Report for Department of Primary Industries and Regional Development Peel Business Park Transition Strategy 2126530

GHD Pty Ltd

In 2017 the Department of Primary Industries and Regional Development commissioned GHD to prepare a food industry transition strategy for the Peel Business Park as part of the state government's Transform Peel program.

Transform Peel

Transform Peel is a $49m Royalties for Regions funded program aimed at achieving job creation, sustainable growth and economic development in the Peel Region. The Peel Development Commission and its partners, intend to implement this program over 35 years where projections estimate that 35,000 jobs will be created generating an approximate $16.2b per annum economic output by 2050.

Located in the Shires of Murray and Serpentine Jarrahdale, the program comprises three integrated, strategic elements, the Peel Business Park (PBP), the Peel Food Zone and the Peel Integrated Water Initiative.

The Department of Primary Industries and Regional Development (DPIRD) is the lead agency for Peel Food Zone sub-project which involves the development of a food/ agriculture industry transition program to assist with facilitating decisions by existing WA and Australian food industries and related support industries to relocate to the PBP.


The Peel Business Park Located 10 kilometres north-east of Mandurah, Western Australia, the Peel Business Park (PBP) will cater for agri-food and agri-processing operators, as well as ancillary light, general transport and logistic industries. The overall PBP covers 1,000ha across multiple lot ownerships, however the focus of this study is the planned initial 120ha precinct at Lot 600 Lakes Road Nambeelup, which is under LandCorp ownership. Purpose of this report This report provides a strategy to assist with facilitating decisions by existing WA and Australian food industry businesses and support industries to relocate to the PBP or to the Transform Peel area generally. The findings of this report will be used by the Department of Primary Industries and Regional Development, LandCorp and the Peel Development Commission . Identification of agri-food businesses under relocation pressure in the Perth and Peel Regions The analysis identified 401 agri-food businesses in the Perth and Peel Regions. The results show that around 51% of businesses are located within industrial zones, with the remaining businesses located in zones which may be less suitable including commercial (26%)1, agricultural/rural (9%), development (7%) or residential (6%) zones. The 31 businesses currently located in development zones may be under the most pressure to relocate before their surrounding area transitions to higher density development (e.g. residential). Many of these businesses are located in urban development zonings around North Coogee, where they currently enjoy strategic proximity to major infrastructure such as the Fremantle Port. The most common businesses identified were classified as gourmet, fresh produce, meat, seafood, food wholesaler, baking, oils, exporter/Importer and packing. Together these businesses represented 77% of all agri-food businesses in the region. Across the region, the following nine (9) areas were identified as having the most agri-food businesses under pressure to relocate: Tapping/Wanneroo Osborne Park/Innaloo Canning Vale Cockburn Central/Treeby Bibra Lake North Coogee Aubin Grove Casuarina Byford Profiling of existing and new agri-food businesses In order to better understand the specific requirements of different agri-food businesses, which may seek to relocate to the PBP, profiles were developed for following existing and new or emerging business types: Existing businesses profiled Poultry processing Fish processing and packaging Boning and packing - Beef Processed meats – Sausages Dairy processing (milk powder, cheese, yoghurt) Mushroom farming Cold Storage Distribution New or emerging businesses profiled Premium/organic food processing incubator Vertical farming Medicinal honey processing Online grocery and meal delivery Non-meat protein Nutraceuticals Suitability of proposed servicing GHD reviewed the planned servicing for the development to determine if it is likely to be suitable in meeting the estimated requirements. We found that the proposed servicing of the development is generally suitable and adequate, however in order to attract new and existing businesses to the park, additional servicing and facilities will be required. Areas requiring further consideration include: Public transport: Future planning will need to incorporate public transport to cater for staff movements Lot size: Many potential businesses will require larger lots than what is proposed, or will need to acquire multiple lots. Some flexibility will be required in local structure planning regarding lot size to allow amalgamation or subdivision in appropriate circumstances. Electricity: Wherever possible electricity should be underground Liquid waste: With limited remaining capacity at the Gordon Road WWTP, alternative options will need to be considered in the longer term. Many businesses will require on-site treatment before discharge, which may provide an opportunity for a shared WWTP within the PBP. Consideration should be given to installing a separate sewage line for human waste Solid waste: Not addressed in current planning. Consideration should be given to waste disposal opportunities via the nearby Eco Industrial Zone Provision of shared services: to reduce the need for individual businesses developing stand-alone facilities Some of the opportunities for shared services and facilities include: backup water supply tanks, chlorination and boilers, back-up electricity generator(s), telecommunications, truck wash, cold storage, security services, R&D, laboratory, admin and/or training facilities and labour hire. However, while the provision of common use facilities may provide a key incentive for some businesses, due consideration should be given to how these facilities will be financed, governed and managed into the future. Relocation incentives and transition strategy The Structure Plan for Lot 600 Lakes Rd (URBIS 2017) proposing a staged development assumes a 50% build out of employment generating land uses by the 2031. Based on the review of potential existing and new food processing businesses it is likely that demand for land within the PBP will come from a range of different business types, with distinct needs in terms of lot size, water reticulation, wastewater, energy, sewage, security etc. While the proposed staged development can probably cater for any business type developing within any particular portion of the PBP, and businesses will invariably choose a lot within the Park which best suits their needs, there are potential benefits from grouping together certain business with similar needs (and separating certain businesses, which may be less compatible). GHD believe it will be necessary to incentivise new and existing businesses to relocate to the PBP. However rather than providing grants to individual businesses, which only addresses the relocation cost impediment, a preferred approach would involve investing in improved infrastructure and headworks, as well as other incentives including: Negotiated utility rates: E.g. cheaper electricity through bulk purchase or local generation options, via waste to energy or solar Development assistance: Assistance with planning applications and certainty around permitting Tenure and payment options: Certain businesses may be attracted to different types of tenure and payment options. Freehold tenure may be preferred for some businesses due to added security, while others may prefer lease arrangements. The options of making deferred payments against land acquisitions is likely help businesses secure finance for developments Alternative site opportunities Outside of the Perth and Peel Regions, there may be opportunities for similar clustering of agrifood businesses particularly in the Waterloo Industrial Park, Mirambeena Strategic Industrial Area, Northern Gateway Industrial Park (Muchea) and the Broome Road Industrial Park. The opportunities for each of these sites is summarised in section 7 of this report. Need for co-ordinated engagement Ongoing engagement with existing and new agri-food businesses will be required to ensure the PBP is successful in meeting their individual needs and therefore attracting investment. With multiple agencies and commercial partners involved in the development of the PBP, it will be critical to ensure that stakeholder engagement efforts are coordinated. Conclusions The vision to establish a food processing business park in the Peel region, while challenging, promises to bring investment, vibrancy and sustainability to the region. Ongoing and coordinated engagement with existing and new agri-food businesses will be required to ensure the PBP is successful in meeting their individual needs and therefore attracting investment.