The state government has snubbed private Kwinana port developer James Point Pty Ltd with a new plan to significantly expand Fremantle harbour's container capacity and start another review of the 'outer harbour' options at Cockburn Sound.
The state government has snubbed private Kwinana port developer James Point Pty Ltd with a new plan to significantly expand Fremantle harbour's container capacity and start another review of the 'outer harbour' options at Cockburn Sound.
Transport Minister Troy Buswell today said the strategy, based on a report by the Fremantle Port Optimal Planning Group, was heavily focused on expanding rail infrastructure to deal with growth in container traffic, which is expected to hit capacity at between 1.0-1.4 million units per annum after 2020. This growth rate was a moderate forecast.
Rail transport remains targeted at coping with 30 per cent of that cargo, with $53 million to be spent of extending the rail line at North Quay and a similar amount on improving the intermodal facilities at Kewdale.
The announced decision to focus on Fremantle for another 10 years and review options at Kwinana comes after a breakdown in negotiations with the James Point consortium which wants to go ahead with a bulk port at Cockburn Sound, and add container capacity in its second stage – aiming to be up and running within about five years.
James Price, which has Len Buckeridge as its biggest shareholder, is expected to launch legal action over the delay, on the basis that it breaches a 10-year old agreement with the state to build a port.
Currently about 580,000 containers move through Fremantle each year, with 11 per cent moved by rail – a percentage that has slipped in recent years.
Mr Buswell said that the state government was not opposed to competition in ports but wanted the WA Planning Commission to engage in a formal planning structure for the area.
"The Fremantle Inner Harbour handles nearly all the State's container trade, with more than half a million containers passing through the port each year - and in the past 15 years container trade through Fremantle has trebled, reflecting an average rate of growth of 7.5 per cent per annum."
The Minister said the government's plan was to stabilise the number of trucks travelling to and from the inner harbour and increase the capacity of its rail system by linking it to inner freight hubs and initiating more evenly-distributed freight movements.
"This long-term view will balance the impact of traffic along major freight routes while ensuring Western Australia maintains its access to global markets," Mr Buswell said.
Mr Buswell said Fremantle's inner harbour was expected to reach container trade capacity in about 10 years, and a long-term plan was required for new facilities.
"Extensive research has shown that Cockburn Sound is the only suitable location for new container-handling port facilities and, given the number of strategic port, industry and utility interests in that area, it is vital that all relevant issues are assessed through the appropriate statutory processes," he said.
"Most demand for imported goods comes from the metropolitan area and locating the new container port close to Perth is the only viable option."
The Minister said the first step in the development of the Fremantle Outer Harbour would be an overall planning assessment of the environmental, transport, planning and community issues associated with strategic port and industry development between Naval Base and James Point by the Western Australian Planning Commission.
"This will provide an outcome that will guide planning decisions and provide a framework to progress a new Outer Harbour container port facility in Cockburn Sound," he said.
