ken king - pilbara development commisssion - building cities of the pilbara - transformational...

TRANSFORMING THE PILBARA

Dr Ken King Chief Executive Officer

Pilbara Development Commission

Mining the Pilbara - 9 July 2014

HEADING THE PILBARA

Covers 507 896 square kilometres or 20% of the WA land mass Four local government authorities + Pilbara Regional Council Resident population at 41,001 (2006) – 63,950 (2013) Gross Regional Product $32.5B. 40% of WA’s GSP and 5% of Australia’s total GDP. 20% of Australia’s merchandise exports. The Pilbara has low unemployment (2.6%) and an annual average population growth rate of 2.5% over the period 2006 to 2011. Source: ABS 2011

Stunning natural environment

HEAING

The Pilbara, Australia’s Economic Global Hub

• 90% of Australia’s iron ore exports (Australia’s largest

export)

• 85% of Australia’s LNG exports

• 80% of Australia’s crude oil and condensate making up 81% of WA’s mineral and petroleum production

• 5.3% of Australia’s total GDP

• Value of Minerals Production $59.6B

• Value of Offshore Petroleum Production $24.4B

• 80% of WA’s production value Source: WA Department of Mines and Petroleum – 2012 data

RESOURCE SEC TOR

Pilbara’s $84 billion of revenue in context = • 5.5% of Australia’s total GDP • 50% of New Zealand’s GDP • Greater than individual GDP of 123 of

world’s 185 nation states

The Pilbara currently supports …

• Some 45,000 jobs with • 40% of these part of broader economy

Sources: Pilbara Development Commission - www.pdc.wa.gov.au 2010 International Monetary Funds list of GDP

THE PILBARA ECONOMY

TITLE

Resource Dependent Economy

Overall cost of living is highest in the State at +18.6%, i.e. 18.6% higher than Perth.

Housing costs are 39.8% above Perth prices. The construction cost multiplier is 1.7. People in the Pilbara also pay the most in WA for health and personal care. 29.6% higher than Perth.

Boom and Bust.. The myth. The growth trend continues upwards.

Multiple barriers to entry for small and medium enterprises.

History of limited investment in infrastructure and amenity.

Aboriginal people disadvantaged.

A G OOSE THAT LAYS GOLDEN EGGS

Mission: The Catalyst for Regional Growth and Development

Vision: The Pilbara, Australia’s Economic Global Hub

PILBARA DEVELOPMENT COMMISSION

TITLE COMMISSION’S

ROLE WA Statutory Authority with a mandate to lead and support the sustainable development of the Pilbara Role: Leader, Advocate, Broker, Innovator Key Objective: Economic Diversification Strategic priorities: • Development and Diversity

Economic diversity, community and social capacity

• Land and Infrastructure Land supply, accommodation, key infrastructure

• Strategy and Knowledge Key deliverable is the WA Government’s Pilbara Cities Initiative with a $1.7 billion commitment from the Royalties for Regions (RfR)Program

Mining the Pilbara - 9 July 2014

A 25 year program to transform the Pilbara over the period to 2035 by building sustainable, well serviced communities that have access to modern infrastructure and amenities 140,000 Pilbara residents sought, with …

• Karratha 50,000 • Port Hedland 50,000 • Newman 15,000

We are 5 years into the program with …

• Many challenges and • Much success

PILBARA C IT IES VISION

SEEKING REGIONAL TRANSFORMATION

• Land, land and more land!

• Rising residential rents … – Port Hedland from $1,586pw to over $2,400 in

2012

• Insufficient core infrastructure – Power, water, telecommunications

• Very limited community infrastructure

• Health facilities, education, child care • Diffcult for small businesses to survive

• Attraction and retention of workforces

– FIFO vs. living in the region – Towns with mines: not mines with towns SOUTH HEDLAND, 2009

THE CHALLENGE IN 2009

SOUTH HEDLAND 2009

SOUTH HEDLAND TOWN CENTRE

TODAY

PORT HEDLAND HAS TURNED A CORNER

PORT HEDLAND

• 2009 … • Average advertised purchase price =

$964,000 • Average advertised rent = $1,586pw


$1,043,000 • Average advertised rent = $1,722pw


$1,012,308 • Average advertised rent = $1,887pw

• 2014 (Q1) … • Average advertised purchase price =


• 2009 to Q1 2014 … • Average advertised purchase price = UP 0.9% • Average advertised rent = DOWN 8%

SO TOO HAS SOUTH HEDLAND

SOUTH HEDLAND







• 2014 (Q1) … • Average advertised purchase price =


• 2009 to Q1 2014 … • Average advertised purchase price = UP 32% • Average advertised rent = UP 30%

• Port Hedland Marina - $152 million ($72m RfR)

• Port Hedland Wastewater Treatment Plant–$110 million ($42m RfR)

• Wanangkura Stadium – $34.1 million ($11.1 m

RfR)

• Osprey Service Worker Accommodation - $91 million ($20.5m RfR)

• South Hedland Senior High School Upgrade – $17.35 million ($13.35m RfR)

• Town Centre Revitalisation – $77 million RfR

SOME OF THE HEDLAND PROJECTS

• South Hedland Hamilton Sewer Pump Station

– $4.95m RfR of $41m approved funding to prefund Waste Water Pumping Station, enabling the Hamilton housing precinct to progress

• Port Hedland Waste Water Treatment Plant Relocation …

– To South Hedland – $42m RfR Pilbara Cities funds and $106m Water Corporation funding supporting 2,500 new residential dwellings


• Port Hedland Water Supply Scheme – Demand growing from 13.5glpa to 25glpa in 2016 and

48glpa by 2031

– Investigations of 10glpa West Canning Basin source with iron ore company partners as a potential future supply: $12.5m RfR funded

• Water Resource Assessment & Climate Change Research Project

– $1.5 million RfR Pilbara Cities funds to Dept. of Water

– Part of the larger West Canning Basin Sandfire project

– Assess climate change impacts on water sources

CSIRO with BHPB as a partner


KARRATHA CITY CENTRE BEFORE PILBARA C IT IES

KARRATHA C ITY CENTRE TODAY

KARRATHA MARKS THE FUTURE

SOME OF THE KARRATHA PROJECTS

• Pilbara Education Fund - $50m RfR

• Pilbara Indigenous program - $30m RfR

• Pilbara Health Partnership - $38.2m RfR

• Karratha City Centre Revitalisation – $131m RfR

• Karratha Leisureplex – $65 million ($30.5m RfR)

• Karratha Health Campus - $207m RfR until completion

in 2017

• Warrambie Service Workers Accommodation – $33m RfR

SOME OF THE KARRATHA PROJECTS

• West Pilbara Water Scheme • Demand growing from 15glpa to 21.5glpa in

2016 and 36glpa by 2031

• Karratha Water Recycling • $8.013m RfR funds • For parks and playing fields • Facilitates development of 850 dwellings in

Baynton West

• Bungaroo • Access to 10glpa Bungaroo water under State

Agreement with Rio Tinto • Need to plan for additional supply and long-

term solution

NEWMAN BEFORE PILBARA C IT IES

NEWMAN MAIN STR EET TODAY

NEWMAN NEEDED MORE LOVE …

2009 … Average advertised purchase price = $595,000 Average advertised rent = $1,080 pw

2011 … Average advertised purchase price = $673,000 Average advertised rent = $n/a

2013 … Average advertised purchase price = $825,103 Average advertised rent = $1,844 pw

2009 to 2013 Average advertised purchase prices are up 39% Average advertised rents are up 71%

(Crawford Realty, May 2013)

• Sports Facility Enhancements • State government investment $4.85m

• Town Centre Revitalisation

• State government investment $20m

• Woodie biofuels Project • Part of the Pilbara Water Opportunities

program exploring alternative water sources • Investigation of mine dewatering near the

Woodie Woodie Mine Site • State government investment $0.25m

• Waste water treatment plant upgrades

• To cope with residential expansion • Under consideration Newman Town Centre – artist impression courtesy of LandCorp

SOME OF THE NEWMAN PROJECTS

• To secure the sustainability of communities in the Pilbara, the region needs to diversify its economy …

• Key opportunities include … • Food security and fibre production • Local fabrication and industry support for

onshore/offshore industries • Defence operations and services • Tourism and short stay accommodation • Alternative energy generation – e.g.

renewables • SME development …

• Tourism and hospitality • Business incubation • Increasing commercial retail premises • Digital technology uptake • Increased market opportunities

ECONOMIC DIVERSIF ICATION

• Pilbara Water Opportunities Projects … • Minister for Regional Development announced on 4 May

2010

• Nine pilot Pilbara Water Opportunities water projects

• Worth $2.5 million

• Objective: feasibility of projects to make best use of water in the Pilbara

• Majority of projects focussed on mine dewatering

• Project areas covered included • Study work by Global Groundwater • DAFWA on Woodie Woodie and Yandi in the Pilbara

• Projects provide a basis for the Pilbara Hinterland Agriculture

Development Initiative (PHADI)

• PHADI seeking to develop pilots that demonstrate the use of mine dewater to develop agriculture in the Pilbara • PDC working with DAFWA and Department of Regional

Development on PHADI

PILBARA MINE DEWATER PROJECTS

P IL BARA FAB RIC AT I O N AND S E RV ICES

Project objectives • Strengthen and diversify regional economic base

• Attract industries and employment beyond the resource sector

• Capitalise on projects in the North West

• Community benefits from local participation

• Increased employment opportunities leading to more families settling in the region, supporting the Pilbara Cities Initiative

• Relieve pressure on the State’s road infrastructure

Potential Stage One • Vessel repairs, docking and maintenance

• Small scale fabrication and port replacement

• Support services and asset management

• Vessel mobilisation and de-mobilisation

• Load in/out, assembly and material staging

• Pilbara Underground Power Project • Replaces aging overhead electricity infrastructure

with underground networks • RfR funding of $100m committed to date

• Pilbara Energy Planning

• Collaboration with Horizon Power to … • Explore development of a joint energy

demand study for the Pilbara • Identify opportunities for collaboration with

private energy infrastructure providers • Identify potential for renewable energy

development • Renewable Energy

• Promotion of Pilbara renewable energy projects to the Federal government

• Pilbara Private Infrastructure Investment

• Promotion of Pilbara energy needs as potential private investment opportunities

PILBARA POWER PROJECTS

http://www.google.com.au/url?sa=i&rct=j&q=pilbara power horizon&source=images&cd=&cad=rja&docid=2KXOcLHHyUBvUM&tbnid=jmSOLycaDn8oLM:&ved=0CAUQjRw&url=http://www.horizonpower.com.au/karratha_power_station.html&ei=kYsIUoGAIIWjkQXrzoHACA&bvm=bv.50500085,d.dGI&psig=AFQjCNHCLse0sWwblqTcz93lzp0J7c2DVQ&ust=1376378100370756

DIGITAL FLAGSHIP PROJECT

• The Pilbara is constrained by high costs, particularly in housing and competition for labour

• Digital technologies offer opportunities to improve business processes across a range of areas:

• Planning and building approvals

• Energy & water efficiency and planning • Community access

• Education & Health

BHP’s Remote Operation Centre

PILBARA WASTE PARTNERSHIP

• Economic diversification – Pilbara Cities Vision

• 3 jobs in recycling for every 1 in landfilling

• Improved waste management solutions in the Pilbara

• Increasing population and industry demand creating need

• Industry and the community want to recycle more

• Waste data study and highly innovative Projections Model

• Waste profile figures to 2035

• Provided free to all at www.pdc.wa.gov.au

• Priority Assessment project

• Development of investment attraction packages

• Stakeholder workshop – 16 July in Karratha

• We seek your input!

Mining the Pilbara - 9 July 2014 Pilbara Development Commission -

Transforming the Pilbara

• Northern Towns Development Fund

• Contestable grant process with priority given to projects that facilitate the release of land for residential development within a five year period, support the diversification of economy and develop capacity of local government

• Lazy Lands Program • Identifying unused or poorly used Crown land in the

Pilbara’s main towns

• Service Worker Accommodation • Following the success of Warrambie Estate service

worker accommodation is being implemented as the Commission recognises the critical importance of keeping Pilbara towns acting as service centres

• Housing and Land Snapshots • Monitoring land developments, advertised rental and

sales price in both the commercial and housing markets

PILBARA LAND PROJECTS

N O R T H E R N AU S T R A L I A G R E E N PA P E R

• 2030 Vision for developing Northern Australia • Green Paper released for comment • Northern Australia Advisory Group members

announced – led by Hon Shane Stone • Opportunities:

• Renewable energy supply • Agriculture and aquaculture • Tourism • Security • Tax reform

N O R T H E R N AU S T R A L I A P O L I C Y D I R E C T I O N S

Source: Green Paper on Developing Northern Australia, page vii

THE P ILBARA IN 2035 …

… has a normal land and housing market

We are on our way

THE PILBARA IN 2035 …

… has family oriented communities with active arts and culture, diverse retail and

entertainment options that attract permanent residents

and

offers high quality health and education

choices

Our focus now shifts to place activation


… has a sustainable integrated

energy system,

a sustainable water supply and

sustainable treatment of

effluent

Work continues in this area

http://www.google.com.au/url?sa=i&rct=j&q=pilbara+power+station&source=images&cd=&cad=rja&docid=J-0BP0mvfwoRdM&tbnid=d40gUXkpcB9f6M:&ved=0CAUQjRw&url=http://ecogeneration.com.au/news/securing_energy_supply_in_the_resource-rich_northwest_of_wa/042944/&ei=GIgIUoz5N8bQlAXA5IHwAw&bvm=bv.50500085,d.dGI&psig=AFQjCNECTgEed83F7uUOi3GDJBKSgKhabA&ust=1376377238469433


… offers a sustainable and diverse economy with

a vibrant tourism industry, aboriginal people benefiting from the economy

and public and private investment driving growth

This is the area that will be seeing our keenest focus

Area K, South Hedland – now completed


... has strong national and international investment,

is a world leader in environmental and

social sustainability

has a sustainable not-for-profit sector

and

has a strong security presence

And there is still work to be done

REGIONAL TRANSFORMATION

Pushing Beyond 2035

Pilbara Regional Investment Blueprint

Royalties for Regions

Pilbara Cities – Vision for 2035

140,000 residents, two cities, a major inland centre

$1.2B 2009-2013 + $0.5B 2014-2018

Pilbara Regional Investment Blueprint

Vision for 2050

WEDGE STREET

What is the Investment Blueprint?

• Visionary roadmap developed by the Pilbara, for the Pilbara and

its future

• To inform, influence and align effort of government, community

and industry

• Prioritising effort and investment and monitoring development

success

• Guide the strategic allocation of Royalties for Regions funding

• Focus on key transformational investment opportunities

• Key part of the WA Government integrated planning and development framework

• Key themes – infrastructure; business and industry; and place making / activation

BEYOND 2035

Pilbara Regional Investment Blueprint Focus

• 200,000 people.

• Health and education, equivalent to other regional centres

• International airports with direct daily connections to Asia

• Aboriginal people sharing regional prosperity

• Seasonality of beef industry resolved, fodder crops and a halal abattoir

• New industries around renewable energies, algae, food production, carbon sequestration and marine emergency response

• Mining remains a major industry supporting manufacturing and downstream processing

• Normalised economy

2050 VISION FOR THE PILBARA

T: 1800 THE PILBARA (1800 843 745) E: [email protected] W: www.pdc.wa.gov.au

PORT HEDLAND OFFICE Shop 2, 6 Wedge Street

PO Box 544 Port Hedland, Western Australia 6721

As publishers of this presentation the Pilbara Development Commission makes every reasonable effort to ensure the accuracy of all information. Nevertheless, the Commission is unable to guarantee the accuracy of all of the information contained. The Commission takes no responsibility and will not be liable either in contract for negligence or in any other way for any errors, acts or omissions, which may occur in relation to it.

KARRATHA OFFICE Suite 49, 5 Sharpe Avenue

PO Box 294 Karratha, Western Australia 6714

PERTH OFFICE Level 2, 16 Parliament Place

PO Box 51 West Perth, Western Australia 6872

Thank you

http://www.pdc.wa.gov.au/