The Western Australian Government will enter final detailed planning for a new container port in Kwinana.
Project definition planning will support completion of designs, securing approvals, resolving risks and uncertainties, land acquisition and refining costs and construction strategies ahead of final decisions and procurement of capital works contracts.
The announcement follows the finalisation of the Westport business case, which 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.
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.
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Container trade through Fremantle Port grew by nearly six per cent 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.
WA premier Roger Cook said Westport will underpin WA’s economy and local jobs for generations to come.
“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,” he said.
“Delaying action on Westport is a risk to our economy. Without Westport, the cost of everything will go up, and we will be reliant on road and rail from the eastern states – hurting households, businesses and the economy.
“A world-class container port in Kwinana is critical for our State to remain a global economic and industrial powerhouse, and for the future prosperity of all Western Australians.
“It will integrate our premier industrial and trade areas with our premier international trade gateway – it’s foundational, once-in-a-century economic infrastructure for our State.”
WA transport minister Rita Saffioti said Westport will be one of the largest infrastructure projects undertaken in the State, catalysing industry and local businesses and creating thousands of jobs during the construction phase.
“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.”
“By future-proofing WA’s trade capabilities for the next century, we’re ensuring costs for imports, exports and everyday goods remain low.”
WA ports minister David Michael said Westport will also pave the way for redeveloping the Kwinana Bulk Terminal through an integrated design, to be constructed ahead of the new container terminal.
“Westport is a key part of our strategy to ensure our port facilities in Kwinana and elsewhere are enabled to be the linchpins of our trade economy.”