The Western Australian Government has entered final detailed planning for a new container port in Kwinana as part of a plan to transition container trade away from Fremantle.
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 comes as the State Government confirmed the Westport business case has been finalised, showing significant risk to the Western Australian economy from future constraints on container trade if Westport is not built in time.
The business case found inaction to address constraints on trade could cost the state’s 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 Western Australian businesses.
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 Western Australia’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 ten 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 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.
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.
The new container terminal in Kwinana will deliver significant benefits to the State, including:
- 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
- Paving the way to unlock around 260 hectares of prime inner urban land in Fremantle, which will support Western Australia’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.
Western Australian Premier Roger Cook said Westport will underpin the state’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,” Mr Cook 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.”
Mr Cook said a container port in Kwinana is critical for the state to remain a global economic and industrial powerhouse.
“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.”
Western Australian Transport Minister, Rita Saffioti, said, “The business case is clear – failure to act on the future constraints to container trade will cost our state dearly, which is why our government is getting on with the job of planning for a new port now.
“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 Western Australia’s trade capabilities for the next century, we’re ensuring costs for imports, exports and everyday goods remain low.
“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.”
Western Australian Ports Minister, David Michael, said, “By planning for the transition in the late 2030s when Fremantle meets capacity, we are making the most of our current port infrastructure, while efficiently and reliably preparing for the future.
“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.
“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.”
Ports Australia response
Ports Australia has welcomed the Western Australian Government’s investment in the development of a container port at Kwinana.
Ports Australia CEO Mike Gallacher said, “These further steps toward developing the Kwinana port are great news for WA’s thriving port industry.
“As with the unveiling of the Sydney Harbour Bridge nearly a century ago, this visionary project will serve Western Australians for generations and is vital to our nation’s continued growth and competitiveness in global markets. Congratulations to Westport Managing Director Patrick Seares and the entire project team.”
