Project Objective

“To gain commitment from the State Government and Opposition on increasing the footprint of the Kwinana Intermodal Freight Terminal and the accelerating land acquisition program to support the development of Latitude 32.”

Estimated Cost

South West Group is seeking the State Government to provide $50 million over the next term of Government to complete the land acquisition, including an allocation of $10 million in the 2013/14 financial year to continue the land acquisition process.

Project Objective

“To gain commitment from the State Government and Opposition on increasing the footprint of the Kwinana Intermodal Freight Terminal and the accelerating land acquisition program to support the development of Latitude 32.”

Introduction

The development of a new port at Kwinana is arguably the most significant project in the South West Metropolitan Region. The State Government is currently undertaking a Planning Assessment to identify and consolidate existing information and determine future approvals required for the future port and industry development in the Kwinana area.

The development of a new container port in the Fremantle Outer Harbour will trigger significant private sector investment and will require the development of a new intermodal terminal to optimise freight handling by road and rail. It is anticipated that there will be co-investment in the area of the new port or ports by all three spheres of government.

Key Issues

The Fremantle Inner Harbour is the major container port for Western Australia. In 2011/12 the Latitude 32 & Kwinana Intermodal Freight Terminal Arial PhotoInner Harbour handled 650,000 TEU of container cargo. Only 13.0% of these containers were moved from the port by rail, even with a subsidy for short haul containers handled by rail in place. The Inner Harbour has an ultimate capacity of 1.1 to 1.4 million TEU, which is expected to be reached between 2021 and 2024. The limiting factor for this capacity is transport links through the urban areas surrounding the Inner Harbour. Container handling is expected to grow by an average of 5.5% a year between 2012 and 2024.

A new container handling port has been planned by Fremantle Ports for the Outer Harbour. Kwinana Quay, as it is identified in planning documents, shows an island berth created by reclaiming part of Cockburn Sound. It is expected that the development of the new port or ports may take six to eight years to develop.

The Western Australian Government is also planning and developing 1,400 hectares of industrial land at Latitude 32, five kilometres away from Kwinana Quay. The site will include a 1.2 million TEU intermodal facility and can be developed as a port gate. The development of Latitude 32 has already commenced with Stage 1, “Flinders Estate”, in the southern part of the industrial area completed.

Planning Area 2 in Latitude 32, immediately north of Flinders Estate, contains the proposed site for the Kwinana Intermodal Freight Terminal in the area previously occupied by the Wattleup town site. A District Structure Plan (DSP) developed for Planning Area 2 in late 2011 showed only 70 hectares identified for the intermodal terminal. Submissions received during the public review of the DSP and subsequent advice from key stakeholders reinforced the need for an increased intermodal terminal. A review led by LandCorp has put forward a business case to the State Government to increase the intermodal footprint from 70 to 170 hectares.

South West Group Position

The South West Group supports the increased intermodal footprint size to 170 hectares, given that it is critical supporting infrastructure for the proposed Kwinana Quay.

Following a decision by the State Government on the timing for construction of the Fremantle Outer Harbour, work on acquiring land for the intermodal terminal and other strategic lots within Latitude 32 will be required. The land acquisition program needs to facilitate the accelerated development and release of land for the intermodal terminal and industrial purposes within Latitude 32.

Recommended Action

South West Group is seeking the State Government to provide $50 million over the next term of Government to complete the land acquisition, including an allocation of $10 million in the 2013/14 financial year to continue the land acquisition process.