KWINANA As a Catalyst for Economic Development a Factbase Special Report ABOUT Factbase

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

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%

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), located operated by BP Australia approximately 30km south and the largest of the four • The Southern of the Perth CBD. The WTC remaining refineries in Hemisphere’s largest incorporates four industrial Australia (Williams, 2016). grain export terminal, precincts, including the The BP refinery imports owned and operated by Latitude 32 Industry Zone to crude oil from the Middle CBH Group and able to the north, the Rockingham East, West Africa, New convey 5,000 tonnes of Industry Zone to the south, Zealand, Indonesia and grain per hour; the Australian Marine the north-west of Australia • One of three Alcoa Complex at Henderson and to produce 8,300 mega alumina refineries in the the Kwinana Industrial Area, litres of product, including state, which combined see Figure 1 (Western Trade petrol, diesel, aviation supply 8% of the global Coast, 2017). It is Western fuel, fuel oil, hydrogen, alumina market, the Australia’s primary industrial kerosene, propane and world’s single largest area and falls within the butane (BP Australia, 2017; source, which is exported boundaries of three local Williams, 2016). In total, this out of Kwinana and governments, which include supplies Western Australia Bunbury (Alcoa, 2017); the City of Kwinana, the City with 80% of its current fuel • Water Corporation’s Perth of Rockingham and the City requirements for road, Seawater Desalination of Cockburn (KIC, 2012c). marine and aviation Plant, which produces purposes (Parliament 45 billion litres of The KIA is a significant of Western Australia, drinking water to supply contributor to the Western Legislative Council, approximately 18% of Australian economy and November 10, 2016). Perth and Peel residents has an estimated output of (Water Corporation, n.d.); $15.77 billion per annum (KIC, 2012c). The primary focus of economic activity is heavy industry, through resource and chemical processing, and outputs include refined oil, alumina, nickel, fertiliser chemicals and others. More recently, the KIA has been used as a location for water reclamation and desalination with the introduction of facilities by the Water Corporation (WTC, 2014). Image courtesy of BP Development Australia Pty Ltd. 10 FIGURE 1. WESTERN TRADE COAST BOUNDARY AND INDUSTRIAL AREAS

Source: KIC, 2016. 11 KWINANA AS A CATALYST FOR ECONOMIC DEVELOPMENT

Image courtesy of BP Development Australia Pty Ltd.

• The Southern • Tianqi Lithium has Founded under a State Hemisphere’s largest commenced construction Agreement in the 1950s, Sulphuric Acid Storage on the second stage the refinery at Cockburn facility, with a capacity of its lithium hydroxide Sound became the catalyst of 70,000Mt, owned by processing plant, which for the development of Coogee Chemicals; when complete, ‘will Kwinana as an industrial • CSBP’s major chemical make the Kwinana plant hub, which drove economic and fertiliser production the world’s largest lithium development, created new complex, which supplies hydroxide producer’ infrastructure and jobs, almost all 780,000 tonnes to manufacture lithium grew the skilled worker base of ammonium nitrate to batteries (Tianqi Lithium, and the development of the the WA mining industry 2017); and surrounding suburbs. as a blasting agent and • A nickel sulphate specifically develops a production facility has Today, the KIA is a mature variety of fertilisers based been proposed by industrial precinct, home on the Western Australian South32 which could to many organisations with soil profile (CSBP, 2015a; allow Kwinana to symbiotic relationships. CSBP, 2015b); become a major hub The KIA has grown to for renewable battery become critical to Western manufacturing (KIC, 2016; Australia’s export earnings KIC, 2017). in processed goods and is a key link in the state’s global trade connections.

12 HISTORY OF PLANNING AND DEVELOPMENT

The Kwinana Industrial Area well-known for being Company to secure the was established in 1952 deemed the ‘Cinderella state as the location for through the ratification of state’, at a financial and/ what would be, and still is the Oil Refinery Industry or political disadvantage Australia’s largest oil refinery. (Anglo-Iranian Oil Company compared with the rest Limited) Act 1952, which of Australia (MacLachlan, The decision to locate set out details of a State 2013). Indeed, the three the oil refinery in Western Agreement between major sources of economic Australia was influenced the Western Australian wealth in Western Australia by a number of conditions Government and the prior to the establishment of at the time. A post World Anglo-Iranian Oil Company, the oil refinery were wool, War II global market led now BP Australia, which gold and wheat, with 76.5% to an increasing number would see the establishment of the state’s net value of of countries implementing of an oil refinery on the production attributed to ‘resource nationalism’, which shores of Cockburn Sound primary industries in 1950- is defined by Stevens (2008) (Western Australia, 1952). 51 (Stephenson & Hepburn, as both a limitation placed 1955). In order to address on the ‘operations of private Prior to the establishment concerns regarding Western international oil companies’ of the BP Refinery, Western Australia’s economic future, and ‘asserting a greater Australia was the least the State Government national control over natural industrialised mainland entered into negotiations resource development’ Australian state and was with the Anglo-Iranian Oil (Stevens, 2008, p. 5).

FIGURE 2. THE KWINANA INDUSTRIAL AREA PRIOR TO INDUSTRIAL DEVELOPMENT, 1 NOVEMBER 1952

Image courtesy of BP Development Australia Pty Ltd. 13 KWINANA AS A CATALYST FOR ECONOMIC DEVELOPMENT

This was particularly true for The final State Agreement The total cost to the State Iran, which was the location outlined a number of Government in securing for the Anglo-Iranian Oil conditions that the state the initial investment is Company’s largest oil would meet to guarantee estimated to have been refinery in Abadan. Growing the £40 million investment, approximately £10-12 conflict arose over issues in worth $1.45 billion in 2017, million, which is worth oil concessions between required to establish and between $363-$436m in large companies and the construct the Kwinana 2017 (MacLachlan, 2013; countries in which they Refinery (Reserve Bank of Reserve Bank of Australia, were located, which led Australia, 2017; Western 2017). The Kwinana Refinery companies to source Australia, 1952). These was constructed and alternative locations for conditions included: completed in 1955. operations offering less volatile market conditions • The dredging of Cockburn The first planning document (MacLachlan, 2013; Sound in three stages to to guide future land use Stevens, 2008). allow ships access to the and development in industrial area, to a final Perth coincided roughly Negotiations between depth of 38 feet and a with the establishment of the Western Australian bottom width of 450 feet the BP Kwinana Refinery Liberal Government and within 6 years; at Cockburn Sound, in the Anglo-Iranian Oil • The provision of 333 1955. Looking back to the Company began in 1951, houses per year for Stephenson-Hepburn Plan after the state government three years to be used provides an understanding sent representatives to the by employees of the of the impact of the eastern states to argue the company, who would then recently ratified case for Western Australia largely have emigrated decision, in that it outlined as a potential location for from the United Kingdom; the significance of the the refinery (Parliament • The construction of all ‘vast works’ at Kwinana of Western Australia, roads and infrastructure to ‘have far reaching Legislative Assembly, March necessary to maintain repercussions both on the 6, 1952; The Argus, 1955). both the Kwinana Refinery economy of the State and The location of Kwinana and the new houses the physical pattern of was favoured because being erected, including the Metropolitan Region’ of a number of qualities fencing, sewerage and (Stephenson & Hepburn, including: the deep electricity services; 1955, p. 1). A great emphasis waters found at Cockburn • The provision of electricity, was placed on industrial Sound; the large amount up to 12,000 kilowatts, employment, which was of unsettled land and flat and a minimum water identified by Stephenson topographical settings supply of 200,000 gallons and Hepburn as the most adjacent to the site; and, per day; and important aspect of Perth’s the ability of the state to • The construction and future employment. The provide the electricity maintenance of a manufacturing industry was and water requirements railway connecting to the expected to grow largely for the establishment and existing line to be used due to the new capacity operation of the refinery for industrial purposes of oil refining in the State, (Parliament of Western (Western Australia, 1952). which was anticipated Australia, Legislative to bring new industry into Assembly, March 6, 1952). the region (Stephenson & Hepburn, 1955, p. 46).

14 FIGURE 3. THE ANGLO-IRANIAN OIL COMPANY REFINERY NEARING COMPLETION

Source: Stephenson & Hepburn, 1955, p. 19.

The plan proposed that the major processing plants Government gazetted the ‘largest industrial area in the were opened/closed within 1963 Metropolitan Region region’ be located within the KIA. Scheme (MRS), a statutory the KIA and incorporate planning document the boundaries of the Between 1955 and 1963, governing land use new Kwinana Refinery the KIA accommodated a planning through the use (Stephenson & Hepburn, number of new industries of zoning in Perth and Peel. 1955, p. 236). In addition, it including: the processing Figure 6 provides a visual identified an employment of local limestone by comparison of industrial capacity at Kwinana of Cockburn Cement in land use zones between the 54,000 out of a total 322,500 1955; a steel rolling mill by 1963 and the current MRS, industrial workers in the BHP in 1956; and Alcoa’s identified by the purple Perth metropolitan region, first Western Australian areas. Comparing the two 16.7% (see Figure 4). alumina refinery in 1963, maps, it can be seen that also established with the KIA was of much greater The establishment of the the assistance of a State significance in 1963, being Kwinana Refinery and the Agreement, the Alumina the most prominent area newly released Stephenson- Refinery Agreement Act of land zoned for industrial Hepburn plan for Perth 1961 (MacLachlan, 2013; purposes. In the subsequent saw a significant amount Western Australia, 1961). 54 years, a number of of investment during the additional locations of ensuing years. Figure 5 Following this period of industrial activity have been provides a timeline of when early investment, the State expanded or rezoned. 15 KWINANA AS A CATALYST FOR ECONOMIC DEVELOPMENT

FIGURE 4. PROPOSED DISTRIBUTION OF EMPLOYMENT, RESIDENT FACTORY WORKERS AND OTHER RESIDENT WORKERS AS PER STEPHENSON-HEPBURN PLAN

Source: Stephenson & Hepburn, 1955, p. 67. 16 FIGURE 5. MAJOR PROCESSING PLANTS WITHIN THE KWINANA INDUSTRIAL AREA

Source: MacLachlan, 2013.

Despite the growth of The draft South Metropolitan The Framework designates additional industry, the Peel Sub-regional Planning the WTC to remain as KIA still remains Western Framework (the Framework) Western Australia’s Australia’s primary area forms part of the Perth premier industrial area, of industrial activity. In the and [email protected] suite as it contains a significant current land use strategy for of strategic planning amount of investment in Perth and Peel, Directions documents, currently infrastructure including port 2031, the KIA is recognised being finalised by the and freight transportation. within the boundaries of Department of Planning, Figure 7 identifies locations the WTC as one of four Lands and Heritage proposed for expansion ‘Strategic Industrial Centres’, and Western Australian of the KIA and WTC as which are defined as Planning Commission. per the Framework. having the ‘highest level of These Sub-regional It shows the KIA will remain industrial activity throughout Planning Frameworks largely unchanged with a the metropolitan area’ provide more detail than projected 775ha required (Department of Planning Directions 2031 for the when Perth and Peel & Western Australian planning of population and reaches a population Planning Commission, employment growth, and of 3.5 million, however 2010, p. 37). The primary with regards to industrial it also identifies further aim in Directions 2031 centres they set out opportunities for industrial with regards to Strategic proposals to ‘strengthen agglomeration, proposing Industrial Centres is to key activity centres and areas nearby for expansion support them by ensuring employment nodes to and for further investigation. they have sufficient meet the future needs of It also predicts that the levels of infrastructure, industry, commerce and the economic profile of the including road, rail and community’ (Department KIA will stay relatively intermodal facilities and of Planning & Western unchanged in terms of the have accessibility to an Australian Planning distribution of industry of appropriately skilled Commission, 2015a, p. 6). employment (see Figure 7). workforce (Department of Planning & Western Australian Planning Commission, 2010). 17 KWINANA AS A CATALYST FOR ECONOMIC DEVELOPMENT

FIGURE 6. METROPOLITAN REGION SCHEME MAP, 1963 AND CURRENT

Source: Department of Planning & Western Australian Planning Commission, 2015b.

Some of the key investment the KIA, with a significant Ultimately, the establishment initiatives identified within amount of industrial activity of the BP oil refinery in 1955 the Framework for the further developing from was the starting point for an WTC include: 1955 onwards. The initial agglomeration of large and investment from the state small industrial businesses • New container facilities in government meant that at Kwinana. In addition, the Outer Harbour within locating within the KIA it set a precedent for a Cockburn Sound; provided many benefits much broader pattern of • Intermodal freight transfer over alternative locations, regional development in facilities for the industrial such as access to the the south-west corridor of area at Latitude 32; and necessary infrastructure and Perth and Peel. Today, the • Improving the freight connectivity requirements for location accommodates a transport network heavy industry. It also clearly significant agglomeration of links between the demonstrated the willingness further industrial activities in southwest and southeast of the Western Australian Henderson, Latitude 32 and (Department of Planning & government to support Rockingham, in addition to Western Australian Planning industrial activities such as activities in the KIA. Together, Commission, 2015a). the refinery, which potentially these activities form the state’s increased the attractiveness premier industrial precinct, It is clear from Figure 5 that of Perth and Peel as a key known as the Western Trade the establishment of the BP location for major industrial Coast, which contributes oil refinery at Kwinana was infrastructure investment substantially to the Western a catalyst for the further during a time of volatile Australian economy. growth and expansion of market conditions globally. 18 FIGURE 7. EXISTING INDUSTRIAL, INDUSTRIAL EXPANSION AND INDUSTRIAL INVESTIGATION AREAS FOR THE WESTERN TRADE COAST AS DESIGNATED IN THE DRAFT SOUTH METROPOLITAN PEEL SUB-REGIONAL PLANNING FRAMEWORK

Source: Department of Planning & Western Australian Planning Commission, 2015a.

Image courtesy of Kwinana Industries Council.

19 KWINANA AS A CATALYST FOR ECONOMIC DEVELOPMENT

DEMOGRAPHIC AND ECONOMIC ANALYSIS

For the purpose of this as it represents the closest report, the Kwinana geographical boundary Industrial Statistical of the KIA as delineated Area Level 2 (KI SA2) by the Australian Bureau geographical area was of Statistics (see Figure 8). used to determine the Prior to 2011, ABS data is profile of workers within the only available for the region KIA between 2011 and 2016, at a local government area level.

FIGURE 8. KWINANA INDUSTRIAL STATISTICAL AREA LEVEL 2 AND LOCAL GOVERNMENT BOUNDARIES INCLUDED IN ANALYSIS OF DATA

Source: ABS, 2016a.

20 WORKERS IN THE KWINANA INDUSTRIAL AREA

In 2016, the KI SA2 employed KIA has reduced, especially The primary industry of a total of 5,616 workers of given the global nature of employment in the KI SA2, which 83.90% were male. enterprise and the likely as shown in Figure 9 was This figure is lower than in restructuring of work and manufacturing, which 2011, when there were 7,221 technological advances. accounted for 49.10% workers. This reduction in It is however likely to and 43.57% of the total workers does not necessarily reflect a trend towards employment in 2011 and indicate that the overall jobless growth. 2016 respectively. economic output of the

FIGURE 9. INDUSTRY OF EMPLOYMENT OF KWINANA INDUSTRIAL SA2 WORKING POPULATION, INCLUDES INDUSTRIES WITH >1% EMPLOYMENT, 2011 AND 2016

60.00

50.00 49.10

43.57

40.00

30.00

20.00 17.61

Percent of Total Employment ofTotal Percent 14.25

10.00 6.59 6.43 5.92 5.43 6.33 4.59 4.08 3.42 2.30 2.67 1.90 2.15 1.84 1.96 2.10 1.86 1.92 1.52 1.94 0.24 0.00 MIN MAN EGW CON WHO RET TPW FAI RHR PST AAS OTS 2011 2016

AGR Agriculture, forestry TPW Transport, postal and PAS Public administration and fishing warehousing and safety MIN Mining IMT Information media and EAT Education and training MAN Manufacturing telecommunications HAS Health care and EGW Electricity, gas, water FAI Financial and insurance social assistance and waste services services AAR Arts and recreation CON Construction RHR Rental, hiring and real services estate services WHO Wholesale trade OTS Other services PST Professional, scientific RET Retail trade and technical services AAF Accommodation AAS Administrative and and food services support services

Source: ABS, 2012a; ABS, 2017a.

21 KWINANA AS A CATALYST FOR ECONOMIC DEVELOPMENT

Behind manufacturing, mining, manufacturing, EGW waste collection, treatment industries with the highest and construction. The only and disposal services, proportion of total industry to record notable 53.42%; basic material employees in 2016 included: increases in the total number wholesaling, 12.87%; and construction, 14.25%; of employees between 2011 finance, 1,333.33%. All mining, 6.59%; transport, and 2016 was financial and other industrial activities postal and warehousing, insurance services, which experienced a decrease 6.43%; and electricity, gas, grew by 112 workers. in employee numbers, water and waste services contributing to the total loss (EGW), 5.43%. An examination of the of workers in the KIA by 1,601 types of roles carried out between 2011 and 2016. Between 2011 and 2016, in the KIA is displayed in the number of workers Table 1. When analysed, The table below lists employed contracted across industries which grew in industries with more than most industries, including terms of the total number 100 employees in 2011 sectors with a large number of employees included: and/or 2016 and shows the of employees such as metal ore mining, 412.96%; percentage change.

TABLE 1. BREAKDOWN OF INDUSTRY OF EMPLOYMENT IN KWINANA INDUSTRIAL SA2, INCLUDES INDUSTRIES WITH OVER 100 EMPLOYEES, 2011 AND 2016

2011 2016 Change (%) Mining Oil and gas extraction 119 12 - 89.92 Metal ore mining 54 277 412.96 Exploration and other mining support services 214 32 -85.05 Manufacturing Manufacturing, nfd 141 89 -36.88 Petroleum and coal product manufacturing 493 252 -48.88 Basic chemical and chemical product manufacturing 1,086 818 -24.68 Primary metal and metal product manufacturing 1,286 907 -29.47 Fabricated metal product manufacturing 236 164 -30.51 Electricity, gas, water and waste services Electricity supply 227 133 -41.41 Waste collection, treatment and disposal services 73 112 53.42 Construction Heavy and civil engineering construction 464 176 -62.07 Construction services 656 454 -30.79 Wholesale trade Basic material wholesaling 171 193 12.87 Transport, postal and warehousing Road transport 242 179 -26.03 Financial and insurance services Finance 9 129 1,333.33 Rental, hiring and real estate services Rental and hiring services (except real estate) 128 107 -16.41 Professional, scientific and technical services Professional, scientific and technical services 184 112 -39.13 (except computer system design and related services)

Source: ABS, 2012a; ABS, 2017a. 22 Without a local workforce of KIA workers were born Greater Perth and Western of any size or scale, many in the United Kingdom, Australian averages. For all skilled workers were compared with 13.50% in other nationalities, the KIA attracted to Western Greater Perth and 12.10% employed relatively similar Australia to work at BP in Western Australia. This proportions of workers and other global entities proportion decreased to Greater Perth and in the early days of the slightly in 2016, with 15.53% Western Australia. KIA. This has resulted in a of workers born in the concentration of overseas United Kingdom, however A comparison of the age born workers that lingers. this was still higher than the profile of workers within the A comparison of Australian average for both Greater KIA with Greater Perth and and United Kingdom born Perth, 12.08% and Western Western Australia identifies workers, displayed in Figure Australia, 11.10%, both of some key differences, as 10 reflects the history of the which also experienced shown in Figure 11. In 2011 KIA, with a higher proportion a proportional decrease. and 2016, the average age of workers from the United The number of workers of of the Kwinana workforce Kingdom compared with Australian background was significantly older than Greater Perth and Western in 2016 was 60.19% and is in Greater Perth or Western Australia. In 2011, 18.60% generally consistent with the Australia, with a much larger

FIGURE 10. AUSTRALIA AND UNITED KINGDOM ORIGIN OF WORKERS IN KWINANA, GREATER PERTH AND WESTERN AUSTRALIA, 2011 AND 2016

70.00 63.47 Kwinana 2011 59.60 60.19 59.65 60.20 Kwinana 2016 60.00 56.40 Greater Perth 2011 Greater Perth 2016 50.00 Western Australia 2011 Western Australia 2016

40.00

30.00

20.00 18.60 15.53

Proportion of Total Population (%) 13.50 12.08 12.10 11.10 10.00

0.00 Australia United Kingdom, Channel Islands and Isle of Man(d)

Source: ABS, 2012a; ABS, 2017a.

23 KWINANA AS A CATALYST FOR ECONOMIC DEVELOPMENT

number of workers falling While this can be seen A positive attribute of into the 40-44, 45-49, 50-54 as a potential threat for the Kwinana Industrial and 55-59 age categories. the future of industries workforce is the significantly In total, Kwinana had 59.79% within the KIA, it is worth higher weekly personal of its workforce over the noting that the structure income of workers, see age of 40, compared with of the local and broader Figure 12. In both 2011 and 50.33% in Greater Perth economy will likely 2016, the number of workers and 51.73% in Western change as technological with a weekly income Australia in 2016, see Table advancements progress. greater than $1,500 almost 2. In addition, the number What this means is that doubled that of Greater of workers in the younger the needs of the future Perth and Western Australia. age categories is lower, labour force for the KIA In 2016, 61.52% of KI SA2 with workers under 30 years will be different. Labour workers earned more than of age only representing mobility will need to be a $1,500 per week, compared 16.83% of the Kwinana bigger part of that change with Greater Perth, 31.88% workforce, compared with and of course there will and Western Australia, 26.53% in Greater Perth and need to be targeted 33.47%. 25.37% in Western Australia. training and education of key skills that are not In addition, the number This poses potential automated or enhanced of workers with a lower implications for industries through technological weekly total personal within the KIA, with a high advancement. income were fewer, with number of expected retirees only 14.96% of the workforce within the workforce as per earning under $999 weekly 2016 Census data. compared with 43.16% in Greater Perth and 42.22% in Western Australia.

TABLE 2. PROPORTION OF WORKERS OVER 40 AND UNDER 30, KWINANA, GREATER PERTH AND WESTERN AUSTRALIA, 2011 AND 2016

Kwinana Greater Perth Western Australia 2011 Age over 40 59.27% 51.02% 51.46% Age under 30 18.61% 27. 8 6% 27. 3 0 % 2016 Age over 40 59.79% 50.33% 51.73% Age under 30 16.83% 26.53% 25.37%

Source: ABS, 2012a; ABS, 2017a.

24 FIGURE 11. AGE OF WORKERS IN KWINANA, PERTH AND WESTERN AUSTRALIA, 2011 AND 2016 16.00 Kwinana 2011

14.00 Kwinana 2016 Greater Perth 2011

12.00 Greater Perth 2016

Western Australia 2011 10.00 Western Australia 2016

8.00

6.00

Proportion of Total Workers (%) Workers Total of Proportion 4.00

2.00

0.00 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75+ Age

Source: ABS, 2012a; ABS, 2017a.

FIGURE 12. TOTAL WEEKLY PERSONAL INCOME IN KWINANA, PERTH AND WESTERN AUSTRALIA, 2011 AND 2016

Kwinana 2011 45.00 Kwinana 2016 40.00 Greater Perth 2011

35.00 Greater Perth 2016 Western Australia 2011 30.00 Western Australia 2016 25.00

20.00

15.00

10.00 Proportion of Total Workers (%) Workers Total of Proportion

5.00

0.00

Total Personal Weekly Income

Source: ABS, 2012a; ABS, 2017a. 25 KWINANA AS A CATALYST FOR ECONOMIC DEVELOPMENT

BUSINESSES IN THE KWINANA INDUSTRIAL AREA

Undertaking an analysis was not matched by With a mix of small, medium of businesses within the KI increases in the number and large enterprises, most SA2 between 2011 and 2016 of employees, which fell of the businesses within the highlights some important by 28.58% between 2011 KIA employed less than 200 differences between and 2016. The increase people in 2016, with 16.45% or workers within the KIA and in business numbers and 38 businesses employing 1-4 their employers. associated decline of workers, 19.91% or 46 businesses workers can likely be employing 5-19 workers, 9.52% In 2016, there were 231 attributed to improved or 22 businesses employing 20- businesses within the KIA, efficiencies through 199 workers and only 1.30% or 3 with 104 of these falling technological advances businesses employing over 200 into the non-employing and efficiency measures. employees (see Figure 13). category, approximately BP Australia is on record 45.02%, see Figure 13 and acknowledging that a This indicates that, while the Table 3. The number of smaller workforce is due to KIA employs a large number businesses in Kwinana upgrades and technical of workers overall, they are has increased from 203 in improvements whilst at the spread across a vast number 2011 to 231 in 2016, 13.79%. same time as increasing of businesses throughout the Interestingly, this increase overall capacity (The West industrial precinct. in the number of businesses Australian, 2016).

FIGURE 13. NUMBER OF BUSINESSES IN EACH EMPLOYEE SIZE CATEGORY, 2011 TO 2016

Total

200+ Employees

20-199 Employees

5-19 Employees

1-4 Employees

Non employing

0 50 100 150 200 250 Total Number of Employees

2016 2015 2014 2013 2012 2011

Source: ABS, 2017b; ABS, 2016b; ABS, 2015; ABS, 2012b. 26 TABLE 3. PROPORTION OF BUSINESSES IN EACH EMPLOYEE SIZE CATEGORY, 2011 TO 2016

Non- 1-4 5-19 20-199 200+ employing Employees Employees Employees Employees 2011 43.84% 17. 24% 18.23% 19.21% 1.48% 2012 44.67% 15.23% 26.90% 13.20% 0.00% 2013 47. 4 4% 14.88% 26.05% 11.6 3% 0.00% 2014 47.47% 21.20% 22.12% 6.91% 1.38% 2015 48.36% 18.31% 29.11% 6.10% 0.00% 2016 45.02% 16.45% 19.91% 9.52% 1.30%

Source: ABS, 2017b; ABS, 2016b; ABS, 2015; ABS, 2012b.

Table 4 below compares employee numbers business employment size compared with Western ranges within the Kwinana Australia, which has a Industrial SA2 to the Western higher number of businesses Australian average for 2016. in the non-employing and It is clear that overall, the 1-4 employee categories, KIA has a higher proportion a combined 87.35% of businesses with larger compared to 61.47%.

TABLE 4. BUSINESS EMPLOYMENT SIZE RANGES FOR KWINANA SA2 AND WESTERN AUSTRALIA, 2016

Non- 1-4 5-19 20-199 200+ Employing Employees Employees Employees Employees Kwinana SA2 45.02% 16.45% 19.91% 9.52% 1.30% Western Australia 62.27% 25.08% 9.65% 2.86% 0.18%

Source: ABS, 2017b.

27 KWINANA AS A CATALYST FOR ECONOMIC DEVELOPMENT

Figure 14 below, shows trade, the same cannot than $500,000 annually, see the number of businesses be said for rental, hiring Figure 15. Comparatively, falling into each industry and real estate businesses, the number of businesses in between 2011 and 2016 see Figure 9 and Figure the lower earning turnover and includes industries with 14. While there were 41 categories are fewer, and more than 20 businesses businesses classified under proportionally decreased at any point between this rental, hiring and real between 2011 and 2016. timeframe. In 2016, the estate services, only 1.96% KIA had 52 manufacturing of workers within the KI Table 5 highlights the businesses, 41 rental, hiring SA2 were employed by changing ratio of businesses and real estate businesses, the same industry. Further falling into each turnover 29 construction businesses investigation identified that category between 2011 and and 14 wholesale trade 87.80% of the businesses that 2016. Proportionally, there businesses. Examining the fall into the category RHR were a greater number of correlation between the are non-employing, which businesses in the $50k to less number of businesses by somewhat limits their ability than $100k with a growth industry and the number to contribute to the Perth of 4.48% and those earning of employees, it was found and Peel economy. $500k to less than $2m that while there is a link grew by 8.11%, while those between the number of Businesses in the KIA have businesses in the $200k to less businesses and employees a high degree of revenue than $500k proportionally in manufacturing, turnover, with just over half decreased by 7.82%. construction and wholesale having a revenue greater

FIGURE 14. KWINANA SA2 NUMBER OF BUSINESSES BY INDUSTRY DIVISION, 2011 TO 2016

Nunber ofBusinesses 20

0 2011 2012 2013 2014 2015 2016 MAN CON WHO RHR

Source: ABS, 2017b; ABS, 2016b; ABS, 2015; ABS, 2012b. 28 FIGURE 15. NUMBER OF KWINANA SA2 BUSINESSES IN EACH TURNOVER CATEGORY, 2011 TO 2016

0 2011 2012 2013 2014 2015 2016 Zero to less than $50k $50k to less than $100k $100k to less than $200K $200k to less than $500k $500k to less than $2m $2m or more

Source: ABS, 2017b; ABS, 2016b; ABS, 2015; ABS, 2012b.

TABLE 5. PROPORTION OF BUSINESSES IN EACH TURNOVER CATEGORY, 2011 TO 2016

Zero to $50k to $100k to $200k to $500k to $2m or less than less than less than less than less than more $50k $100k $200K $500k $2m 2011 14.29% 5.91% 10.34% 21.67% 15.27% 32.51% 2012 15.54% 9.84% 8.29% 11.92 % 21.24% 33.16% 2013 10.75% 12.15% 8.41% 12.62% 23.83% 32.24% 2014 8.29% 16.13% 11.98% 13.82% 20.28% 30.41% 2015 16.90% 13.62% 14.55% 7. 0 4% 25.35% 32.86% 2016 11.26% 10.39% 11.26% 13.85% 23.38% 30.74%

Source: ABS, 2017b; ABS, 2016b; ABS, 2015; ABS, 2012b.

29 KWINANA AS A CATALYST FOR ECONOMIC DEVELOPMENT

A significant difference exists between businesses AGGLOMERATION within the Kwianana ECONOMIES AND Industrial SA2 and Western Australia in terms of business COMPETITIVE ADVANTAGE turnover size ranges. While the Kwinana Industrial SA2 Agglomeration economies suppliers or infrastructure is largely made up of high may occur when similar requirements. turnover businesses and organisations or industries • Transfer economies: the an increasing proportion locate within close proximity cost benefits that arise of businesses in the higher to one another. The benefits from locating close to turnover categories up provided by agglomeration a supplier or customer, to $2m or more, Western economies can be offered removing procurement or Australia shows the opposite not only through transport distribution demands. trend, see Table 6. Western and logistics savings, but • Urbanisation economies: Australia has the highest also additional knowledge the cost benefits that are proportion of businesses, capacity through shared gained from locating 23.88%, falling into the intelligence and enhanced within a large and diverse $0-$50k earning categories, access to appropriately market, i.e. an urbanised while Kwinana Industrial SA2 skilled personnel (Glaeser, setting such as the Perth has its highest proportion of 2010; MacLachlan, 2013). and Peel metropolitan businesses, 30.74%, within region allows for a the $2m or more turnover Agglomeration economies greater choice of labour, size range. This shows the can be further broken production and goods significance of the KIA to down and categorised into (MacLachlan, 2013). the state economy, as a three main types, which small number of businesses are localisation economies, Industrial symbiosis is a term can have a significant transfer economies and used to specifically describe output and are of high urbanisation economies, as the exchange of material value add. defined below. and energy between industrial firms located • Localisation economies: in close proximity to one the cost benefits that another. These relationships firms receive from being are described as symbiotic within the same industry exchanges between and location that allows industries, and differ from them to share production agglomeration economies inputs such as labour, in that the benefits are

TABLE 6. BUSINESS TURNOVER SIZE RANGES FOR KWINANA SA2 AND WESTERN AUSTRALIA, 2016

$0 - $50k - $100k - $200k - $500k - $2m or <$50k <$100k <$200k <$500k <$2m more Kwinana SA2 11.26% 10.39% 11.26% 13.85% 23.38% 30.74% Western Australia 23.88% 15.75% 18.50% 19.01% 15.30% 7. 4 5 %

Source: ABS, 2017b. 30 not only cost related but • The enhanced ability of this was carried out through include others such as new businesses to get off their now ceased Eco environmental outcomes the ground, as a number Efficiency Committee, which (MacLachlan, 2013). The of essential infrastructure acknowledged that ‘an KIA has been referred to as services are readily improved understanding of one of the most successful available; materials and energy flows and studied examples of • Shared emergency […] would be beneficial in industrial symbiosis; it has response services, respect to economic and been operational over manpower and resources environmental outcomes’ a significant amount of through the Kwinana (KIC, 2012b). The KIC have time and there is large Industries Mutual Aid also contributed to research complexity in terms of (KIMA) committee, who that has sought to further count, diversity and implement a Total Hazard identify potential industrial maturity of synergies in the Control Plan in the event synergies, including the relationships between and of an emergency (KIC, Cooperative Research Centre among firms located in the 2012d); for Sustainable Resource industrial area (Chertow, • The use of by-products and Processing (now ceased 2007; Harris, 2007; Van Beers supply of outputs to various operations) and the Australian et al., 2007). industries within Kwinana, Research Council. outlined below; and These symbiotic exchanges • A buffer zone that is The number of industrial collectively provide shared by industries synergies were examined industries located in within the KIA creates over four independent studies close proximity with a overlap which results in conducted by Sinclair Knight competitive advantage, a significantly reduced Merz between 1990 and 2013 as they are able to share overall industrial footprint. within the ‘Kwinana Cluster’, resources, knowledge, an area which includes labour, by-products and These important synergies Rockingham Industrial Zone materials (Harris, 2007). The were discussed during and Latitude 32 Industry Zone importance of symbiotic an interview with Mr Ian (see Figure 1 for reference). relationships within the KIA Hansen, Chief Operating Over 23 years, the number has been identified by the Officer of WesCEF who of existing interactions, i.e. Kwinana Industries Council1 identified CSBP’s move an exchange of materials, (KIC) for their ability to to the KIA in 1968 as a grew from 27 in 1990 to 158 contribute to sustainable ‘watershed moment’ due in 2013, or by 485%2. Most development, linking to various benefits offered of these new interactions financial and environmental by Kwinana, including the were identified between performance. An interview possibility of synergies with 1990 and 2002, when 79 new with Mr Des Gillen of other local manufacturing exchanges were established BP Australia identified businesses. (SKM & REU, 2014). A map of some of the competitive the interactions between firms advantages that arise from The KIC has facilitated within the Kwinana Cluster is the co-location of industry substantial efforts to provided at Appendix 1 and activities at Kwinana. These increase industrial synergies demonstrates the complexity include: within the KIA. Previously of relationships within the industrial area.

1 The KIC was established in 1992 to ‘promote and contribute to the sustainable co-existence of the Kwinana Industry, the Community and the Environment’ and has its membership base drawn from industries within the KIA (KIC, 2012a). 2 Synergies identified depended upon information provided by industries who participated in the study and may be higher than reported. 31 KWINANA AS A CATALYST FOR ECONOMIC DEVELOPMENT

Despite being the longest and discharge to Water This is perhaps why a established industry Corporation. In addition, number of industrial within the KIA, the BP the BP Refinery sources: locations worldwide are Refinery does not have the nitrogen from BOC Group; prone to industrial inertia, highest level of industrial waste water, steam and a phenomenon whereby symbiosis compared with sodium hypochlorite from the benefits of industrial other existing industries. International Power Mitsui; agglomeration ensure However, it still exchanges condensate from Kleenheat that industries stay within approximately 35 resources Production Facility; oxygen a specific location, even between firms. The inputs from Air Liquide; and when the location ceases and outputs (see Figure 16 hydrogen and natural gas to offer advantages or and Appendix 1) include from Nickel West (SKM & may even present costs to supplying: hydrogen to REU, 2014, Figure 4-4, p. 4-7). the company. This inertia BOC Group; lube oil, fuel is enhanced through the gas and diesel oils to The connections identified significant amount of upfront International Power Mitsui; for just one major investment usually required waxes to Summit Fertilizers; processing industry, such as for industrial operations, diesel and kerosenes to the BP Refinery, highlights such as those carried out at CBH Group; lube oil to the significance of industrial Kwinana (MacLachlan, 2013). Kleenheat Production symbiosis between firms Facility; diesel oils and lube located at Kwinana. It also The addition of new industries, oils to Pentair; diesel oils to demonstrates the reliance such as the expansion of Ciba Specialty Chemicals; of industry upon others Tianqi Lithium, have the lube oil to Air Liquide; LPG, in close proximity and potential to increase the sulphur, degreaser, grease, the potential detrimental number of synergies and lube oil, hydrogen, waxes impact from the loss of any enhance the economic and diesel to CSBP; diesel given firm. competitiveness of industries oils, kerosenes, hydrogen both at Kwinana and and sulphur to Nickel West; throughout Western Australia.

FIGURE 16. INPUTS AND OUTPUTS OF BP AUSTRALIA’S KWINANA OIL REFINERY

Inputs W Outputs C A L N W C S K C P F OC

I I P M P M

S OC F

A L C

K P F

N P CSP W Source: Adapted from SKM & REU, 2014. 32 THE FUTURE OF THE KWINANA INDUSTRIAL AREA

The future of the KIA is an important consideration INFRASTRUCTURE for the Western Australian There are a number of port containerised cargo, economy, as it makes facilities operating within through the Inner Harbour significant contributions the KIA. Fremantle Ports at Fremantle. to Gross State Product, owns and operates the employment, major Western Kwinana Bulk Terminal (KBT) As the Perth and Peel Australian industries such and Kwinana Bulk Jetty metropolitan population as mining and agriculture, (KBJ) on behalf of the State has continued to grow, and global connectivity Government, while Alcoa, the future of Western (WTC, 2014). The discussion BP Australia and CBH Group Australia’s primary import below identifies some of the privately own and operate and export facilities has challenges the KIA will need the Alumina Refinery Jetty, been considered by a to overcome in order to the BP Oil Refinery Jetty and number of studies, which ensure its future success and the Kwinana Grain Jetty identified various locations continued growth. (see Figure 17). as suitable for development FIGURE 17. PORT FACILITIES of an Outer Harbour IN THE KWINANA The KBT and KBJ are facility (Department of INDUSTRIAL AREA primarily used for the Transport, 2017). import and export of bulk goods, which includes Recently, discussions iron ore, coal, cement regarding the viability clinker, gypsum, liquefied of developing the Outer natural gas, petroleum and Harbour as a second port fertiliser (Fremantle Ports, were hindered by the 2015). In 2016-17, total trade proposed Perth Freight Link, throughput was 2.45 million Roe 8 and Roe 9, which tonnes at the KBJ and 5.6 would connect Fremantle million tonnes at the KBT Port to the Perth Airport (Fremantle Ports, 2017). and alleviate some of the The Kwinana Grain Jetty, congestion issues arising operated by CBH Group, from the movement of bulk exported 6.7 million tonnes goods. Disagreements arose of grains in 2016-17. between opposing sides of government over the road In addition to operations project, which became associated with the KBT and one of the key focus issues KBJ, Fremantle Ports are of the March 2017 election responsible for importing with then opposition leader and exporting a majority Mark McGowan pledging of Western Australia’s to scrap the proposal and spend $20 million planning

Source: Fremantle Ports, 2017. 33 Image courtesy of Kwinana Industries Council.

a new Outer Harbour at expanded Outer Harbour certainty for industry, Kwinana (WA Labor, 2016). at Kwinana as well as the decline in the quality of Since winning government, future of the port at Bunbury operational port facilities Labor has made good (Saffioti, 2017). In the 2017- as technological advances on its promise. On 12 18 State budget, a total of occur and the hazards September 2017, Minister $6 million was allocated involved with transporting for Transport; Planning; towards the planning of an dangerous goods from the Lands the Hon. Rita Saffioti Outer Harbour, with these port in Fremantle to the KIA MLA announced the funds to be delivered over (City of Kwinana, 2015). formation of the Westport a staged period between Taskforce to oversee the 2017-18 and 2020-21 Indeed, a report by completion of planning for (Government of Western Regional Development an Outer Harbour facility. Australia, 2017). Australia Perth released The Taskforce will ultimately in 2016 identified the deliver the Westport: Ports The project would provide Kwinana Outer Harbour and Environs Strategy which solutions to a number of as one of three nation will address the location, issues facing Kwinana and building initiatives, being size, operational models the broader metropolitan ‘game changing’ and and timing requirements region including increased requiring strong government for both the Inner Harbour congestion from freight intervention (RDA, 2016, at Fremantle and a future movements, lack of p. iii). WATER AND ENERGY INFRASTRUCTURE

In addition to the major from the Cockburn Interviews also uncovered infrastructure investment Groundwater Area due to a that the cost of energy is a required for an Outer drying climate and reduced key driver for new process Harbour facility, there are groundwater recharge has plant investments, and a number of additional meant the KIA will need an ensuring long-term access infrastructure inputs that alternate water supply. to competitively priced the KIA requires in order wholesale energy is a strong to remain competitive. Significant research has attractor for new investment Interviews with key industries been conducted into at Kwinana. Indeed, the identified increased potential water resources KIC identified that the rising demand for water and to replace and contribute costs of energy is becoming energy as potentially towards the increased a critical issue for industries limiting factors in future demand for water in the within the KIA (KIC, 2017). operations. KIA. In 2015, the CSIRO led a study to determine the This was highlighted in The Department of Water suitability of a managed the Sinclair Knight Merz estimated that the WTC aquifer recharge scheme study, in which industries would increase its demand for the KIA, using recycled identified energy costs as for water from 28.5 to 36-52 wastewater that is currently the third largest constraint gigalitres per year by 2031. pumped out into the ocean on their operations within An associated reduction (Department of Water, 2016). the WTC, behind urban in groundwater allocation encroachment and road access (SKM, 2014).

KWINANA INDUSTRIAL BUFFER ZONE

The Kwinana Industrial natural gas in order to Industrial Buffer Policy, SPP Buffer Zone is another reduce their environmental 4.1. This requires all local key consideration for impact, however air quality governments to pay due the future of the KIA. The continued to decline. This regard to the requirements need for a buffer zone led to the decision in 1992 contained within SPP 4.1 in around Kwinana was first to regulate a buffer zone preparing and amending prescribed in 1992 by the around the KIA, largely a local planning scheme. Environmental Protection dealing with the emission SPP 4.1 aims to safeguard (Kwinana) (Atmospheric of sulphur dioxide and the long-term security and Wastes) Regulations 1992, suspended particulates protection of industrial areas which sought to negate (EPA, 2017b). while also ensuring the the impacts of sulphur surrounding land uses are emissions from the KIA to In addition to the 1992 not negatively impacted. nearby residential areas, an regulations, the Western Local governments will issue that arose in the late Australian government sets determine an appropriate 1970s (EPA, 2017b). In 1984, state-wide standards for industrial buffer zone almost all industries located industrial buffers through following consultation with within the KIA unanimously its Statement of Planning then Ministry for Planning converted to the use of Policy No. 4.1 – State and the Department of 35 KWINANA AS A CATALYST FOR ECONOMIC DEVELOPMENT

Environmental Protection, was that ‘the Kwinana inclusion in the legislation, which is subject to Air Quality Buffer has not as it had the potential to assessment from the EPA been well implemented’ restrict future development and finally approved by (Parliament of Western and decrease land values the Minister for Planning Australia, 2011, p. vii). (The West Australian, 2017). (WAPC, 1997). In the case However corporate owners of the WTC area, this would In seeking to resolve wrote to government require the inclusion of a uncertainty for both ministers, organised local buffer zone in the local industry and land owners rallies and protested planning schemes of the within the buffer zone, the decisions made by WAPC City of Kwinana, the City state government sought in the State Administrative of Rockingham and the public comment on draft Tribunal with regards to the City of Cockburn. legislation that would subdivision of land within ‘formalise a Protection Area the buffer zone (Perpitch, The continued around one of Western 2016; WASAT, 2011). development of the Perth Australia’s most important metropolitan region has industrial areas’ (Barnett The primary cause led to uncertainty in the & Day, 2015). The draft of concern from an protection of the KIA, with Planning and Development environmental protection pressure to develop land Legislation Amendment perspective were dust for residential purposes (Western Trade Coast emissions from the nearby within the current standing Protection Area) Bill 2015 Alcoa operations. In August boundary set by the sought to legislate the 2017, the Environmental regulations, which were current WTC buffer that Protection Authority (EPA) reviewed and re-issued stands from 1992 in order made an assessment on in 1999 under the title to separate sensitive land the health and amenity Environmental Protection uses and set regulations impacts on dust for the (Kwinana) (Atmospheric for all new development Mandogalup area. Figure Wastes) Policy 1999 applications within the 18 below outlines the (EPA, 2017b). existing boundary. determination by the EPA, with both Area A and Area In 2011, a Parliamentary This amendment was B identified to have unlikely inquiry was conducted by released for public health risk or unreasonable the state government to comment in October 2015 amenity impacts from examine the operations and received a total of 175 dust. At the time of this of Cockburn Cement, a submissions in response assessment, there was no construction materials from residents, landowners, air quality monitoring being production facility located businesses, industry groups undertaken in both of these within the WTC. Throughout and local government locations. However, since 2010, seven petitions authorities (Department of this time, the Department bearing a total of 1,231 Jobs, Tourism, Science and of Water and Environmental signatures were tabled Innovation, n.d.). Regulation commenced in the Legislative Council an investigation on the to stop dust and odour Concerned residents within potential sources of dust emissions, which were the suburb of Mandogalup, impacting the Mandogalup leading to complaints of an area of land currently area through a short-term adverse health impacts under consideration for campaign in summer from surrounding residents. inclusion in the buffer zone, 2017/18. This was under the A key finding of this inquiry pushed against its formal recommendation of the EPA

36 FIGURE 18. EPA ASSESSMENT OF POTENTIAL HEALTH AND AMENITY IMPACTS FROM DUST ON THE MANDOGALUP AREA

Source: EPA, 2017a, p. 7. that further investigation Providing certainty for is required (Dawson, 2017; industry through a legislated DWER, 2017; EPA, 2017a). buffer zone was identified during interviews as critical In February 2018, the State in sending a message to Government announced current and potential future that an improvement plan investors that the KIA is would be drafted to cover protected and will remain much of the contested so. The ultimate outcome land in Area’s B, C and to legislate a finalised D in Figure 18. This would buffer zone around the KIA potentially allow this will ensure future investors land to be up-zoned in will be confident to invest the Metropolitan Region the significant amount of Scheme from rural to capital required to establish industrial and will allow the industrial activities. Western Australian Planning Commission control of land use planning in this location (Department of Planning, Lands and Heritage, 2018).

37 KWINANA AS A CATALYST FOR ECONOMIC DEVELOPMENT

GOVERNANCE

The KIA falls into three During interviews, the Through the identification separate local government Australian Marine Complex of one high level governing areas, the City of Kwinana, (AMC) was referenced body, the state government the City of Rockingham as a successful way of has the ability to remove and the City of Cockburn. administering an industrial confusion with regards to Ultimately, this means that area, which is managed application requirements development applications by the Western Australian and the requirements must be lodged with the government through of varied local planning appropriate council and leadership of the Attorney schemes. Consideration may be assessed by varied General; Minister for and investigation to standards depending on Commerce and supported consolidate the KIA under the governing authority. In by the Department of one decision-making the past there have been Commerce (AMC, 2010). The body could provide differing viewpoints on AMC promotes partnerships benefits for Kwinana and issues affecting the KIA, with the private sector to Western Australia. which causes confusion incentivise investment and and uncertainty for the supports clustering through community and current and provision of common future industry. infrastructure and training.

LABOUR MARKET

As identified in an analysis Career Pathways Program This is especially significant of the demographic make- and has achieved an given the high levels of youth up of the KIA, there is a increased awareness of unemployment within the City trend towards an ageing the role of Kwinana for of Kwinana local government workforce, which will students enrolled across area. Previous FACTBase require the replacement 18 catchment high schools research undertaken by the of a significant proportion and was developed to Committee for Perth identified of workers over the next promote local careers in the Kwinana Statistical Local two decades. Companies industrial activities. Area to have the highest within the KIA have taken youth unemployment rate an integrated approach The EDP has received in the Perth and Peel region. to addressing this issue significant recognition, In both 1991 and 2011, through the KIC, who winning the State Training unemployment stood at 35.2% have implemented a Awards category for and 14.1% respectively for number of programs to Industry Collaboration those aged between 15 to assist in the attraction and and both the Oceania 24 years old (Huddleston & retention of a younger Region Youth Employability Maginn, 2014). An examination workforce (KIC, 2012a). Skills and Creative and of 2016 Census data identified Interviews with BP Australia Innovative Partnerships a continued trend of high and WesCEF highlighted categories at the 2016 youth unemployment rates the success of the KIC’s International Partnership in the City of Kwinana Education Development Network biennial awards local government area, Program (EDP), which program (KIC, 2017). with 19.47% of 15 to 24-year includes iProjects and the olds unemployed. 38 EXPORT OPPORTUNITIES AND GLOBAL MARKETS

While there continues comprehensive review of barriers already discussed to be new opportunities Australia’s international such as adequate port and to expand exports and engagement for 14 years, transport infrastructure, gain access to global suggesting that the paper labour availability, markets, such as the recent will play a significant role adequate power and water proposed expansion of in boosting WA’s economic supplies, and so forth. the Tianqi Lithium facilities growth and trade relations. at Kwinana to meet the Figure 19 below displays growing demand for With WA accounting for global trade connections car batteries, amongst up to 40% of Australia’s of the two ports operated others, the fluctuating and merchandise exports, by Fremantle Ports in 2017, the uncertain demand and as Australia’s ‘western KBT and KBJ discussed earlier. prices of commodities gateway’, the shared The significant amount of is an ongoing risk. The knowledge and synergies global connectedness Chamber of Commerce of companies located in the created by just two of the and Industry WA (CCIWA) KIA positions it competitively five ports at Kwinana signifies commended the release to take advantage of new the importance of the of the Commonwealth markets. This advantage KIA in enhancing Western Government’s 2017 Foreign is somewhat subject to Australia’s international trade Policy White Paper, the first the KIA overcoming other connections and maintaining international relationships.

FIGURE 19. KWINANA’S GLOBAL CONNECTIONS THROUGH FREMANTLE PORTS’ KBT AND KBJ IMPORTS AND EXPORTS, 2017

Source: Fremantle Ports, 2018 39 KWINANA AS A CATALYST FOR ECONOMIC DEVELOPMENT

CONCLUSION

In looking back, the signing industries, predominantly in location and timing of a of the State Agreement in manufacturing, construction second harbour facility; 1952 and the establishment and transport, postal and bringing the buffer zone of the Kwinana Industrial warehousing. controversy to a satisfactory Area set Western Australia conclusion; and refining on a pathway to benefit The KIA will have a challenge governance structures to significantly from the in addressing its workforce name a number of critical operations of what is capability and expertise, immediate issues. now the state’s premier as it continues to age at a industrial area. proportion greater than the It is clear that the KIA rest of the Perth and Peel contributes significantly Since this decision, the region. Offsetting this is that to the Western Australian KIA has grown and in 2016 the higher total personal economy and its global was home to a total of 231 weekly income of KIA connectivity. It is a crucial businesses, with an estimated workers could be a potential player in a number of our combined financial output of solution to attract a younger highest earning industries. $15.77 billion annually. workforce and replace the Ensuring the continued outgoing retirees. success of this industrial hub This case study is timely given is of critical importance for the state government’s Symbiotic industrial the future of our state. plans to grow and diversify relationships were the WA economy to create highlighted as an important new jobs and industries of component of doing the future. It has highlighted business within the KIA, which the importance and long- contributes to the success term impact of government of industries located within intervention and strategic the Western Trade Coast economic and industry precinct. Interviews with decision-making. Western industry and stakeholders Australia, previously deemed identified a competitive the ‘Cinderella’ state, has advantage to doing been able to leverage the business within the KIA and outputs of the KIA in some of provides an incentive for the its most important industries, expansion of new industries, including agriculture, mining with established essential and construction to increase infrastructure services able its economic output. to offset some of the large capital investment necessary. A demographic analysis shows the KIA provides The long-term, viable and direct employment to sustainable future of the approximately 5,600 KIA will rely on addressing a Perth and Peel residents, number of key challenges providing opportunity in such as resolving the need,

40 Image courtesy of Wesfarmers Chemicals, Energy & Fertilisers. 41 KWINANA AS A CATALYST FOR ECONOMIC DEVELOPMENT

APPENDIX 1 – KWINANA CLUSTER INDUSTRIAL SYMBIOSIS

42 REFERENCES

ALCOA. (2017). What We Do – AUSTRALIAN BUREAU OF CHERTOW, M. (2007). Alumina. Retrieved from http:// STATISTICS. (2017a). 2016 Census “Uncovering” Industrial www.alcoa.com/global/en/ of Population and Housing. Symbiosis. Journal of Industrial what-we-do/alumina/default.asp Retrieved from http://www.abs. Ecology, 11(1), 11-30. gov.au/ AUSTRALIAN BUREAU OF CITY OF COCKBURN. (2015). STATISTICS. (2012). 2011 Census AUSTRALIAN BUREAU OF Summary of Minutes of Special of Population and Housing. STATISTICS. (2017b). Counts Council Meeting 3 December Retrieved from http://www.abs. of Australian Businesses, 2015. Retrieved from https:// gov.au/ including Entries and Exits, Jun www.cockburn.wa.gov.au/ 2012 to Jun 2016. (Cat 8165.0). getattachment/f929e67b- AUSTRALIAN BUREAU OF Retrieved from http://www. 6ef2-4cf5-a4ca-a78ca83011ef/ STATISTICS. (2012B). Counts abs.gov.au/AUSSTATS/abs@. ECM_4491076_v1_Minutes- of Australian Businesses, nsf/DetailsPage/8165.0Jun%20 Special-Council-Meeting-3- including Entries and Exits, Jun 2012%20to%20Jun%20 December-201.pdf.aspx 2007 to Jun 2011. (Cat 8165.0). 2016?OpenDocument Retrieved from http://www. CITY OF KWINANA. (2015). abs.gov.au/AUSSTATS/abs@. AUSTRALIAN MARINE COMPLEX. Indian Ocean Gateway – nsf/DetailsPage/8165.0Jun%20 (2010). About the AMC. Consultative Draft Proposal. 2007%20to%20Jun%20 Retrieved from http://www. Retrieved from http:// 2011?OpenDocumentfabs australianmarinecomplex.com. indianoceangateway.com.au/ au/About-the-AMC/ files/iog_proposal_new.pdf AUSTRALIAN BUREAU OF STATISTICS. (2015). Counts of BARNETT, C. & DAY, J. (2015). CITY OF ROCKINGHAM. (2017). Australian Businesses, including Protection for Perth’s major Agenda, Ordinary Meeting of Entries and Exits, Jun 2010 industrial area, media Council 23 May 2017. Retrieved to Jun 2014. (Cat 8165.0). statement, 21 October, from http://rockingham.wa.gov. Retrieved from http://www. Government of Western au/getmedia/36e89c55-0097- abs.gov.au/AUSSTATS/abs@. Australia. Retrieved from 4a0d-bfcd-148003bd4564/2017- nsf/DetailsPage/8165.0Jun%20 https://www.mediastatements. 05-(May)-Agenda-Council. 2010%20to%20Jun%20 wa.gov.au/Pages/ pdf.aspx 2014?OpenDocument Barnett/2015/10/Protection-for- Perths-major-industrial-area. C S B P. (2015a). Ammonium AUSTRALIAN BUREAU OF aspx Nitrate. Retrieved from https:// STATISTICS. (2016a). Australian www.csbp.com.au/products/ Statistical Geography BP AUSTRALIA. (2017). AAN/ammonium-nitrate Standard (ASGS): Volume Refining.Retrieved from 3 – Non ABS Structures. http://www.bp.com/en_au/ CSBP. (2015b). Fertiliser. Retrieved from http://www. australia/about-us/what-we- Retrieved from https://www. abs.gov.au/AUSSTATS/[email protected]/ do/refining.html csbp.com.au/products/ DetailsPage/1270.0.55.003July fertilisers %202016?OpenDocument BUSWELL, T. (2 011). Long- term future of Fremantle DAWSON, S. (2017). State AUSTRALIAN BUREAU OF inner harbour secure, Government to consider EPA STATISTICS. (2016b). Counts media statement, 22 June, advice on Mandogalup, of Australian Businesses, Government of Western media statement, 2 August, including Entries and Exits, Jun Australia. Retrieved from Government of Western 2011 to Jun 2015. (Cat 8165.0). https://www.mediastatements. Australia. Retrieved from Retrieved from http://www. wa.gov.au/Pages/ https://www.mediastatements. abs.gov.au/AUSSTATS/abs@. Barnett/2011/06/Long-term- wa.gov.au/Pages/ nsf/DetailsPage/8165.0Jun%20 future-of-Fremantle-inner- McGowan/2017/08/State- 2011%20to%20Jun%20 harbour-secure.aspx Government-to-consider-EPA- 2015?OpenDocument advice-on-Mandogalup.aspx

43 KWINANA AS A CATALYST FOR ECONOMIC DEVELOPMENT

DEPARTMENT OF JOBS, DEPARTMENT OF WATER AND Report%20-%20interactive%20 TOURISM, SCIENCE AND ENVIRONMENTAL REGULATION PDF.pdf INNOVATION. (n.d.). Western (2017). Dust Monitoring Trade Coast. Retrieved from Campaign at Mandogalup, Air FREMANTLE PORTS. (2018). http://www.jtsi.wa.gov.au/ Quality Fact Sheet. Retrieved Data provided by Fremantle western-trade-coast from https://www.der.wa.gov. Ports for KBT and KBJ Imports au/images/documents/ and Exports. DEPARTMENT OF PLANNING our-work/community- & WESTERN AUSTRALIAN updates/20171109_-_2017_ GLAESER, E. (2010). PLANNING COMMISSION. Dust_Campaign_Fact_Sheet_- Introduction. In E. L. Glaeser (2010). Directions 2031 and Mandogalup_-_FINAL.pdf (Ed), Agglomeration Economics Beyond – metropolitan (vol. 1, pp. 1-14). Retrieved planning beyond the horizon. ENVIRONMENTAL PROTECTION from the National Bureau of Retrieved from https:// AUTHORITY. (2017a). Economic Research. www.planning.wa.gov.au/ Consideration of potential publications/826.aspx health and amenity impacts of GOVERNMENT OF WESTERN dust in determining the size of a AUSTRALIA. (2017). Western DEPARTMENT OF PLANNING buffer for urban development Australia State Budget 2017- & WESTERN AUSTRALIAN in the Mandogalup area, 18, Budget Paper No. 3 PLANNING COMMISSION. Advice of the Environmental Economic and Fiscal Outlook. (2015a). Draft South Protection Authority to the Retrieved from http://static. Metropolitan Peel Sub-regional Minister for Environment ourstatebudget.wa.gov.au/17- Planning Framework – Towards under section 16(e) of the 18/2017-18-wa-state-budget- Perth and Peel @ 3.5million. Environmental Protection Act bp3.pdf? Retrieved from https://www. 1986. June 2017. EPA, Western Australia. planning.wa.gov.au/dop_pub_ HARRIS, S. (2007). Industrial pdf/South_Metro_Peel_Sub- Symbiosis in the Kwinana regional_FrameworkHIRES.pdf ENVIRONMENTAL PROTECTION Industrial Area (Western AUTHORITY. (2017b). Australia). Measurement and DEPARTMENT OF PLANNING & Environmental Protection Control, 40(8), 239-244. WESTERN AUSTRALIAN PLANNING (Kwinana) (Atmospheric Wastes) Policy 1999 and COMMISSION. (2015b). HUDDLESTON, V. & MAGINN, Environmental Protection Metropolitan Region Scheme. P. (2014). The Geography of (Kwinana) (Atmospheric Retrieved from https://www. Perth’s Youth Unemployment, Wastes) Regulations 1992. planning.wa.gov.au/1222.aspx FACTBase Bulletin 40, The Retrieved from http://www.epa. University of Western Australia wa.gov.au/policies-guidance/ DEPARTMENT OF PLANNING, and the Committee for environmental-protection- LANDS AND HERITAGE. Perth, Perth. (2018). Future planning for kwinana-atmospheric-wastes- policy-1999-and-environmental Mandogalup area. Retrieved KWINANA INDUSTRIES COUNCIL. from https://www.planning. (2012a). About KIC. Retrieved FREMANTLE PORTS. (2015). wa.gov.au/10476.aspx from http://www.kic.org.au/ 2015 Inner Harbour and about-kic.html DEPARTMENT OF TRANSPORT. Outer Harbour Fact Sheet. (2017). WESTPORT: Preparing Retrieved from http://www. fremantleports.com.au/ KWINANA INDUSTRIES COUNCIL. for the Strategy. Retrieved (2012b). Eco Efficiency from https://www.transport. Planning/Planning/Documents/ Inner%20Harbour%20and%20 Committee. Retrieved from: wa.gov.au/mediaFiles/projects/ http://www.kic.org.au/ PROJ_P_Westport_Preparing_ Outer%20Harbour%20Fact%20 Sheet.pdf component/k2/item/38-eco- for_the_Strategy.pdf efficiency-committee.html

FREMANTLE PORTS. (2017). DEPARTMENT OF WATER. KWINANA INDUSTRIES COUNCIL. (2016). Western Trade Coast 2017 Annual Report. Retrieved from http://www. (2012c). Kwinana Industrial Area. heavy industry local water Retrieved from http://www. supply strategy. Retrieved fremantleports.com.au/News/ Publications/AnnualReport/ kic.org.au/industry/kwinana- from http://www.water. industrial-area.html wa.gov.au/__data/assets/pdf_ Documents/2017%20Annual%20 file/0004/8887/110703.PDF Report%20-%20Full%20 44 KWINANA INDUSTRIES COUNCIL. PARLIAMENT OF WESTERN STEPHENSON, G. & HEPBURN, A. (2012d). Kwinana Industries AUSTRALIA. LEGISLATIVE (1955). Plan for the metropolitan Mutual Aid (KIMA). Retrieved COUNCIL. (2016). Oil Refinery region, Perth and Fremantle, from https://www.kic.org.au/ (Kwinana) Agreement Act 1952 Western Australia, 1955: a report about-kic/kic-committies/ – Ratified Variation Agreement prepared for the Government kwinana-industries-mutual- Bill 2016. Retrieved from http:// of Western Australia. Retrieved aid. html www.parliament.wa.gov.au/ from the State Library of Parliament/Bills.nsf/42791920C Western Australia. KWINANA INDUSTRIES B09849F482580520011C67C/$Fi COUNCIL. (2014). KIC Education le/Bill220-1SR.pdf STEVENS, P. (2008). National oil Development Program 2014 companies and international RKCC Award. Retrieved from PERPITCH, N. (2016, May 26). oil companies in the Middle file:///C:/Users/gharfordmills/ Property mogul Nigel Satterley East: Under the shadow of Downloads/2014_Awards__ angry over Kwinana buffer government and the resource Submission_RKCC_2014_.pdf plan. The West Australian. nationalism cycle. Journal of Retrieved from http://www. World Energy Law & Business, KWINANA INDUSTRIES COUNCIL. abc.net.au/news/2016-05-26/ 1(1), 5-30. (2016). KIC Annual Report 2016. satterley-labor-decry-kwinana- Retrieved from http://www.kic. buffer-zone/7449804 THE ARGUS. (1955, April 26). org.au/images/documents/KIC- Kwinana: An Argus Souvenir – Annual-Report-2016-FINAL.pdf REGIONAL DEVELOPMENT Why this was their choice. AUSTRALIA PERTH. (2016). The Argus, p. 21. Retrieved KWINANA INDUSTRIES COUNCIL. Driving Change – Perth and from Trove. (2017). KIC Annual Report 2017. Peel Economic Development Retrieved from https://www. Strategy and Infrastructure THE WEST AUSTRALIAN. (2016, kic.org.au/library/reports- Plan to 2050. Retrieved from November 21). BP’s Kwinana submissions.html http://www.rdaperth.org/ refinery retains critical role. wp-content/uploads/2015/08/ The West Australian. Retrieved MACLACHLAN, I. (2013). DRIVING-CHANGE.pdf from https://thewest.com.au/ Kwinana Industrial Area: business/finance/bps-kwinana- agglomeration economies and RESERVE BANK OF AUSTRALIA. refinery-retains-critical-role-ng- industrial symbiosis on Western (2017). Pre-Decimal Inflation ya-121692 Australia’s Cockburn Sound. Calculator. Retrieved from http:// Australian Geographer, 44(4), www.rba.gov.au/calculator/ THE WEST AUSTRALIAN. (2 017, 383-400. annualPreDecimal.html February 28). Mandogalup residents fight proposed PARLIAMENT OF WESTERN SAFFIOTI, R. (2017). New Kwinana Buffer Zone. The West AUSTRALIA. LEGISLATIVE taskforce to deliver Outer Australian. Retrieved from ASSEMBLY. (1952). Parliamentary Harbour vision, media https://thewest.com.au/news/ Hansard 6 March 1952. statement, 12 September, wa/mandogalup-residents- Retrieved from http://www. Government of Western fight-proposed-kwinana-buffer- parliament.wa.gov.au/Hansard/ Australia. Retrieved from zone-bc-5340161251001 hansard1870to1995.nsf/0/e87048 https://www.mediastatements. d35f9e16bb48257a38000fd06f/$ wa.gov.au/Pages/ TIANQI LITHIUM. (2 017, FILE/19520306_Assembly.pdf McGowan/2017/09/New- December 19). Construction taskforce-to-deliver-Outer- Commences on Stage 2 Lithium PARLIAMENT OF WESTERN Harbour-vision.aspx Hydroxide Processing Plant AUSTRALIA. LEGISLATIVE [Media Release]. Retrieved COUNCIL. ENVIRONMENT AND SINCLAIR KNIGHT MERZ & from http://tianqilithium. PUBLIC AFFAIRS COMMITTEE. RESOURCE ECONOMICS com.au/wp-content/ (2 011). Inquiry into Cockburn UNIT. (2014). Western Trade uploads/2017/12/MediaRelease- Cement Limited, Munster, Coast Integrated Assessment TianqiLithiumAustralia- Report 24. Retrieved from http:// – Environmental, Social and 19DEC17.pdf www.parliament.wa.gov.au/ Economic Impact. Retrieved parliament%5Ccommit.nsf/(Rep from: https://www.landcorp. ort+Lookup+by+Com+ID)/3706B com.au/Documents/Projects/ F8B237210E94825792F000C508E/ Industrial/Western%20Trade%20 $fi le/ev.ccl.1110 2 0. r pf. 0 24. x x.pdf Coast/Western-Trade-Coast- Integrated-Assessment.pdf 45 KWINANA AS A CATALYST FOR ECONOMIC DEVELOPMENT

VAN BEERS, D., CORDER, G., WESTERN AUSTRALIA. (1961). WESTERN TRADE COAST. (2017). BOSSILKOV, A. & VAN BERKEL, Alumina Refinery Agreement Kwinana Industrial Area. R. (2007). Industrial Symbiosis in Act 1961, Perth. Retrieved from http://www. the Australian Minerals Industry: westerntradecoast.wa.gov. The Cases of Kwinana and WESTERN AUSTRALIAN au/estates/kwinana-industrial- Gladstone. Journal of Industrial PLANNING COMMISSION. area/ Ecology, 11(1), 55-72. (1997). Statement of Planning Policy No. 4.1 – State Industrial WI L L I A M S, P. (2016, November WA LABOR. (2016). Our Vision – Buffer Policy. Retrieved from 21). BP’s Kwinana refinery Freight & Trade. Retrieved from https://www.planning.wa.gov. retains critical role. The West https://www.markmcgowan. au/dop_pub_pdf/SPP4_1.pdf Australian. Retrieved from com.au/files/Our_Vision_-_ https://thewest.com.au/ Freight_and_Trade.pdf WESTERN AUSTRALIAN STATE business/finance/bps-kwinana- ADMINISTRATIVE TRIBUNAL. refinery-retains-critical-role-ng- WATER CORPORATION. (n.d.). (2 011). Wattleup Road ya-121692 Perth Seawater Desalination Development Company Pty Plant. Retrieved from https:// Ltd and Western Australian www.watercorporation.com. Planning Commission [2011] au/water-supply/our-water- WASAT 160. Retrieved from sources/desalination/perth- http://decisions.justice. seawater-desalination-plant wa.gov.au/SAT/SATdcsn.nsf/ PDFJudgments-WebVw/2011 WESTERN AUSTRALIA. (1952). WASAT0160/%24FILE/2011WAS Oil Refinery Industry (Anglo- AT0160.pdf Iranian Oil Company Limited) Act 1952, Perth.

Image courtesy of Kwinana Industries Council.

46 ABOUT THE AUTHOR

Georgia is a Research Officer with the Committee for Perth, joining the organisation in 2014. She holds a Bachelor of Science, Geography and received First Class Honours in Urban and Regional Planning from The University of Western Australia. In addition, Georgia received the 2015 Patrick Armstrong Prize in Geography for her research thesis.

To date, she has been involved in researching and coordinating a number of Committee for Perth projects including the landmark Get a Move On! report and the What We Thought Would Kill Us series. She is also responsible for coordinating the annual FACTBase Research program and the Committee’s Working Groups and Project Steering Committees. Georgia is an Adjunct Research Fellow with The University of Western Australia.

ACKNOWLEDGEMENTS

The author acknowledges Ms Julia Horsley, School the following individuals in of Earth Sciences, The overseeing the production University of Western of this report and providing Australia a peer review. Thanks must also be given to Professor Matthew Tonts, a number of individuals who Pro Vice-Chancellor participated in interviews Executive Dean | Faculty and provided a review of of Arts, Business, Law and the final report. Education, The University of Western Australia

47 KWINANA AS A CATALYST FOR ECONOMIC DEVELOPMENT

BIGGER & BETTER BEYOND THE BOOM STEERING COMMITTEE

and a volunteer mentor for STEM programs aimed at developing problem solving and other 21st century skills, and inspiring and encouraging uptake of STEM subjects.

Steering Committee Chair: Steering Committee She holds a Bachelor of Justin Carroll, Partner, PwC Deputy Chair: Nadia van Engineering (Civil and Dommelen, Partner, PwC Construction) from Curtin Justin is a PwC Perth Partner, University. having recently completed Nadia van Dommelen a five year term as PwC’s is a Partner in PwC’s Perth Managing Partner. Infrastructure and Urban During his 27 years with the Renewal practice with firm, he has worked in their over 20 years of industry Singapore, London and experience focused in Sydney offices, with a focus project direction of building on corporate governance, and infrastructure projects. financial reporting She has undertaken key assurance and technical roles on some of Perth’s David MacLennan, Assistant accounting advice in both largest infrastructure Director General of Policy the public and private projects, including Perth and Priority Initiatives, sectors. Justin was previously Stadium, WA Schools PPP, Department of Planning, the leader of the Perth Midland Health Campus, Lands and Heritage Assurance practice and Fiona Stanley Hospital and continues to lead the audits CBD Courts. Mr MacLennan joined of several major Western the Western Australian Australian organisations Nadia is a Member of Government in March 2015 and subsidiaries of large the Board of Trustees and manages the Strategy international groups. of the Perth Theatre and Engagement Division at Trust, Member of the the Department of Planning, Justin is also a director of Consultative Committee Lands and Heritage. He leads St John of God Health Care for ‘Project Management, the strategy, policy, research, and The University of Notre Management Information legal and communications Dame Australia and chairs Systems and Supply Chain areas for the department. the University’s Finance, & Logistics Management’ Audit and Risk Committee. at the School of Business David MacLennan is an and Law at Edith Cowan experienced public sector University, Member of the leader and served in various National Development roles in the Commonwealth Committee and Local Government in Australia Fundraising Committee and overseas before joining of HeartKids Australia, the Western Australian 48 Government. This includes has held board positions active with the Committee diplomatic postings with with numerous industry for Perth and its present the Department of Foreign and advocacy groups project Bigger & Better Affairs and Trade (DFAT) in including the Green Beyond the Boom, working London, Lima, Mexico City Building Council of Australia, to build strategies and and Papua New Guinea. the Australian Institute of recommendations in Architects and the WA regards to broadening the Mr MacLennan held the Museum Foundation. His economy of WA. Previously position of Head of the recent appointment to the he was a member of Filling Political and Economic state’s peak planning body, the Pool, a deep dive on Branch at the Australian the Western Australian gender imbalance and High Commission in London. Planning Commission, strategies to improve Prior to that, Mr MacLennan reflects his keen interest career opportunities for the was DFAT’s State Director in in the relationship female workforce. Western Australia. between planning, environmental outcomes, Additionally, for the past He holds a Masters in urban development and three years he has been Management from economic opportunity. involved with Chamber the Australian National of Commerce WA and its University and a Bachelor He is the current Chairman Business Advisory Board. of Arts from The University of of UWA’s Australian Urban Western Australia. Design Research Centre.

In his current role, Mr MacLennan provides strategic direction for land use and infrastructure planning, policy and projects in Western Australia. David Fisher, Chief Operating Officer, Juniper Jay Watson, State General Manager, Westpac Banking David is a highly innovative, Corporation results driven and achievement orientated Jay is a career banker, Executive Business Services having worked for Westpac / Chief Operating Officer for more than 37 years. Jay (Deputy CEO) ex Group Fred Chaney, Western has been fortunate to have Financial Director, who Australian Planning worked in every State and holds a Bachelor of Commission Territory in Australia, and Accounting Science has the benefit of honing (Honours) and various Fred Chaney is an architect his banking skills through other qualifications. who has worked in the UK, diverse geographies He is recognised by CPA the Middle East, South East and industries. Australia as compatible, Asia and Australia. supplemented by more Jay takes an active interest than 25 years of post- In addition to his work as a in the future direction of graduate experience in practising architect, Fred Western Australia and is business, with the ability to

49 KWINANA AS A CATALYST FOR ECONOMIC DEVELOPMENT

demonstrate a track record award winning Brookfield of success in small to large Place precinct, and is organisations across Property currently overseeing a Management, Intellectual number of large scale office, Property, Information retail and mixed use Technology and Aged Care developments in Perth’s CBD Industries. at various stages of construction and planning. He is a current member David McCulloch, General of Chartered Secretaries Manager, Industry and Australia (CSA), following the Investment, Department completion of a Certificate of Jobs, Tourism, Science in Governance for Not-for- and Innovation Profits and the Graduate Diploma of Applied David’s career has been Corporate Governance. almost exclusively in Daniel Simms, international business, Chief Executive Officer, investment attraction, exports, City of Wanneroo major events and industry development. Presently he is Daniel Simms is the Chief General Manager, Industry & Executive Officer at the Investment, in the Department City of Wanneroo – Western of Jobs, Tourism, Science Australia’s fastest growing and Innovation. local government authority. Nicholas Ozich, Regional He has extensive experience David has responsibility Director – Property and in local government in both for several priority sectors Development, Brookfield metropolitan and regional including energy and Western Australia, working mining, and their respective Nick is responsible for the across many disciplines equipment, technology property and development including planning and and service sectors. Other activities of Brookfield development, finance and sectors include infrastructure, Property Partners in Western administration, governance financial services and aviation. Australia, currently Perth’s and strategic planning. He is Western Australia’s largest commercial landlord. representative on the National Daniel holds a Bachelor Investment Advisory Board Prior to his current role with of Applied Science and (NIAB) and the National Trade Brookfield, Nick worked for a Graduate Diploma in Working Group (NTWG) and Multiplex and Lend Lease Business in Local Government is Chair of the Resources & both in Australia and the Management from Deakin Energy Working Group which UK, gaining an appreciation University. He is Chairman of reports to NIAB. for the impact high-quality the Growth Alliance Perth property developments can and Peel Policy Forum, He managed Western have on a city’s culture. Executive Member of the Australia’s trade office in National Growth Areas Mumbai from January – Since returning to his Alliance and a member April 2015, and was actively hometown of Perth, Nick has of the Infrastructure involved in the Sister State been able to put this passion Coordinating Committee Agreement recently signed by into action, playing a key role (Western Australian the Governments of Western in the development of the Planning Commission). Australia and Andhra Pradesh. 50 Mark Stickells is the Director of Innovation and Industry Engagement at The University of Western Australia and leads the development and stewardship of university partnerships Shaun Griffin, Managing Ronak Bhimjiani, Manager, with industry, the not-for Director, Ipsos Australia Economics and Research, profit sector, governments Pty Ltd Real Estate Institute of and communities. Western Australia (Inc) Shaun is an accomplished Mark is an experienced commercial manager Ronak Bhimjiani qualified executive and company with 20 years’ experience with an Honours Degree in director with more than 20 working across a range of Financial Economics from years’ experience working local, regional and global the University of Leicester, in joint ventures, R&D and roles spanning consulting, UK. He spent 5 years in collaborative industry research, strategy, planning the Investment Banking research programs. He and analytics. Industry in London within has expertise and passion Mergers and Acquisitions, for energy and resource In recent years, Shaun has before migrating to Perth sector innovation and occupied senior roles in in 2015. In his current role as former roles include Director digital, running strategy Manager, Economics and of UWA’s Energy and and digital marketing Research at REIWA, Ron’s Minerals Institute and Chief for businesses in the chief function is to ensure Executive of the WA Energy financial services and REIWA and its members Research Alliance. consulting sectors. are well informed on the current economic and WA Mark has extensive national As General Manager of property climate. Ron is also and international industry Ipsos Perth, Shaun is working a member of the Housing and innovation networks to help clients understand Industry Forecasting Group and is a highly effective how to capitalise on the (HIFG) and Housing Industry communicator with a deep commercial and social Association (HIA). commitment to diversity, opportunities of a post- inclusion and innovation. boom Perth market. Mark is a Board member or advisor to several UWA With a diversity of skills ventures and actively and experience across engaged in the innovation sales, marketing, strategy, ecosystem in Perth. Mark analytics, operations, is a thought leader and e-commerce and IT, he has advocate for Perth’s a unique understanding regional role as an energy of the challenges facing Mark Stickells, Director, city and innovation hub. business and government Innovation and Industry in the digital age. Engagement, The University of Western Australia

51 KWINANA AS A CATALYST FOR ECONOMIC DEVELOPMENT

The University of Western Australia. Her research interests are regional economic development and the analysis of remote, regional and urban socio- economic indicators. She is currently researching the Professor Matthew Tonts, Pro socio-economic impact of Marion Fulker, CEO, Vice-Chancellor Executive different regional workforce Committee for Perth Dean | Faculty of Arts, arrangements and uneven Business, Law and Education, economic development in Marion Fulker is the The University of Western Western Australia. inaugural Chief Executive Australia of the Committee for Perth Ltd. She took up the Matthew is Pro Vice- position in January 2007 Chancellor and Executive having previously been Dean, Faculty of Arts, the Executive Director of Business, Law and Education the Urban Development at The University of Western Institute of Australia (UDIA) Australia. WA Division. Marion is an Adjunct Senior Research His research is focused Tony Monaghan, Fellow at The University on urban and regional Manager – Corporate of Western Australia development, with much of Communications, and holds an MBA from his recent work concerned The Brand Agency Curtin Graduate School with the shifting geography of Business. Aside from of corporate power, Tony is the Manager of leading the Committee, spatial labour markets and Corporate Communications Marion is the Chair of economic development and at The Brand Agency. the Conservation & regional policy. He has almost 30 years’ Parks Commission and a experience as a journalist, professional representative political advisor and on the state’s Infrastructure corporate communications Coordinating Committee. consultant. He worked for ABC TV, Channel 9, As an evidenced based Channel 7 and was Head of organisation, Marion has News for the Mirror Group led a number of landmark TV in London. While working Committee for Perth for State Government, he research projects which Professor Fiona Haslam was a media advisor, chief have resulted in reports McKenzie, Co-Director, of staff and principal policy such as: Centre for Regional advisor for the Department • Towards a Bright Future Development, The University of Premier and Cabinet. which outlines two of Western Australia scenarios for Perth as a region of 3.5 million Fiona is Professor of people Geography and the co- • A Cultural Compact, the director of the Centre for 10 year challenge which Regional Development at articulates a vision to 52 make arts and culture Lisa’s career has spanned The University of Western part of the everyday lives 10 years in the Victorian Australia. In addition, of Western Australians public sector, where she Georgia received the • Filling the Pool, a gender developed and oversaw 2015 Patrick Armstrong equality report aimed at public policy development Prize in Geography for her growing the number of across a wide range research thesis. women participating and of industries, including: progressing in corporate transport infrastructure, To date, she has been life in Perth social and public housing, involved in researching • Fremantle as a regulation of the heavy and coordinating a reconnected city which vehicle industry and social number of Committee for details the opportunities policy issues, including the Perth projects including for the future of the ageing population. the landmark Get a Fremantle region. Move On! report and the • Get a Move On!, Lisa moved to WA five What We Thought Would the Committee’s years ago and has held Kill Us series. She is also current transport and two positions in WA’s responsible for coordinating congestion project. corporate environment the annual FACTBase with CCIWA and REIWA, Research program and leading the advocacy and the Committee’s Working research agenda for the Groups and Project property industry. Steering Committees.

She brings a passion for public policy, evidence- based research and is keen to influence decision makers Lisa Kazalac, Manager, for a more prosperous WA. Research & Policy, Committee for Perth

Lisa Kazalac is the Manager of Research and Policy at the Committee for Perth. In her role Lisa oversees the development and publication of research and public policy positions Georgia Harford‑Mills, which help to shape the Research Officer, future of Perth and Peel. Committee for Perth

Trained as an economist Georgia is a Research at RMIT University, Lisa Officer for the Committee graduated with upper for Perth, joining the second class honours, and organisation in 2014. She has recently graduated holds a Bachelor of Science, from Curtin University Geography and received with an MBA. First Class Honours in Urban and Regional Planning from

53 KWINANA AS A CATALYST FOR ECONOMIC DEVELOPMENT

COMMITTEE FOR PERTH MEMBERSHIP GOLD MEMBERS

CONSULT ING GROUP

SILVER MEMBERS

54 BRONZE MEMBERS

Aboriginal Productions JAXON ACIL Allen Consuling John Holland Amana Living Jones Lang LaSalle APP Corporation Lendlease Arcadis Lester Group Arup Lux Events Ashurt Marketforce Advertising Built MercyCare Cameron Chrisholm Nicol Monadelphous Group Cannings Purple Navitas Cedar Woods Properties North West Shelf Australia LNG Churchill Consulting Peet Limited City of Armadale Perron Investments City of Canning Perth Theatre Trust City of Fremantle Programmed Group City of Gosnells Ramsay Health Care City of Rockingham Real Estate Institute of Western Australia City of South Perth RobertsDay City of Stirling SAP Australia City of Subiaco Savills Australia City of Wanneroo Screenwest Clifford Chance Silver Chain Group Colliers International Southern Cross Austereo Cox Howlett & Bailey Woodland St John Ambulance WA DBNGP St John of God Health Care DEXUS Property Group Stockland FJM Property Town of Victoria Park Frasers Property TPG + Place Match Gold Corporation Uber Hames Sharley Urbis HASSELL Western Australian Cricket Association HopgoodGanim Woods Bagot Jackson McDonald WSP Jacobs

55 KWINANA AS A CATALYST FOR ECONOMIC DEVELOPMENT

Image courtesy of Wesfarmers Chemicals, Energy & Fertilisers. This report is copyright of The University of Western Australia and the Committee for Perth. While we encourage its use, it should be referenced as:

Harford-Mills, G. (2018) Kwinana as a catalyst for economic development, a FACTBase Special Report, The University of Western Australia and the Committee for Perth, Perth.

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