The Cook Labor Government is finalising plans for a new A$7.2 billion ($4.7 billion) container port in Kwinana, set to replace Fremantle as Western Australia (WA)’s main port.
The announcement comes as the Cook Government confirmed the Westport business case has been finalised, showing significant risk to the WA economy from future constraints on container trade if Westport is not built in time.
The business case found inaction to address constraints on trade could cost the WA economy A$244 billion ($159 billion) over coming decades – an average of A$5 billion ($3.26 billion) per year – driving significant increases in the costs of everyday household goods and for WA businesses.
Under moderate growth, Fremantle Port is slated to hit its 1.4 million container capacity by 2040, or possibly mid-2030s with higher trade volumes, and straining road and rail networks.
A new port is hence needed by the late 2030s to ensure a smooth transition.
READ: Australian governments fund AUS600 million enhancement in Port Hedland
The government shared that if no action is taken and trade exceeds Fremantle Port’s capacity, containers bound for WA will need to be offloaded at east coast ports and transported back by road and rail, adding to costs and putting WA’s economic self-sufficiency at severe risk.
The business case also confirmed that the option to extend the life of Fremantle Port would still require Westport to be built less than 10 years later, costing WA taxpayers an extra A$2.2 billion ($1.4 billion).
READ: Australian Border Force seizes $6.5 million worth of cocaine at Port Botany
The new Kwinana container terminal is expected to boost WA’s trade capabilities, support larger vessels, and increase rail transport from 20 per cent to 30 per cent, reducing congestion and emissions. It will also generate thousands of jobs and unlock 260 hectares in Fremantle, adding housing for 55,000 people.
The Federal Government has underscored Westport as a nationally critical project, having committed A$33.5 million ($21.9 million) towards the next phase of planning, with additional funding to be sought as the programme progresses towards construction.
