Construction of a new Fremantle freight rail link could take 20,000 truck movements off port roads and save logistics companies about $75 per container.
Deputy Premier Rita Saffioti and Federal Fremantle MP Josh Wilson joined DP World’s Australian executives to turn the sod on an $18 million rail interchange project at Fremantle Port’s North Quay on Tuesday morning.
A direct link will be built from the existing North Quay rail terminal to DP World’s container port, cutting the need for containers to be double handled by trucks between the two facilities.
The project is expected to increase the amount of freight delivered by rail to the port from 22 per cent to 33 per cent.
That, DP World said, would reduce emissions, ease congestion, and cut costs.
DP World Oceania executive vice president Nicolaj Noes said currently containers were lifted off the train and transferred to holding yards adjacent to DP World’s terminal.
“That is not only an inconvenience in terms of time and planning, but it's also an extra cost,” he said.
“Now the trains will come in and there will be a direct interchange between the rail yard into the terminal, so that whole concept of trucking the container around is now off.
“What happens today is that an importer and exporter will pay for the rail and then they will pay an extra $70 or $80 per container to move the container from the rail yard into the ocean terminal.
“That extra cost going to disappear in the future.”
Mr Noes said that cost reduction would convince more businesses to put their freight on rail.
The investment is a timely boost for the Port of Fremantle and its operators, which have been beset by customer concerns over fee hikes, ageing infrastructure and shipping backlogs.
The Port of Fremantle has missed its customer satisfaction KPI for five years straight, though last financial year did report improvement for the first time since 2020.
Transport Minister Rita Saffioti said getting more freight on rail was vital to solving these issues.
Ms Saffioti said freight on rail had increased from 11 per cent to 28 per cent, in part due to subsidies for using the service.
Some 160,000 truck movements have been taken off the road due to rail uptake in the past year at Fremantle, according to state government data.
“More freight on rail means less congestion on our on our streets, and less truck movements in and out, which is very important,” she said.
“The other key issue is all the other associated parts… negotiating more train paths and the other end as well, the consolidation of distribution centres and key intermodals.
“We are looking across the entire supply chain for how to support more efficiency.”
Ms Saffioti said supply chain investments by the likes of SCT Logistics and Woolworths recently would help the cause to boost efficiency.
DP World’s investment comes in the face of a long-term plan to turn the port into a mixed-use residential area once Westport is built further south.
Mr Noes said the interchange would allow DP World to get maximum value out of its port terminal in the interim.
“We can facilitate future growth without adding more trucks,” he said.
“The last thing the local community and everyone wants to hear about is more trucks in their community.”
Mr Noes said DP World hoped to have the build completed early next year.
