Australian Government response to the Senate Rural and Regional Affairs and Transport References Committee Report: Decision to Commit Funding to the Perth Freight Link

Date published:

 

Overview

The Australian Government had committed nearly $1.2 billion to Perth Freight Link project. 
The Government is disappointed that the WA Government has decided to not go ahead with 
the Perth Freight Link project. 

Perth Freight Link was identified by Infrastructure Australia as a high priority project 
addressing national connectivity. Western Australia will now miss out on the significant 
benefits Perth Freight Link would have delivered in the form of reduced traffic congestion 
and improved freight access to Fremantle Port. 

However, the Australian Government recognises that the pragmatic way forward is to 
negotiate and work with the WA Government to agree on alternative priority projects that are 
ready to proceed. 

Accordingly, the Government has agreed to partner with the WA Government to deliver the 
WA Infrastructure Package, which includes $1.2 billion in Australian Government funds 
previously allocated to Perth Freight Link. 

However, the Australian Government’s commitment of $1.2 billion to the Perth Freight Link 
project remains and the Government is prepared to work with WA to deliver this project in 
the future. 

Response to recommendations 

Recommendation 1 

The committee recommends that the Commonwealth withdraw its support for the Freight 
Link project, and re-commit the project’s total federal funding of $1.2 billion to the 
development and implementation of future Western Australian freight infrastructure 
projects. 

The WA Government’s decision not to proceed with the Perth Freight Link supersedes 
this recommendation.

The Australian Government is investing $1.6 billion in the $2.3 billion WA Infrastructure 
Package announced on 7 May 2017. 

The package is being funded from a combination of the $1.2 billion previously allocated to 
Perth Freight Link, $226 million provided to address WA’s GST shortfall and savings from 
existing projects. 

The package consists of $792 million towards the Metronet proposal to upgrade and expand 
the Perth metropolitan rail network, and $760.1 million towards priority new road projects. 

Recommendation 2 

The committee recommends that the Commonwealth work collaboratively with the state 
government to identify and develop future projects that will best meet the long-term 
infrastructure needs of Western Australia, and that these projects are supported by fully 
developed Business Cases that are submitted to Infrastructure Australia for assessment and 
published publically. 

The Australian Government notes this recommendation.

The Australian Government consults with the Western Australian Government on investment 
priorities on an ongoing basis. 
As has taken place with Perth Freight Link and other major projects in the Infrastructure 
Investment Programme, all projects seeking Infrastructure Investment Programme funding of 
more than $100 million are to be assessed by Infrastructure Australia. 
The new WA Infrastructure Package includes a $792 million Australian Government 
commitment to Metronet projects, including towards the development of business cases. The 
package also includes $760.1 million towards priority road projects, with $189.6 million 
towards the Armadale Road and North Lake Road - Kwinana Freeway bridge and connecting 
roads. Business cases for these projects will be submitted to Infrastructure Australia for 
consideration. 

Recommendation 3 

The committee recommends that the Commonwealth release the full Business Case for the 
Freight Link, as assessed by Infrastructure Australia, to provide transparency on the 
project’s proposed economic and social benefits. 

The Australian Government does not support this recommendation.

Extensive information on the Perth Freight Link project, including its expected benefits, has 
been made publicly available by the Australian and Western Australian governments. 
Key details on the project were released in a business case summary in December 2014. 

However, the full business case was not released as it contained details which were 
considered commercially sensitive in the context of procurement processes. 

The Business Case remains the property of the Western Australian Government and any 
decision to release the full Business Case is for the Western Australian Government to 
consider. 

Recommendation 4 

The committee recommends that the Commonwealth work with Infrastructure Australia 
and the Western Australian government to identify rail and traffic management strategies 
to expedite freight movement around the current Fremantle Port facilities. 

The Australian Government notes this recommendation.

The Australian Government consults with the Western Australian Government to identify 
potential road and rail infrastructure projects on an ongoing basis. 

The Perth Freight Link project was assessed by Infrastructure Australia as a high priority 
project. Alternative options to address freight traffic around Fremantle Port were considered 
as part of the development of the project. Assessed against a range of criteria, Perth Freight 
Link was found to be the optimal solution. 

The Australian Government’s commitment of $1.2 billion to the Perth Freight Link project 
remains and the Government is prepared to work with WA to deliver this project in the 
future. 

Recommendation 5 

The committee recommends that the Commonwealth Department of Infrastructure and 
Transport consider undertaking a full analysis of the costs and benefits of investing in a 
second port at Kwinana, as outlined by the City of Kwinana’s Indian Ocean Gateway 
proposal. 

The Australian Government notes this recommendation.

The Western Australian Government has identified the outer harbour at Kwinana as the 
preferred location for future container handling facilities once the inner harbour reaches 
capacity. However, it has indicated there is significant capacity remaining at the inner 
harbour and that it is expected to be able to satisfy demand well into the future. The Western 
Australian Government has also highlighted the significant costs, lead times and 
environmental considerations associated with the development of the outer harbour. 

If the Western Australian Government proceeds with the development of the outer harbour in 
the future, the Australian Government would consider a proposal for the development of an 
associated transport corridor. 

Recommendation 6 

The committee recommends that Infrastructure Australia assess the City of Kwinana’s 
Indian Ocean Gateway proposal for inclusion on its Infrastructure Priority List. 
The Australian Government notes this recommendation.

Individuals and organisations are able to make submissions on projects or initiatives to 
Infrastructure Australia. 

The assessment of submissions is a matter for Infrastructure Australia as an independent 
statutory body. 

Recommendation 7 

The committee recommends that the Auditor-General undertake a formal investigation into 
the systemic failure of the Commonwealth’s planning and assessment of road and freight 
transport infrastructure, including the decision to fund the Perth Freight Link project.
The Australian Government notes this recommendation.

As an independent officer of the Parliament, this is a matter for the Auditor-General to 
consider.