DEVELOPING THE PILBARA AS A WORLD CLASS INVESTMENT DESTINATION

Key Pilbara stakeholders are creating a world-class investment destination within Australia’s largest export region. Investors associated with the Pilbara Enterprise Zone will enjoy the benefit of targeted regulatory reforms, competitive land, development and financing opportunities and incentives designed to drive diversified investment into Australia’s most important economic region.

 

The main objective of the Pilbara Enterprise Zone is to create a long-term competitive environment for domestic and international investments, strengthening the capacity of the region and its supply chains while capturing greater value-adding and high technology developments.

 

The Zone will leverage an experienced Australian and international management structure utilising global best practice zone management. The Pilbara Enterprise Zone will establish alliances with Special Economic Zones (SEZs) around the world that offer a complimentary industry mix.

 

To achieve this goal for the Pilbara, the following framework will be established:

  • A separate Legislative Act, providing the Pilbara Enterprise Zone with autonomy to manage its own operations and development in accordance with agreed values and objectives, set by the Government.
  • Implementation of a selection of targeted incentives and policy initiatives, designed to promote and facilitate diversified investment into the Pilbara.
  • The implementation of a specially designed development lease model, together with a long-term management framework for the operation, attraction, and development of industry clusters.
  • Establishment of a separate specialised Development Fund for the Zone to provide seed capital for start-up and targeted industry sectors to establish within the zone and expand.

 

Establishing the Pilbara Enterprise Zone is primarily dependent upon the political and stakeholder will to proceed and the management of the socio-economic and political process to enable a new means for driving economic development.

 

Where the will exists, the Pilbara offers opportunities for development which are unmatched in terms of the breadth and depth, and the benefits flowing to the broader State and National economies.

The opportunities present in the Pilbara region have generated large scale investment like very few places on earth, bringing in the world’s largest companies for long-term projects which will generate significant wealth for generations to come.

 

However, the scale of concentrated investment combined with a lack of broader development and capacity in the region has created a high cost structure and a volatile economy. Broader and value adding investment have been largely crowded out by the strength and bias of the resources sector.

 

Without broader investment and sufficient internal capacity, the cost structure of the region has become increasingly uncompetitive on a global scale. Smaller/mid-tier suppliers increasingly service the region remotely – either nationally or internationally.

 

While this strategy has proved to be cheaper in the short run, encouraging these businesses to establish locally is critical to reducing supply chain costs and building the capacity of the region. Local establishment will lead to greater diversity and competition, cluster efficiencies, and significantly reduced transportation times and costs.

 

With the current downturn the region’s high cost structure is impacting the viability of many regional operators. While the larger resource companies are using increased production to offset lower revenues, smaller/mid-tier producers and the mining services companies in particular are being driven to the wall.

 

The Pilbara Enterprise Zone project is about building the regional capacity and sustainability of the region for the future, to cope with future downturns and limit the undesirable impacts during the boom times.

MAINTAINING AUSTRALIA’S ECONOMIC PROSPERITY

COMPLEXITY MADE SIMPLE

PEZ logo

THE PILBARA: AUSTRALIA’S ECONOMIC POWERHOUSE

Over 20%

of Australia’s export revenue.

Over 96%

of Australia’s iron ore.

Over 97%

of Australia’s petroleum products

Over 70%

of Australia’s natural gas.

Zone Vision

 

The Pilbara Enterprise Zone will maximise the benefits of ongoing operations associated with the Pilbara’s world-leading resource sector. The Zone will leverage the scale of Pilbara industry to enable high technology investment and create synergies across the value chain and use targeted policy to develop the Pilbara as a national and international investment destination of choice.

Through achieving these objectives the Zone will generate significant benefits, not only for the Pilbara but for Australia as a whole, through a more stable and competitive resources sector. One that is better able to compete globally while coexisting with the broader national economy during the up-cycle, and is able to sustain output and operations during the down-cycle.

 

Zone Goals

 

  • Attract diversified national and international investment.
  • Strengthen and enhance the Pilbara’s resources supply chain:
    • Marine construction and specialised services.
    • Maintenance and support.
    • Power generation and distribution.
    • Transport and logistics.
    • Process improvement and industry research and development.
  • Generate cluster synergies.
  • Develop regional skills and capacity.
  • Capture new technologies.
  • Encourage small-medium enterprise and mid-tier company investment within the Pilbara.

1

Government support for the concept and its vision for driving high value investment and strengthening the capacity of the Pilbara region

2

Policy and Governance Framework

3

Appointment of Management Consortium and Advisory Board to establish Zone Aims and Objectives

4

Pilbara Enterprise Zone Legislative Act

5

Development and registration ‘One-Stop Shop’

6

Implementation of Zone Incentives

The Zone’s foremost requirement is Government support for the concept and its vision for driving high value investment and strengthening the capacity of the Pilbara region.

The second requirement will be to establish the necessary policy and governance framework to establish the Pilbara Enterprise Zone.

Once this is achieved a suitably experienced and capable consortium and overseeing Advisory Board will be appointed.

These stakeholders will put in place the necessary aims, objectives and key performance indicators to be utilised in developing and operating the Pilbara Enterprise Zone.

The fourth requirement is a separate legislative platform for the Zone in order for the Pilbara Enterprise Zone to achieve its stated objectives and provide domestic and international investors with long-term confidence.

The Act will provide the managing consortium the autonomy to operate and develop the Zone and to attract and facilitate tenants. The legislation will simplify business registration and development regulations within the Pilbara Enterprise Zone, and provide a “One-Stop-Shop” for tenants and potential investors.

The Act will be in accordance with agreed values and objectives set by the Government/s with oversight by the high-level Advisory Board.

The final requirement is the legislation and implementation of Zone incentives to assist in providing an internationally competitive investment proposition.

WHAT IS REQUIRED FROM GOVERNMENT?