- Westport business case confirms the need for new WA port at Kwinana
- WA Labor to invest $273 million to progress major economic project
- Detailed project definition planning to begin, with new port needed by late 2030s
- New port critical to WA's economic self-sufficiency into the future
- Business case highlights extending Fremantle Port would cost the taxpayer more
- Constraints on container trade will cost the WA economy an average of $5 billion a year in coming decades
The Cook Labor Government will enter final detailed planning for a new WA container port in Kwinana to build the economic and generational project, setting up Western Australia for the next century.
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 Cook Government confirmed the Westport business case has been finalised, showing significant risk to the WA 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 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.
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 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; and
- Paving the way to unlock 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.
More information is available in the Westport Business Case Executive Summary .
As stated by Premier Roger Cook:
"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.
"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.
"Projects like this require long-term vision that transcend the Government of the day. Progressing Westport now means this critical infrastructure will be ready when needed."
As stated by Transport Minister Rita Saffioti:
"We now have certainty that transitioning WA's container trade from Fremantle to Kwinana in the late 2030s will get the best value for the taxpayer and outcome for the State.
"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 WA'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."
As stated by Ports Minister David Michael:
"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."
