Westport is expected to cost $7.2 billion to deliver and container trade should move from Fremantle to Kwinana by the late 2030s, the WA Government’s business case has recommended.
The Government released the business case on November 11 and committed $273 million to progress the project definition planning.
This will support the completion of designs, securing approvals, risk management, land acquisition and refining costs, ahead of final decisions and procurement contracting.
Artist's impression of Westport. Image: WA Government
CCIWA Chief Economist Aaron Morey supports the Westport plan, saying it’s critical infrastructure the State needs for the future.
“In order for our local industry to be competitive in coming years, we’re going to need really efficient post infrastructure, so we support the Government taking steps to develop a new container port that provides a more efficient set of infrastructure for businesses to compete across the world,” he told media on Monday.
Morey said businesses are currently in a high-cost environment, which has escalated with industrial action.
“It’s [port infrastructure] a key part of our economic competitiveness, and unfortunately, significant union activity, particularly in and around those ports creates these astronomical transport rates we're facing,” he said.
“So, investing in new port infrastructure is an opportunity to really reset our economic competitiveness when it comes to that port infrastructure.”
Increasing reliance on Fremantle Port
The business case found inaction to address constraints on trade could cost the WA economy $244b over coming decades – about $5b per year.
Fremantle Port is expected to reach capacity of 1.4 million containers per year by 2040, or as early as the mid-2030s if higher volumes of trade eventuate, with the surrounding road and rail network to become significantly constrained – meaning a new port needs to be built by the late 2030s, to enable a smooth transition.
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 $2.2b.
"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,” says WA Premier Roger Cook.
"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.”
Westport likely to get caught in green tape
As a matter of national environmental significance, Westport would require Federal and State environmental approval.
Morey warns the Federal Government’s proposed environmental laws could have major implications on Westport.
“The Federal Government is currently trying to update and strengthen its environmental laws, essentially because it doesn’t trust WA to manage its own environmental assessments,” he said.
“There is a lot of uncertainty at the moment around exactly how those laws would look.”
Morey expected to the laws to be finalised either prior to or soon after the 2025 Federal Election, which could be held as late as May 2025.
“It just serves as another timely reminder about why we need sensible environmental laws that balance the environment with the economic and social benefits that exist,” he said.
“Projects like this unlock a world of opportunity for WA business and it’s important we get the balance right.”
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