WA Govt to invest $273m to progress plans for a new Kwinana container port

The Western Australian Government is advancing the final detailed planning for a new port in Kwinana and has committed $273 million towards project definition planning. 

The significant investment will support the completion of designs, securing approvals, resolving risks and uncertainties, land acquisition as well as refining costs and construction strategies ahead of final decisions and procurement of capital works contracts. 

In addition, the Westport business case has been finalised and it highlights significant risk to the State economy from future constraints on container trade if the new port is not built in time. 

The business case also found that inaction to address the constraints on trade could cost the local economy $244 billion over coming decades – about $5 billion annually on average – which will result in a significant increase in the cost of everyday household goods and for Western Australian businesses. 

“Westport will underpin WA’s economy and local jobs for generations to come. 

“WA is a trading State, and our container port supports the entire State economy – we cannot let our only container port run out of room. 

“Delaying action on Westport is a risk to our economy. Without Westport, the cost of everything will go up, and we will be reliant on road and rail from the eastern states – hurting households, businesses and the economy. 

“A world-class container port in Kwinana is critical for our State to remain a global economic and industrial powerhouse, and for the future prosperity of all Western Australians. 

“It will integrate our premier industrial and trade areas with our premier international trade gateway – it's foundational, once-in-a-century economic infrastructure for our State. 

“Projects like this require long-term vision that transcend the Government of the day. Progressing Westport now means this critical infrastructure will be ready when needed,” Premier Roger Cook said. 

Proposed Westport project map (source: Government of Western Australia)

Under a moderate growth scenario, Fremantle Port is expected to reach its capacity of 1.4 million containers per year by 2040, or as early as the mid-2030s if higher volumes of trade eventuate. This projected growth is also expected to significantly affect the surrounding road and rail network – meaning a new port needs to be built by the late 2030s to allow for a smooth transition. 

Containers bound for Western Australia will be offloaded at east coast ports and transported back by road and rail if no action is taken and trade exceeds Fremantle Port’s capacity, resulting in an increase in costs and putting the State’s economic self-sufficiency at severe risk. 

The Westport business case also confirmed that the option to extend the life of Fremantle Port would still require the new port to be constructed less than a decade later, ultimately costing Western Australian taxpayers an additional $2.2 billion. 

With a strong population growth, container trade through Fremantle Port also grew by almost six per cent last financial year. This represents an increase of nearly 50,000 containers compared to the previous year. 

As the State’s population is expected to grow to 3.6 million people by 2036, it will drive further growth in demand for container trade. 

The business case estimated an investment of $7.2 billion will be required to build the new container port. However, final budgets for the project will be determined through procurement and capital works contracts. 

The business case also recommends moving container trade from Fremantle to Kwinana by the late 2030s to ensure economic impacts on Western Australia are minimised. 

“We now have certainty that transitioning WA’s container trade from Fremantle to Kwinana in the late 2030s will get the best value for the taxpayer and outcome for the State. 

“The business case is clear – failure to act on the future constraints to container trade will cost our State dearly, which is why our Government is getting on with the job of planning for a new port now. 

“We cannot afford to reach a situation in this State where future generations are forced to pay more for everyday goods, because containers have to be taken to the east coast and brough back here by road and rail. 

“By future-proofing WA’s trade capabilities for the next century, we’re ensuring costs for imports, exports and everyday goods remain low. 

“Westport will be one of the largest infrastructure projects undertaken in the State, catalysing industry and local businesses and creating thousands of jobs during the construction phase. 

“There will be multiple major projects happening in and around Kwinana over the coming decades, with the definition stage providing the opportunity to coordinate activities for both industry sustainability and responsible environmental management before making final commitments to capital works,” Transport Minister Rita Saffioti said. 

A number of major enabling road and rail works such as widening the Kwinana Freeway and upgrades to Anketell Road will also be needed, noting these projects will support broader outcomes including addressing existing congestion bottlenecks as well as supporting further development of the Western Trade Coast and enabling a major expansion of the defence industry. 

The Westport business case summary also highlights the preferred design for the project. This includes: 

• New port facilities in Kwinana between the end of Barter Road and the end of Mason Road 

• A new freight corridor along Anketell Road and Thomas Road 

• A new shipping channel to accommodate larger container ships expected in the future 

• Road upgrades along Anketell Road, Kwinana Freeway, and Road Highway. Ultimately, the Anketell-Thomas Road Freight Corridor will connect the port with Tonkin Highway in Oakford 

• Upgrades to the existing freight rail network between Kwinana and Cockburn, connecting the port with logistics hubs in Kenwick, Kewdale, and Forrestfield 

The new container port in Kwinana is expected to provide major benefits to Western Australia, including: 

• Future-proofing the State’s trade capabilities for the next century, ensuring costs for imports, exports and everyday goods remain low 

• Accommodating the larger, more efficient vessels expected to visit Perth in the 2030s 

• Increasing the number of containers moved by rail from 20 per cent to an estimated 30 per cent, improving efficiency and reducing road congestion and emissions 

• Generating thousands of jobs during construction and significant ongoing employment opportunities once the port facilities are operational 

• Catalysing industry growth within the Kwinana Industrial Area and broader Western Trade Coast 

• Providing significant value for money, with benefit to cost ratio of over 4.0 

• Paving the way to unlock around 260 hectares of prime inner urban land in Fremantle, which will support Western Australia’s growing population and deliver homes for around 55,000 people 

The Australian Government has underscored Westport as a nationally critical project, having committed $33.5 million towards the next phase of planning. Additional funding will be sought as the proposed project progresses to construction. 

“Planning for the transition in the late 2030s when Fremantle meets capacity, we are making the most of our current port infrastructure, while efficiently and reliably preparing for the future. 

“We thank the many port and supply chain operators who have informed this robust process to ensure a secure future for container trade in Western Australia. 

“Westport will also pave the way for redeveloping the Kwinana Bulk Terminal through an integrated design, to be constructed ahead of the new container terminal. 

“Westport is a key part of our strategy to ensure our port facilities in Kwinana and elsewhere are enabled to be the linchpins of our trade economy,” Ports Minister David Michael said. 

Source: Government of Western Australia – Media Statements; Government of Western Australia – Westport (1, 2); Infrastructure Magazine