Geraldton Port PEP charges wiped clean

The state government will cover an outstanding $67 million owed by mining companies through the Port Enhancement Project at Geraldton Port, with the charge to be removed from July.

Announced as part of the budget yesterday, the state government will remove the $2.56 per tonne PEP charge at Geraldton Port and will pay off the outstanding amount owed.

The changes also include a restructure of the Mid West Ports Authority’s existing standard port charges, down to 72 cents/t in FY17 and as low as 66 cents/t in FY18, with an estimated discount value of $10.3 million.

“Since the PEP began in 2002-03, more than 80 million tonnes of iron ore has been shipped through Geraldton Port,” Transport Minister Dean Nalder said.

“The economic activity these mining developments have generated has repaid many times over the cost of the government’s investment in the project.”

Treasurer Mike Nahan said in restructuring the standard port charges, port consumers would pay lower rates in FY17 than they would have if the PEP charge remained in place.

“The decision delivers benefits to port users and supplements the ongoing economic gains that the mid-west region will continue to enjoy for many years to come,” the treasurer said.