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 enhancements Aquaculture, Algae Biofuels and Co-products over the past five years. This investment community life. It is a roadmap that builds has allowed the Pilbara to move towards on the Pilbara Cities Vision to sustainably Energy Production Diversifying Energy the levels of services and amenity usually grow and develop communities that meet Energy Export expected for a similar sized population, the aspirations of their people. Nature Based Tourism creating a strong sense of permanency for Tourism settlements that bore the legacy of mining The Blueprint Vision is supported by Heritage and Aboriginal Tourism Development towns. However, the remaining challenges nine regional investment “Pillars” based to growth, community development and on analysis of needs, regional interests economic diversification in the Pilbara will and comparative advantages that will

5 PILBARA 2050 VISION ASPIRATIONAL growth beyond 2035 into the long term. POPULATION TARGETS In 2050 – in a world of over 9 billion The Blueprint establishes an aspirational resident population target for the Pilbara PILBARA people, where global economic and Population growth should never be region of 200,000. This is an additional military power has shifted, new unknown pursued simply for the sake of growth 135,000 residents, or a tripling of the VISION technologies exist and climate change has itself. A region can experience unexpected current population of the region. The altered global weather – what place will impacts and outcomes from rapid population growth rates required to the Pilbara take on the world stage? population growth if it is not pursued in a achieve this target allow for a slowing of strategic and effective manner. Resource development has and will the rate of growth (to 3.0% per annum) in continue to be fundamental to the The population of the Pilbara has been the Pilbara post-2035, as the size of the region’s economic prosperity. However, historically characterised by periods of resident base gets larger. This makes the the opportunity exists to build a more rapid growth interspersed with times population target aspirational but also diverse regional economy to enhance of stagnation and even decline. The achievable. the sustainability of regional businesses, continuation of this volatile population The Blueprint identifies the opportunities households and communities and promote growth cycle in the Pilbara, in the absence to realise the employment and population a dynamic and prosperous local economy. of any intervention by government, would growth to achieve these targets. Growth likely see the Pilbara’s population reach is expected to be uneven, with periods of Given this, the Blueprint’s Vision for the approximately 140,000 by 2050. Pilbara is: rapid growth. Population growth will also The Pilbara Cities initiative represented a vary across regional towns and cities. The major intervention by the Government of Blueprint identifies region-wide initiatives “In 2050, the Pilbara will Western Australia in the future growth and therefore does not specify town- or have 200,000 people living in profile of the regional population. The city-based targets. vibrant, modern and inclusive Pilbara Cities Vision explicitly established cities and communities which an aspirational target for the resident The Pilbara Cities Vision is offer quality services, career populations of towns and cities in the to build the population of Pilbara. choice, affordable living and Karratha and Port Hedland strong local communities. Across the Pilbara, this is expected to into cities of 50,000 people by equate to a total resident population 2035, with other Pilbara towns The economy will feature of 140,000 by 2035, or some 15 years growing into more attractive, diverse, innovative and resilient sooner than under the “business as usual” sustainable communities. local and international firms scenario. The Blueprint builds upon the underpinned by the resources investment made under Pilbara Cities to and energy industries.” establish a strategy to sustain population

6 Presently, about 40% of the region’s Figure 3 Population scenarios and targets, Pilbara employment is associated with the 240,000 minerals and energy industries. Assuming 220,000 this figure is constant to 2050 means that of 200,000 the 67,500 jobs forecast in Figure 3, 27,000 180,000 will be generated from the minerals and 160,000 energy industries. This does not suggest 140,000 opulaon 120,000 they will be the same jobs associated with 100,000 these industries today; they are likely to 80,000 be very different as new technologies are sidenal P 60,000 introduced and work patterns change. Re 40,000 20,000 This means the Blueprint’s identified 0 Regional Pillars will need to deliver 1994 1998 2002 2006 2010 2014 2018 2022 2026 2030 2034 2038 2042 2046 2050 40,500 jobs to the region to meet the Esmated Resident Populaon Historical Growth Pilbara Blueprint Aspiraon 200,000 population target. Not all of these jobs will need to come from the Pillars themselves, as the multiplier effect from Figure 4 What does an extra 135,000 residents mean? the development of new value-added and REGIONAL COMMERCIAL diversified industries will attract people to EMPLOYMENT & DISTRICT SPORTING OFFICE new job opportunities. 67,500 jobs COMPLEXES FLOORSPACE 2 54,000 sqm

TAFE & REGIONAL UNIVERSITIES RESIDENTIAL DWELLINGS PERFORMING 1 TAFE ARTS CENTRES 1 University 60,000 1

POLICE & FIRE MUSEUMS & ART GPS & DENTISTS STATIONS GALLERIES 140 12 6

PRIVATE & WAGES RETAIL PUBLIC HOSPITAL FLOORSPACE BEDS $3.5 billion per 297,000 sqm 150 annum

7 The Pilbara Regional Investment based on local knowledge and analysis Blueprint (the Blueprint) identifies Pillars, to encourage aspirational economic opportunities and priorities for the region and social development outcomes. The to achieve an aspirational economic and Blueprint challenges stakeholders to BLUEPRINT FRAMEWORK community development Vision. collectively create a future Pilbara which fully capitalises on the region’s strengths By highlighting the development potential and comparative advantages, maximising of the Pilbara, the Blueprint aims to: leverage of emerging global trends to deliver prosperity, diversity, sustainability • encourage diverse investment in the and quality of life for residents. region; • inform infrastructure planning, investment and delivery decisions; BLUEPRINT DEVELOPMENT and AND STRUCTURE • maximise social, environmental and economic outcomes for local The Blueprint is the outcome of extensive communities, the state of Western engagement and analytical understanding Australia and the national as a whole. of the region. It has been prepared by the Pilbara Development Commission The Blueprint seeks to achieve these aims (the Commission) and it incorporates through a collaborative approach to the the efforts, skills and knowledge of region’s development. It establishes a local government, key state and federal common framework for all stakeholders government agencies and the non- to coordinate infrastructure development government, community and non- and service delivery, and improve profit sectors. The Blueprint has been the regulatory, social and physical structured through a logical process of environment where public and private understanding: investment can be attracted and delivered with confidence. • where we are • where we want to be (and why) Central to the Blueprint is recognition that • how we can get there. the region needs more than “business as usual” planning and instead needs to chart a more aspirational future. The Blueprint therefore establishes a Vision and supporting Regional Pillars and Transofrmational Opportunities

8 POLICY ALIGNMENT Figure 5 Key strategic themes

The Blueprint is an overarching and guiding strategy for the Pilbara that has healthy culture been informed by a range of policies, accessible strategies, plans and frameworks capital communities covering a diversity of issues in the Pilbara connected and the wider region. To facilitate change, the Blueprint relies on, links to and builds upon other strategic priorities put in place by federal, state and local partners. diversification land heritage A review of the myriad plans and strategies relevant to the development of Pilbara coordination revealed that there is a range of common Aboriginal development themes. These key strategic themes have conservation liveability informed the development of a Vision for engaged the Pilbara. competitiveness partnerships private-sector prosperity infrastructure environment

9 GEOGRAPHY AND HISTORY The region’s history dates back as far as 40,000 years with evidence of the Representing 20% of Western Australia’s Aboriginal population living off the land. REGIONAL OVERVIEW land mass, the Pilbara is a vast, diverse Over 700 historic Aboriginal archaeological region of mountain ranges, deserts, plains sites have been found in the Pilbara, and numerous offshore islands. While at and over 10,000 rock engravings. The its southern edge the Pilbara is located region, and most notably on the Burrup approximately 1200km north of Perth, the Peninsula which is recognised as one of region extends over an area of 507,896km2 the richest petroglyph sites recorded, from the Indian Ocean in the west, north to is a major rock engraving area and the Kimberley and across the Great Sandy features a greater number and variety of Desert to the border of the Northern figures than anywhere else in Australia, Territory in the east. many dating back 30,000 years or more.

Table 2 Local government key indicators, Pilbara4

Shire of Ashburton Shire of East Pilbara City of Karratha Town of Port Hedland Size (km2) 101,240 379,571 15,882 10,587 Resident population 10,959 12,960 25,907 16,472 (2013) Population (%) 9.3% 17.0% 8.8% 14.8% Population growth 69.5% 110.0% 21.5% 52.4% (2003-2013) Median age (years) 33 32 32 31 Gross regional product (billion) $10.616 $10.576 $8.836 $4.834 Local employment 10,277 11,280 14,829 8,570 Number of businesses 482 1,256 4,540 4,278 Major towns Tom Price Newman Karratha Port Hedland Onslow Marble Bar Dampier South Hedland Paraburdoo Nullagine Wickham Pannawonica Roebourne Port Sampson Cossack Aboriginal communities Bindi Bindi Jigalong Cheeditha Jinparinya Wakathuni Punmu Mingullatharndu Marta Marta Bellary (Innawonga) Parnngurr Yandeyarra Youngaleena Irrungadji Punju Njamal Ngurrawaana Parnpajinya Tjalka Boorda Warralong Strelley Woodstock

10 Figure 6 Pilbara regional context

11 The Aboriginal population lived projects in the region, has been a predominantly alone in this area until significant catalyst for the establishment Figure 7 Historical population by local government area, Pilbara6 around 1861 when European explorers and growth of settlements like Karratha, 70,000 first came to settle in the Pilbara. Port Hedland, Newman and Tom Price. Early European settlement occurred at 60,000 Roebourne and the port of Cossack. Early The Pilbara also hosts a substantial non- industry was largely pastoral, gold mining resident population made up generally of 50,000 and pearling. Until the advent of iron ore industry fly-in fly-out (FIFO) construction pulaon 40,000 Po mining in the 1960s, the only towns were and production workforces. The 2011 Onslow, Roebourne, Point Samson (having Census of Population and Housing sident 30,000 replaced Cossack as the port servicing provided a snapshot of the service 20,000 mat ed Re

Roebourne), Wittenoom, Marble Bar, population in the Pilbara. There were Es Nullagine and Port Hedland. around 20,000 respondents in the Pilbara 10,000 on Census night who claimed to have a 7 0 The removal of Commonwealth restrictions usual residence outside of the Pilbara . 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 on the export of iron ore in response to a Ashburton (S) East Pilbara (S)Port Hedland (T)Karratha (C) growth in world demand, particularly from While significant non-resident populations Japan, changed the region dramatically. were recorded across the region, one- The Pilbara had long been known to third of the non-resident population were Figure 8 Age and gender profile, Pilbara, 20139 contain immense deposits, and the in the City of Karratha on Census night. The commencement of exports sparked the transient nature of the Pilbara workforce establishment of nine new towns in the with additional influences from the FIFO 80-84 yrs region by 1970 (Dampier, Tom Price, workforces have resulted in a unique 70-74 yrs Paraburdoo, South Hedland, Newman, gender and age profile. Across the Pilbara, 60-64 yrs Wickham, Pannawonica, Goldsworthy the median age was just 32 years in 2011, (now closed) and Shay Gap (now closed)). compared to 37 across the nation8. 50-54 yrs

Almost overnight, the Pilbara’s population 40-44 yrs increased tenfold. The proportion of males between the ages Age Range of 20 and 59 and females between the 30-34 yrs ages of 25 and 34 are disproportionately 20-24 yrs

POPULATION higher than national share. The historical 10-14 yrs lack of health and welfare services has The population in the Pilbara has grown also discouraged the retention of older 0-4 yrs from a few thousand in 1966 to around residents. Only 2.3% of residents as of 9630369 5 66,300 in 2013 . This growth, which June 2013 were older than 65 years Males Females Percentage of Total Populaon has been largely associated with the compared to 12.5% of Western Australian development of mining and energy residents.

12 Indigenous Australians make up 12% of ECONOMY Figure 9 Contribution of Pilbara economy11 08Table Jobs 3 Jobsby Top by Industries, industries, Pilbara Pilbara1215 the Pilbara’s population compared to 2.5% 10 of the nation’s population . Approximately The Pilbara has been at the centre of EMPLOYMENT 7200 Aboriginal people living in the Pilbara the most rapid expansion of iron ore 46,000 jobs Top Industries Pilbara Nation as of 2011 were residing in a number of production in history and the site of Jobs % % towns and small communities. The Shire construction of some of the largest gas Mining 18,500 44.15 1.80 18.69 of East Pilbara had the highest proportion projects in the world. The economic activity STATE ROYALTIES Construction 8,404 8.44 $5.0 billion Accommodation & Food 2,467 5.49 6.62 of Indigenous residents at 21.8%, followed associated with these projects has driven Services by the Town of Port Hedland at 14.8%. a substantial increase in the importance of Transport, Postal & 2,354 5.24 4.88 the Pilbara to both the Western Australian IRON ORE Warehousing PRODUCTION Education & Training 1,527 3.40 8.19 The Pilbara’s strong and expanding and Australian economies. SHARE 28% of World Manufacturing 1,445 3.21 9.19 resources sector has provided significant Production Health Care & Social 1,424 3.17 11.88 opportunities for Indigenous employment The labour market in the Pilbara has been Assistance 3.07 and business development. The one of the strongest in the country, with PETROLEUM Administrative & Support 1,380 3.30 PRODUCTION Services establishment of State Agreements for sustained low levels of unemployment $27 billion Public Administration & Safety 1,369 3.05 7.02 resource projects has enabled traditional over the past two decades. Since 2003, Professional, Scientific & 1,366 3.04 7.43 Technical Services owners to negotiate a range of social and the Pilbara has experienced an average MINERAL Retail Trade 1,349 3.00 10.76 economic outcomes for their communities. unemployment rate of just 3.1% compared PRODUCTION Other Services 1,101 2.45 3.85 A number of significant strategic to 5.2% across the nation13. $72.5 billion Rental, Hiring & Real Estate 689 1.53 1.62 partnerships have been established Services across the region, targeting and promoting Wholesale Trade 626 1.39 4.11 There were around 46,000 people The manufacturing sector is significant in Electricity, Gas, Water & Waste 456 1.01 1.18 Indigenous economic participation and employed to work in the Pilbara in 2011. the Pilbara yet accounts for a relatively Services employment. This included approximately 27,400 modest proportion of the it’s total economic Agriculture, Forestry & Fishing 163 0.36 2.54 local residents and 18,600 people based Financial & Insurance Services 144 0.32 3.84 activity. Most current manufacturing Arts & Recreation Services 99 0.22 1.54 However, Indigenous Australians in 14 around Australia . Workers from outside capacity is directed towards servicing Information Media & 93 0.21 1.81 the Pilbara, as across Australia, still the Pilbara are predominantly based in the mining industry and is dominated Telecommunications face significant disadvantage, including Greater Perth, followed by Queensland, by chemical manufacturing, machinery TOTAL 44,956 100% 100% much higher rates of preventable health the South West, New South Wales and and equipment manufacturing and problems and a shorter life expectancy Victoria. There are also several hundred fabricated metal products. Basic chemical than much of the developed world residents of neighbouring regions who manufacturing represents close to half of (more than 20 years less than the non- are employed in the Pilbara. The mining the Pilbara’s manufacturing output. This 11 Indigenous population) . High rates of and construction sectors accounted for includes the fertiliser and explosive sub- homelessness and youth unemployment the majority of employment, with 60% categories representing businesses such are also significant issues. or 27,500 workers in these two sectors as the Yara Pilbara Nitrates technical in the region compared to 10.0% at a ammonium nitrate production facility in national level during 2011. Overall, 10.7% the City of Karratha. of Australia’s mining workforce was employed in the Pilbara.

13 Figure 10 Average daily visitation18 Tourism and visitation is a secondary to Indonesia and Malaysia with some but valuable contributor to the Pilbara occasional trade to smaller markets21. 20,000 economy. It represented an estimated Opportunities to expand agricultural $404.6 million of the Pilbara economy production in the region are currently 18,000 in 2012/13, though a large portion of being explored. A small number of pilot 16,000 this economic activity is associated projects have been carried out by both

14,000 with servicing business visitors which mining and private companies, capturing represent the majority of total visitation the excess mine dewater and using it for 12,000 to the region16. In 2013/14, there was an producing feedstock crops.

age Daily Visito rs 10,000 average of 18,400 visitors to the Pilbara er per day, of which three quarters were The local business environment is changing Av 8,000 business travellers. Leisure visitation as mining expenditure and investment 17 6,000 represented 19.1% of total visitation . shifts from a construction focus to operations and maintenance. Small and 4,000 The dominance of business visitation and medium enterprises are increasingly 2,000 the general under-supply of short-stay focussed on opportunities relating to the accommodation due to the dominance of growing population. Although the cost 0 the resources industry in recent years of operating a commercial business, on 2005/06 2006/07 2007/08 2009/10 2010/11 2011/12 2012/13 2013/14 have been considered barriers to growth average, has declined in Pilbara towns Leisure Visitors Business VisitorsOther for the tourism industry19. Nonetheless, since 2013, the absolute level of costs there are numerous leisure-based tourism remains one of the highest in Australia, segments in the Pilbara. The recently with significantly higher wages, rents completed Pilbara Tourism Product and other operating expenditures22. Development Plan identified a range of The high cost structure in the Pilbara, initiatives to attract new leisure tourists to combined with difficulties associated with the region. the availability of appropriate staff and commercial, retail and industrial land and Agriculture, aquaculture and fisheries floorspace, has expressed itself as below production is underdeveloped in the average new business development. On Pilbara despite the presence of a natural a per capita basis, as at June 2013, there environment conducive to a number of were nearly three times as many small agriculture and aquaculture operations businesses across the nation than in the and products. Agriculture production was Pilbara23. valued at $61.3 million in 2010/11, and this consisted predominantly of livestock production and exports, namely cattle and calves20. Cattle are mainly exported

14 Regions are increasingly confronted Figure 11 Global megatrend relationship by changing global megatrends that shape the economic and social REGIONAL AND landscape. A megatrend or substantial shift in conditions – social, economic, GLOBAL INFLUENCES environmental, technological and political – may reshape the way an industry Emerging operates or communities and economies Markets develop in coming decades.

Megatrends are of particular importance to the Pilbara, which is linked to the global economy through considerable mineral Security & Technological Sustainability Advances and energy exports and proximity to growing markets. A Pilbara that is resilient in the future will be one which anticipates and reacts to these global influences, exploiting emerging trends to its advantage by capturing market opportunities. This involves business and government collaborating to systematically identify and act on emerging trends, test risks and aggressively pursue opportunities.

Three broad megatrends have been analysed in the Blueprint:

• emerging markets • security and sustainability • technological advances.

These megatrends overlap and interact with one another, creating a highly fluid and volatile global environment.

15 Key issues under each of these global megatrends are summarised in the following table.

Table 4 Megatrends Figure 12 Global middle class opportunities

Megatrend Issue/Opportunity Description Across the globe, the continued shift from rural to urban living will be profound. The world’s urban population is now close to 3.9 billion and is Urbanisation High Quality expected to reach 6.3 billion in 2050. This will be a strong influencing factor on market demand in an array of areas. The extraordinary growth of affluence and the reduction in absolute poverty across the globe has brought sweeping economic and social Produce and Food Rising Middle Class change and it’s not over yet. The size of the middle class is expected to increase from 1.8 billion in 2009 to 4.9 billion by 2030. Almost all of this Emerging growth (85%) comes from Asia. Markets The world’s population is expected to increase by more than 25% to 9.1 billion by 2050. At the same time, the world will have to produce more Global Food food and fibre with a smaller rural workforce and less arable land, adopt more sustainable methods to adapt to climate change, and adapt Tourism Consumption to changing food preferences. The UN Food and Agriculture Organisation predicts that feeding a world population of 9.1 billion in 2050 would require raising overall food production by 60% between 2007 and 2050. Regions around the globe face significant environmental and economic impacts from climate change, with changing temperatures, weather Climate Change & patterns and extreme events impacting on biodiversity, agriculture, infrastructure, coastal communities and water supply. CSIRO climate Water Security scenarios for the Pilbara generally pointed towards a hotter and dryer climate for the Pilbara. The largest reductions in rainfall are projected Minerals and Energy for the western portion of the Pilbara, whilst there are small pockets of potential rainfall increases further inland. Climate change, and policy and social action directed at responding to climate change, is creating economic opportunities and challenges. It is shifting incentives towards lower carbon energy sources and industrial processes. It is also expanding market demand for carbon-reducing technologies and environmentally friendly products. Global energy demand is expected to increase by 35% between 2010 and 2035. Although Security & Low Carbon Future coal is expected to account for 59% of the increase in demand, gas, nuclear, hydro and renewables are expected to increase at a faster rate. Gas Sustainability is expected to increase by 49.9% from 2010 to 2035. Biofuels and other renewable energy sources are expected to increase by 86.5% for the same period. Emerging economies are lifting millions of people out of poverty while also exerting more influence in their region and across the globe. This geographical shift in economic and military power presents new challenges and opportunities for Australia and the Pilbara. On current trends, Shift in Economic & the aggregate purchasing power of the “E7” emerging economies – Brazil, China, India, Indonesia, Mexico, Russia and Turkey – will nearly Military Power double that of the G7 by 2050. These growth countries will shift from centres of labour and production to consumption. They will become exporters of capital, talent and innovation, competing against an array of developed economies. Countries that have achieved advanced levels of digital connectivity have realised significant benefits in their economies, societies and the functioning of their public services, and this trend is expected to continue. By 2020, there will be 50 billion networked devices that will impact on issues such as labour mobility, the future of urban development and design, and investment in digital infrastructure, amongst others. Digital Connectivity Increasing digital connectivity will stimulate the emergence of new services and tradeable commodities through improved access to markets, improved learning and trading platforms and increased mobility through a connected world that will help break down the financial and social costs of remoteness and isolation. Technological The take-up of industrial automation technologies in recent years has been rapid. Over 178,000 industrial robots were sold in 2013, up from Advances 80,000 in 2003. Sales are projected to continue to increase and lift the worldwide stock of industrial robots from 1.4 million to 1.9 million by 2017. Whil industrial automation is historically focussed in process manufacturing – refining raw materials – and discrete manufacturing – Automation assembling/building parts – it is permeating into other areas of the economy on the back of recent technological advances and rapidly reducing costs. In the Pilbara, the future of automation in mining is already upon us. Advances in computing, signalling and sensing technology have brought driverless trucks and trains, automated drills and other pieces of equipment to the Australian mining scene.

16 Figure 13 Projected agriculture imports by commodity, World24

Meat

Vegetables and Fruit

Dairy Products

Cereals

Other Foods

Oilseed Oils

Fish

Oilseed Meal

Fish Meal and Oil

050 100 150 200 2050 2007 Real Value of Imports (2007 US$ Billions)

Figure 14 Projected energy consumption by source, World24

Biofuel and Other Renewables Hydro

Nuclear

Gas

Oil

Coal

0 1,000 2,000 3,000 4,000 5,000 2035 2010 Global Energy Demand (Million Tonnes of Oil Equivalent)

17 Fundamental to the Pilbara reaching its CAPITAL full potential is harnessing the capacity of the region’s physical, social, economic and Human capital refers to the skills, REGIONAL CAPACITY environmental strengths. The challenge knowledge and experience possessed by is to successfully link and leverage an individual or population and is viewed in FOR GROWTH these regional assets and competitive terms of the value people contribute to the advantages, ensuring benefits are development and growth of communities realised and returns to the community and and organisations. It is a fundamental business are maximised. input to economic activity and crucial to regional competitiveness and resilience.

The Blueprint includes assessments The availability of a highly skilled and of the Pilbara’s capacity to grow and educated workforce enables businesses develop in the future using the “Four and organisations to respond to changing C’s Assessment” approach for regional environments, address challenges economic development. This approach and pursue commercial opportunities. provides the critical analysis required to Conversely, a lack of access to appropriate identify and understand the strength and human capital can constrain the growth direction of the regional economy across a of local enterprises and discourage new range of drivers. The Four C’s are: business creation.

• Capital – human capital, particularly Drawing on analysis in the Blueprint, and skills and education extensive stakeholder consultation, it is • Communities – economically, recognised that the ability to provide a environmentally and socially skilled and educated resident workforce sustainable communities and to drive an increasingly sophisticated and population growth diverse economy in the Pilbara will depend on addressing challenges and enabling • Connections – access to international, opportunities in three key areas: national and regional markets • Competitiveness – business • workforce participation competitiveness. • local workforce skills • education and training outcomes.

18 SUSTAINABLE COMMUNITIES Table 5 Human capital indicators, Pilbara26

Area of focus Indicator Pilbara Nation Sustainability is the capacity to endure. Adult Participation Rate 86.5% 65.6% A sustainable community is one that has Workforce Participation Adult Female Participation Rate 75.4% 59.2% diversity and resilience. It does not rely Aboriginal Adult Participation Rate 57.3% 53.3% on one industry alone but leverages a Year 12 Qualified 42.5% 46.1% mix of industries, quality human capital, University Qualified 10.8% 22.8% Skills its natural assets and comparative Technical Qualified 33.1% 31.6% advantages to become competitive and English Proficiency 79.7% 92.0% buoyant. Year 12 Completions 56.2% 75.3% Education and Training Learning or Earning 61.1% 80.1% Sustainable communities are inclusive, Outcomes Primary School Performance 44.2% 62.8% accessible, healthy and safe with access Secondary School Performance 21.9% 37.4% to a range of employment, housing, cultural, educational and recreational Table 6 Sustainable community indicators, Pilbara27 opportunities. In essence, a sustainable community is a place where people want Area of Focus Indicator Pilbara Nation to live and work, now and into the future. Businesses (per 1000 residents) 35.9 89.9 Unemployment 3.1% 5.2% The objectives of sustainable communities Economic Diversification 0.13% 0.56% Economic Sustainability Occupation Diversification 75.0% 100.0% can be grouped under three key areas: Welfare Dependent Families 9.74% 9.8% Industry Diversification 21.1% 42.1% • economic sustainability Regional Price Index 118.6 100.0* • community vibrancy and diversity Leadership Capacity 20.0% 34.9% Volunteer Activity 14.4% 17.7% Community Vibrancy and Diversity • health and educational access. Aged Residents (65+) 2.1% 14.2% Family Households 76.0% 71.5% Access to Hospital Services (per capita) 0.04 0.11 Access to GP Services (per capita) 0.023 0.054 Adult Health 53.5% 55.5% Access to Allied Health Services 4.1% 11.0% Health and Educational Access Child Development Vulnerability 48.3% 24.3% Distance to Medical Facility 33.9km 38.9km Distance to Primary Education Services 37.5km 24km Distance to Secondary Education Services 92.2km 23.3km

19

CONNECTIVITY Table 7 Connectivity indicators, Pilbara28

Area of Focus Indicator Pilbara Nation Access and connection with global markets Broadband Connections 74.7% 62.5% is critical to the growth of business, Mobile Coverage 38.0% 80.0% Digital Connectivity employment, incomes and the broader Mobile Internet 260.0% 310.0% economy. Trade with other locations within Internet Connectivity 82.9% 79.0% the state, nation and around the world Airport RPT Usage (per capita) 27.6 6.3 is the most effective way for a region to Overseas-Born Residents 38.5% 30.2% Population Turnover 159.9% 46.2% exploit its comparative advantages and Movement of People competitiveness to generate prosperity Airport Access 41 km 79.7 km International Merchandise Exports (per $1.48m $0.012m for local residents. capita) Port Access 108.1 km 141.6 km Freight Infrastructure Access & Broadly, connectivity to global markets Capacity Road Infrastructure 17.9 km 19.4 km can take a number of forms, for instance Rail Infrastructure 29.0 km 35.6 km ports, airports, personal connections and broadband communication. The Blueprint has assessed the level of connectivity of the region to identify relative strengths and weaknesses of three key areas:

• digital connectivity • movement of people • freight infrastructure access and capacity.

20 COMPETITIVENESS Table 8 Business competitiveness summary, Pilbara

Advantages Challenges Countries, regions, communities and • Expansive geography and underutilised land organisations must become more • Oceans, islands and coastal land • Limited capacity for new operations to access competitive if they are to maintain • Large and developed port infrastructure existing rail and port infrastructure their economic position and respond to • Multiple regional airports • Limited freehold land availability • High number of hours of sunlight per day • Lack of inbound shipping facilities challenges such as perceived productivity • Commercial property affordability Factor Conditions • Spare capacity for urban water and waste (approx. 10-15 years) gaps, competition for mobile investment, • Extensive, but regionalised, water resources • Weather challenges rapid adoption of new technology and associated with quality soils suitable for agriculture • Low average rainfall electronic commerce. (potable) and industry (non-potable) • Capture and storage of water • Globally significant iron ore deposits and petroleum resources • Absence of key intra-regional transport infrastructure • Proximity to major South East Asian markets corridors to shorten distances between centres The Organisation for Economic Co- • Extensive intra-regional transport infrastructure operation and Development (OECD) • Strong presence of large mining corporations • Small resident population and workforce and associated expenditure defines a competitive region as one that • Low levels of population retention, particularly during can attract and maintain successful firms • High incomes and wages and resident purchasing power mature family and retiree stages of household lifecycle Demand Conditions • High levels of inter-regional and inter- • Above average cost of living and cost of doing business and maintain or increase standards of state travellers to the region • High levels of competition for skilled workers • Established export relationship with living for the region’s inhabitants. This • Cyclical/project-based demand means that skilled labour and investment rapidly growing global markets will gravitate away from uncompetitive • Local professional services sectors regions towards more competitive ones. • Café, restaurant and food and beverage • Robust construction and transport and logistics sectors Related & Supporting availability, particularly after hours Industries • Presence of first and second tier mining • Short-stay accommodation capacity and affordability The competitiveness of a region can be support firms and businesses • Foreshore or public realm amenities in many locations readily assessed through the application • Reliance on imported skills and labour from other regions/states of Porter’s Diamond Model of Competitive Advantage. Developed by Michael Porter • Ability to finance infrastructure and commercial enterprise investments (general payback in his book, The Competitive Advantage of period of 10 years, 20% min deposit) • Strong local, state and Commonwealth government structure Nations, the Diamond Model represents Firm Strategy, Structure & • Complicated Native Title processes and Rivalry a form of economic SWOT analysis. The • Strong presence of major national and international businesses constrained arrangements of use Diamond Model was originally developed • Insurance costs • Below average numbers of small local businesses to analyse competitiveness at a national level but has since been widely applied to regions and industry clusters. • Research and innovation levels high in mining sector • No research organisation and/or university campus presence • Strong reliance on machinery, equipment • Significantly underrepresented research Innovation and technology in major sectors and development professionals The results of the competitiveness • Health and education services have some tele-service delivery • Few technology-related local businesses assessment for the Pilbara are outlined in the following table.

21 The growth and development of the systems drawing on an average 11 hours Pilbara will be driven by leveraging of sunlight a day with some the highest comparative advantages. The Pilbara’s levels of solar radiation on the planet. Rich COMPARATIVE ADVANTAGES comparative advantages are determined soils, vast underground potable water and by the region’s location, natural resource unique natural beauty also characterise endowment, settlement pattern and the region. industrial advances. Aboriginal culture and heritage The following principal comparative The Pilbara has a unique Indigenous advantages of the Pilbara have been culture and heritage with the region’s identified: Aboriginal people maintaining over 40,000 years of continuous connection to country Strong investment links with Asia in the region. The Burrup Peninsula and The Pilbara sits on the doorstep of Asia, surrounding Dampier Archipelago have with both Karratha and Port Hedland less the highest concentration of rock art than 3000km and four hours by air from in the world. Associated with the art is Singapore and less than three hours from a rich archaeological record, including Jakarta. While this advantage is shared campsites, quarries, shell middens and by the rest of Australia, the fact that the stone features. Pilbara is in the north accentuates this advantage. The region’s geographical proximity to Asia has to date benefitted the trade of minerals and energy but there are considerably more opportunities that could be developed to capitalise on the established bilateral relationships and growing international profile of the region. Natural environment and resources The region has significant deposits of offshore petroleum and natural gas, iron ore, nickel, copper, manganese, gold, rare earths, uranium and potash. There are also comparative advantages in renewable energy production, including geothermal, tidal, algae, and solar-based energy

22 Location of major industrial activity Figure 15 Comparative advantages, Pilbara The established presence of major industrial activity focussed on natural Strong Investment resource extraction is a key regional Links with Asia asset for the Pilbara. The presence of multi-billion dollar resource extraction activity naturally generates synergistic Natural Environment development and supply chain and Resources opportunities through the demand for goods and services, maintenance and Aboriginal Culture operation capacity and the viability of down-stream processing utilising natural and Heritage resources and extraction by-products. Location of Major Export infrastructure Industrial Activity The Pilbara enjoys strong access to markets and is a globally recognised export hub. This includes both physical Export access, through three major ports and Infrastructure regional airports with capacity to expand, as well as business relationships and networks including trading partners, clients and labour.

Inherent within the comparative advantages listed is the fact that many of them can be combined to create a unique set of imperatives for the establishment of new industries that few, if any other regions anywhere in the world can compete with to the same degree.

23 STRATEGIC PRIORITIES of the Pilbara – that is, its liveability – as a across the region, from remote parts of Investment attraction place for people to live, work and play is East Pilbara to major towns and cities To diversify and expand the economy, new There are a number of strategic priorities critical to attracting new residents to the of Karratha, Port Hedland and Newman. types and sources of investment for value which are considered important to region. However, like many parts of Australia, adding and new industries will be needed. support the development of the Pilbara – the socio-economic characteristics of the This means identifying, finding, attracting, not just for the Blueprint’s 2050 Vision but Population growth and retention Pilbara’s Aboriginal residents are below retaining and maintaining investment in for the regions development in general. The resident population of the Pilbara that of the rest of the population, raising the region. Many of these priorities are shared with currently lacks a critical mass. Shifting the issues of social welfare and inequity in the other parts of regional Western Australia Pilbara’s growth profile from a “business region. SUPPORTING PRIORITIES and Australia, though all are particularly as usual” to a more aspirational profile relevant to the Pilbara’s current and future will provide a larger resident population, ECONOMIC PRIORITIES Environmental sustainability development and growth. which will yield a range of benefits for The Pilbara region has a unique natural Import replacement the region. Part of the population growth environment that must be protected. The strategic priorities should act as a lens must come from the transient workforce The Pilbara economy, businesses and Promoting smart economic and social through which investment opportunities being converted to resident, but also communities import a significant quantity development that works with and can be identified and assessed. They allow from attracting people to work in other and variety of goods from outside the leverages the environmental attributes of for projects and initiatives to be assessed industries. region – some from many thousands of the region is viewed as a strategic priority not only in terms of their relevance to kilometres away – for input into local by stakeholders and is critical to ensuring the Pilbara’s future growth, but in their Local employment growth production. This represents a significant the sustainability and resilience of the contribution to addressing critical issues The ideal scenario is a fully resident proportion of the costs of goods and Pilbara economy and population. and priorities for the region’s industries, workforce supporting all industries, from services in the region. businesses, communities and households. minerals and energy to new value-added Research and innovation This ensures that scarce resources are Export potential and diversified industries and small and The Blueprint takes a holistic view of allocated in the most efficient way. medium businesses. Local employment The Pilbara is Australia’s leading export- research and innovation and promotes growth is viewed as fundamental for oriented economy. Its profile in global approaches that facilitate integrated The strategic priorities can be divided supporting prosperous and sustainable markets is exemplary, and the region education/training with industry into three broad areas – people priorities, communities, maximising resident is seen as an investment location of growth and development, and cross- economic priorities, and supporting participation in the workforce and choice for national and global businesses sectoral fertilisation of ideas, concepts, priorities. enhancing the resilience of households in mining and resource development, technologies and processes. to economic shocks and the rising cost of accommodation and infrastructure PEOPLE PRIORITIES living. sectors. Leveraging this profile to diversify the Pilbara’s export potential was identified Liveability Aboriginal development as a critical priority for new and emerging The Pilbara needs to become a place The Pilbara has a proud and diverse sectors, ensuring the Pilbara has a strong of choice for people to live. Therefore, Aboriginal community. Aboriginal people exposure to emerging global megatrends. enhancing and fostering the attractiveness are an integral part of communities

24 APPROACH TO GROWTH AND activities associated with the principal Figure 16 Spectrum of approaches to DEVELOPMENT industry, drawing upon the region’s regional growth and development competitive advantages, innovation, REGIONAL Shifting the Pilbara’s population and research and entrepreneurship to drive economic growth from “business as usual” growth. PILLARS towards a more transformational future requires a comprehensive, consolidated These three approaches to growth and Enabling and integrated approach to the growth development require different levels and development of the region. There is a of intervention from government and range of ways to foster and promote the stakeholders, but also provide different growth of a regional economy. Different scales of benefits and impacts. Enabling initiatives generally fall into three broad initiatives are critical to de-constrain approaches to growth and development: business investment and community development, but do not necessarily Enabling Initiatives – directly generate substantial new activity and benefits. In contrast, diversifying Value-adding investment in activities, infrastructure, actions have the largest impact, facilities and services that catalyse supporting the creation and development and enable the private sector and the of new industries and sectors. However, community to grow and prosper in a region such actions require significant up-front Value-Adding – investment and intervention. building upon and adding value to the strengths of the foundational industries to deepen regional economic activity; this Diversifying can include physical value adding to raw materials, increased capture of supply chain expenditure or the innovative use of existing infrastructure and economic capacity Diversifying – broadening of the economic base of a region through the promotion, fostering and growth of new industries and businesses; these businesses are generally separate from the value adding

25 REGIONAL PILLARS Figure 17 Detailed analysis and understanding of the Pilbara has led to the identification of nine Regional Pillars Realising the Vision for the Pilbara at 2050 will require the development and growth REGIONAL & GLOBAL INFLUENCES REGIONAL CAPACITY FOR GROWTH REGIONAL CHARACTERISTICS COMPARATIVE ADVANTAGES of a regional economy founded on a range of strengths or “Pillars”. These Pillars • Urbanisation • Capital • Geography and History • Strong Investment represent areas of opportunity for the • Rising Middle Class • Communities • Population Links with Asia region’s economy and community where • Global Food Consumption • Connections • Economy • Natural Environment public and private investment should be • Climate Change & • Competitiveness & Resources Water Security • Aboriginal Culture & Heritage focussed in order to realise the Vision. • Low Carbon Future • Location of Major • Shift in Economic & Industrial Activity In all, nine Regional Pillars spread Military Power • Export Infrastructure across each of the three different broad • Digital Connectivity approaches to growth and development • Automation have been identified. They are based on the detailed analysis and understanding of the regional and global influences, regional capacity for growth, regional characteristics and comparative advantages identified in this Blueprint. They build upon and complement the REGIONAL PILLARS core foundation industries of mining and resource development, which currently underpins the prosperity of the region.

The nine Regional Pillars are detailed Land Access Education, People and Logistics, Innovation Diverse & Agriculture & Energy Tourism and Economic Training and Communities Engineering & Advanced Robust Small Aquaculture overleaf. Infrastructure a Skilled and Supply Technology & Medium Workforce Chain Hubs Businesses PILLAR OBJECTIVES ENABLING VALUE-ADDING DIVERSIFYING Identifying these Pillars as areas in which to invest is only part of the story. What is also required are the objectives for investing in the Pillars as they relate to the Pilbara.

To this end, a set of short, medium- and long-term objectives have been identified. These objectives should guide the identification of actions as well as investment across the region.

26 Land Access and Economic Infrastructure: People and Communities: The perception communication mediums, will unlock The provision of suitable land and of the Pilbara as a challenging place to opportunities in the Pilbara across both economic infrastructure has been a live will be overcome, and the Pilbara the foundation mining base and new barrier to the development of the Pilbara. will be regarded as an attractive place industries. The research, development Continuing investment in land access and to live, work, invest and visit. Continued and integration of new and advanced economic infrastructure, such as energy, investment in health, sports and recreation, technologies will improve access to water (potable and for agriculture and arts and culture services and facilities learning and commerce opportunities, industry), waste, digital communications will improve, maintain and enhance the drive productivity growth and support and transport (roads, rail, sea and airports) quality of life of the region’s residents. the resilience and sustainability of will be required. Overcoming land tenure Further investment in cultural events communities, businesses and industry. In challenges and improving access to quality and activities will encourage community partnership with the region’s education services, markets and communities will vibrancy and help to overcome isolation and training providers, the Pilbara can be improve the attractiveness of the region to and remoteness challenges. The Pilbara’s a global leader in innovative and advanced households and investors, catalysing new unique Aboriginal culture and history will operations technologies associated industries and businesses in the region. be celebrated across the region. with the mining, resource and new and emerging industries. Education, Training and a Skilled Logistics, Engineering and Supply Chains: Workforce: The growing global middle Opportunities exist to leverage the Diverse & Robust Small & Medium class with higher levels of education region’s industrial activity, advancements Businesses: Currently under-represented will mean that the Pilbara will need in technology, existing local skills in the Pilbara compared to national to maintain a high level of skills and and infrastructure base, and growing averages, the Pilbara’s small and medium knowledge in order to compete. Therefore, population to promote and encourage business sector will need to be the heart of quality secondary and tertiary education globally competitive logistics, engineering the Pilbara’s diversified economy. Diverse, and training facilities and services are and supply chain common use facilities, robust and resilient small and medium needed to educate and develop the hubs or centres of excellence to service businesses must take advantage of a skills and capabilities of the region’s onshore and offshore industry needs, growing population base and be innovative, current and future workforce. Increased including defence support and emergency entrepreneurial and use technologies access to educational services, from management. Greater levels of locally to address operational challenges and early childhood care and development to provided services to the existing minerals access new markets. Local businesses university, will encourage local residents and energy supply chains will improve the will fully incorporate into mining and to live and study in the region and provide local capacity in the supply of services, major project supply chains, leverage opportunities for industry-specificequipment and materials fabrication, the region’s reputation as a quality and research and development and innovation assembly and technologies. reliable supplier and will actively target to be generated. The Pilbara’s high level of opportunities in Asia. A thriving small industrial activity provides the opportunity Innovative & Advanced Technology: and medium business sector will support for the region be a significant influence Capitalising on technological change, communities during mining downturns in education, training and knowledge in including micronisation, automation, and provide a diversity of career choices these areas. telecommunications capacity and new for local residents.

27 Agriculture & Aquaculture: Amid changing Tourism: By leveraging the Pilbara’s climates and increased water security unique and iconic environmental and challenges, market opportunities in cultural assets (e.g. Karijini and Murujuga Asia for safe, quality food will drive the National Parks), current strong regional promotion and development of the natural visitation for business and employment comparative advantages of the Pilbara in reasons will be fostered and diversified food production. With considerable mine to increase travel and expenditure for dewater and ground water opportunities, education, leisure and “visiting friends and vast amounts of sunlight and suitable and relatives” visitation. The Pilbara will soils for agriculture, the region is in a strong capitalise on its proximity to Asia and position to utilise existing local export emerging middle class markets and infrastructure and expertise to capture its airport infrastructure to realise the existing and emerging food markets. tourism industry’s potential. Greater Optimal environmental conditions make investments in the Five A’s of tourism local algae production highly attractive, activity – accommodation, accessibility, while the coastal orientation of the region amenity , attractions and awareness – will allows for the development of both be pursued. onshore and offshore aquaculture.

Energy: The Pilbara’s latent energy resources (particularly in LNG, but also uranium) and expansive and underutilised land and natural assets will be developed for local, national and global markets. Proximity, political stability and export infrastructure advantages will be exploited with targeted investment in traditional and innovative alternate energy production opportunities, including solar, geothermal, algae and crop-based biofuel, hydrogen, tidal and other stationary and mobile energy sources. This energy production will help to support the growth of the regional population as well as provide new export opportunities to major and emerging global markets.

28 Table 9 2050 objectives for Regional Pillars

APPROACH PILLAR 2050 OBJECTIVE

• Investments are not impeded by a lack of land availability and access • Utilities are able to respond to market needs and demands in a competitive and efficient market environment Land Access and Economic • Low-cost utility services provide a competitive advantage for the region and encourage investment Infrastructure • A fully integrated public and private transport network of roads, rail, sea and airports which support development • Urban environments are attractive and promote a strong sense of place

• A full choice of quality vocational, technical and tertiary education options are available across the region, including a university campus • Education levels of the workforce are in line with regional Australian averages Education, Training and a Skilled Workforce • Aboriginal education levels are comparable to the regional Australian average • Pilbara attracts and retains national and international migrants

ENABLING • Age and gender profile fully balanced • Aboriginal residents are empowered and have equal opportunities to participate fully in the social and economic development of the Pilbara • The Pilbara community celebrates and participates in the unique Aboriginal cultures of the region People and Communities • Residents can access quality health advice and services comparable to metropolitan markets using innovative delivery methods • Resident health and wellbeing in line with metropolitan average • Sustainable community and NGO sectors promoting community well-being and civic life through human services, sports, recreation, arts, and culture

• The Pilbara is recognised for maritime safety and emergency management, exporting the expertise to other regions Logistics, Engineering and Supply • The Pilbara is recognised as a world-class industrial fabrication and technology producer, exporting technology and services throughout Asia Chains • The region’s resource and infrastructure assets and supply chain networks are utilised to support defence and emergency response operations for Northern Australia and South East Asia

• Businesses in the Pilbara are fully integrated into the global digital economy and are using advanced technologies ADDING Innovation and Advanced Technology • Automation technologies are developed, tested and serviced in the Pilbara • Advanced technologies and services are exported to other regions

• The Pilbara is recognised internationally as an attractive, safe and stable place to do business, with a supportive VALUE- Diverse and Robust Small & regulatory environment that encourages entrepreneurship, investment and exports Medium Businesses • A full range of small to medium sized businesses contribute to diverse and vibrant communities comparable to other regional centres

• Pilbara and Australia’s North West contribute significantly to regional and global food security Agriculture & Aquaculture • Triple Gross Value of Agricultural Production (GVAP)

• The Pilbara has a diversified source of sustainable energy including renewable and alternative energy sources Energy • The Pilbara exports diverse energy sources to regional, national and international markets

• The Pilbara is a recognised tourism destination, attracting a range of visitors with its natural and man-made attractions and DIVERSIFYING Tourism delivering a variety of significant economic, social and community benefits to the residents of the region. • Heritage and Aboriginal tourist attractions are recognised by the international market as unique offerings that draw visitors from around the world in their own right

29 THE FUTURE ROLE OF THE equipment, innovation and research RESOURCES SECTOR capacity. The future economic, social and The fundamental role of the resources environmental potential of the Pilbara sector in the Pilbara is recognised in cannot be realised without a robust, the Blueprint. Promoting and fostering dynamic, innovative resources sector investment in the Regional Pillars in the medium and long term. It is also will not displace mining and resource in the interests of the Pilbara resources development as the foundational industry sector, and therefore the broader in the Pilbara economy. In fact, it is Western Australian economy, that the expected that the resources sector will be region transitions from its current mono- a major beneficiary of the realisation of economy structure into a more diversified, the Pilbara 2050 Vision and the Regional integrated and collaborative framework Pillars. Potential benefits may include: that leverages all of the Pilbara’s competitive advantages. • improved access to local skilled workers, through the growth of While the Pilbara is known predominanatly regional population and labour for its iron ore and energy resources, markets and greater depth and there are a number of other resource diversity of secondary and tertiary opportunities. These include copper, education services manganese and nickel, while significant • improved retention of high skilled deposits of uranium and potash have also workers, through the provision of been found in the region. higher amenity urban environments, including associated health, education, retail and community services and facilities • improved infrastructure, reducing competition for capacity between resource and non-resource (including residential) sectors of the regional economy • increased productivity, through enhanced access to local supply chains, including key services,

30 The capacity of the Pilbara to reach its TRANSFORMATIONAL economic, social and environmental OPPORTUNITIES SUMMARIES potential in 2050 and beyond is contingent on a range of Transformational Two Transformational Opportunities Opportunities being captured and have been identified for each of the nine leveraged. Each of the broad Regional Regional Pillars profiled in the Blueprint. TRANSFORMATIONAL Pillars identified in this Blueprint will be realised through investment in a range of This represents six individual OPPORTUNITIES more specific opportunities that enable, Transformational Opportunities across add value and diversify the regional each of the three approaches –18 in total. economy and community. The Transformational Opportunities REALISING THE PILBARA identified are identifed in the table 2050 VISION overleaf. For further details, refer to the Pilbara Regional Investment Blueprint The Pilbara Development Commission, in Technical Report. consultation and partnership with Pilbara stakeholders, has identified a range of potential investment opportunities in the region out to 2050. These opportunities are based on consideration of regional characteristics and attributes (including competitive advantages) within the context of current and emerging global mega trends.

Individual investments or developments have not been identified in this Blueprint. Instead, the Blueprint provides a framework for identifying and profiling higher-level Transformational Opportunities. Individual actions, projects and initiatives required to realise the Transformational Opportunities will be identified by Blueprint stakeholders in the future. This maximises the flexibility, and therefore longevity, of the Blueprint.

31 Table 10 Transformational Opportunities

APPROACH REGIONAL PILLAR TRANSFORMATIONAL OPPORTUNITY

Normalised Property Market and Land Access Land Access and Economic Infrasturcture Secure and Sustainable Infrastructure Services

Lifelong Education Education, Training and Enabling a Skilled Workforce Workforce Development and Skilled Migration

Diverse and Vibrant Intergenerational Communities People and Communities Innovative Local and Remote Healthcare Delivery

Maritime Maintenance, Safety & Emergency Management Logistics, Engineering and Supply Chains Industrial Fabrication, Assembly and Technology

Business Digital Connectivity Innovation and Advanced Value-Adding Technology Automation Technology and Services

SME Support Diverse and Robust Small to Medium Sized Businesses Streamlining Governance

High-Value Agriculture and Cropping Agriculture & Aquaculture Aquaculture, Algae Biofuels and Co-products

Energy Production Diversifying Energy Energy Export

Nature-Based Tourism Tourism Heritage and Aboriginal Tourism Development

32 The Blueprint provides a Vision for is a family looking to move to the region the whole Pilbara, and therefore, or an international investor looking at implementation will be the responsibility investment opportunities. The Pilbara will IMPLEMENTATION of all of the region’s stakeholders. need to improve the process of collecting data about itself and packing it up in a OVERVIEW The implementation of the Blueprint will form that is meaningful to stakeholders. utilise the following basic framework: This includes forecasting the future of the Pilbara and how certain investments can Alignment and coordination advance the region. An important component of the Blueprint’s implementation will be aligning Investment Prioritisation stakeholders towards common objectives. A key element of the implementation of the Blueprint will be prioritisation of Advocacy and promotion investments. This is particularly important The Pilbara should change perceptions for investments made by government, and be viewed as a “region with mining” whether the investment is actual funding, and not a “mining region”. The Pilbara agency funding or the provision of continues to and will always continue to resources to attract and assist investors. rely on the minerals and energy sectors. However, not all investments need However, significant investments over the prioritisation. Private sector investments past decade in liveability and amenity have have different drivers and therefore will be transformed the region. The Pilbara needs predominantly prioritised by the investor. to reinvent and promote itself as a region A major element will be an assessment offering everything a person could want of the ability of the investment to deliver and need for a satisfying life. Every Pilbara transformational change to the Pilbara stakeholder striving to meet the Blueprints while meeting the strategic priorities Vision has a role in advocating for the outlined in the Blueprint. region in order to change the perception of the region to place to live, work, invest and visit.

Knowledge portal Poor information limits the ability of stakeholders to make informed decisions about investing in the region – whether that

33 Financing and funding development • investigate new capital-raising • Report on outcomes, achievements and mechanisms such as public-private any shortcomings in implementation The Pilbara’s forecast population partnerships, municipal bonds and of the Regional Investment Blueprint. growth trajectory will demand ongoing value capture investment in economic, social and Implementing the nine Regional Pillars community infrastructure to overcome • examine the viability of public asset current deficits and cater for additional The nine Regional Pillars of the Blueprint sales that can both release new demand for housing, utilities and liveable will have their own unique set of capital for priority infrastructure communities. Financing the next phase stakeholders and their own unique investment and support expansion of Pilbara investment in economic, social challenges and more efficient management of and community infrastructure will be a existing assets. challenge. Coordination of investment The process of implementing the Pillars attraction to the region will be important. should follow the overall strategy for the Monitoring and reviewing outcomes and Better investment coordination between Blueprint as outlined above: actions the public and private sectors could also • Alignment and coordination help overcome the current fragmented The Commission and stakeholders will and duplicated approach to infrastructure jointly develop a framework for monitoring • Advocacy and promotion funding. New models for financing regional and evaluation, including performance development are needed that can: measures.The monitoring and evaluation • Knowledge portal framework will serve several purposes • utilise public funding to leverage including to: other capital sources to attract new • Investment prioritisation complementary and supplementary • measure investment across the region • Financing and funding development funding disaggregated by sector • Monitoring and evaluation. • mobilise and coordinate the • assess business case development considerable sums of domestic latent including the number and focus of capital that exists in the region business cases prepared

• overcome the fragmented approach • capture policy and procedural to sector funding through employing initiatives and reforms that improve pooled funding and sector-wide the investment and development in approaches and scaling up successful the region models of coordinated industry, community and government funding • monitor demographic and population for the health and education sectors changes, wellbeing and social cohesion

34 1 International Monetary Funds 11 Curtin (2014) Pilbara 2050: Ensuring 19 Curtin (2014) Pilbara 2050: list of Nation States Gross the Long-Term Viability of the Pilbara, Ensuring the Long-Term Viability Domestic Product. 2014 Curtin University of Technology, Perth of the Pilbara, Curtin University of Technology, Perth http://www.curtin. 2 Western Australian Mineral and 12 Author calculations; DMP (2014) edu.au/research/cusp/local/docs/ Petroleum Statistics. Deparment Mineral and Petroleum Statistics, pilbara-2050-final-report.pdf of Mines and Petroleum. 2014 Department of Mines and Petroleum, Perth; ABS (2014) International Trade 20 ABS (2012) Value of Agricultural REFERENCES 3 Ibid. in Goods and Services, Australia, Commodities Produced, Oct 2014, Cat No. 5368.0, Australian 2010-11, Australian Bureau 4 ABS (2012) Census of Population Bureau of Statistics, Canberra; & of Statistics, Canberra and Housing, 2011, Australian ABS (2012) Census of Population Bureau of Statistics, Canberra and Housing, 2011, Australian 21 DRD (2011) Pilbara: A Region in Bureau of Statistics, Canberra Profile, Department of Regional 5 ABS (2014) Regional Population Development, Perth Growth, Australia, 2012-13, Cat 13 Department of Employment No. 3218.0, Australian Bureau (2014) Small Area Labour Markets 22 RDAP (2014) Cost of Doing Business of Statistics, Canberra Publication, Australian Government, in the Pilbara, Regional Development Canberra http://employment.gov.au/ Australia – Pilbara, Karratha 6 ABS (2014) Regional Population small-area-labour-markets-publication Growth, Australia, 2012-13, Cat 23 ABS (2014) Counts of Australian No. 3218.0, Australian Bureau 14 ABS (2012) Census of Population Businesses, including Entries and Exits, of Statistics, Canberra and Housing, Australian Bureau Jun 2009 to Jun 2013, Cat No. 8165.0 of Statistics, Canberra 7 ABS (2012) Census of Population 24 FAO (2012) World agriculture towards and Housing, 2011, Australian 15 ABS (2012) Census of Population 2030/2050 :The 2012 Revision, Food Bureau of Statistics, Canberra and Housing, Australian Bureau and Agriculture Organisation of the of Statistics, Canberra United Nations http://www.fao.org/ 8 ABS (2012) Census of Population docrep/016/ap106e/ap106e.pdf and Housing, 2011, Australian 16 REMPLAN (2014) Pilbara Region Output Bureau of Statistics, Canberra http://www.economicprofile. 25 IEA (2012) World Energy Outlook com.au/pilbara 2012, International Energy Agency 9 ABS (2013) Regional Population Growth, Australia, 2012-13, Cat 17 TRA (2014) Visitor Survey Data, 26 See Technical Report for sources No. 3218.0, Australian Bureau Tourism Research Australia, AusTrade, of Statistics, Canberra Australian Government, Canberra 27 Ibid.

10 ABS (2012) Census of Population 18 TRA (2014) Visitor Survey Data, 28 Ibid. and Housing, 2011, Australian Tourism Research Australia, AusTrade, Bureau of Statistics, Canberra Australian Government, Canberra

35 Disclaimer Acknowledgements While the information contained in the This Blueprint was prepared publication is provided in good faith and believed to be accurate at the time of by the Pilbara Development publication, appropriate professional Commission with the advice should be obtained in relation assistance of RPS Group. to any information in this publication. RPS Group, the Government of Western Australia and the Pilbara Development We also thank the Commission shall in no way be liable numerous stakeholders for any loss sustained or incurred by who generously contributed anyone relying on the information. their time and expertise.

Photos contained in this document were contributed by Shot in Oz, Travis Hayto, Bewley Shaylor, Rebecca Dray, Town of Port Hedland and John Holland

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