Multiple proximities: culture and geography in the transport logistics of newsprint manufactured in Australia

Three types of proximity are argued to be present in the research material in this paper. First, put simply, geographic proximity refers to two entities being physically next to each other. Second, cultural proximity refers to two entities being relationally close to one another, with geographic proximity often not being required. Third, network proximity refers to two entities being associated through or with a third entity, again with geographic proximity often not being required. Geographies of links between entitiesöpeople, enterprises, places, etcötrace networks of relations. Geographic proximity remains crucial, but the relational spaces of geographic networks that selectively connect entities in different ways around the world are just as important. In this paper some elements from actor-network theory are used to approach the investigation of multiple proximities. The argument is exemplified through a recent case study of the restructuring of transport logistics of newsprint manufactured in Australia. DOI:10.1068/a33220 (1) The quotation is also relevant to the research material discussed in this paper. (2) Research material is drawn from research into the Australian newsprint industry (Bradshaw, 2000). Research included secondary material from corporate libraries, the trade press, and the media, as well as intensive semistructured corporate interviews with individuals from the enterprises involved in the organisational network studied. The names of the enterprises have been changed at the request of those involved. The emergence and operation of this consortium exemplify the complex relation of culture and geography. Each partner in the consortium worked hard to establish `̀ cultural commonality'' (Gertler, 1995, page 15), to develop a type of `̀ spatial fix'' (Harvey, 1982) for problems with existing transport logistics, and to construct a management company both to concentrate the various economies and capabilities of each partner and, as far as possible, to c̀entre' the geography of the consortium. The structure in this paper is as follows. First, some brief background is given on Red, the newsprint manufacturer, and Blue, the transport logistics consortium, which together provide the bulk of the research material discussed. Second, some key terms and the elements employed from ANT are introduced. Third, the establishing of geooperational fit and cultural commonality between the enterprises involved is outlined. Fourth, the spatial fix designed to address problems with existing transport logistics is discussed. Fifth, the characteristics and location of the centre of the resulting organisational network are set out, with an emphasis on locational mobility in response to changes both within and external to the network. Finally, the applicability of ANT in geography, and the usefulness of geography to ANT, are discussed in the conclusion. 2 Case-study enterprises: Red and Blue 2.1 Ownership changes and new requirements for Red Red was formed in 1938 and its two mills continue to be Australia's only manufacturers of newsprint. Apart from the Tasmanian state government, the original backer of the Red venture was a group of Australian newspaper publishers. The group was interested in establishing a reliable and cost-effective domestic newsprint mill to supply press sites in Australia. In 1988 the ownership structure of Red was changed significantly. Of the eight original newspaper publishing owners, only one remained as a 50% owner of the enterprise. More significantly, for the first time in Red's history one of the core activities of its new 50% owner was the manufacture of pulp and paper, including newsprint. The new owner was not a newspaper publisher and therefore received no downstream benefits from part-owning Red. It aimed therefore to profit from its 50% share in Red by managing the enterprise as cost-effectively as possible. Consequently, Red's internal c̀ost plus 6%' newsprint pricing system was abandoned and Red was required to work towards providing newsprint at a world competitive price. In addition, Red's remaining newspaper publishing owner gave Red notice that it intended to introduce high-speed, four-colour, offset printing presses that would require newsprint of higher quality than Red was then producing and delivering. This requirement meant that the production and delivery of newsprint by Red would have to be improved to be comparable to the world's best newsprint manufacturers: `̀ ... Red's customers took a step upwards in the equipment they were using. X, for example, invested something like AU$ 1.3 billion on the Australian eastern seaboard on new presses ... . And it wasn't a small step because the old presses used to run about 20 000 copies an hour and now they run around anywhere between 60 and 80 000 copies an hour ... . So, the way we used to ship paper and handle the rolls, they just wouldn't have survived, they wouldn't have lasted on the press'' (management, Red, October 1997). For its part, Red believed that it had to improve the quality of its newsprint and delivery to the point where possible domestic competitors, as well as international newsprint manufacturers considering locating in Australia, assessed the 1718 M Bradshaw