In 2013/14, DoT continued to administer the Regional Airports Development Scheme (RADS). The scheme is designed to improve Western Australian air services and safety by providing financial assistance for infrastructure to eligible owners or leaseholders of regional airports that can be accessed by the public.
A total of 17 projects with a combined project value of $7 million, including $3.8 million in Royalties for Regions funding, were completed in 2013/14. Projects included the development of runways, improving airport terminals, facilities and grounds and the completion of planning studies.
A further 37 projects with a combined project value of $15.3 million, including $8.1 million in Royalties for Regions funding, will be progressed in 2014/15.
The 2015/17 funding round is set to close in September 2014. Following this, DoT will provide recommendations to the Minister for Transport on the applications received.
Completed feasibility study marked Portlink milestone
PortLink is a large-scale nation-building project to create a more robust State freight network and open up the Goldfields-Esperance, Pilbara and Mid West regions to development opportunities.
The project, led by DoT and supported by the Department of Regional Development, centres on:
a feasibility study for an Intermodal Freight Terminal in Kalgoorlie and associated freight logistics arrangements;
planning for new road and railway alignments around the Kalgoorlie–Boulder city centre;
investigations to seal the Wiluna–Meekatharra road; and
planning for new road and/or railway corridors, connecting the resource-rich Yilgarn area and the Mid West and Pilbara regions, to export ports.
After extensive consultation with industry, the City of Kalgoorlie-Boulder and the wider community, DoT completed a feasibility study in 2013/14. The study found a new Intermodal Freight Terminal in Kalgoorlie was not commercially viable in the short to medium-term and recommended expansion of the existing Aurizon West Kalgoorlie terminal as the preferred option.
The project’s steering committee endorsed the expansion of the Aurizon West Kalgoorlie terminal in December 2013 and the complementary heavy vehicle bypass and rail realignment corridors in June 2014. Since then, DoT’s discussions with Aurizon regarding the longer-term planning of the terminal have confirmed the availability of ample room for expansion at the existing open-access terminal. A concept engineering design and cost estimate for the heavy vehicle bypass and rail realignment is expected to be finalised in 2014/15.
Investigations into sealing the Wiluna–Meekatharra Road were progressed by MRWA throughout the year and cost estimates are expected to be completed by the middle of 2014/15.
A planning study to investigate potential new road and/or rail links between the Goldfields-Esperance region and the Mid West reached procurement stage and is scheduled to be undertaken in 2014/15.
Merging WA ports for a strategic regional focus and improved corporate governance
To facilitate the amalgamations, in 2013/14, DoT commenced drafting the necessary amendments to legislation which are being progressed in two tranches. The first tranche – the Ports Legislations Amendment Act 2014 to establish the four new regional ports authorities – was passed by State Parliament in May 2014. Despite the late passage of the Act, which was expected in December 2013 to provide for a six-month transition period, the Kimberley, Pilbara and Mid West ports authorities are on schedule to commence operations on 1 July 2014. An independent review of the readiness of the regional ports authorities to commence operation following the legislative delay recommended a short delay in the commencement date of the Southern Ports Authority to ensure a smooth transition.
DoT is on schedule to complete the second tranche legislative amendments for passage through State Parliament by mid-2015. These amendments deal with the anticipated transfer of the Shipping and Pilotage Act 1967 ports, currently oversighted by DoT, to the new Port Authorities Act 1999 and oversighted by the regional ports authorities from 2015/16.
In conjunction with the Department of State Development, DoT has reviewed State Agreements and contractual obligations with the affected ports and will commence extensive consultation with operators and stakeholders in 2014/15 to ensure a smooth transition to the new arrangements.
These mergers are expected to improve corporate governance and increase the capacity of regional ports authorities to meet the challenges of increased shipping movements and port trade.
In May 2014, the State Government announced its intention to pursue an orderly program of asset sales, including Fremantle Port Authority’s Kwinana Bulk Terminal and Port Hedland Port Authority’s Utah Point Multi-User Bulk Export Facility. DoT responded by undertaking preliminary divestment analysis in collaboration with affected port authorities and other stakeholders, and will continue this work in 2014/15 in anticipation of a final ports facilities divestment decision from the State Government.
Announcing the Esperance Port Multi-User Iron Ore Facility preferred proponent
Throughout 2013/14, DoT continued to assist the Esperance Port Authority to engage a private proponent to design, fund and operate the Multi-User Iron Ore Facility project to increase the port’s capacity to export iron ore from the Yilgarn region to China.
In early 2013/14, the Esperance Port Authority issued a request for proposal and announced Yilgarn Esperance Solution Limited (Yes Ltd) as the preferred developer in May 2014. Before commencing construction, Yes Ltd will develop detailed engineering designs and negotiate the binding contracts with relevant mining companies necessary to underwrite development of the new port infrastructure.
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