Australia Outlines Case to Move Fremantle Container Port to Enable Growth

 

The Government of Western Australia has completed the development and study of the business case determining that the most cost-effective means to support future growth is to relocate the container terminal operations currently in Fremantle to the south to Westport. The ambitious plan which is estimated to require an investment of A$7.2 billion (US$4.7 billion) would meet the long-term growth projections and need to enhance port operations.

Operations are outgrowing the current container facilities in Fremantle according to the study.  Last year, Fremantle increased its volume by six percent or nearly 50,000 containers. Based on the current rate of population growth, they project Western Australia will grow to 3.6 million people by 2036 creating further container demand. The study anticipates that Fremantle Port will reach its maximum capacity of 1.4 million containers per year by 2040 or possibly earlier by the mid-2030s.

The Federal Government is providing A$33.5 million ($US22 million) toward the next phase of planning for Westport which would be in an area known as Kwinana. The project definition planning that will proceed will support the completion of design, securing approvals, resolving risks and uncertainties, land acquisition, and refining cost and construction strategies. All of this will be used to make a final investment decision and the procurement of capital works contracts.

One alternative that was considered was life extension efforts for Fremantle Port. They determined that Westport would still be required to be built less than 10 years later, adding A$2.2 billion (US$1.5 billion) to the total investment. 

Westport, they assert, will create a new port that can handle larger and more efficient vessels. It will be supported by investments in road and rail infrastructure and would permit an increase from 20 to 30 percent of container volume moved by rail in Western Australia.

Without Westport, the study projects that container volume would have to be diverted to Australia’s east coast ports. It could then be trucked or traveled by train but that would add costs to goods. Also, developing Westport will unlock around 260 hectares of prime urban land in Fremantle that could be used for redevelopment. They project that homes for 55,000 people could be built in the former container port area.

In presenting the business case, the government asserts that without the new port, the constraints on trade would become significant. They state that not proceeding could cost the Western Australian economy A$244 billion (US$160 billion) over the coming decades, an average of A$5 billion (US$3.3 billion) per year.

The Western Australian government has approved for the next phase of the planning process to proceed. It has committed A$273 million (US$180 million) to progress this major economic project.