Factors affecting the location of a industry in a LEDC (Palm Oil Borneo

Primary: Borneo Palm Oil

Borneo’s humid tropical climate is perfect for growing palm oil. It is warm all year with temperatures of 25 – 28oc. There is plenty of rainfall with no dry season. This means that it is a good location because it has the right conditions to grow the plant.

There is plenty of available land for huge palm oil plantations. On more remote islands such as Borneo, there are large areas of tropical rainforest which can be cleared for farmland. This means that huge plantations of the plant can be made. It also means a lot of the plant can be grown there.

Primary:Borneo Palm Oil

There is a large supply of cheap labour, mainly migrant workers from rural parts of Indonesia where there are few jobs and low wages.

Government support has helped the rapid growth of palm oil plantations. The Indonesian government is keen to develop poor rural areas and has built roads and ports so that the palm oil can be exported quickly and cheaply.

There are nearby markets for the palm oil in China and Australia. It is exported by sea and used in food processing or as a biofuel.By 2020 China wants 15% of it’s energy to come from palm oil.

Quaternary: Cambridge Science Park

A large greenfield site on the urban rural fringe (edge of the city) means plenty of space for low density buildings, car parking and landscaped grounds. This attractive environment helps attract highly skilled, and paid, workers. There is also room for further expansion.

There are excellent transport links. The Science Park is close to the M11 and M25 motorways and Heathrow airport. Many of the companies located here are TNCs with international links.

Quaternary: Cambridge Science Park

There are several major universities nearby (e.g. Cambridge,UCL) to provide the highly qualified and skilled workforce these companies need. Companies may also share equipment and research with these universities.