Concept art of the preferred design for the Kwinana container terminal. Image: WA Government.
The Western Australian Government has welcomed the release of an Infrastructure WA (IWA) assessment report on the Westport Business Case.
The IWA assessment has endorsed the business case for the new container port to be built at Kwinana and says planning should progress to the next stage.
Westport is the State Government’s plan to move container trade from Fremantle to Kwinana, and includes a new port, as well as connected freight, road, rail, and logistics operations.
In its report, the IWA considers the economic, social and environmental impacts of the new container port, how it aligns with other strategic projects in WA, and whether it can be delivered within the required timeframe and budget.
It notes the work undertaken to date to consider port design options, environment and sustainability, the process to assess design options for marine and landside infrastructure, and stakeholder consultations.
The business case says the current Fremantle Port is expected to reach its capacity of 1.4 million containers per year in the 2030s, while the surrounding road and rail network is expected to become significantly constrained earlier than this. It says that inaction to address potential constraints on port capacity could cost the Western Australian economy an average of $5 billion per year over the next 40 years.
It says a new port needs to be built by the late 2030s in order to enable a smooth transition of port operations. It also says an option to extend the life of Fremantle Port would still require Westport to be built less than a decade later, with a cost of an additional $2.2 billion.
But the IWA also found that significant risks remain.
“IWA considers that the business case provides sufficient information to proceed with the next stage of Westport development based on the preferred Westport Now option, prior to making a final funding decision for individual Westport proposal elements,” it reads.
“However, significant risks to the project remain. The scale and complexity of Westport and various interfacing and related projects is greater than previously attempted by WA state government agencies.
It identified two key risks relating to the project’s interfaces, specifically the number and magnitude of projects in close proximity to Westport, and the schedule and cost estimates which it says will be prone to overruns when compared to estimates at early stages of development.
“These risks will need to be managed though the next stage of the proposal development which will require appropriate assurance processes and the coordination of a portfolio of related infrastructure investments to optimise delivery outcomes for the WA Government,” it says.
The Westport project comprises not just the new port at Kwinana (1), but the road, rail, and shipping corridors and infrastructure required to support it. Image: WA Government.
Acting Transport Minister John Carey said the government welcomed the findings of the IWA’s assessment report of the Westport Business Case.
“This assessment confirms transitioning WA’s container trade from Fremantle to Kwinana in the late 2030s is the only viable solution to resolve future container trade constraints in WA for the long-term,” he said.
“IWA’s advice provides further assurance for Western Australians that Westport has undertaken a thorough and exhaustive planning process, including the consideration of design options, the assessment of those options, supported by extensive consultation.
“Failure to act on the future constraints on container trade will come at a considerable cost to our state and future generations,” he added.
“Westport will futureproof WA’s trade capabilities for the next century, ensuring costs for imports, exports and everyday goods remain low and our economy the strongest in the country.”
