THE PHYSICAL PLANNING OF INDUSTRIAL ESTATES

Author(s): United Nations

Source: Ekistics , MAY 1963, Vol. 15, No. 90 (MAY 1963), pp. 305-308
Published by: Athens Center of Ekistics

Stable URL: https://www.jstor.org/stable/43622744

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 THE PHYSICAL PLANNING OF INDUSTRIAL ESTATES

United Nations , Department of Economic and Social Affairs

This abstract is from United Nations Sales No.: 62. 1 1.B.4 and represents the final
results of the Seminar on Industrial Estates in the ECAFE Region, held in Mad-
ras, India, from 1-11 November 1961. EKISTICS abstracted from one of the semi-
nar papers: «Physical Planning Considerations Relating to Industrial Estates» (Vol.
13: No. 79, May 1962, pp. 340-348.) which dealt with one of the two major topics
discussed. The other topic, «Integration of Urbanization and Industrialization Po-
licies», is abstracted below.

The industrial estate is primarily a device for

for national development. Planning for the estab-
•expanding, strengthening and locating small lishment
or of industrial estates must be part of a.
medium-scale industries as part of a broad program-
total planning process concerned with maintaining;
me of industrialization, and as such it has a unique
a balance between an industrial and an agricultu-
role to play in economic and social develop-ral economy. In this regard, the industrial estate-
ment, particularly in the developing countries. Asis now viewed in many countries as an instrument
economic development almost invariably accelera-
to divert industry from over-populated or over-
tes the process of urbanization,1 it is necessary
industrialized areas which are now either depressed!
that industrialization and urbanization policies
or inaccessible, to provide industrial development
should be co-ordinated. Physical planners believe
throughout the country and to raise the level of
that the pattern of settlement can be influenced
development in rural areas.
while a country is undergoing industrialization,
In most countries the absence or insufficient
and that such guidance can minimize the ensuing
development of the infrastructure and the externai
economic and social dislocations by planning from
economies has been a major obstacle to achieving;
the outset for the work place and the dwelling to
a successful programme of industrial decentrali-
be related to each other, and for the development
zation. Effective transportation and communica-
of the necessary infrastructure. The industrial
tion systems are essential to link inaccessible in-
estate is one of the devices which can be helpful
terior regions and smaller urban areas with the-
in co-ordinating industrialization and urbanization
metropolitan centres; water resources, also, wilt
policies. In fact, industrial estates provide a help-
have to be developed on the necessary scale. One-
ful means of organizing land uses economically
authority believes that the industrial estate majr
for industrial development.2
provide the means of bridging the gap left by th &
However, the establishment of industrial estates,lack of infrastructure in areas which can benefit
either in large or small centres, is not a substitute
from industrialization, since it provides a complex,
for an economic development policy of broader sufficiently large to make it economical to provi-
scope. It is necessary for industrial estate projects
de the local infra-structure and external economies-
to be integrated with general development plans
demanded by entrepreneurs as a pre-condition for
and programmes; experience has indicated that
industrial clustering. 8
integration at the level of the region provides the
INTEGRATION OF URBANIZATION-INDUSTRIALIZATION POLICIES
most suitable framework for co-ordinating local
Location of Industrial Estates in Relation ta
development programmes with over-all planning
Town and Regional Planning . Planners believe
1 Urbanization in Asia and theFar East, that the urbanization pattern can be influenced
Proceed ings of the Joint UN/UNESCO while a country is undergoing industrialization and
Seminar, Bangkok, 8-18 August 1956 (Unesco,
Calcutta, 1957.SS.57.V. 7A)
3 United Nations Seminar on Regional 3 William Bredo, «Industrial Development and Urban
Planning, Tokyo, 28 July-8 August 1958 Growth, with Particular Reference to Industrial
(ST/TAA/SER.C/35). And EKISTICS Vol. 8: No.Location»,
50, Seminar on Urbanization in
pp. 405-414. India, University of California, 1960 (Paper No. 9

305

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that such guidance can minimize economic and Rangoon, Cairo, Djakarta and Karachi all show
social dislocations. There are many techniques that planning has not been confined to cities alone
•which now make it possible for industries to but
be has been extended beyond the administrative
limits
located in a different pattern and the process can in an effort to solve some metropolitan
probably be accomplished at a more rapid pace problems. The need for planned location of indus-
than if no action were taken. Provision of the ne- try both within the urban areas and on the peri-
pheries is being more frequently recognized. But it
cessary infrastructure and the external economies;
must be recognized that urban and regional plan-
•creation of industrial estates; improved means of
ning
financing; research and industrial extension servi- considerations have so far played a very small
role not only in the industrial estate projects but
ces; where needed, the use of ready-built factories;
even in the large-scale industrialization pro-
favourable terms for recuring equipment; tax con-
grammes
cessions; and assistance in the training of workers - of a number of less developed countries.
these are some of the devices which can steer in- Programmes for setting up industrial estates can
dustry to under-developed regions. be fully effective only when integrated with basic
development plans. The establishment of indu-
In most countries, the insufficient development
of the infrastructure and of external economies strial estates cannot be a substitute for an econo-
mic development policy of broader scope. It is
has been a major bottleneck in achieving a success-
ful programme of industrial decentralization.necessary
An to co-ordinate industrial estate projects
with
-effective transportation system is needed to link overall development plans for a region or a
inaccessible interior regions and smaller cities to municipality.
metropolitan centres. An efficient communications In India, where industrial estates have been a
system including telephone, telegraph and mail ser- major feature of the industrialization programme
vice is equally essential. Water resources and faci- for small-scale industry, the physical and social
lities for disposing of industrial waste must be de- relationship of the industrial estate to the town
veloped on the necessary scale. One goal of decen- or city in or near which it has been located has
tralization is to create industrial centres or nuclei been given very little attention. In the regional
of economic activity in the under-developed re- context, industrial estates have only been assessed
gions. Bredo betieves that the industrial estate con- from the point of view of the total employment
cept provides a way of bridging the gap left by the potential which they will bring into a particular
lack of infrastructure in those areas which could area. Since most of India is industrially under-
benefit from industrialization. By the use of esta- developed, the adverse effects which such ad hoc
tes, a large cluster of enterprises can be broughtlocation of industrial estates could have, have been
together to benefit from a common pool of ma- kept to a minimum; as the number of industrial esta-
nagers' supervisors and skilled workers, and from tes increases, greater attention will have to be paid
the exchange of goods. There can be economicesto urban and regional development plans before
of scale in the construction of the estate and in deciding on their location. To this end, the third
providing public utilities more cheaply than these Five-Year Plan includes a proposal for a special
could be furnished by industrialists acting inde- allocation to assist State Governments in preparing
pendently. master plans for the larger cities and towns.
There is no doubt that the undertaking of ma- Lack of integration of urbanization and indus-
ster plans along regional lines is a major step for- trialization policies has been apparent in some in-
ward. As a result of international seminars organi- stances with respect to the provision of housing
zed by the United Nations and of other practical and related community facilities. The lack of rela-
■experience in this field, the approach to physcial tionship has made it necessary for many workers
planning, especially in the less developed countries to travel long distances to work and has resulted
is changing from the municipal to the regional in haphazard slum development near the estates.
level. Regional planning techniques are also being The Government of Singapore is unusual in that
increasingly applied to master plans for metropo- it has a housing programme geared to the require-
litan areas by United Nations Technical Assistance ments of low-income families. By means of a com-
experts. Thus, the master plans for Kuala Lumpur, prehensive programme it has sought to relate

306

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employment opportunities to place of residence. tic of the dangers of inadequate land use planning:
There has been awareness that the location of future
and zoning and of inadequate enforcement of
public or private low-cost housing projects should
regulations; it further indicates that, without such
be planned to provide ease of access to the pro-
controls and enforcement, an industrial estate
posed industrial areas in order to minimize com*
eventually could be engulfed by such uncontrolled
muting and traffic congestion. growth and that even a well-planned project could
Comprehensive Planning and Land Use Control turn into a congested industrial slum.

Industrial estates often generate secondary The positive side of the Rajkot experience is that
growth. Related industries may spring up tö takethe interest created by the industial estate has sti-
advantage of highway facilities or rail stations, mulated further estate development in the area by
truck depots or newly-laid utility lines or other new private developer, a co-operative group and thè
a
facilities introduced on the estate. Growth maymunicipality itself. Such resulting development is.
also result from attempts to fill the gaps in faci-generally just what the planner of an estate pro-
lities offered by the estate. In this sense the estátegramme would envisage and can be a great asset
serves as a magnet f oř firms providing servicesfor the community if it is. anticipated and the pro-
for industry; these irtay include services relating per controls are applied.
to equipment, repair, Wholesale and storage faci- Strict control over the land within the estate can.«
lities. Personal service establishments catering for be exercised by the estate management, which,
the estate employees will also tend to cluster in should own all the estate land both for1 immediate
the vicinity of the estate, if these are not provi-development and for reserve, to prevent unautho-
ded within the estate itself. rized development on lands held for future indus-
striai use. It should retain this freehold when de-
In India, the Government is now considering a
velopment
proposal in the Third Five-Year Plan 4 to set up occurs so that regulatory clauses with
300 industrial estates. An industrial estate can regard to land use can be included in the leases-
granted. The estate management can then be re-
make a decided contribution to improving the ge-
neral planning of a community in an area wheresponsible for the regulation of all types of devel-
opment in all parts of the estate.
there is no framework of comprehensive planning
and where decisions regarding land use are unco-Control beyond the estate limits is also of great:
ordinated and not wholly consistent. An industrial
importance. Experience has shown that severe pro-
estate, however, cannot be a complete solutionblems
to are likely to arise in the area surrounding,
the problem of spontaneous, unplanned growth the estate, and particularly in the approaches, if
which may occur on its boundaries. The surroun-
the estate is located on a major highway. Unau-
ding haphazard development in the vicinity of the
thorized development, shack dwelling and indus-
Rajkot Industrial Estate, Bombay State, whichtrial
is slums tend to spring up close by. Once estab-
taking place without much apparent control lished,by such developments are very difficult to
the municipality over the use of land and the control
lo- and almost impossible to eradicate. The
cation of buildings, or the general appearanceconditions
of and disposition of the land uses in the-
the neighbourhood, is a striking example of the area as a whole, as well as on the site itself, should
need for fitting the industrial estate into a frame-
therefore be considered an appropriate action ta-
work of comprehensive planning and consistent ken in the initial stages of estate planning.
land use controls. 5 The lack of municipal or re-The experience of Puerto Rico with comprehen-
gional control to guide development is symptoma-
sive planning and land use controls for industrials
development is briefly reviewed below; it may be
suggestive of approaches which could be utilized
4 Government of India, Planning Commission, Third
Five-Y ear P 1 a n- A Draft Outline (New by less developed countries.
Delhi, June 1960).
In Puerto Rico, the Puerto Rico Industrial De-
6 William Bredo, Industrial Estates: Tool
for Industrialization (International Indus- velopment Company (PRIDCO: a semi-autonomous-
trial Development Center, Stanford Research Insti- corporation) is the government body primarily en-
tute), Glencoe, Illinois, The Free Press, 1960. gaged in providing the physical facilities and th&

307

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special financing needed for industrial development. ment and construction controls over its industriar
The Economic Development Administration (EDA), subdivisions and other industrial projects.
the parent government agency in Puerto Rico, is PRIDCO projects its Six-Year Financial Pro-
engaged in industrial promotion, research and ser- gramme on an annual basis for consideration by
vices. EDA induces and helps enterprises to organi- the Planning Board, and includes estimates of in-
ze new plants in Puerto Rico. PRIDCO helps to come and expenses and plans and programmes for
finance, builds, sells or leases industrial facilities the financing and construction of facilities. Such
to those new plants. The Puerto Rico Planning facilities cover not only industrial needs but also
Board is a government agency within the Office related matters such as special water and sewer
of the Governor and has wide co-ordinating po- installations. The Planning Board evaluates the
wers. The approval of the Planning Board is re-programmes submitted by all the government agen-
quired for all capital improvement projects of cies and integrates them into a single recommen-
PRIDCO and for all its acquisitions, as well as dation which is submitted both to the Puerto Rico
for the sale or development of its properties. legislature and to the Governor.
There is close integration of the Puerto Rican PRIDCO pays special attention to the purchase
industrial sub-division programme with its landof suitable tracts of land for future industrial de-
use planning programme. Industrial subdivisionsvelopment. This is done primarily to prevent less
are parcels of improved land usually featuring appropriate use of the land and also to facilitate
standard, ready-built factories offered for sale or the rigid establishment of factories, as land acqui-
lease. Industrial zoning was given a firm legal sition procedures can be frequently time-consuming.
foundation in 1946 and is administered by the The Planning Board therefore periodically prepares
Planning Board, which also has complete respon- land acquisition programmes based on the recom-
sibility for land use planning and zoning. The mendations of the Master Plan of 1956 and on a
Board administers several planning regulations review of the existing land inventory and potential
controlling land use, sub-division development and needs in each municipality. The general policy is
building construction. These regulations are appli- to have sufficient industrial land available for a
cable to government projects as well as to private three-year demand in the smaller towns and cities^
projects. In addition, PRIDCO has strict develop- and for three to five years in the larger cities.

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