industrial areas and transport - STCAstca.tas.gov.au/downloads/2006/05-industrial-areas-transport.pdf · Planning for industrial areas and freight generating ... Capacity to reduce

124 Department of Infrastructure, Energy and Resources & Southern Tasmanian Councils Board

key issues

1. Industrial land and planning for future industrial land needsto be closely linked to the location of strategic transportinfrastructure and networks including road and rail.

2. Planning for industrial areas and freight generatingbusinesses needs to be regionally based and incorporatethe principles of integrated land use transport planning.

3. There is a need to develop a regional industrial land usestrategy to plan effectively for industry’s needs and for thetransport system.

4. There is a need to manage the impact of forestry on theroad network through cooperative long-term planningbetween the forest industry and State and local Government.

5. Strategic industrial land needs to be identified andreserved for industrial purposes

additional issues

In addition to the above strategic issues, the following morespecific issues were identified by local government duringthe consultation phase:

Brighton • Continued operation of the railnetwork.

Sorell • Effective major road junctioninfrastructure for/from mainpopulation and industrial areas tofacilitate traffic flows and enhancesafety.

• State Government needs to provideclear and equitable guidelines forallocation of resources fordevelopment projects by council.

Huon Valley • Movement of products from keyindustries, including forestry and ofhigh-value commodities such asaquaculture, wild fisheries(abalone/crayfish) and horticulture.

• Southwood (Integrated WoodCentre). Capacity to reduce thenumbers of log trucks throughHobart to Triabunna, however,increased tonnages of processedtimbers from mills and veneer rotarypeeling plant.

• Southern Forests: production levelsimpact on roads/ vehiclesmovements into and out of theHuon Valley via Hobart.

industrial areas and transport

4198 DIER SthReport 23/11/06 5:27 PM Page 124

section oneindustrial sectors overview

Tasmania has an export-oriented economy that is dependenton the movement of goods by sea and air to interstate andoverseas markets. Efficient and cost-effective intrastate roadand rail linkages, both to and from air and sea ports, arevitally important.

The industry transport task in the Southern Region is varied,ranging from freight-intensive bulk commodities such asforestry products and mineral processing - which use bulkshipping, rail and higher productivity vehicles - to high value,time-sensitive products such as cut flowers and abalone,which require timely access to markets.

A strong comprehension of the Region's economic base andfuture growth areas is essential to understanding its task andfunction. The needs of freight-intensive industry sectors, suchas manufacturing, primary industries, mineral and woodprocessing, are of particular significance.

Tasmania’s transport system must facilitate and meet thedemands of industry in order for the State to remaineconomically competitive. This can be achieved througheffective development, planning and management of thetransport system.

Value-adding of primary industries, and the manufacturing,mineral and wood processing sectors, are the prime users ofindustrial land in the Region. Future planning must considerthe need for industrial land to be closely located to strategictransport infrastructure, including public transport.

Integrating land use and transport planning for existing andfuture industrial areas will help facilitate an efficient transportsystem by:

• protecting and enhancing transport corridors;

• improving freight access to key industrial areas andstrategic transport infrastructure;

• providing for the efficient distribution of goods tobusinesses and markets;

• ensuring flexibility, to meet the demands of a changingeconomy and industrial base; and

• ensuring that the labour market can access employmentthrough public transport linkages.

industry sectors

A range of wealth-generating industries are located in theSouthern Region, including education, manufacturing, healthand community services, retail trade, forestry, agriculturalproduction, transport and storage and construction. Figure 1shows the number of people employed by industry sector inthe Southern Region (2001).

The manufacturing industry, value-adding to primaryindustries, mineral and wood processing are the predominateusers of industrial land, generating significant freight activity.The information in this paper is therefore related to thoseindustry sectors that generate significant levels of freightcompared to other industries such as education and finance.Box 1 outlines the differences between heavy and lightindustrial activities.

manufacturing

Manufacturing is one of Tasmania’s most important industrysectors, employing 23,450 people in 2004/05, with a turnoverof $6.25 billion per annum. In the Southern Region, 9.7% ofpeople in the labour force are employed in the manufacturingsector compared to 10.7% of the State’s total labour force(refer Figure 1).

Manufacturing is an important driver in the State’s economybecause of its large multiplier effect. Manufacturinggenerates employment and wealth in other sectors throughthe creation of supporting services such as transport andstorage, service industries and other manufacturing suppliers.

Figure 2 shows the proportion of people employed inmanufacturing for each local government area. Derwent Valley(17.6%), Brighton (16.7%) and Glenorchy (13.9%) have a higherproportion of the labour force employed in manufacturing.This can be attributed to the dominance of largemanufacturing operations in these areas: Norske Skog in theDerwent Valley and Cadburys, Zinifex and Incat in Glenorchy.

industrial areas and transport : Southern Region Background Report 125

Box 1. what is heavy and light industry?

Heavy industry includes engineering andmanufacturing companies involved in large scalemanufacturing activities or that have the capabilityto service major projects. Heavy industry ischaracterised by large employee numbers andhigh financial turnover. Typical heavy industrysectors include large scale food processing andboat building enterprises, mineral processing anddownstream processing of forest products.

Light industry covers a diverse number of smallto medium sized businesses, involved in lightmanufacturing, metal and plastics fabrication,transport and storage, manufacturing service,sales and printing.



5,042

4,301

1,698

4,693

2,718

7,892

1,200

2,556

6,716

11,349

8,921

141

3,905

8,095

13,370

3,281

3,905

727

1,639

0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000

Accommodation, Cafes and Restaurants

Agriculture, Forestry and Fishing

Communication Services

Construction

Cultural and Recreational Services

Education

Electricity, Gas and Water Supply

Finance and Insurance

Government Administration and Defence

Health and Community Services

Manufacturing

Mining

Personal and other Services

Property and Business Services

Retail Trade

Transport and Storage

Wholesale Trade

Non-classifiable economic units

Not stated

figure 1. number of people employed by industry sector, Southern Region, 2001

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anfigure 2. proportion of residents in the labour force employed in the

manufacturing industry, Southern Region SLAs, 2001


manufacturing profile

Tasmania has a diverse manufacturing industry, covering anumber of sectors. The largest sub-sectors in terms ofturnover and employment are food and beverage, wood andpaper products, metal products and machinery andequipment. Although there are a number of largemanufacturers in Tasmania, the industry is dominated bysmall-to-medium sized enterprises.

The Southern Region has a strong marine engineering sector,centred on boat building and components, as well as value-adding for the food and beverage industry. The Cradle CoastRegion has a strong food manufacturing, paper manufacturingand light engineering base. The Northern Region isdominated by heavy industry, such as mineral processorsComalco and Temco, and component manufacturing.

Manufacturing in the Southern Region is geographicallywidespread, covering the Derwent Valley (Norske Skog);Glenorchy (light and heavy industries); Cambridge (lightindustry) and the Huon and Channel (food and aquacultureprocessing).

The Region’s largest companies, in terms of employment andturnover, are:

• Norske Skog, Boyer (paper manufacturing);

• Incat, Prince of Wales Bay (ship building);

• Zinifex, Lutana (mineral processing);

• Blundstones, Moonah (footwear);

• Cascade Brewery, South Hobart (beverages);

• Cadbury Schweppes, Claremont (confectionery);

• Impact Fertiliser, Glenorchy (mineral processing);

• Tassal, Margate (aquaculture);

• North West Bay Ships, Margate (ship building); and

• ALSTOM Power Limited, Moonah (componentmanufacturing).

future trends

The manufacturing industry has a large multiplier effect,especially for small local businesses providing goods,services and employment to support larger manufacturingenterprises. Manufacturing in Tasmania has an increasinglyglobal focus, with higher exports to overseas markets andstrong output growth.

The industry has changed over the past two decades movingaway from traditional resource-processing industries towardhigh-value, low-volume niche products, such as shipbuilding,aquaculture and food and beverages.

This evolution in Tasmanian manufacturing, together with anincreasing trend for international ownership and consolidationof activities, means that individual businesses need to beinnovative and competitive. The cost and efficiency of freightmovement - in terms of access to resources, supply chainsand markets - is critical to achieving this.

The changing nature of the manufacturing industry impactson the transport system in a range of ways, and generatesdifferent transport needs from the State’s various industries.Traditional, resource-based industries, such as forestry,require high productivity vehicles to improve their efficiencyin accessing resource processing facilities and ports for bulkshipping. Time-sensitive industries, such as aquaculture, andjust-in-time production industries require efficient transportaccess and freight handling to air and sea ports. The moveaway from bulk storage of goods towards ‘just-in-time’delivery has also created an increase in freight movements.

Reducing transport costs through increased freight efficiencyand improved logistics planning will help maintaincompetitiveness and build market opportunities.

primary industries

The primary industries sector is important to the Tasmanianeconomy, directly employing around 12,200 people, including those employed in commercial fisheries. It isestimated that the industry employs a further 1,000 people in providing services to agriculture such as seasonal fruitpicking and shearing.

Agriculture accounted for 4.5% of GSP in 2002/03. Agricultureand value-adding through downstream processing ofproduce contributes significantly to the State’s overseas andinterstate export markets. Downstream processing and value-adding is an important contributor to the manufacturingsector and represents a future growth area particularly for theaquaculture, wine, vegetable and fruit sectors.

primary industry profile

Less than 3% of the Tasmania’s prime agricultural land,classified as class 1-3, is located in the Southern Region.Prime agricultural land in the South occurs in small pocketsaround Kingston, Grove, Margate and Bream Creek. Most ofthe agricultural land in the South is suitable for somecropping, orchards, viticulture (class 4-5) and pastoralactivities (class 4-6).

The Cradle Coast Region, Northern Region around Deloraineand the North East are areas of prime agricultural land andagriculture production. Agriculture is also important to therural municipalities of Huon Valley, Sorell, Derwent Valley,Central Highlands and Southern Midlands, despite the fewareas of prime agricultural land in the Region.

The main primary industry sectors in the Southern Regioninclude:

• commercial fishery - wild and aquaculture;

• fruit - apples, stone fruit, berries and nuts;

• wine;

• fresh and processed vegetables and new emerging crops;

• livestock – beef, lamb and super fine wool; and

• hops.




The commercial fisheries sector, including wild fisheries andaquaculture, was worth $288 million in 2002/03. Aquaculturehas expanded rapidly in the last decade and, with an increasein marine farm operations and expansion into new venturessuch as abalone and mussel production, this expansion is setto continue.

Aquaculture operations are predominantly based in theSouthern Region; around the D’Entrecasteaux Channel and the Tasman Peninsula for salmonid production. Other aquaculture operations are located on Bruny Island, Coles Bay and Pittwater Lagoon (Sorell) for oysters.

Growth in the wild fisheries sector is generally static, due toquota and catch restrictions. However, it is still an importantindustry and source of employment for coastal communities.

Box 2 outlines the transport task for Tassal, a majorTasmanian fish farm and processing company.

The Huon Valley remains the dominant area for fruitproduction, particularly apples. Over the last decade,however, there has been a growth in the production of othercrops such as cherries, berry fruit, grapes, and walnuts. Someparts of the Region also support niche products, includingwasabi and game meats. Increased product differentiation,with an emphasis on high-value crops for niche markets, is akey growth area.

The Coal River Valley has expanded its agriculturalproduction and product base through the South Eastirrigation scheme and is now growing new crops, such asginseng. The East Coast, around Cranbrook and Swansea,produces walnuts and wine grapes.

The Derwent Valley is the largest hop producer in Tasmania,most of which is exported interstate and overseas.

The Southern Region produced 21% of the State’s wine in2002/03; the main wine-producing areas are the Coal RiverValley, Huon and the Channel, Derwent Valley and parts ofthe East Coast. The wine industry is set to double itsproduction over the next few years.

The Southern Midlands and Central Highlands are dominatedby pastoral activities on large land holdings, such as beef andsheep for meat and superfine wool.

The primary industries sector has seasonal labour demands,resulting in movements of people between rural and urbanmunicipalities such as the Derwent and Huon Valleys. Lack ofpublic transport to these areas has been raised as an issuefor workers.

future trends

The State Government’s State of Growth is a policydocument that aims to expand Tasmania’s agricultural sectorto ensure long-term prosperity. The plan aims to achievegrowth through:

• market development and access;

• management of natural resources, including water;

• innovation and competitiveness; and

• Tasmania’s natural agricultural advantages - including itsrelative disease-free status and a moratorium ongenetically modified crops.

There is further potential for improved agricultural productionand productivity in the Southern Region through irrigation. TheSouth East irrigation scheme in the Coal River Valley hasresulted in increased production and new agricultural ventures.Clarence City Council is currently constructing a waste waterre-use scheme to enable waste water from urban areas to beused for certain intensive crops in the Coal River Valley. Thereare also a number of private irrigation schemes operating inthe Southern Region, particularly in the Southern Midlands.

Most processing of, and value-adding to, agricultureproducts is based close to the resource being processed.Most small-scale value-adding occurs on site, on rural-zonedland. Agricultural processing in the Huon Valley takes placeon rural land dispersed throughout the municipality.

Expansion in aquaculture and new product line developmentis set to continue.

location of value-adding facilities

Planning schemes must ensure that small scale value-adding toprimary industries is both provided for on rural land, andprotected from residential encroachment. There is, however, aneed to carefully plan the location of larger rural industries,given their need for adequate access to transport systems andnetworks, labour markets, water and waste water management.

Box 2. transport task for Tassal

Salmon is transported from Tassal fish farms to theHuonville value adding facility for processing andpackaging with some product being processed atthe primary processing facility at Dover.

Market destination determines whether the productmoves by air, sea or road. Product destined forBrisbane, Perth and Darwin is transported by airfrom Hobart International Airport.

Product destined for Melbourne and Sydney istransported by road utilising purpose builtrefrigerated trucks using a roll on, roll offapproach on the Spirits of Tasmania.

Product for international markets is transported toMelbourne by road and sea and then by air tomarkets such as Japan, as Melbourne has aninternational air cargo handling facility.


As most of Tasmania’s primary industry production is exported,efficient and cost-effective movement of product is essential.

As a primary industry processing enterprise experiencesgrowth, and a subsequent increase in employment andfreight movements, careful consideration should be given tothe business’s location, particularly in relation to a well-planned and serviced industrial estate.

The industrial estate at Cambridge is promoted as a locationfor the manufacturing of aquaculture and agriculturalproduce because of its proximity to resources, including theCoal River Valley, Barilla Bay and transport infrastructure.Future industrial development in the area may, however, becomprised by non-industrial development of the site foroffice and retail accommodation.

forestry

Forestry, and the value-adding of forest products, is animportant industry sector in Tasmania, directly employingover 10,600 people. Wood and paper manufacturing has anindustry turnover of $1.3 billion per annum (2004). Forestryand downstream processing of timber products is also asignificant employer in the Region’s rural municipalities,particularly in the Derwent Valley.

70 % of forested land in Tasmania is crown land; theremaining 30% is privately owned. Forested land is managedfor multiple uses such as commercial wood production,conservation, tourism and recreation.

location of forest resource

Forestry occurs in all Southern municipalities, with theexception of Hobart and Clarence and with only limited activityat Glenorchy. The Huon Valley, Derwent Valley, SouthernMidlands, Central Highlands, Tasman and Glamorgan/SpringBay local government areas have high levels of forested land,encompassing both State and private forests.

In the Southern Region there are:

• 381,400 ha of State native forest, of which 360,400 ha is available for multiple use;

• 18,500 ha of State forest plantations;

• 20,400 ha of Private Timber Reserve plantations; and

• 432,600 ha of forest on private land - potentially availablefor logging, although not necessarily commercially viableor available for harvesting.

Forestry is also a significant industry in the Cradle Coast andNorth East Regions. Private plantations have increased from24,000 to 68,000 hectares over the last ten years in the CradleCoast Region, injecting an estimated $260 million into thelocal economy.

State forests

Tasmania’s largest forests’ manager is Forestry Tasmania -controlling over 1.5 million hectares of State forest formultiple uses, including tourism and conservation.

Figure 3 shows the total wood flow from Tasmanian Stateforests from 2001-2005; Figure 4 shows the State’s potentialannual harvesting activity from State forests. (It should be notedthat the values shown in Figure 4 are subject to fluctuation, dueto varying international demand for forest products.)

Forestry Tasmania has over 98,000 ha of plantations in Stateforests. The number of new plantations increased by 5,100 haduring 2004/05.

The conversion of native forests to plantations by ForestryTasmania in State forest will cease by 2010 under theTasmanian Community Forest Agreement. By 2015, theconversion of native forest to plantations on private land byForestry Tasmania will also cease.

Private investment in plantations is set to increase, becomingthe major driver of plantation expansion, while public andcorporate investment in plantations will remain relatively static.


figure 3. Total Tasmanian State Forest wood

2001/02 2002/03

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figure 4. total Tasmanian State Forest annual potential harvesting activity

2002-06 2007-11

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private forests

It is estimated that there are over 1,000 owners of privateforest in Tasmania, ranging from large, industrial players toindividuals owning less than 40 hectares.

A number of private operators incorporate forestry withexisting agricultural operations; an estimated 25% of privateforest owners are farmers. There are also a number ofindividuals who own land but enter into an agreement forother parties to manage and harvest the trees on that land.

The largest private, integrated forest companies operating inTasmania are Norske Skög and Gunns Limited. Thesecompanies own and manage thousands of hectares of forest.

Not all areas of private forest are available for harvesting.This availability is influenced by commercial viability,environmental sensitivity and conservation considerations.Map 1 shows the location of private forests in Tasmania. A significant proportion occurs in the Southern Region,around the Southern Forests and Derwent Valley.

Private forests will continue to be a major source of woodproducts over the next twenty years. Plantations on private landaccount for a little less than 60% of the total plantation base inTasmania, and are increasing at a faster rate than plantations inState forest. It is estimated that new hardwood and softwoodplantations will show an annual increase of 4,000 ha.

In 2004-05, Tasmania’s private forest harvest totalled2,833,000 tonnes; accounting for 41% of Tasmania’s totaltimber production. This represented a 5.9% increase from2001-01, with an estimated value of around $145 million. Thevolume of wood harvested from privately owned land is setto increase significantly over the next 20 years.

Figure 5 shows the predicted annual wood flow from privateforests over the next 25 years. Harvesting is expected toincrease significantly over the next ten years and thenstabilise. It should be noted that these wood flow estimatesare based on anticipated market demand, which can impacton the volume of wood harvested.

total forest predicted wood flow

The total predicted wood flow for both private and Stateforests in Tasmania is an estimated 8,000,000 tonnes perannum, peaking at approximately 9,000,000 tonnes perannum between 2012-16. Figure 6 shows both private andState forest annual predicted wood flow.

figure 5. total Tasmanian private forests annual potential harvesting activity production

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4,000,000

5,000,000

6,000,000

figure 6. total Tasmanian annual predicted wood flows

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2002-06 2007-11 2012-16 2017-21

0

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10,000,000



map 1. private forested land in Tasmania

National State Highway

Major Arterial Road

Arterial Road

Major roads

Native Forest

Hardwood plantation

Softwood plantation

Non Forest

Forest Data



Figure 7 shows, conceptually, the predicted forest wood flowfor both private and State forests for 2003-2007. The mainsources of wood production will be the Southern Forests,North West coast around Circular Head, Wynyard and Burnieand the North East.

Many private timber plantations scheduled for harvest overthe next decade are located in areas not serviced bytraditional, higher productivity freight road networks. A major issue for local government is the impact of increased forest freight movements on the local roadnetwork. This impact is greater in areas such as the Central Highlands and Southern Midlands where timber istransported on local roads over a greater distance.

forestry forward planning

The Forest Practices Act 1985 requires major forestry companiesto prepare three-year plans, providing information on:

• the location of land where harvesting is to occur;

• the volume of timber to be harvested; and

• proposed routes for timber transportation.

The plans will provide a basis for discussion between forestrycompanies and local Government, with an aim to bettermanage the impact of forestry harvesting on local roads.

These plans, based on a three-year forecast, enable short-term planning. Longer-term, forward planning for transportcould result in:

• identification of a limited number of strategic transportroutes;

• integrated transport planning - focussing on combiningroad, rail and land use planning to address forestrytransport issues; and

• greater cooperation between forestry companies, roadowners and transport operators.

forestry value-adding

Major value-adding operations in the Southern Region are:

• Gunns Triabunna mill - exports around 800,000 tonnes of semi-processed wood products per year; about 90% produced on site from logs, with the remaindercoming from sawmill residue;

• Norske Skog, Boyer - annual production is around 290,000 tonnes of newsprint, representing about 40% of Australia’s domestic supply. The mill uses plantation softwood, hardwood and recycled fibre;

• Gunns veneer mill, Boyer - produces decorative veneersfrom eucalypt, special species timbers and softwood;

• Gunns sawmill, Austins Ferry - producing around 42,000 m3 per annum;

• Kellys Timbers, Dunalley - sawmill;

• Musketts Sawmill, Richmond - sawmill;

• Torenius Timber, Forcett - sawmill;

• Clennetts Industries, Moonah - sawmill and

• McKays Timber Yard, Glenorchy.

Approximately 20 sawmills operate in the Southern Region,ranging from large sawmills - such as the Gunns sawmill atAustins Ferry - to small, family-based operations. Whilst thesesawmills are important for the local economy, when comparedto sawmill operations in the North of the State and at Triabunna,the output and transport task is not as significant. It should alsobe noted that sawmills in the North of the State source saw logsfrom the Southern Region as well as from local sources.

future growth areas

The Tasmanian Government's Forestry Growth Plan 1998outlines the key trends driving activity in the forestry industry, including:

• major expansion of forestry plantation programs;

• redesign of harvest, transport and timber segregationsystems through the establishment of merchandisingfacilities in the forest and,

• value-adding opportunities and downstream processing.

The value-adding to forestry that is envisaged under theForestry Growth Plan 1998 includes new and improvedinfrastructure for wood processing, including saw mills andveneer and plywood plants, such as the Huon Wood Centre.

The Huon Wood Centre is an integrated timber-processingsite; proposed as the central processing site for SouthernForest products. The development includes a recently-established hardwood sawmill, rotary peel, wood biomassenergy plant and wood merchandising yard.

Located 25km west of Huonville, the site is relatively remoteand is some distance from key road, rail and portinfrastructure. Selected because of its proximity to theresource, the site has enabled downstream processing tooccur in the forest. The location has also enabled ForestryTasmania to use its internal road network for access from thesouth. These two factors have significantly reduced theimpact of forestry freight on public roads.

figure 7. Tasmanian indicative wood flows from 2003-07


Gunns Limited has proposed a bleached kraft pulp mill atBell Bay. The mill will produce over 800,000 air-dried tonnesof pulp, requiring more than half of the 5,000,000 tonnes ofwoodchips Tasmania currently exports annually.

The development of a pulp mill may change the pattern offorestry freight in the Southern Region. Although there aresignificant forest and labour resources in the North and NorthWest to support the mill, there may be a need to accesswood supplies from the south of the State. Gunns Limitedhas indicated that wood from the south of the State wouldmost likely be moved by rail.

The pulp mill is undergoing the Project of State Significanceassessment process - which considers economic, social,environmental and community issues.

There are also plans for a new softwood sawmill at Boyer,representing the first softwood mill established in Tasmaniafor more than 35 years.

mineral extraction and processing

In comparison to the substantial mining industry in theCradle Coast and Northern Regions, only one miningoperation is located in the Southern Region - and this hascurrently suspended operations. Resource extraction in theSouthern Region is mainly confined to quarrying and sandmining, and is limited to the production of materials for thelocal construction industry.

Resource extraction and processing generates a significantfreight task. Most resource extraction activities, with theexception of Zinifex and Impact Fertiliser, move material byroad because of the small volumes produced and lack ofaccess to the rail network due to site location. Resourceextraction activities require heavy vehicles to move material;posing a potentially detrimental effect on both the State andlocal road systems. Most quarrying processing facilities occurat the site of resource extraction.

Resources such as coal are moved into the Region by rail. If coal ceases to be transported by rail, then the roadnetwork will have to absorb an extra 400,000 tonnes ofadditional freight.

mineral extraction profile

Resource extraction and mineral processing operations in the Southern Region, producing over 100,000 tonnes perannum, include:

• Zinifex, Lutana - one of the worlds largest zinc smelters,producing over 250,000 tonnes per annum of zinc metal,other associated metals and by-products. Resourceprocessing material is primarily sourced from the Zinifexmine at Rosebery and interstate mines (Box 3 describesZinifex’s transport task);

• Cornwall Coal, based at Kimbolton, near Hamilton - anopen-cut coal mine, producing around 100,000 tonnes ofcoal until operations were suspended. The mine is unlikelyto reopen, however, trials are currently underway toinvestigate future potential;

• Boral Quarry, Bridgewater - producing 280,000 tonnes ofroad construction material;

• South Arm - currently producing 130,000 tonnes of sand forthe construction industry. This source is rapidly depleting;alternatives, such as Seven Mile Beach are being consideredin addition to potential sites located outside the Region;

• Hanson Construction Material, Hobart - producing 260,000tonnes of crushed rock;

• Impact Fertiliser, Hobart - producing 180,000 tonnes perannum of super phosphate;

• Duggans Pty Ltd, Cradoc - producing over 100,000 tonnesper annum of construction materials; and

• Hobart Blue Metal Industries, Hobart - producing 680,000tonnes of crushed rock and gravel.

waste management

Although waste management is not an industry sector it canoccur on land with an industrial zoning, for the specificpurpose of waste disposal. Waste management generatesheavy vehicle movements - from residential areas fordomestic waste collection and from transfer stations andindustrial areas for some industrial waste disposal.

Southern Tasmania is served by a series of landfill sites andwaste transfer stations managed and operated by localGovernment. Major landfill sites operate at:

• Jackson St, Glenorchy;

• McRobies Gully, Hobart;

• Baretta, Kingborough; and

• Copping, Sorell.


Box 3. Zinifex transport task

Raw material for processing at Zinifex is sourcedfrom the Zinifex mine at Rosebery on Tasmania’sWest Coast. Raw material is transported by rail to Burnie and then shipped to the Risdon Wharf,which is a deep water bulk handling facilitybased at the Zinifex site.

Interstate material is also transported by ship toRisdon Wharf. The zinc produced at Zinifex istransported by B Double to Hobart Port where itis containerised and transported by rail and roadto Burnie and Bell Bay for shipping.

The by-products from the refinery such asparagoethite and sulphuric acid are transportedby sea from the Risdon Wharf interstate.



There has been a centralisation of waste disposal facilities onthe Eastern Shore of Hobart at Copping (Copping is notreally on the Eastern Shore, but closer to the TasmanPeninsula); other facilities around Greater Hobart have a finitelife. All major landfill sites have several years’ capacity:Baretta and Glenorchy have between 15 and 20 years; Hobartis more limited with around 10 years’ capacity, while Coppinghas over 50 years. Minor landfills operate at Hamilton, Cygnetand Geeveston.

Significant waste transfer stations also exist at Huonville,Bridgewater and Mornington.

The Southern Waste Strategy Authority is a joint authorityestablished by local government to facilitate integrated,strategic planning for waste management and to implementthe Southern Waste Management Strategy. The strategy aimsto minimise waste and rationalise existing landfills.

section twoindustrial areas and land use planning

Demand forecasting at a national level indicates that freightmovements may double over the next 20 years - impacting onboth the transport system and planning for industrial areas.

Integrating land use and transport planning for existing andfuture industrial areas will facilitate efficiency in the transportsystem and contribute to economic growth. The principle aimof this approach is to incorporate planning within andbetween different levels of Government resulting in a morecoordinated planning process.

Improved planning will result in:

• the protection and enhancement of transport corridors,and a subsequent reduction in the impact of freightmovement on communities;

• improved freight access to key industrial areas andstrategic transport infrastructure such as ports, airports andtransport hubs;

• better use of existing and future infrastructure and urban land;

• provision for the efficient distribution of goods tobusinesses and markets; and

• greater flexibility in meeting the demands of a changingeconomy and industrial base.

The needs of industry, and the current regional industrial land supply, must be understood in order to facilitateimproved, strategic planning from both a transport and landuse perspective.

regional industrial land supply

In 2004, the Southern Region included an estimated 1,880 haof zoned industrial land, comprising a mix of existingdevelopment, serviced and unserviced vacant land. Industrial land and activity within the Southern Region ispredominantly based around the Greater Hobartmetropolitan area. Older, established industrial areas exist in Glenorchy and Hobart with newer industrial areas atBrighton, Clarence and Kingborough.

Most of the older, established industrial areas have adequateaccess to infrastructure - including transport - but havelimited potential for significant intensification due to adjacentresidential development.

heavy industry

Heavy industry in the Southern Region has occurred, or canbe developed, in three main areas: Boyer in the DerwentValley, Lutana, Derwent Park, Claremont and Austins Ferry inGlenorchy and Brighton.

The Bridgewater/Brighton industrial area has significantcapacity for heavy industry development, having adequateinfrastructure provision, limited environmental constraints andsufficient land supply. However, it is a policy of the BrightonCouncil to actively encourage small-to-medium sizedenterprises, rather than heavy industry.

Heavy industry sites at Bridgewater, Derwent Valley (Boyer)and Lutana (Zinifex) have adequate access to the rail network,ensuring an alternative to road transport for heavy freightmovements.

light industry

Sites that are suitable for less intense industry - such as lightmanufacturing, transport and storage and service industries -include Glenorchy, Bridgewater/Brighton, Rokeby, RisdonVale, Moonah, Mornington, Hobart International Airport andCambridge.

In particular, the industrial areas on the eastern shore ofHobart and the Bridgewater/Brighton area have significantcapacity for light industry and as a transport and storage hub.

Land adjacent to the Hobart International Airport has beencanvassed by the Clarence City Council for industries withtime-sensitive product that is reliant on air freight. However,less than 1% of the volume of Tasmania’s freight is currentlymoved by air - due to the high cost of air freight relative toshipping - so the uptake of industrial land for air freight-dependent industries is likely to be limited. Freight that ismoved by air is predominantly high value and time-sensitive.

There is some potential for intensification of use andredevelopment of existing sites in the greater Hobartmetropolitan area, provided that environmental constraintsare considered and met.


The Technopark at Dowsing Point, Glenorchy was developedin 1988 as a cluster and incubator of technology-relatedindustries. Although the Technopark is not intrinsically anindustrial area, it does provide office-based and small-scalemanufacturing activities for the science and technologyindustry. The Technopark comprises around 20 companies,employing over 500 people. The largest company in theTechnopark is the Qantas call centre.

Table 1 shows the existing developed and partiallydeveloped industrial sites in the Region. The table gives athumbnail summary of the rating of sites in terms of theirrelationship to infrastructure, and land use considerationssuch as surrounding residential development. High-ratedsites have good access to infrastructure, and sites that havesignificant land use constraints are rated low.

It should be noted that each site has different comparativeadvantages. While one site may have low levels ofinfrastructure provision, in terms of access to strategictransport infrastructure, it may have good access to resourcessuch as aquaculture produce or forestry products because ofits location.

The table shows that most of the established industrial areashave adequate access to infrastructure, but are restricted tosome degree by surrounding land use constraints. This islargely due to the development of residential growth aroundolder industrial areas such as Lutana, and on the easternshore of the Derwent River adjacent to Prince of Wales Bayand Zinifex.

Improved planning around industrial areas and between local governments can help to ensure land use constraintsare minimised.

Maps 2-4 show remaining industrial land capacity by sub-region.

industrial area strategies

Several local governments in the Southern Region havedeveloped strategies for their industrial areas:

Brighton Council

Strategies implemented by Brighton Council include:

• the development of a brochure to promote and market theBridgewater/Brighton industrial area for commercial andindustrial development;

• the active encouragement of development in the buildingand construction, agricultural and transport industrysectors; and

• conceptual plans to develop the Bridgewater/Brightonindustrial area as a transport hub through the relocation ofToll Holdings Pty Ltd due to road and rail access to thethree northern ports.

Glenorchy City Council

Strategies implemented by Glenorchy City Council include:

• an industrial land study, commissioned in 2004, whichidentified the need for regional planning to combatindustrial land fragmentation;

• in alignment with the study’s recommendations, theencouragement of infill development of light industryrather than transport, storage and warehousing businesseswhich require larger lot sizes; and

• the current development by the Royal Agricultural Societyof Tasmania of concept plans for the Royal Showgroundsto determine the future use of the site, light industry andoffice accommodation.

Clarence City Council

Strategies implemented by Clarence City Council include:

• conceptual plans to promote the Cambridge industrialestate for manufacturing of aquaculture and agriculturalgoods, due to resource proximity and access to the airportfor perishable, export produce; and the promotion of thearea as a storage and distribution hub for bulky goodsretailing and warehousing;

• current investigation of funding opportunities for asewerage treatment plant to service the Cambridgeindustrial estate (sewerage is currently an infrastructureconstraint for future development; if the sewerage issue isresolved, the Council may consider releasing further landfor industrial development); and

• development of a strategy to promote Rokeby as anindustrial area for light industry (freight movement presentsa potential barrier to this development due to thelimitations of the South Arm Highway and proximity toRokeby’s residential area).




table 1. Southern region industrial sites

Industrial sites Infrastructure Land useprovision considerations

Heavy industry

Developed or largely developed • Lutana 111 ha, Zinifex High Medium

• Prince of Wales Bay 30 ha, Incat and light manufacturing High Medium

• Claremont 11 ha, Cadbury Schweppes High Medium

• Boyer 80 ha, Norske Skog

• Whitestone Point, Austins Ferry 40 ha, timber mills High High

Partly developed or with redevelopment potential • Margate / Electrona 87 ha, North West Bay Ships High High

• Huon Wood Centre, Huon Valley 90 ha Medium-Low High

• Triabunna 110 ha, wood chip and port Medium High

• Bridgewater / Brighton 500 ha, Boral quarry, light industry, transport and storage, warehousing High High

• Whale Point, Port Huon, 100 ha Medium-Low Medium

Light industry

Developed or largely developed • Mornington 66 ha, light industrial, storage and warehousing High Medium

• Derwent Park 100 ha (highly fragmented), light industrial, service industry High Medium

Partly developed or with redevelopment potential • Rokeby 76 ha, light industrial, service industry Medium High

• Scotts Road, Risdon Vale, 54 ha, quarry High High

• Cambridge 300 ha, agricultural processing, transport and storage, bulky goods retail High High-Medium

• Hobart International Airport 60 ha, airport, zoned for light industry, transport and storage, recreation and tourism High High

• Hobart Port 16 ha, transport hub, warehousing High High-Medium

• Oatlands 14 ha, Thunderstone concrete block plant Medium High-Medium

• Bothwell 15 ha, agriculture use Medium-Low Medium

• Giblin Drive, Sorell 6 ha, Ingham Poultry High Medium

• Selfs Point, Hobart 20 ha, fuel storage, waste-water treatment plant High Medium

Based on information contained in the Making the Right Connections 2004 —strategic study for industrial land for the Southern region



map 2. Derwent sub-region

Bridgewater/Brighton

30%

Boyer75%

Whitestone Pt,Austins Ferry

50%

Claremont90%

Prince of Wales Bay,Lutana80%

Derwent Park90%

Hobart Port25%

Cambridge60%

Scotts Rd,Risdon Vale

5%

Mornington75%

Hobart Airport5%

Rokeby30%

Major HighwayOther Major RoadRailwayResidential ZoneRural Residential ZoneIndustrial LandMunicipality Boundary

% Developed% Undeveloped

Data compiled from Local Government Strategic Plans and amalgamated to develop general Planning Scheme Zone Classifications.



map 3. Huon/Channel sub-region




Southwood‘Newood’

25%

Whale Point5%

Electrona40%

Margate40%



map 4. East Coast sub-region




Cambridge60%

Hobart Airport5%

Triabunna Port40%



locational issues

The identification, protection and development ofappropriate sites for industrial use is essential for theRegion’s economic development.

Sites for industrial development cannot be assessed oninfrastructure alone. For example, the fuel storage site at SelfsPoint has good infrastructure provision with port access andadequate access to the road network via the Brooker Highway.However, the site has visual and residential amenity issues.

Several key factors affect the location of industry:

• proximity to efficient transport infrastructure such as keyfreight roads, rail, ports, airports, public transportinfrastructure and inter-modal facilities;

• availability and cost of service infrastructure, includingenergy, water, waste water disposal and waste management;

• proximity to labour, skills and business support structuressuch as supply chains and industry clustering synergies;

• proximity to the resource being processed – for example,forestry, mining, agriculture and aquaculture;

• industry-specific requirements: access to waterways forship building or locations with sufficient wind reliability forwind farms;

• environmental and planning constraints such as bufferingand attenuation from surrounding development and onsiteenvironmental sensitivities, including flora, fauna, culturalheritage, visual amenity and site contamination; and

• climatic and topographic conditions for industriesproducing airborne and waterborne emissions.

energy supply

Tasmania’s manufacturing industry consumes over 40% of theState’s energy, making proximity to a reliable and affordableenergy supply vital. The availability of gas as an alternativeenergy source to electricity presents an opportunity to attractnew investment to the State that was previously constrainedby the absence of gas supplies.

The gas pipeline runs adjacent to the Midlands Highway,through the Brighton industrial estate and to Hobart city viaBridgewater, Glenorchy and Newtown.

Proximity to a reliable energy supply is a vital element in theplanning of industrial areas. Tasmania’s restricted distributionnetwork for gas, in comparison to the electricity network, mayhave an impact on industry decisions in regard to thelocation of future industrial sites.

demand for industrial land

There is no clear or widely accepted definition of whatconstitutes an adequate supply of industrial land. StateGovernments in Victoria and South Australia have indicatedthat 15 years’ supply is sufficient to satisfy short and long-term market demands for land.

This timeframe recognises the lead-time required foridentifying land that is suitable for industrial use and theneed to maintain the current stock of industrial land, allowingfor a variety of lot sizes and industry precinct types.

The supply of land is determined by measuring the total,vacant stock of land against current consumption anddemand patterns. Supply also needs to account for industrialland that has development potential but is currently beingused for other purposes.

Fifty percent of the existing industrial land stock in theSouthern Region is already developed (see Maps 2-4). Notall of the remaining vacant land may be suitable for industrialdevelopment, given that some sites may have environmentalconstraints or are poorly located in terms of infrastructureprovision. A need exists to quantify and assess the amountof land suitable for both light and heavy industry at aregional level.

The Department of Economic Development has finalisedRegional Economic Development Investment (REDI) plans,which provide a snapshot of current industrial land demandfrom local businesses. This will help to determine thepotential demand for industrial land.

competition for industrial land

The supply of industrial land in Tasmania has come underincreasing pressure from competing uses, constraints on landuse and rising land values.

Land in older industrial areas, such as Glenorchy, has thepotential to become fragmented with the growth ofcompeting land uses for non-industrial uses.

There is increasing pressure for non-industrial activities, suchas warehousing and bulky goods retailing, to take place onindustrial land - primarily because the land is cheaper andchanges in retail activity now require larger lot sizes.Examples of bulky goods retail development occurring awayfrom traditional retail areas include the Bunnings Warehouseat Glenorchy and the proposed homemaker centre atCambridge. The proposed office development at Cambridgeis another example of competing uses for industrial land.

The transport, storage and logistics industry is set to expand,alongside anticipated growth in e-commerce, with freightmovements predicted to double over the next 20 years.These industries are expected to become bigger users ofindustrial land.

The growth of residential development in areas such asMargate and Otago, which are in close proximity to NorthWest Bay and Prince of Wales Bay industrial areas, hascreated land use conflict. Residential and industrial land useconflict can result in operational inefficiencies, growingpressures to modify operational characteristics for industryand reduced amenity for local residents.


Some older industrial areas are no longer meeting industry’schanging needs. For example, access by larger freightvehicles to some industrial sites is restricted and large lotsizes are unavailable for expansion.

planning for industrial areas

Planning for light industrial areas or minor development canusually be achieved by local level planning processes. Localgovernment has responsibility for the zoning of industrial land,with the Resource Management and Planning Commissionplaying a statutory function in final zoning decisions.

Planning for transport systems, infrastructure and majorindustrial areas needs to occur at a statewide or regional level,where these systems are implemented. A sub-regional,strategic approach to the planning of industrial land is currentlybeing undertaken by the Devonport, Latrobe and KentishCouncils. The objective of the approach is to cooperativelyidentify suitable land within the three municipalities to meet arange of industrial activities (see Box 4).

Tasmania lacks a whole–of-Government approach to theassessment of industrial areas and infrastructure. Currently,planning is undertaken by separate agencies and various levelsof Government, as is the marketing of industrial land anddevelopment opportunities.

Planning must reflect State and Local Government policy,regional authority and industry sector planning, such as theIndustry Development Plan, Southern Economic DevelopmentStrategy and Industry Council plans.

Queensland’s State Government, in cooperation with localgovernment, has taken the lead in developing regionally-basedplans for infrastructure and urban development.

The Queensland Government has an interest in ensuring that there is an adequate amount of serviced industrial land to meet future industry demands and as a result hasidentified and fostered a number of strategic industrialprecincts in Queensland.

Planning should also reflect global trends in manufacturing;such as industrial consolidation, which has a demand for largersites; niche industries, which may have specific land andinfrastructure requirements and clustering of like activities suchas the maritime cluster.

Planning for major industrial areas requires lengthy timeframesas there is substantial upfront work involved in the land use,environment planning and engineering works to locate anddevelop land for future industrial use.

Regardless of the level at which planning is undertaken; itshould be based on an integrated approach which considersboth land use and transport planning.

A more strategic approach to planning of industrial areas must encompass:

• a quantification of the amount of land suitable for industrialdevelopment, based on light and heavy industry needs, at aregional level;

• the aim to protect existing and future industrial land which issuitable for industrial development with adequate access toinfrastructure; and

• effective planning for future industrial areas and developmentbased on integrated land use and transport planning.

• transport infrastructure considerations

Transport infrastructure and major development decisionsregarding the location of industrial development should belinked. Major industry - or resource processing industriessuch as forestry and mining, which are more reliant onefficient and cost-effective transport systems and options -should be located in close proximity to strategic transportinfrastructure and networks.

Rail infrastructure plays a key role in moving bulky goods,such as paper and minerals, and reducing the amount offreight on the road network – which also has perceived safety benefits.

Rail access should be provided as a transport option toexisting industrial areas that utilise the rail network, such asBoyer and newer areas including Brighton.

In order for rail to be considered as a transport option, heavyindustry which requires a greater freight task should locateclose to the rail network

Regional level planning also needs to consider the use andprovision of transport infrastructure in relation to industrialarea planning on a Statewide basis. For example, from aStatewide perspective, Tasmania’s three northern ports aremore strategic than Hobart Port as they handle most of thefreight that enters and exits the State.


Box 4. Mersey industrial estate planning

An example of sub regional planning operatingoutside the region is the joint industrial estateplanning between Latrobe, Devonport City andKentish Councils. The Councils undertook a jointsite assessment to consider new sites for anindustrial estate for both light and heavyindustry. The Councils recognised that theyneeded to work together as there was a lack ofindustrial availability in the Devonport sub-regional area and collaboration was needed toidentify and plan for a major industrial site.

This approach shows how adjoining Council’s canwork effectively together to plan an industrial areathat is the most appropriately located in terms ofinfrastructure and environmental considerations.



Brighton is also a strategic location in relation to transportinfrastructure, as it is both a road and rail hub. StatewideRefrigerated Transport, at Brighton, is an example of atransport industry which has good access to the transportnetwork via the Midlands Highway.

The cost of infrastructure provision to isolated industrial areasis significant. The consolidation of industrial areas anddevelopment should be encouraged to maximize the use ofexisting infrastructure.

Ensuring that development is located in key populationcentres with good access to employment, also bringstransport benefits, such as access to public transport.

It is beyond the scope of this paper to address therelationship between industrial areas, the volume of freightgenerated and its impact on the transport network. Anyfuture industrial area planning should address the impact onthe transport network from industrial areas or proposeddevelopment.

industrial areas and freight

Industrial areas and development that generates freightactivity should be located in close proximity to major freightroutes. In order to minimise conflict, industrial developmentin residential areas and areas distant from freight routesshould be discouraged.

There is a need to ensure that local communities andresidential areas, particularly built-up urban areas, areprotected from the impact of freight movements andoperations. This can be achieved by separating industry fromresidential areas, or by creating buffers between residentialdevelopment and freight-generating industrial areas.


Documents

industrial areas and transport - STCAstca.tas.gov.au/downloads/2006/05-industrial-areas-transport.pdf · Planning for industrial areas and freight generating ... Capacity to reduce