BOOSTING the state's export and trade capacity remains the state government's key aim in seeking up to $2.6 billion from the upcoming round of Infrastructure Australia funding.
BOOSTING the state’s export and trade capacity remains the state government’s key aim in seeking up to $2.6 billion from the upcoming round of Infrastructure Australia funding.
Premier Colin Barnett last week outlined seven priority funding applications, heavily weighted in favour of key export and community infrastructure in the Pilbara, Kimberley, South West and Mid West.
The big ticket regional requests include $550 million for an LNG supply base at Derby, between $500 million and $1 billion for an expansion of Port Hedland harbour, $471 million for improved town infrastructure in Karratha and Port Hedland, $280 million to improve transmission capacity in the Mid West, $172 million to upgrade the state’s southern grain freight network, and $63 million to improve rail access at Bunbury port.
In comparison, only one metropolitan proposal – a $600 million upgrade of road links to Perth Airport – made the list.
That follows on from grants approved under the first round of IA funding earlier this year, when the Rudd government committed $236 million to the sinking of the railway in Northbridge.
Conversely, $535 million was pledged to the Oakajee deepwater port near Geraldton and community infrastructure in the East Kimberley.
Having already locked in $678 million in state and federal funds for Oakajee, Geraldton once more stands to be a big winner with a request for $280 million to complete a 330-kilovolt transmission line from Perth to Geraldton.
The state government came under heavy fire in May when it agreed to fund only stage one of the 330kV line because total costs had doubled to $700 million. The $250 million stage one upgrade was sufficient to reach Eneabba and service the nearby Karara and Asia Iron magnetite projects, but not Geraldton or Oakajee.
It also threatened more than $1 billion in proposed renewable energy developments, which need access to the state’s main electricity grid to become viable.
City of Geraldton-Greenough chief executive Tony Brun was buoyed by the request for funds to complete the power line.
“It remains our view that this is the most significant and critical project for the future of the Mid West,” he said.
Mr Brun said extra funds should be provided to extend the line a further 35 kilometres to Oakajee to facilitate development of new industry at the Oakajee industrial estate.
But the Pilbara could be an even bigger winner with requests for up to $1.5 billion for Port Hedland and Karratha – the requests reflecting its status as the engine of Australia’s recovery, accounting for 35 per cent of Australia’s total mineral production.
Having already committed $300 million in state funding to Pilbara revitalisation works, Mr Barnett is seeking a further $471 million to bring his ‘Pilbara cities’ vision to fruition. The funds will be used to upgrade airport facilities, wastewater services, serviced land and accommodation in Karratha and Port Hedland.
Shire of Roebourne president Nicole Lockwood said the council was “100 per cent supportive” of a request that was long overdue.
“It’s real catch-up time for us ... the stars are aligning,” she said. “So it will be interesting to see how it gets received by the federal government. If Mr Rudd is thinking about stimulating the Australian economy, he should be starting in the Pilbara.”
This is the thinking behind the premier’s request for between $500 million and $1 billion to expand the inner harbour at Port Hedland.
The funds will be used to deepen the channel for the proposed South West Creek Capesize berths, which will give new iron ore producers such as Atlas Iron and BC Iron an extra 50 million tonnes of annual capacity. Development costs will ultimately be recouped by way of user charges.
Hancock Prospecting is also planning its own berth at South West Creek for its Roy Hill iron ore mine.
Meanwhile, the $225 million, 18mtpa Utah Point multi-user wharf will be complete next year, allowing increased exports of iron ore and other bulk minerals delivered to the port by road.
Mr Barnett has also made a $550 million LNG supply base at Derby a major priority to capture at least some benefit from Inpex’s $20 billion Ichthys LNG project, which will pipe gas to Darwin for processing.
The base could also service the proposed James Price Point LNG hub and associated offshore gas developments.
Heading south, the premier is also seeking funding to improve the grain freight network, asking for $43 million to re-sleeper the Avon-Albany railway and $129 million to upgrade Chester Pass Road in Albany. Separately, $63 million is being sought to increase rail capacity between Brunswick Junction and Bunbury port.
WAFarmers president Mike Norton welcomed the request but said the federal government needed to respond swiftly if the network was to remain viable.
It also drew heavy fire from the state opposition, which said re-sleepering just one line was woefully inadequate, given about $400 million was needed over 10 years to prevent the closure of more than 1,000km of line.
Despite being the only metropolitan project on the list, Mr Barnett said the $600 million upgrade of road links to Perth Airport as domestic and international services are consolidated was his government’s top priority.
Airport traffic, both for users and those travelling nearby, has become a big issue for state and local governments, especially with congestion increasing because of rapid commercial development and freight movement in the Kewdale and Forrestfield areas.
The funds would be put toward upgrading Tonkin Highway, Orrong Road and interchanges along Tonkin and Leach highways.
Airport operator, Westralia Airports Corporation, welcomed the announcement and said it could now work toward consolidating all passenger services into the international terminal precinct “knowing that the arterial road network will also be upgraded to meet the needs of the new airport”.
Perth Airport plans to invest $300 million in the first phase of the major airport redevelopment, including a $21 million for a public road connecting the two precincts.
