WESTERN Australia’s most expensive infrastructure project, Westport, was given the official green light by premier Roger Cook at a lavish breakfast at Crown resort in Perth on 11 November.
The premier said the state government would invest $273 million to finalise planning for the new Kwinana Port to avoid what the premier said could become an embarrassment for WA when Fremantle Port reached capacity.
While he would not be premier when the container port was completed in the late 2030s he was proud to be the premier who got the project up and running.
The business case found inaction to address constraints on trade could cost the Western Australian economy $244 billion over coming decades – an average of $5 billion per year – driving significant increases in the costs of everyday household goods and for WA businesses.
A government media release 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 become significantly constrained – 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 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 Australian taxpayers an extra $2.2 billion.
“On the back of strong population growth, container trade through Fremantle Port grew by nearly 6% last financial year, representing an increase of nearly 50,000 containers compared to the year before.
“Western Australia’s population is expected to grow to 3.6 million people by 2036, which will fuel further growth in demand for container trade.
“The business case estimated Government investment of $7.2 billion will be required to deliver the new container port. Final budgets will be determined through procurement and capital works contracts.
“The business case recommends moving container trade from Fremantle to Kwinana by the late 2030s to ensure economic impacts on the State are minimised.
“Several major enabling road and rail projects such as widening the Kwinana Freeway and upgrades to Anketell Road will also be required, noting these projects will support broader outcomes including addressing existing congestion bottlenecks, supporting further development of the Western Trade Coast and enabling a major expansion of our defence industry.”
According to the release benefits from the new container terminal in Kwinana will future-proof WA’s trade capabilities for the next century, ensuring costs for imports, exports and everyday goods remain low.
It will accomodate the larger, more efficient vessels expected to visit Perth in the 2030s.
Increasing the number of containers moved by rail from 20% to an estimated 30%, will improve efficiency and reduce road congestion and emissions.
It will generate thousands of jobs during construction and significant ongoing employment opportunities once the port facilities are operational.
It will spur industry growth within the Kwinana Industrial Area and broader Western Trade Coast and pave the way unlocking 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 underscored Westport as a nationally critical project, having committed $33.5 million towards the next phase of planning, with additional funding to be sought as the program progresses towards construction.
