PERTH (miningweekly.com) – The Western Australian government on Thursday outlined plans to reform the state’s ports in an effort to ensure that the wealth generated by the increased commodity exports delivered benefits to the state.

Under the plan proposed by Transport Minister Troy Bushwell, seven of the state’s eight port authorities would be consolidated into four regional port authorities, to improve efficiency and reduce red tape.

This was the largest reform undertaken in the state’s ports, in decades.

Premier and State Development Minister Colin Barnett said the plan was developed after a comprehensive review of the governance of Western Australian ports.

“The current port governance model has served the state well since it was introduced by the Court Coalition government in 1995, but the growing demand for Western Australian commodities meant it was time to review this model to ensure we provide our ports with the most effective framework for the future,” Barnett said.

He noted that since 2000, the value of Western Australia's merchandise exports has risen by more than 300%, from A$25.4-billion to A$112.2-billion, adding that the state’s share of merchandise exports increased from 26% to 46% of the nation’s total.

“There are currently 21 ports. New ports will be constructed at Barrow Island’s Gorgon project, Wheatstone, Oakajee, James Price Point and Anketell. It clearly makes sense to consolidate all these existing and future ports into an appropriately managed regional port structure,” Barnett said.

“Our ports facilitate the state’s wealth and, by implementing a more efficient framework, the Liberal-National government will ensure that more of the wealth being generated is returned to the community through improved health, education, police and other services.”

Bushwell, meanwhile, noted that the 13 smaller ports currently controlled by the Department of Transport would come under the jurisdiction of the regional port authorities, with Fremantle to remain a standalone port authority.

“The creation of regional port authorities will ensure better planning and coordination of port development across the state and that our smaller ports can be adequately resourced.”

No decision has been made on which regional port authority would be formed first, with Bushwell saying that the timing and extent of amalgamations would depend on current contracts and potential impact on port customers and industry.

“Five future ports planned for the Kimberley, Pilbara and Mid-West will also come under the control of the four regional port authorities. There will be extensive consultation with port customers and industry, and the state government expects to announce the first regional port authority in 2014.”

Bushwell said amendments to legislation to enable the phased consolidation would be drafted this year and presented to state Parliament in 2013, with a staged implementation to commence from 2014.

The reform has been welcomed by the Western Australian Chamber of Minerals and Energy (CME), which noted that in-depth consultation with the resources sector would be key to the success of the reform.

CME CE Reg Howard-Smith said the reform signalled a move toward administrative efficiency gains at key export points.

“Efficient ports are crucial to the success of the Western Australian resources sector. Without well-managed port operations the hard work that goes into extracting and processing our natural resources is undermined, and we cannot realise our export potential.”

He noted that the consolidation of regional port authorities should enable the state government to bolster the expertise and experience needed at Western Australian ports, to improve the management and performance of these key export points.

The CME has previously raised concerns about the management of the state’s ports, and called for port authorities to resume their focus on a trade facilitation role.

“While consolidation of regional ports may in time lead to more efficient outcomes, it is extremely important that current port operations and expansion works needed to enable export growth at regional ports are not impacted by these changes,” Howard-Smith said.

“There is no reason why operational issues cannot begin to be addressed now.”

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