Freo Ports, Nutrien Ag lease row shelved

Fertiliser company Nutrien Ag has secured a minor win in its legal fight against Fremantle Port Authority, after the court temporarily stopped the lease expiring.

Nutrien Ag sought a court injunction last week, in a last minute effort to avoid being locked out of its Kwinana Bulk Jetty premises, leased from Fremantle Ports, from April 30.

The Victoria-based fertiliser business alleged lease renewal negotiations were ongoing for several years but Fremantle Ports offered a revised agreement that rid itself of responsibility over a fire that damaged the infrastructure at Kwinana.

Fremantle Ports warned Nutrien Ag that the original lease would end on April 30 and the company would need to exit the Kwinana premises by then, according to the Supreme Court writ lodged by Nutrien Ag.

The Supreme Court of Western Australia yesterday ordered a temporary injunction to restrain the Fremantle Port Authority from terminating Nutrien Ag's tenancy.

However, a final decision on the matter is ongoing with a hearing to be scheduled in the next few months.

“We welcome the decision by the Supreme Court today and will continue to work on achieving a resolution to the tenancy dispute to minimise any impact on our customers and farmers across WA," Nutrien managing director Kelly Freeman said after the decision.

A hazmat fire at Nutrien Ag's warehouse in Kwinana, where granular products were held, broke out on February 9 and significantly damaged the infrastructure.

The main fire damage was to the import system conveyor, transfer towers, and a fertiliser storage shed, Fremantle Ports said at the time.

In the Supreme Court writ, Nutrien Ag claimed Fremantle Ports led the company on with the promise of a renewed four-year term.

However, Fremantle Ports notified Nutrien Ag in March that the original April 30 deadline remained in place, the writ said.

Speaking to the court last week, Nutrien Ag's lawyer Steven Penglis said there was a seismic shift in lease negotiations after the fire, alleging Fremantle Ports wanted his client to take responsibility for the damage.

Barrister Kate Lendich, for Fremantle Ports, told the court Nutrien Ag should not be granted an injunction because it would bound her client to a lease that was expiring.