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KWINANA as a catalyst for economic development a FACTBase Special Report ABOUT FACTBase The FACTBase project is Perth compares with, and a collaborative research connects to, other cities venture between the around the world. Committee for Perth and The University of Western Research findings are Australia that commenced released regularly, providing in 2008. Its objective is to an important resource for explore Perth’s liveability academics, planners and and global connectedness decision-makers on the through an examination following major aims: of its economic, social, demographic and • Examining the dynamics political character. of Perth’s regional economy; The FACTBase team of • Exploring Perth’s social researchers condense and cultural landscape; a range of existing • Considering issues related information and databases to ‘urban liveability’ in on important issues, map Perth; and what is happening in • Examining governance Perth in pictures as well as and policy arrangements. words, and examine how Committee for Perth and The University of Western Australia April 2018 Cover image: Kwinana Beach. Image courtesy of Wesfarmers Chemicals, Energy & Fertilisers. KWINANA as a catalyst for economic development a FACTBase Special Report Image courtesy of Kwinana Industries Council. KWINANA as a catalyst for economic development a FACTBase Special Report CONTENTS About the Report | 4 About the Project | 4 From the CEO | 5 Key Findings – Infographics | 6 Executive Summary | 8 About the Kwinana Industrial Area | 10 History of Planning and Development | 13 Demographic and Economic Analysis | 20 Agglomeration Economies and Competitive Advantage | 30 The Future of the Kwinana Industrial Area | 33 Conclusion | 40 Appendix 1 – Kwinana Cluster Industrial Symbiosis | 42 References | 43 About the Author | 47 Acknowledgements | 47 Bigger & Better Beyond the Boom Steering Committee | 48 Committee for Perth Membership | 54 KWINANA AS A CATALYST FOR ECONOMIC DEVELOPMENT ABOUT THE REPORT This FACTBase Special contributor to innovation, Report is a key input into the export earnings and Bigger & Better Beyond the economic growth. Boom project. It examines the development of the The report also reflects on Kwinana Industrial Area, the importance of securing including an overview of the long-term future of Professor Matthew Tonts its early origins, industry the Kwinana Industrial Pro Vice-Chancellor ecosystem and economic Area, particularly with Executive Dean | Faculty contribution. regard to infrastructure, of Arts, Business, Law and governance and long-term Education The report shows that, competitiveness. since its establishment in 1952, Kwinana has been The information in the report one of the most significant will be used to help shape a drivers of economic activity series of recommendations in Western Australia. Not to be released at the end only is it a key centre for of 2018 and contribute to employment, but a major a roadmap for Perth and Peel’s economic future. ABOUT THE PROJECT In 2017, the Committee for The primary aim of Bigger The work will be undertaken Perth commenced a new & Better Beyond the Boom through the lens of an major research project will be to identify industries economic geographer, focused on the current that are growing; industries which will provide a and future economy of the in decline; and emerging fresh and approachable Perth and Peel region. The economic threats and perspective of the economy project, entitled Bigger & opportunities for the future. of the Perth and Peel region. Better Beyond the Boom: It will examine and illustrate The outcome of Bigger & Perth’s economic future the importance of local, Better Beyond the Boom will as a region of 3.5 million regional, national and be a major report which will people, will examine the international connections identify targeted strategies size, industry composition to and between associated with the specific and spatial structure of industries in Perth and strengths and weaknesses of the Perth and Peel and Peel and the role of new key locations and industries wider Western Australian technology, innovation and within the region. economy at a fine grain entrepreneurship. level. It will challenge conventional wisdoms and identify strategies for a more economically diverse and robust future for the region. 4 FROM THE CEO Almost 70 years after a State those it is currently tackling Agreement was signed to and some of the issues it let BP Australia establish faces in the future and how the state’s first oil refinery it is working to solve some of in Cockburn Sound, the them now. It is a reminder Kwinana Industrial Area of what it takes to build (KIA) has proven to be new industries, jobs and Marion Fulker incredibly resilient and capabilities. CEO, Committee for Perth has become a powerful Project Director, Bigger & driver of the Western Kwinana as a catalyst for Better Beyond the Boom Australian economy. economic development Adjunct Senior Research proves that a combination Fellow, The University of As well as the refinery, the of strategic policy decisions, Western Australia KIA is home to significant symbiotic relationships additional industrial between co-located activities that are essential industries and the sharing of to our agricultural resources and knowledge production, mining activities can create a whole that is and construction industry. greater than the sum of its In 2016, there were 231 individual parts. businesses, employing more than 5,600 workers I commend this report to operating within the KIA. you as essential reading This diversity of industries has as part of the research been crucial to its success, conducted for the with the Area injecting Committee for Perth’s almost $16 billion into the Bigger & Better Beyond the state’s economy each year. Boom project. A two-year endeavor to develop a This FACTBase Special roadmap for the region’s Report, Kwinana as a future prosperity. catalyst for economic development, examines the evolution of the KIA, the challenges it has faced, 5 KWINANA AS A CATALYST FOR ECONOMIC DEVELOPMENT __________ HISTORY & ECONOMIC OUTPUTS __________ BUSINESSES __________ INDUSTRIES __________ 6 __________ WORKFORCE 50% 40% 30% 20% 10% 0% ther Mining O Services Transport Construction Manufacturing holesale trade W __________ THE FUTURE __________ 7 KWINANA AS A CATALYST FOR ECONOMIC DEVELOPMENT Image courtesy of Kwinana Industries Council. EXECUTIVE SUMMARY This FACTBase Special first oil refinery in 1952. They are typically employed Report traces the 66-year The refinery became the in manufacturing, history of development catalyst for a significant construction, mining, in the Kwinana Industrial agglomeration of industrial transport, postal and Area and the wider region activity, who benefit from warehousing, and known as the Western Trade shared resources and the electricity, gas, water and Coast, in the south-west of exchange of material and waste services. Greater Perth. It examines knowledge. the magnitude of growth The challenges of an at Kwinana which has led There are some unique ageing workforce are to its significant economic demographic and already being addressed contribution to the region, economic components through a coordinated currently sitting at $15.77 within the Kwinana Industrial approach, with catchment billion, and reflects upon Area, which is being high schools being critical strategic issues and influenced by the legacy engaged to understand challenges for the future. of migrant workers from local industries and future the United Kingdom. These career opportunities. The Kwinana Industrial Area workers are characterised was established under by an ageing demographic, The report revealed that a State Agreement that with higher than average businesses in the Kwinana would see the construction weekly personal incomes. Industrial Area are likely to of Western Australia’s be experiencing jobless 8 growth, with technological Ensuring a secure location advancements leading to for future industrial activities greater efficiencies and is also essential and should a requirement for fewer be finalised through workers. Despite this, the legislated confirmation of Kwinana Industrial Area boundaries of the Kwinana has a significant estimated Industrial Buffer Zone. output of $15.77 billion per annum. The research highlighted the need for clear governance In addition, the report arrangements, with a highlights a number single governing body of critical inputs and likely to have a positive challenges that must be impact on current and overcome to ensure stability future operations. and long-term success. Infrastructure, such as an The Kwinana Industrial Outer Harbour facility would Area plays a vital role in the contribute substantially State’s global trade through to the industrial activities both imports and exports carried out at Kwinana and will require long-term and could have a positive planning and strategic effect on potential future governance to ensure investment opportunities. this continues. Image courtesy of BP Development Australia Pty Ltd. 9 KWINANA AS A CATALYST FOR ECONOMIC DEVELOPMENT ABOUT THE KWINANA INDUSTRIAL AREA The Kwinana Industrial Area The Western Australian The list below describes (KIA) covers approximately economy further benefits some of the additional 2,400ha and falls within a from the KIA as it is the important industrial larger industrial precinct location of the state’s only activities that the KIA known as the Western oil refinery, owned and accommodates: Trade Coast (WTC),
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