$55m upgrade for bulk import facility

Fremantle Ports has commenced its first major capital project in more than a decade and its chief executive is hoping to proceed with at least two more upgrades.

A ground-breaking ceremony was held this morning for a $55 million import facility for clinker, a key ingredient in cement manufacture.

The upgrade includes construction of a 40 metre-high storage dome and installation of new conveyors.

The beneficiaries include manufacturers Cockburn Cement and BGC along with shipping companies that will enjoy faster turnaround times.

About 1.1 million tonnes of clinker is imported into WA each year through Kwinana Bulk Terminal, which is part of the port authority’s outer harbour operations in Cockburn Sound.

Cockburn Cement, which is in the midst of a $230 million upgrade of its nearby manufacturing facilities, will have an enclosed conveyor link to the import terminal.

BGC, which also manufactures cement nearby, will use trucks to transfer the clinker.

The storage dome, to be built by contractor COVA-Haywards, will take a complete ship cargo, about 40,000 tonnes, and minimise dust emissions.

Fremantle Ports chief executive Michael Parker said the $55 million project was its largest undertaking in the past decade.

“Hopefully this is the first of many investments in the outer harbour,” he added.

Mr Parker said the port authority was assessing the construction of a new finger wharf to replace the ageing facility at the Kwinana Bulk Terminal.

A new and larger finger wharf would allow the port authority to update its ship unloaders.

Mr Parker said locating a new wharf about 150 metres to the south of the existing facility would also mean no overlap with the state government’s Westport development.

Westport is the proposed multi-billion dollar container port in Cockburn Sound that is expected to eventually replace the ‘inner harbour’ at Fremantle.

A new wharf could easily be linked to the $55 million facility by installing extra conveyors.

Mr Parker said the port authority was also evaluating construction of a third bulk liquids import terminal further south at the Kwinana Bulk Jetty.

He noted that two thirds of the shipping trade in and out of Fremantle (by volume) went through the outer harbour, highlighting its importance.

Ahead of any major investment decisions, the port authority has needed to invest in maintenance of its existing facilities in the outer harbour.

State Development Minister Roger Cook commended the new clinker import facility, which is scheduled to be commissioned in 2024.

“It will significantly improve our capability to move clinker faster, more safely and with very significant environmental benefits, and provide the capacity for the port facility to accommodate future trade growth,” he said today.

“It’s a great example of planning assets to integrate the State-owned port with adjacent private facilities, with benefits for all.”

Meanwhile, Fremantle Ports’ 2022 annual report has disclosed a decline in many performance metrics for the financial year.

It shows a 6.9 per cent fall in total trade to 28.3 million tonnes for the year to June 2022.

This was predominantly due to declines in bauxite exports and petroleum imports.

It was the fourth year in a row the total volume of trade has declined, from a peak of 34.8 mt in FY18 when Kwinana was used for substantial iron ore exports.

The port authority also reported a 1.9 per cent fall in the total container trade, measured by twenty-foot equivalent units.

However, total full containers rose 1.8 per cent, with the port authority saying this reflected a steady WA economy.

A notable negative was the continued decline in satisfaction by shipping lines and shipping agents.

Only 60 per cent of survey respondents were satisfied or very satisfied with the port authority’s services – down from 64 per cent in FY21 and well below the target range of 80-90 per cent.

The port authority posted a pre-tax profit of $68 million.

This was down from $77.8 million in the prior year and saw the economic rate of return on assets declined to 9.5 per cent.

However, it was above the anticipated profit target of $52.2 million.

No dividends were paid to the government.