Port of Port Hedland receives AU$78 million injection from McGowan Government

Photo courtesy of Pilbara Ports Authority

The Port of Port Hedland has been allocated AU$78 million ($55.5 million) under the McGowan Government’s 2022-23 State Budget.

The sum will be put towards furthering the development of Lumsden Point. This project aims to grow capacity at the port – diversifying trade, driving investment, and creating local jobs.

According to a recent ACIL Allen report, the development would boost Western Australia’s (WA) Gross State Product by AU$9.5 billion ($6.7 billion) and create 460 jobs per year.

Lumsden Point aims to facilitate the export of battery metals such as Lithium and cooper concentrates, the import of renewable energy infrastructure, as well as support the rapid growth of direct shipping services to the Pilbara.

Scheduled works include the construction of seawalls to form laydown areas adjacent to the future wharf, as well as a causeway to connect the wharf and laydown area to the proposed logistics hub. Building work is expected to start later this year.

Growing the capacity of Pilbara Ports has been identified as a national infrastructure priority by Infrastructure Australia.

Lumsden Point forms part of the recently completed Port of Port Hedland Development Plan Review, which was undertaken in order to maximise export capacity at the port.

© Pilbara Ports Authority

“The McGowan Government is committed to facilitating the expansion of trade in the Pilbara, with Lumsden Point to become a multi-user facility and logistics hub that will facilitate growth,” said WA’s Ports Minister Rita Saffioti.

“This strategic development will create new export pathways, jobs and revenue streams that will benefit not only the WA community, but Australia as a whole. It will also serve to cement WA’s reputation as the engine room for the Australian economy.

“I welcome the Commonwealth Government’s acknowledgement, as part of the 2022-23 Commonwealth Budget, of the importance and significance of the Lumsden Point development.”

Kevin Michael MLA, Member for Pilbara, added: “This critical economic infrastructure will also enable the expansion of direct shipping services from Asia to the Pilbara, with the Port of Port Hedland seeing an increase in container volumes over the past 12 months, resulting in lower costs for businesses and consumers.

“Lumsden Point will become the main export pathway from the Pilbara for battery metals and minerals, with growth of lithium and copper concentrates, which are used in the production of electric vehicles.”

The Port of Rotterdam previously signed a Memorandum of Understanding (MoU) with the McGowan Government, agreeing to collaborate on the development of the hydrogen supply chain.

Under the agreement, both parties aim to investigate the renewable hydrogen export supply chain between Western Australia and the Port of Rotterdam. This includes production, storage, transport, and the use of renewable hydrogen.

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