Lithium Valley Main Report 2018
6.3 Specialised Industrial Park It is recommended that a Specialised Industrial Park (SIP) is established over the entire WTC. A SIP is a port or an area of a port in which imported goods can be held or processed free of customs duties before re-export. SIP’s have become common in recent years after the first one was established in Ireland in 1959. They exist around the world (EU, Middle East, throughout Asia) and highly incentivise increased activity and production in the zone. The China economic miracle started with their first SIP in Shenzhen in 1980. There is an abundance of evidence that SIPs create increased employment, particularly higher skilled staff, as there is a strong value adding emphasis. All quarantine and customs are provided within the secured zone. There is a positive knock-on effect for logistics and operations due to the increases in throughput and volume movements – from which Fremantle Port Authority and LandCorp receive a fee. rankings, Australia is now trading behind Albania, Nicaragua, and Swaziland. Infrastructure Partnerships Australia 2018 “ Despite innovations in automation in recent years, over the last decade Australia has fallen from 23rd to 95th in the World Bank’s rankings for trade across borders. On these
SIPs are located within a country’s national borders, and their aims include: increased trade, increased investment, job creation and effective administration. To encourage businesses to set up in the zone, financial and regulatory incentives are usually introduced. For instance, the authorities act as a one-stop shop, cutting related red tape and simplifying administrative procedures. There are other incentives provided by governments, such as foreign ownership rules, special labour laws and fiscal incentives. The SIP should target a wide assortment of economic sectors, including commercial and manufacturing activities and professional services, such as warehousing and trans-shipment. Additionally, companies may be offered tax holidays, where on establishing in a zone they are granted a period of lower taxation. The creation of a SIP by the host country may be motivated by the desire to attract foreign direct investment. The benefits a company gains by being in a Specialised Industrial Park may mean it can produce and trade goods at a lower price, aimed at being globally competitive. An underrated aspect of SIPs is that they allow local companies to sell freely to other countries, as once the threshold into the Port precinct is crossed, goods are effectively exported, simplifying many of the procedures and paperwork. This expands local companies’ customer bases and leads to new products and services and the viability of investing in innovation. This is particularly true for small businesses as they no longer have to worry about absorbing the costs of tariffs and other barriers to market entry and can sell their products freely. Based on recent studies completed by InfraNomics the compound annual growth rate (CAGR) of SIPs is typically in the range of 10-14% over a 10 year period. This is approximately double the CAGR of an unfacilitated industrial park and approximately 2-3 times the current growth rate of the Kwinana Industrial Area.
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