“A Healthy Pipeline of Employment Lands”

Presentation to NSW State Planning Conference, “Making it Happen” Hunter Valley, 15 – 17 October 2014

Presented by: David Laing

Senior Principal Cardno 13 October 2014

Who am I?

David Laing, Senior Principal Cardno

 25 year career covering a broad range of environmental and planning fields   PCA NSW Divisional Council, Chair Illawarra, positions with PIA Passion for regional growth   Key position in various industry groups Strong ties with industry especially mining and land development  Like to think about the ‘big picture’ and opportunities that arise  Like to do things a little differently and challenge status quo

Views expressed here are not necessarily those of Cardno,

Cardno’s Industrial Heritage

A broad range of industrial experience:  Development – due diligence, concept, engineering, planning, environment, design, construction, monitoring  Strategy – Land use studies, master planning, feasibility assessments, rezoning   Advocacy – PCA, UDIA, RDA, PIA, i3net, local councils Clients – mining, heavy industry, ports and harbours, transport and logistics, warehousing, manufacturing, infrastructure and energy, state and local government

What are we talking about? (PCA)

Employment lands are about the creation of jobs close to where people live.

 Heavy, light industrial, commercial development but not in a CBD or regional centre   Warehousing, distribution centres, manufacturing, business parks and research facilities. Lynch pin of the manufacture, storage and distribution of goods, including fresh food, throughout Australia.

  Ensure employment lands operate efficiently reduces the cost of goods to the consumer. Their success depends on efficient land releases, location, delivery of infrastructure,

Why are Employment Lands Important? (PCA)

   Jobs growth is critical Growing our existing employment base Efficient freight movement underpins a strong economy If NSW does not release, service and develop enough new employment land…  Associated development and jobs growth will be lost to attractive interstate locations, such as south east Queensland and Victoria    People will be forced to travel longer distances to work Congestion on roads and public transport will continue to accelerate NSW wont be the centre of Australia’s business and investment activities

Changes Globally

      Coming decades will see the world economy shift from west to east and north to south Asia will become even more important to the economy of Australia Local manufacturing will need to specialise to prosper, cant compete head on with these guys!

Increased automation, global competition, currency changes More import of goods More freight and logistics, rise of intermodals

Changes Locally

 Industrial market showing sings of recovery post GFC     Restructuring of traditional industries like BlueScope Ongoing expansion of our ports and harbours Stronger enquiry rates for warehouse/logistics esp. global/national operations Lower enquiry rates for manufacturing    Two types of demand – local and national Service-based industries Also distinguish between developers and industrialists

A State of Perpetual Inaction…PCA

NSW has often failed to identify, release or service employment land:  Infrastructure and essential services are missing.

 Land is burdened with excessive and inefficient infrastructure charges.

  No certainty around the supply pipeline because future employment land is only being ‘investigated’.

No comprehensive strategy to manage the rapid growth in freight movements across NSW.

How we map our supply

How we map our supply

How do we compare to our neighbours ?

Region Newcastle Geelong Ipswich Natural Attributes Current Pop Est Pop in

> > > > > > > > > > Flat developable land International Harbour Proximity to Sydney Flat developable land International Harbour Proximity to Melbourne Flat developable land Situated along transport corridor Proximity to Brisbane Constrained by Escarpment and Ocean 517,500 278,000 157,701 652,600 398,000 434,788

2031 Job Creation

66,000 37,000 120,000

% Pop Growth Industrial

+26% +43% +176% 936 ha 539 ha 1,234 ha

Industry Concerns

Yes we may have enough ‘zoned’ land but there are still significant barriers to development not recognized in Policy:     Constrained nature of our urban landscape Parcel size / lot fragmentation Policy constraints (yes but no) Utilities and infrastructure    Topography Environmental constraints Overall strategic context

Scope of Study

The DPE responded to the calls from industry and commissioned Cardno to:   Review previous industrial land monitoring in the region Quantify the type and amount of industrial land supply  Identify the major physical and servicing constraints impacting the development of industrial land:  Bushfire, Flooding, Steep Grades, Biodiversity  Water, Sewer and Electricity

  

Preliminary Results

603ha (19%) out of a total 3,100ha is vacant   Physical constraints affect 471ha (78% ) of vacant land  Bushfire 60%  321ha in Wollongong, 264ha in Shoalhaven Virtually none in Shellharbour and Kiama Flooding 35%   Steep Grades 12% Biodiversity 3% Services to vacant industrial land needs urgent work:  67% has no sewer, 42% no water, 22% no electricity

Only 46ha (i.e. 7%) of vacant industrial land is serviced and free from physical constraints

Opportunities…

 Identify the critical infrastructure requirements for employment lands esp. improved road connections and services   Identify and resolve the policy impediments (esp. state v local controls) Coordinate delivery to improve regional competitiveness, monitor supply, collective marketing and promotion, chase down leads    What to do with those large transforming industries Facilitate major employment generating developments to access streamlined approval times ‘Big Picture’ - esp. in freight and logistics, regional links

So what do we need?

Size Landform Policy Hazards/ Constraints Utilities Comment

Is the size of the site suitable for Light industry (ideally >2,000m 2 ) or heavy industry > 2-5ha?

Is the landform appropriate for Light Industry (ideally >2,000m 2 ) or Heavy Industry > 2-5ha?

Do the current (or proposed) Federal, State and Local policies facilitate development of the site and surrounds (i.e. goods to and from the site)?

Are there any natural hazards (flood, bushfire, stability, PASS, contamination, airport) or site constraints (ecology, heritage, visual) that would restrict development Is there adequate provision of utilities (water, sewer, power, gas, communications, other) to allow development of the site for the intended use?

Infrastructure

Is there adequate provision of suitable road and rail to allow development of the site and movement of goods to and from the site?

Score

L/M/H L/M/H L/M/H L/M/H L/M/H L/M/H

Masterplan and Feasibility Assessment Cont.

Key constraints include:  Flooding   Ecology Servicing and Infrastructure The above assessments informed a bulk earthworks scheme to create developable areas and precincts.

Next steps - planning proposals, market analysis,

Let’s do things differently!

      Really understand your local strengths, customer base (hi-end, agriculture) Address the awkward alignment between spatial planning and economic policy Also align State (sector-focussed) with region-specific policy Governments needs to be more involved and assume some of the risk – be less reactive and resist the ‘command and control’ approach Identify and focus on clusters of similar industries – understand the system better Partner with industry on key initiatives - both ‘top down’ and ‘bottom up’ approaches

Questions?