South West Food Processing Precinct

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Stage four – multi-criteria assessment and preferred site

Based on the information obtained in the detailed site analysis, each of the sites shortlisted were assessed using a weighted multi-criteria assessment. The scores are summarised in the following table:

A multi-criteria assessment was used to assess each site.

Criteria weighting

Total 100%

Category

South

Gwindinup

South

Burekup

Waterloo Yalyalup Maximum possible score
20 Land status 95 80 160 150 200
20 Infrastructure 135 150 175 165 200
20 Transport linkages 180 180 200 110 200
20 Environment 168 152 120 112 200
5 Waste management 6 14 14 6 50
5 Workforce services and support business 25 40 50 50 50
5 Social amenity impacts 38 28 28 28 50
5 Strategic potential 22 30 45 38 50

100

TOTAL

669

674

792

659

1000

From these scores it is apparent that the ranking is:

1.         Waterloo  (792)

2.         South Burekup  (674)

3.         South Gwindinup  (669)

4.         Yalyalup  (659)

Following this ranking, a risk assessment was conducted to assess the sites which offered the lowest risk to development.

The risk assessment was based on questioning the risk associated with:

  • ability to produce a contiguous and staged development – (site is unlikely to accommodate staged approach based on rational and financially viable servicing model)
  • future growth - (site is not well located for future growth in agri-industry sectors in the south-west region and/or other transformative projects)
  • existing industries - (site is not in proximity to known agri-industry operations and unlikely to be utilised. Existing industries looking for more favourable geographic or supply chain advantages are not enticed to this site)
  • social licence (community resistance to agri-industry development)
  • land assembly (dispersed and/or multiple ownership of site will restrict land assembly or sequential development and staging).

The likelihood of the occurrence was correlated and scored against the impact of the occurrence through a risk matrix. The matrix is illustrated as follows:

Sites were assessed using low, medium and high ratings for impact and likelihood.
Risk matrix used to assess the sites which offered the lowest risk to development.

All sites presented some level of risk. However Waterloo was assessed as having he least level of risk with all other three sites having some component which was regarded as having one or more critical flaws.

From the analysis, the preferred site in the south-west region for a food processing precinct is Waterloo.

There do not appear to be any significant environmental, social or regulatory constraints that would preclude the site from undergoing further detailed consideration.

Further investigation and planning of this site should be progressed to confirm its suitability and the most appropriate manner of development to establish a food processing precinct.

Waterloo was by far the best scoring site based on the multi-criteria assessment, and was the only one of the four short listed sites that did not score ‘high risk/high impact’ in any of the risk categories considered in the risk assessment.

At 1511 hectares, the site is the largest of the four shortlisted. This provides the greatest potential for retaining the required buffers within the site boundaries.

Given the level of analysis possible at this stage, the required buffers are mostly contained within the site and do not impact on any identified sensitive land uses located outside of the site area.

Being the largest site, Waterloo also has the largest number of individual land parcels and land owners. This presents some risk in terms of land assembly. However the land has already been mooted for industrial purposes and there has been some interest from landowners regarding the potential for their land. Furthermore, it is unlikely that all land within the Waterloo site will ultimately need to be acquired. The major concern will be to ensure that any existing sensitive land uses are not impacted by development as it progresses.

A land acquisition strategy will be required as the investigations progress and more clarity around actual land requirements is attained.

Strategically, the Waterloo site is an excellent fit and better aligned with strategic planning objectives than any of the other sites. The rezoning of the land to industrial under the Greater Bunbury Region Scheme is likely to be in place by late 2014.

The northern part of the site near the South Western Highway has been identified as a likely site for an inter-modal facility that will allow for the transfer of goods from road to rail and provide very good access to Bunbury Port.

Very good opportunities for synergies with existing and future industries are possible. There will be ample choice for complementary industries that would not be suitable for location within the food processing precinct to establish or relocate near the precinct. Major infrastructure already exists in very close proximity to the site.

The site is accessible via major established transport routes and with the establishment of the inter-modal hub, will also be very accessible to both domestic and export markets. Being close to Bunbury, there will be good access to a large labour pool and support services. The site is also within reasonable commuting distance from other population centres.

The buffer area will be suitable for the establishment of compatible industries and support businesses, and may also be used for grazing and related compatible rural land use to provide a visual buffer and transition with rural areas to the west and south.

Traditional practices for waste water treatment such as ponding remain current and are commonly used. There is adequate land for the establishment of waste water ponds and systems as required; although like most of the sites Waterloo has relatively high ground water levels. In practice all waste water ponds, no matter where they are located, are perched and lined with impervious material and constructed to minimise any risk of contamination of environmental water or soil.

Implementation requirements

In terms of the typical land development process, this comparative due diligence study is one of the earliest stages, as illustrated below. It will now be necessary to undertake more detailed investigations and feasibility assessments.

The industrial land development process involved inception, planning, business case, financial and statutory approvals, development and sale and project marketing.
Detailed investigations and approvals are necessary for developing industrial land.

A formal feasibility, project planning, design and delivery process is still required, with the level of detail and certainty increasing at each stage. Further consultation with the Shire of Dardanup will also be necessary.

Before the site could be made available for establishment of a food processing precinct there would be a number of pre-requisites.

There are a number of ways the site could be protected including the declaration of a Planning Control Area or a Special Control Area as part of the Greater Bunbury Region Scheme.

  • To prevent encroachment of sensitive land uses before or after establishment of food processing activity on the site, protection of the required land and buffers through a rezoning process is highly recommended. Rezoning under the Greater Bunbury Region Scheme to Industrial Deferred is already being contemplated.
  • A Planning Control Area may be used to protect the area from development or to allow a particular development to take place that would not be acceptable under the underlying planning scheme for the area.
  • Ultimately an amendment to the Greater Bunbury Region Scheme would be desirable to:
    • apply a Special Control Area over the affected land
    • rezone the land to industry if it is ultimately determined that the potential land uses cannot be supported within the current rural zone. It is noted that this is already proposed, and is likely to take place by late 2014.
  • An amendment to the Shire of Dardanup local planning scheme to designate the land appropriately and allow food processing activities to be approved whilst limiting the potential for inappropriate land uses on the site will be required.

  • Further detailed due diligence based on site investigations and consultation is advisable as part of development of a business case, to confirm the status of the site with regard to potential contamination, aboriginal heritage sites and environmental status (e.g. presence of rare and endangered species).

  • Baseline study and monitoring of site contamination and groundwater flows should be commenced as early as practical in order to inform detailed planning.

  • A structure plan for the site should be prepared, in order to define appropriate land uses and controls and define requirements for transport connections, service infrastructure locations and lot sizes, water management and environmental and cultural heritage management. This will require preliminary layout design and consideration of staging, including any required bulk earth works and infrastructure upgrades.

  • A traffic impact assessment will be required as part of a structure plan. This will determine the routes to be used to service the precinct and road improvements, if any, that will be required as a result of predicted vehicle movements. Detailed information relating to vehicle movements and peak periods will only be able to be determined when there is a specific development proposed.

  • The definition of a core area and extent of buffers is desirable based on detailed investigations and modelling. Modelling of buffer areas will only be possible if an actual end use is identified.

  • More detailed investigation of site requirements for individual food processing activities is required in order to refine actual infrastructure requirements.

  • Land assembly of the core area will ultimately be required to enable land development to occur. It may be necessary to acquire land within buffer areas if they are occupied by incompatible land uses.

  • Further investigation of implementation models is required. A conventional model of subdivision and development and service delivery requiring developer contributions may be satisfactory. Alternatively, models that facilitate common use infrastructure and/or co-operative management could be explored. The strategic potential of a food processing facility for the south-west may warrant up-front funding of key infrastructure. Given likely budgetary constraints, alternative funding models may be desirable to supplement or replace direct Government funding or borrowing (eg: asset leasing arrangements).

A full copy of the Comparative Due Diligence report on the South West Food Processing Precinct can be obtained by contacting Trina Anderson, Trade and Agribusiness Development on +61 (0)8 9368 3640 or trina.anderson@dpird.wa.gov.au