WA's Regional Ports Governance Reform

Alison Coates

Executive Director, Major Transport Projects

WA's Regional Ports Governance Reform

Presentation outline

• Overview of WA ports

• Strategies to improve efficiency of WA’s existing port

infrastructure

o WA Ports Amalgamation

• Other WA transport initiatives

o WA Regional Freight Transport Network Plan

o PortLink

WA ports comprise:

Overview of WA ports

• 13 commercial ports

governed by the

Department of Transport

under the Shipping and

Pilotage Act 1967

• Eight port authorities

established under the Port

Authorities Act 1999

Complexity

• Shipping & Pilotage Act 1997

• Marine & Harbours Act 1981

• Jetties Act 1926

• Marine Navigation Aids Act 1973

• Land Administration Act 1997

• Mining Act 1978

• State Agreements x 80(ish)

Overview

• Port Authorities Act 1999

WA Ports Governance Review

• Review commissioned by DoT in 2010.

• Terms of Reference:

o Examine roles & responsibilities between Government

& port authorities

o Examine governance & ownership over non-port

authority ports

o Make recommendations for structural & legislative

changes

o Provide guidance on port planning, funding &

investment

• Undertake phased program of consolidation of WA port

authorities.

Key recommendations

• Bring non-port authority ports under control of an

appropriate regional port authority.

• Where ports are amalgamated:

o Ensure responsibility for day-to-day port operations

remain at individual port level

o Ensure continued input from local communities at

each constituent port

Other key recommendations

• Remove customer representation on port authority

Boards

• Ministerial discretion to increase Board size from

maximum 5 to maximum 7 members

• Review port funding & pricing

• Reconfirm commercial focus of ports – Role of Ports.

• Develop a State Port Policy & align port planning with

broader land planning & National Port Strategy

Governance

Steering Committee was appointed to guide and oversee

the amalgamation. Supported by Working groups:

o for each new proposed regional port authority

(Kimberley, Pilbara, Mid West and Southern); and

o Technical Support, including Legal and Legislation Sub

Group.

Updates on the implementation are available on DoT’s

webpage

Kimberley Ports Authority

Amalgamation

Pilbara Ports Authority

Mid West Ports Authority

Southern Ports Authority

Fremantle Port Authority to

remain stand alone

Ports amalgamation strategy

• Activities have been defined in two phases:

o Phase 1 – create new regional port authorities

by renaming some port authorities & merging

others.

o Phase 2 – transfer non-port authority ports to

new port authorities.

Phase 1

• ATO rulings at whole of reform level

• ACCC clearance

• Port Legislation Amendment Bill 2013 in Parliament

• Chairs-elect identified

• Transition arrangements between authorities clearly

articulated

• Assessment of synergies and potential economies of

scale well advanced

Phase 2 objectives

• Transfer non-port authority ports & port facilities

• Assess transfer of State Agreement customers as required

• Agree funding arrangements at transfer & into the future

• Resolve issues of tenure

• Reduction in the number of boards and a focus on

regional development

• Improved port efficiency, optimised use of port

infrastructure and enhanced corporate governance

• Improved investment decision making for new or

expanded infrastructure

• Enhanced corporate governance and management

(strategic, risk, HR, skills management, navigational and

marine safety)

Benefits

• Reduced expenditure through economies of scale and

reduced duplicate of effort

• Better able to encourage private sector investment

& service provision

• Strengthen the involvement

of WA port authorities in the

planning of future regional

transport corridors and

port facilities.

Benefits

• Commercial focus

o focus on commercial effectiveness – market driven,

cost conscious, responsive and flexible in meeting the

needs of port customers

• Safety, security and environmental responsibilities

o manage in a safe, secure and environmentally

responsible manner

o an environment of enhanced understanding and

improved cooperation

Role of Ports

• Facilitation of trade

o in a commercial and efficient manner

o pursue opportunities for private sector investment in

port infrastructure and deliver port services

o fair and equitable access to port services and facilities

o plan and provide for existing and future trade growth

o manage ports supply chain and relate to performance

of the inland transport and logistics system

Role of Ports

• A long-term plan providing

strategic direction and

priorities for WA road, rail and

port infrastructure.

• Looks at ways of managing

WA’s freight task into the

future.

WA Regional Freight Transport Network Plan

• By 2030, trade through WA

ports is expected to be over

1 billion tonnes per annum.

• Initiatives such the WA ports

amalgamation & PortLink will

be key to managing WA’s

future freight task.

WA Regional Freight Transport Network Plan

Partnership program:

• $5million Royalties for

Regions

• $2million C’wealth Govt

Nation Building 1

Objectives:

• create a stronger, more

robust freight network.

• open up the Goldfields-

Esperance, Pilbara & Mid-

West

PortLink project

PortLink project

A series of planning studies

assessing feasibility of:

• Intermodal Freight Terminal in

Kalgoorlie

• new road and rail alignments

around Kalgoorlie-Boulder

• the development of new road

and railway corridors from

resource rich areas to export

ports.

Questions?

Further Information

Contact Details:

Alison Coates, Executive Director Major Transport Projects

E: Alison.Coates@transport.wa.gov.au

Department of Transport website:

http://www.transport.wa.gov.au/projects/25829.asp