The Pilbara Digital Flagship Project and the Business of Location Keith Anthonisz | Manager Infrastructure Development WALIS Forum 2013, November, Crown Convention Centre, Perth

Pilbara Digital Flagship Project The use of digital applications and information technology has the potential to alleviate high costs and other key issues in the Pilbara. The adoption of advanced digital applications and information technology can lift productivity and widen the Pilbara economic base and employment options. Development of a Pilbara Digital Flagship Project can support Pilbara development by automating processes to support development approvals in local government and though adoption of advanced information technology to deal with infrastructure constraints. ICT industry active in providing solutions to mining and oil and gas – potential to lever of this support for broader Pilbara benefit.

Pilbara Key Statistics People and Place – Area: 508,000km2 (Twice the size of Victoria). – Population (ABS Census 2011): Approximately 60,000 – By place of remuneration:Approximately 80,000+ – High disposable income. Low unemployment. Economic Significance – 2011/12 the Pilbara was responsible for $84 billion of minerals and petroleum production, 80% of total WA production – Represents 5.5% of Australia's total GDP – $100 Billion of committed projects in the Pilbara. – 33% of Nations Exports with 0.2% of nations population. – Total value of minerals and petroleum production in the Pilbara by 2018 estimated to reach $211 Billion.

Comparisons 2010 value of earnings from the Pilbara region represented: 6% of Australia's total GDP 51% of New Zealand’s GDP Greater than the individual GDP of 104 of the world’s 184 nations.

Pilbara Key Challenges Massive growth during boom….. BUT 1)Housing expensive. 2)New housing investment required. 2)Infrastructure upgrades required for power and water. 3)Small business numbers have declined partly due to rising costs. 4)Education & Health services expansion required. 6)FIFO and 12 hour shifts.

Pilbara Slowdown?

Pilbara Cities Commitment State commitment of $1.2 billion over four years to implement the Pilbara Cities vision. Funded through Western Australia’s ‘Royalties for Regions’ program. Pilbara Development Commission now responsible for Pilbara Cities vision and associated program.

Pilbara Development Commission Key Focus Areas Land and Infrastructure: Infrastructure Development – Energy, Water, Waste Water. Land Development – Land Availability Planning, Developer Attraction and Retention. Development and Diversity: Community Development – Education, Health, Community Facilities. Economic Development – Economic diversification, Local supply chain development.

Water and Waste Water Issue: – Karratha: West Pilbara Water Scheme demand growing to 21.5 GL per year in 2016 and 36 GL per year by – Port Hedland: Port Hedland Water Supply Scheme demand growing to 25 GL per year in 2016 and 48 GL per year by – Onslow: Town tripling in size with Wheatstone project and additional water required to meet needs. – Waste Water: Treatment Plants require increased capacity and upgrading Infrastructure Requirements: – Karratha: Access to 10 GL per year Bungaroo water under State Agreement with Rio Tinto and need to plan for additional supply and long-term solution. – Port Hedland: Investigation of 10 GL per year West Canning Basin source with iron ore company partners as a potential future supply for Port Hedland. – Onslow: Additional supply to be bought on line with Chevron support. – Waste Water: Relocate and upgrade the Port Hedland Ponds and upgrade of the Karratha Treatment facility.

Energy Current Status Horizon Power requires new Pilbara power generation capacity by 2016 for the the North-West Interconnected System. Horizon Power estimate maximum demand for energy to grow strongly, with forecasting predicting peak demand from Pilbara customers to reach 155 MW 2013 and more than 196 MW by 2024/25. Horizon Power in 2013 started work on the construction of a 60 megawatt (MW) power station in South Hedland that is due to be operational in Infrastructure Requirements A private sector power provider sought to develop 1 10MW of new generation capacity at South Hedland. Private sector investment in power needed for future growth of Pilbara communities. Integration of power networks within the region has the potential to reduce costs and support economies of scale.

Land Development Challenges “From the 2011 Census base of 20,700 private dwellings, there is anticipated to be a demand for a further 4,395 to 5,640 dwellings in the period to 2020”. There is a “forecast demand for around 19,000 additional camp beds by 2015.” CME – Pilbara Study, November 2012, pg. 17

Digital Flagship Objectives Turning disadvantages to key drivers Using the Pilbara’s high cost structure and lack of labour as key drivers to deliver higher order digital applications and automated systems. Mining companies are already doing the same, e.g. automated trains and delivery trucks Targeting transformational projects in the areas of government services delivery, e-health, distance education and delivery of services in the non-for profit sector Leveraging investments already made by companies and multinational corporations

Digital Applications in the Pilbara Planning and Building Approvals – Access to housing and reduced costs for accommodation can be supported by advanced tools supporting quicker approvals. Water Efficiency and Planning – Effective water planning is a key component for town expansion. Energy Efficiency and Planning – The Pilbara is facing challenges of supporting access to adequate energy supply and energy efficiency and planning can play a role. Renewable Energy Planning - Use of IT to support resource assessment and modeling of renewable energy projects. Small Business Access to Digital Technology – Small Businesses are under pressure of cost escalations and lack of labour. Automated and commoditised back office support for not-for- profit sector

Information and Communications Technology Industry in the Pilbara Mining services and software companies have been major beneficiaries of expansion of the resources sector in Western Australia. Australian mining and exploration software is a major part of a $3.8 billion mining technology and services export sector. WA Examples include Micromine, Scope Systems, ISS Group, MapTek.

Innovation Workshop and Building Digital Flagship Partnerships A range of companies and organisations participated in the Innovation Workshop at Tech Park in Perth on 28 th February Discussions on how new ideas and innovation can change the Pilbara and support developing solutions to Pilbara problems. These discussions will feed into developing new projects and partnerships for the Pilbara Digital Flagship.

WA Land Information System Collaboration WALIS and Pilbara Development Commission working together on a 3D Pilbara. Add value to the 3D aerial imagery for Karratha and Port Hedland funded under the broader Location Information Strategy for the State. Highlight key Pilbara projects for inclusion in a 3D model in the Google Earth environment supported by Landgate. Support applications using 3D as a tool for project management and planning. Pilbara Development Commission seeks to engage Google to explore Google interest in the Pilbara. Establish a WALIS Pilbara Working Group to enhance collaboration.

Importance of Location to the Pilbara Pilbara is a rapidly growing region with very high investment levels. Pilbara Cities program focussed on making the Pilbara more liveable and most sustainable. Issues with high growth and rapid change in the Pilbara can be supported by land visualisation to understand the impact of location on planning and development. 3D Visualisation and location management can also support promotion of changes in the Pilbara. Advanced location technology applications can also support changing perceptions of the Pilbara.

More Information Pilbara Development Commission 2 nd Floor 16 Parliament Place WEST PERTH WA 6872 t: w: