A TICK of approval from Infrastructure WA for Westport’s business case says building the new container port south of Perth as quickly as possible could save the state $244 billion over the coming decades.
In approving the business case IWA endorsed the port plan to move to the next stage which involves the start of definition works and reference designs ahead of a final investment decision and construction.
The state government has already invested $273 million in the project.
IWA considered key drivers for the new container port, its alignment with other strategic projects in WA, the economic, social and environmental impacts, the design process, and its deliverability in terms of timing and cost.
The Westport business case found inaction to address constraints on trade could cost the Western Australian economy an average of $5 billion per year – driving significant increases in the costs of everyday household goods and exports for WA businesses.
A state government media release announcing the findings said that under a moderate growth scenario, Fremantle Port is expected to reach its capacity of 1.4 million containers per year by 2040, or as early as the mid-2030s if higher volumes of trade eventuate, with the surrounding road and rail network becoming significantly constrained earlier than this – meaning a new port needs to be built by the late 2030s, to enable a smooth transition.
“If no action is taken and trade exceeds Fremantle Port’s capacity, containers bound for Western Australia will need to be offloaded at east coast ports and transported back by road and rail, adding to costs and putting WA’s economic self-sufficiency at severe risk,” the release said.
Acting transport minister John Carey said the assessment confirms transitioning WA’s container trade from Fremantle to Kwinana in the late 2030s is the only viable solution to resolve future container trade constraints in WA for the long-term.
“IWA’s advice provides further assurance for Western Australians that Westport has undertaken a thorough and exhaustive planning process, including the consideration of design options, the assessment of those options, supported by extensive consultation,” Mr Carey said.
“Failure to act on the future constraints on container trade will come at a considerable cost to our State and future generations.
“Westport will futureproof WA’s trade capabilities for the next century, ensuring costs for imports, exports and everyday goods remain low and our economy the strongest in the country.”
The business case also confirmed that the option to extend the life of Fremantle Port would still require Westport to be built less than 10 years later, costing Western Australians an extra $2.2 billion and creating additonal delivery and environmental risks.
“The preferred option was identified in the business case based on an integrated analysis of both options, including an assessment of project economics, strategic outcomes, deliverability and operational impacts on the supply chain.”
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