The Western Australian government is entering final detailed planning for a new container port in Kwinana which, it says, could help set the state up for the next century.
Kwinana is located just south of the state’s busiest port, Fremantle, which is expected to reach its capacity of 1.4 million containers per year by 2040, however that could come earlier should trade volume continue to rise.
Constraints on Western Australia’s container trade will cost the state economy an average of $5 billion per year in the coming decades, and the construction of a new port at Kwinana has been costed as cheaper than extending Fremantle Port.
“WA is a trading state, and our container port supports the entire state economy. We cannot let our only container port run out of room,” Premier Roger Cook says.
“A world-class container port at Kwinana is critical for our state to remain a global economic and industrial powerhouse, and for the future prosperity of all Western Australians.”
The business case presented by Westport has estimated a government investment of $7.2 billion would be required to deliver the new container port, however final budgets will be determined through procurement of capital works contracts.
Wider works in the Kwinana region including road widening would also be required to accommodate the new infrastructure.
“The business case is clear,” Transport Minister Rita Saffioti says. “Failure to act on the future constraints to container trade will cost our state dearly.
“We cannot afford to reach a situation in this state where future generations are forced to pay more for everyday goods, because containers have to be taken to the east coast and brought back here by road and rail.
“By future-proofing WA’s trade capabilities for the next century, we’re ensuring costs for imports, exports and everyday goods remain low.
“There will be multiple major projects happening in and around Kwinana over the coming decades, with the definition stage providing the opportunity to coordinate activities for both industry sustainability and responsible environmental management before making final commitments to capital works.”
An extended list of benefits the construction of a new container port at Kwinana would provide the state has been released:
- Future-proofing WA’s trade capabilities for the next century, ensuring costs for imports, exports and everyday goods remain low;
- Accommodating the larger, more efficient vessels expected to visit Perth in the 2030s.
- Increasing the number of containers moved by rail from 20 per cent to an estimated 30 per cent, improving efficiency and reducing road congestion and emissions.
- Generating thousands of jobs during construction and significant ongoing employment opportunities once the port facilities are operational.
- Catalysing industry growth within the Kwinana Industrial Area and broader Western Trade Coast.
- Providing significant value for money, with a benefit to cost ratio of over 4.0; and
- Paving the way to unlock around 260 hectares of prime inner urban land in Fremantle, which will support WA’s growing population and deliver homes for around 55,000 people.
The federal government has allocated $33.5 million to the next phase of planning, with WA Ports Minister David Michael saying it is crucial the moves start to be made while Fremantle Port is acting as efficiently as possible.
“By planning for the transition in the late 2030s when Fremantle meets capacity, we are making the most of our current infrastructure while efficiently and reliably preparing for the future,” Michael says.
“We thank the many port and supply chain operators who have informed this robust process to ensure a secure future for container trade in Western Australia.”
The Westport Business Case Summary is available here.
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