Lithium Valley Main Report 2018
focus is critical for a successful industrial park. Following the establishment of Lithium Valley, the statutory authority may grant a lease on land within the WTC and or/ grant long-term concessions that provides a steady upfront revenue stream and growing capital for expansion as was done with the Perth Airport. The parcels for lease, owned by Government, should be large; for instance all the WTC should be one or two parcels to maximise development and expansion opportunities. The zoning would allow the concession or lease holders to consolidate smaller privately owned parcels so that the operations and efficiencies within the industrial park are maximized. The zoning and variety of government authorities needs to be simplified to derisk the region for investors. Ideally, concessions should be granted to Australian Superannuation funds that have the funds, governance and operational expertise to manage these types of assets. The concessions should be long, for instance 50 years as a minimum, to justify the infrastructure investment needed. The land becomes a long-term asset, generating long-term revenue back to the State and appropriate regulatory control over the lessee. Failure to uphold the quality standards set by Government, or agree suitable business plans, allows the option to cancel the lease. Government sets the regulations and the rules, thus maintaining control, while generating upfront cash and increasing revenues. The concession or lease holder would regularly have to submit strategic plans, such as every 5 years, to demonstrate suitable growth and development of the industrial park and surrounding region. This is a common approach around the world and therefore there are plenty of examples to refer to, for instance Perth Airport. The development of the Lithium Valley and the new port at Kwinana has the potential to spur a massive economic surge that can drive down state debt. As the ultimate landlord, the Government retains control over the lessees. State infrastructure planning has suffered from having no overarching long-term strategy as agencies, such as Fremantle Port Authority, LandCorp or Department of Transport each have different areas of focus and therefore risks misaligned objectives. It is hoped that
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"If Albemarle, Tianqi and SQM realise their projections for 2022 in terms of lithium metal equivalent (LME), that means there will be around 240,000 tonnes of LME, which would fill approximately 12,000 TEU going from Kwinana into the Fremantle Port. If all by train, that’s the same as around 126 additional train movements over a year (each train at the maximum allowable of 95 TEUs), or if all by road, anywhere between 6,000 – 12,000 (dual or single) additional trucks. Per week, that’s 115 - 230 trucks or 2.5 train movements. This assessment does not include any other input or output (including waste materials) necessary to manufacture the LME. These volumes and future volumes are not included in current State Government trade or freight forecasts although they were included in the Kwinana Industries Council Trade flow forecasts 2017." Infranomics 2018
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