Design work for the Westport project is moving ahead, although it is unclear when the $4 billion-plus development will be needed as container traffic stalls.
Design work for the Westport project is moving ahead, although it is unclear when the $4 billion-plus development will be needed as container traffic stalls.
WSP Australia was picked to design the supply chain at the new outer harbour, including the port terminal and the adjoining road and rail connections.
The $15 million contract will support 18 months of work, feeding in to the Westport business case, the state government said today.
The plan is to build a new port in Cockburn Sound to eventually replace the wharfs in Fremantle.
But the viability and need for the major investment will depend on growth in trade and container movements.
Container traffic at Fremantle Ports fell marginally in the year to June, according to the entity’s annual report.
At 792,000 container units, movements were up only 2.9 per cent over the previous five years.
Measured by weight, port trade was down 19 per cent to be 28.3 million tonnes.
The latest Westport modelling was undertaken by KPMG in February and results obtained by Business News suggest container traffic will run at 1.4 million units in 2040, and 1.8 million by 2050 in a mid-case.
That would mean a 2.7 per cent annual growth rate.
A high growth scenario would lead to 2.2 million containers moving over the docks by 2050.
The inner harbour at Fremantle could move up to 2 million containers, according to a 2014 study; but Westport’s modelling indicates the port would come under major supply chain pressure, requiring substantial road upgrades to hit that figure.
Business News has previously reported that trade at 1.2 million containers a year would trigger a need for investment into the supply chain into the inner harbour.
Hitting that level faster will bring forward the date for a new port investment, while a slower path would delay the need for the huge capital outlay.
Today, the state government said the port would come under increasing pressure in the next 10 to 20 years.
The government had flagged 2032 as the start time for the first phase of the outer harbour.
"Westport will be one of Perth's largest infrastructure projects, so we are taking the time to get it right,” Ports Minister Rita Saffioti said.
"The work being undertaken by WSP Australia is going to help us better understand various design options for both the new port, and critically, the surrounding road and rail infrastructure.
"Globally, it is rare to plan and optimise the whole supply chain, rather than focus on only building or improving part of it.
“Westport's supply chain approach will ensure real benefits for the state in the long term and I'm proud that it is our approach.”
She said the modelling on trade data had been consistent and clear that expected growth in container trade would place the inner harbour under pressure.
Previous work has suggested the development would require major dredging in Cockburn Sound, a major improvement to Kwinana’s rail connection, and upgrades along Anketell Road to support freight movement.
WSP chief operating officer Greg Kane said the design work would be a once-in-a-lifetime opportunity to contribute to an infrastructure initiative to support growth and improve liveability for surrounding communities.
“It will bring WA to the global forefront of sustainability, port and logistics supply-chain infrastructure, and efficient freight movement,” Mr Kane said.
