Transport, a challenge for the west
WITH 20,781 kilometres of coastline and a land mass of 2.5 million square kilometres, Western Australia presents its share of transport challenges for an isolated state with a relatively small population.
The Trans-Australian Railway and the Eyre Highway provide the main east-west land connections, and are vital links between Perth, often cited as the world’s most remote capital city, and Australia’s big population centres on the east coast.
The Indian Ocean provides access to the rest of the world with ports up and down the coast shipping out the state’s vast mineral resources. Mining is a key economic driver for the state with its iron ore industry the largest in the world, along with rich offshore petroleum and natural gas resources, gold mining and other minerals. Agriculture in the wheatbelt and south of the state, forestry and fishing are also significant contributors to the state’s economy.
But its remote location leaves the state vulnerable according to associate professor of supply chain management, at the School of Management and Marketing at Curtin University, Elizabeth Jackson.
“As an export-orientated island nation, Australia’s performance as an exporter needs immediate and urgent attention,” Dr Jackson told DCN.
“Maritime and air transport are the only two modes of transport that connect Australia with its international customers. With Western Australia’s dominance in mining and agriculture, maritime transport is our singularly most important mode of cargo transport so should be performing to world-class standards.
“Furthermore, the trade of value-added containerised goods that support our modern standards of living and the speed of doing business that we have become accustomed to are dependent upon port performance.
“The Container Port Performance Index (CPPI) compiled annually by the World Bank Group and S&P allows analysts to compare the performance of 405 of the world’s container ports. Latest figures suggest that the Fremantle Port ranked 374 out of the 405 ports examined, equating it to the bottom 10th percentile of global container port performance. Other major Australian ports are ranked in the bottom 20% of the CPPI. With an estimated growth of 7.8 million containers per year now to 20 million containers per year by 2033, the performance of our ports must improve.
“Air freight suffered substantially from the Covid-19 pandemic with many routes to and from Western Australia still being re-established. A relatively recent case in point was the transport minister Catherine King’s 2023 decision to deny Qatar Airways application for 28 additional services per week. With the 2028 ban on the live export trade by sea for sheep, air freight is an essential lifeline for value-added Western Australian produce to be shipped to foreign markets, so trade opportunities are being lost.
“Government data suggested that 60,000 tonnes of chilled sheep meat were shipped to the Middle East at its peak in 2018 but that declined to less than 20,000 tonnes in 2022. In this case, government interference is costing the Western Australian economy significantly in trade opportunities.”
When it came to transport Dr Jackson said state and federal governments were shirking their responsibilities which presented a major resilience problem.
“With weather events increasing in ferocity and frequency, our road and rail networks that have suffered from lean investment over the past 50 years are in urgent need of attention. Despite the federal National Freight and Supply Chain Strategy, one road and one rail line remain the only reasonable freight links between WA and Australia’s three major ports in Melbourne, Sydney and Brisbane. The Tanami Road project [linking Alice Springs to the Great Northern Highway near Halls Creek], is very promising, but that is a long-term solution. Overall, the picture of the state in terms of the performance of the supply chain is grim, simply because our transport services and networks are under-supported.
“There are of course additional factors that are limiting business growth, such as the cost of borrowing money, the cost of living that is limiting consumer purchasing and lack of skilled labour. But until our state and federal freight networks are provided with the investment they deserve, what incentive is there for importing and exporting businesses to grow when freight is so costly and unreliable?”
Minister; balance between financial returns and community good
WA ports minister David Michael, though, pointed out the huge contribution Western Australia made to the nation’s economy.
“I recently was in Canberra for consultations with federal ministers and was fortunate to attend the launch of Ports Australia’s inaugural State of Trade report by the federal minister for trade, Don Farrell,” Mr Michael told DCN.
“This report offers a great summary of seaborne trade statistics for the nation and shows again how important Western Australian ports are to Australia.
“Western Australia exports 53% of the nation’s goods by value and 65% by volume. Our one billion tonnes of exports helps generate an overall contribution of $123 billion, or 31% of total state domestic product.
“It is a source of pride to me that our ports that generate this economic contribution remain in public hands. Uniquely in Australia, most of our major ports are operated by five port authorities which sit within my ports portfolio.
“They have some corporate independence but are there to serve the people of Western Australia via the government of the day. This ensures that a balance between financial returns and community good can be achieved. The five port authorities work very well together and with the government to ensure that best practice operations knowledge is shared and that investment in maritime and logistics assets is well co-ordinated.
“Recent climatic events in central Australia have motivated us to work hard on transport corridor resilience, particularly regarding the east-west railway line and the role that shipping can play when roads and railways are cut by flooding events.
“The opening in January of the replacement Fitzroy River Crossing bridge on Highway One in the Kimberley only eight months after it was destroyed by floods was a source of pride and offered lessons in how we service our remote communities along these vital trade routes.
“Another focus going into 2025 is catering for the renewable energy transition. Western Australia has an ambition to be a world leader and has some natural advantages in wind and solar power. Our ports and transport links will be critical to capitalising on these,” the minister said.
With Western Australia’s dominance in mining and agriculture, maritime transport is our singularly most important mode of cargo transport so should be performing to world-class standards.
Elizabeth Jackson, Curtin University
A host of infrastructure projects are being funded by state and federal governments.
The biggest of these is the long-term project of moving Fremantle’s container shipping to the new Westport 25 kilometres to Kwinana, to the south of Fremantle.
According to the state government the existing historical port at Fremantle is predicted to run out of capacity in the near future and as the state’s only significant port for containerised cargo, has its own setbacks.
Entry to the inner harbour is narrow and Fremantle is either the first port of call for vessels, or the last, both of which put the port in a vulnerable position for omissions.
Services into Fremantle are limited – not all lines that call on the east coast also service Fremantle.
Right now, in terms of shipping containers into Perth, it’s Fremantle or nothing. There is no easy alternative port to move containerised cargo into. The only option is Melbourne or Sydney and then the 3500-to-4000-kilometre rail trip which isn’t easy.
Hence the plan released by the state government in November last year for the new container port at Kwinana, to be called Westport.
The plan is for a new, efficient and sustainable container port with an integrated road and rail network to take the pressure off Fremantle which currently imports around 800,000 containers a year.
The Westport website says that over the next 50 years, this is expected to grow to more than three million containers a year.
Significant changes for Fremantle
Fremantle, Western Australia’s largest general cargo port, is facing significant change.
The port is the fourth largest container port in Australia and facilitates vehicle imports, cruise ships, non-containerised cargo and livestock.
The Kwinana Bulk Terminal handles bulk commodities including cement clinker, petroleum products, silica, sand, bitumen, fertilisers and sulphur.
Its newly released annual report said that trade was strong for the year with the total containers handled up 5.8% to 856,528 TEU and new motor vehicle imports up 12.5% to 128,239.
“However overall trade tonnage was down 4.9% from 31.3 million tonnes last year to 29.7 million tonnes this year due to a reduced grain harvest following the previous bumper growing season. The total value of trade was $45.18 billion.”
This year the port’s new assets include construction of an $87 million cement clinker import circuit at Kwinana Bulk Terminal and $8 million for two new Berkeley class pilot boats.
Changes to the port, particularly in the Inner Harbour, where a Future of Fremantle project has been initiated by government to look at future uses for land that is currently operational. It is also taking the lead in revitalising the western end of Victoria Quay, adjacent to the CBD.
Westport is still a good way off becoming a reality, and isn’t likely to be operating until the 2040s, but supporting infrastructure is starting to be put in place with the opening of a new intermodal terminal at Kenwick, funding for upgraded road and rail freight networks and intermodal terminals at Kewdale and Forrestfield.
The Kenwick Intermodal Terminal, operated by Intermodal Group (51% owned by Watco and 49% by Qube Logistics) began its first train services on 6 August with a daily return service to North Quay Fremantle, operating five times a week.
Kenwick is serviced by a dedicated locomotive and 50-container flattop train service (100 TEU capacity) operated by Watco Australia. Its Forrestfield terminal is also serviced by its own dedicated 50 wagon fleet.
The Kenwick IMT is part of the larger Roe Highway Logistics Park which includes transport operators who use the service, including Silk, K-Trans, Main Freight and Northline.
Rail links are also receiving attention with funding for flood mitigation. The Australian Rail Track Corporation has committed $240 million to flood mitigation works on the most at-risk sections of the east-west railway line.
Five record-breaking years for Port Hedland
While Fremantle is WA’s busiest port, it is outgunned by its northern neighbour on the Pilbara coast at Port Hedland in terms of bulk exports of iron ore, handling more than 450 million tonnes of cargo each year.
Pilbara Ports is the world’s largest bulk export port authority, managing the operational ports of Port Hedland, Dampier, Ashburton and Varanus Island.
In the 2023-24 financial year, Pilbara Ports achieved a record-breaking throughput for the fifth consecutive year, with 758.3 million tonnes of exports worth an estimated $173.2 billion passing through its ports. Pilbara Ports plays a crucial role in facilitating Australia’s iron ore trade, handling approximately 80% of the national trade and 43% of the global trade. Salt exports through the ports of Port Hedland and Dampier totalled 7.1 million tonnes in 2023-24, accounting for about 51% of Australian salt production.
The Port of Port Hedland contributed significantly to this achievement with a throughput of 573.6 million tonnes, solidifying its status as one of Australia’s most valuable ports. It is the world’s largest bulk export port by tonnage. Iron ore makes up 98.5% of the commodities exported through the port.
The 2023-24 financial year saw the forming of Pilbara Ports’ new delivery model for marine pilot services at the Port of Port Hedland. The port has a challenging, tidally constrained marine channel and the highly skilled marine pilots needed to navigate large vessels in and out of the port are in high demand. The new model includes a combination of Pilbara Ports pilots and external pilotage providers to ensure continuity and reliability of services.
The transition to the new model will continue with an official start date of 1 July 2025.
Westport is still a good way off becoming a reality, and isn’t likely to be operating until the 2040s, but supporting infrastructure is starting to be put in place
Strides have been made on the Lumsden Point project at the port with the first construction milestone, the completion of the first stage of the seawalls, achieved in late 2023. Lumsden Point will provide new multi-user facilities, including a general cargo berth and minerals export berth.
This important piece of infrastructure will expand trade opportunities in the Pilbara and support growing renewable industries in Australia and overseas. Consultancy firm ACIL Allen estimates once operational, Lumsden Point will add $22.6 billion in gross domestic product and create an additional 6204 full-time equivalent jobs across Australia to 2032-33.
The $187.5 million Spoilbank Marina project on Port Hedland’s waterfront is nearing completion. The project, managed by Pilbara Ports and funded by the state government, Town of Port Hedland and BHP, will transform Port Hedland’s West End and greatly benefit the local community.
Pilbara Ports also continues to progress the Dampier Cargo Wharf Projects, a new multi-user facility to expand marine infrastructure and operational capacity at the Port of Dampier. Perdaman Industries will be the foundation user of the DBHF, which will export urea from its new multi-billion-dollar facility.
The construction of the Dampier Cargo Wharf Projects will be supported by the new integrated Vessel Traffic Services (VTS) Centre at the Port of Dampier, which was completed in September 2024 and will manage commercial shipping for the ports of Dampier, Ashburton and Varanus Island.
Master plan for Kimberley Ports
Further to the north of the state the Kimberley Ports Authority (KPA) is finalising a port master plan that encompasses the future trade outlook across the Kimberley ports and focuses on development options to meet future logistics supply chain demand.
KPA continues to work with Kimberley Marine Support Base which should see the start of marine construction in the fourth quarter of this year for a floating marine offloading facility. Work is already under way on the floating platform in China and is scheduled to be completed in mid-2025. The new wharf will provide all tide access preferred by the cattle industry and smaller to mid-sized cruise vessels.
KPA experienced a successful year in 2023-24 with a record number of vessel visits and tonnage throughput. Some 1755 vessels visited the Kimberley ports and tonnages handled increased to 5.06 million. Iron ore exports from the Port of Wyndham and Koolan Island in Yampi Sound contributed to the record exports while the Port of Broome experienced increased oil and gas vessel visits, petroleum supply vessels and began export of Kimberley Mineral Sands – the first regular bulk export product through the Port of Broome.
With the advent of bulk exports in Broome, works have been completed in removing the wharf shed and reinstating the concrete deck. Further works will be completed including marine piling and concrete decking to extend the wharf area and a new building for staff amenities.
The Department of Infrastructure, Transport, Regional Development, Communications and the Arts has formally recognised the national significance of expanded Border Services at the Port of Broome, which supports new import cargo approvals and a revised First Point of Entry Determination. KPA is now working with the Department of Agriculture, Fisheries and Forestry and Australian Border Force to finalise design of infrastructure for the required border control areas. The state government has provided $6 million to establish inspection and washdown facilities for handling of the imported cargo.
Southern Ports commerce and community
At the southern end of the state Keith Wilks, CEO of Southern Ports, is responsible for three ports: Bunbury, Albany and Esperance.
Mr Wilks said many people didn’t realise how large an area the three ports encompassed, covering an area the size of Victoria.
While they all run under the one banner and operate with similar systems, each has its own unique history, customer base and community.
Albany had a great FY24 recording its second highest volume on record, primarily from agricultural commodity-based exports. Its scenery and historic buildings have made it popular for cruise ships.
“We’ve recently received some money in the FY25 budget from the state to redevelop our historic pilot cottages precinct, which are heading towards 200 years old,” Mr Wilks said.
“We’re looking to redevelop that area and open it up for public access, potentially a tourism opportunity, certainly like a lunch bar, cafe kind of approach. It gives the community direct views over King George Sound and the channel, so people can watch ships coming in and out.
Recent climatic events in central Australia have motivated us to work hard on transport corridor resilience.
David Michael, WA ports minister
Then there is Bunbury port, which Mr Wilks said has a bright future because of its proximity to Perth and the growth of commodity based activities and manufacturing in the south west.
“You have skilled labour down there who might not want to necessarily fly-in, fly-out anymore.
“You’ve got skills in the region, you’ve got government initiatives down there really driving manufacturing and rail and energy transition. I think Bunbury’s future is definitely tied to the state’s energy transition initially, but in the longer term we see other things like potentially contributing to the offshore deconstruction industry as well. There was a recent Centre of Decommissioning Australia report which mentioned Bunbury being one of the primary ports down south for decommissioning.”
Infrastructure work at Bunbury includes building a new access bridge called the Turkey Point Access Bridge which will enable the community to get out to a point called The Cut. The other big requirement is new tug and pilot boat facilities in Esperance.
“The current facility is coming to end of life and McKenzie’s [Tug Service] have also increased the number of tugs at our request, so we’re happy to build new facilities down there.
With so much infrastructure work going on Mr Wilks said Southern Ports is leading the ports industry across Australia when it came to asset management which he believes is critical. By the end of October he expected to have full ISO 55000 accreditation for its asset management system, making it, what he believed to be, the first port in Australia to achieve full accreditation.
On the negative side of Southern Ports’ business, the closure of the Yilgarn iron ore and First Quantum Minerals Ravensthorpe nickel project have created a significant loss of business for the port, only partially replaced by the announcement in September that Gold Valley would start transporting three loads a week of iron ore through Esperance.
A resilient supply chain
Both state and federal governments recognise the importance of shipping to the state and have been looking for way to create a more resilient supply chain.
Northern Australia used to be serviced by the government-run State Shipping Service which was operating three vessels when it was shut down in June 1995 because it wasn’t economically viable and its remaining three ships were sold off.
But now, as part of a plan to improve supply chains, a shipping and supply chain taskforce established by the state government last year, believes it could be worth re-establishing a coastal shipping service to shore up supply chains.
The federal government has called for tenders for three vessels to participate in a five-year pilot program to establish the much-anticipated maritime Strategic Fleet, with plans to increase it to 11 vessels.
Those vessels will be particularly valuable to the remote communities in WA’s northwest which are periodically cut off from land access by flooding.
This article appeared in the October | November edition of DCN Magazine
