AGAINST the odds, Bunbury Port is proceeding with negotiations with two shipping companies in the hope of becoming Western Australia’s second container port.
AGAINST the odds, Bunbury Port is proceeding with negotiations with two shipping companies in the hope of becoming Western Australia’s second container port.
The negotiations are taking place despite a recent study, as well as statements by the State Government, indicating that Bunbury may be off the agenda.
The Fremantle Port Authority recently announced its plan for a $400 million to $500 million overflow terminal at Kwinana with the Government’s support.
Despite this, Bunbury Port CEO Dom Figliomeni said discussions had recently been held with two companies looking at the viability of establishing a container operation at Bunbury.
He would not reveal the companies’ identities, only saying one was a large international shipping business, while the other was a smaller, niche operator.
Mr Figliomeni said he would like to see a decision regarding a Bunbury container operation made before the end of the year, but there were several issues outstanding.
“Given the current variability of the shipping industry, a lot needs to be resolved,” he said.
“A decision is not critical but it needs to happen sooner rather than later.”
Mr Figliomeni said that, subject to approval, everything was in place if an operator wanted to proceed, including Government funding of about $5 million.
He said the Government had indicated its support for a policy to develop Bunbury Port as WA’s second container port during recent discussions.
This is at odds with previous statements by Planning and Infra-structure Minister Alannah Mac-Tiernan, who has said that, despite significant examinations, Bunbury did not appear economically viable.
But Mr Figliomeni said another study, the Fremantle Inner Harbour Container Movement study, showed that Bunbury was a viable option.
According to the study up to 30 per cent of WA’s container traffic originated or terminated in the South West, he said.
Planning for the Kwinana facilities has been under way for about 18 months and is not expected to be complete for several years.
Fremantle Port is not expected to reach capacity until about 2014 and the shipping industry has indicated its initial support for the Kwinana option.
A spokesman for Ms MacTiernan said two large international shipping companies had recently been in talks with the Government.
It is understood the discussions were about establishing a dedicated west-coast east-coast shipping service and the better utilisation of berths 11 and 12 at Fremantle inner harbour.
