certain services Infrastructure Secure and Sustainable Infrastructure Services and industries. Additionally, geographic The Pilbara Regional Investment Blueprint Lifelong Education Education, Training and dispersion, community service availability (the Blueprint) sets out a bold, aspirational Enabling a Skilled Workforce and income inequality present challenging Vision for the region in 2050. Workforce Development and Skilled Migration social issues. Diverse and Vibrant Intergenerational Communities Central to the Blueprint is recognition that People and Communities Innovative Local and Remote Healthcare Delivery The Government of Western Australia the region needs more than “business as usual” growth and development. The Maritime Maintenance, Safety & Emergency Management recognises the importance of a prosperous Logistics, Engineering and Supply and secure future for the Pilbara, a region Pilbara needs to chart a more aspirational Chains Industrial Fabrication, Assembly and Technology that has contributed more than $5 billion future based on a diversified economy and Business Digital Connectivity to state royalties. It’s landmark $1.7 enhanced liveability. Innovation and Advanced Value-Adding billion Royalties for Regions Pilbara Cities Technology Automation Technology and Services initiative has contributed significantly The Blueprint provides momentum for SME Support to addressing these challenges, with continual transformation of the Pilbara Diverse and Robust Small to Medium Sized Businesses Pilbara townships receiving considerable towards a future that offers diversity Streamlining Governance public and private sector investment in of jobs and career opportunities, high High Value Agriculture and Cropping standards of services and vibrant Agriculture & Aquaculture amenity and liveability
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