Container terminal tender process moves to negotiation stage

The tender for new leases to operate container terminals at the Port of Fremantle has been narrowed to the current two operators, DP World and Patrick, with the process to now move to the negotiation stage.

The existing leases, which were awarded in 1997, are set to expire in June this year. Due to a range of circumstances, one of which was the potential sale of Fremantle Ports by the previous Liberal National Government, it had not been possible to progress the granting of new leases.

The intent of the current process is to grant new seven-year leases with options for extensions for two further periods up to a total of 21 years at the discretion of Fremantle Ports, and dependent upon State Government decisions arising from the Westport: Port and Environs Strategy.

Leases would commence on July 1, 2019 and end on June 30, 2026 (or on later dates if options were granted).

The process to secure new leases gives confidence to the industry and the community that Western Australia's expected trade growth over the next decade can be accommodated.

Comments attributed to Ports Minister Alannah MacTiernan:

"Securing suitable container terminal leases is important to the economy of Western Australia.

"Negotiations will focus on the ability to address investment and operations plans to cater for expected trade growth in the years ahead, but also the efficiency of land transport movements of containers to and from the port.

"As part of this process Fremantle Ports will seek to further improve the efficiency of land transport movements of containers to and from the port, for the benefit of the community and industry.

"The container trade is of enormous importance to Western Australia and this tender process is being conducted in the context of deliberations by the Westport Taskforce, which is examining port and landside planning and development requirements to serve the State in the decades to come."