Robert Hicks, Chief Executive OfficerGoldfields-Esperance Development Commission

www.gedc.wa.gov.au

Thursday 04 August 2011 WMC Conference Centre

Kalgoorlie WA

The PortLink ProjectDevelopment Commission Structure

The PortLink ProjectFunctions of the Commissions Maximise job creation and improve career opportunities in

the Region. Develop and broaden the economic base of the Region.

Identify infrastructure services to promote business development within the Region

Provide information and advice to promote business development within the Region.

Seek to ensure that the general standard of government services and access to those services in the Region is comparable to that which applies in the metropolitan area.

Generally take steps to encourage, promote, facilitate and monitor the economic development in the Region.

Royalties for Regions (R4R) Explained

R4R is legislated and is State Government Policy. It is an historic agreement that underlines the State Government’s long-term focus on regional development throughout Western Australia.The equivalent of 25 per cent of the State’s mining and onshore petroleum royalties will be returned to the State’s regional areas each year as an additional investment in projects, infrastructure and community services. R4R is a long-term vision for WA, one that recognises that the sustainable development of regional Western Australia is vital to the State ’s future. It is a plan for the whole of Western Australia, with a focus on building communities in regional areas through six policy objectives: 1.Building capacity in regional communities2.Retaining benefits in regional communities3.Improving services to regional communities4.Attaining sustainability5.Expanding opportunity6.Growing prosperity

The PortLink Project

The New Paradigm• An initiative of four Regional Development

Commissions, the Regional Development Council, has been working cooperatively with the Department of Regional Development and Lands to achieve a positive outcome to link the ports of Esperance, Geraldton/Oakajee, Fremantle and Pilbara with the Eastern States of Australia.

• That project has been named

The PortLink Project

The PortLink Project

An infrastructure vision that is in the regional, state & national interest. The need for the development of strategic infrastructure across Western Australia, and the corridors that accommodate it, has been identified as critical.

These corridors provide an efficient and effective logistics chain for commodities and provides cost effective access to services (water, power, telecommunications) for industry and communities.

The PortLink Project

RoadRailGas

PowerWater

Telecommunications

The elements

The PortLink Project

History –

The Development Commissions identified two key resource arenas that needed to be connected to open up further development opportunities in WA.

The PortLink Project

This resulted in the identification of two corridors in the shape of boomerangs.

Rail network gaps

The PortLink Project

Strategic Intermodal Hub

Road - Wiluna to Great Northern Highway

Port access corridor + port upgrade

Major new Midwest & Yilgarn iron ore provinces

Overloaded Corridors

Infrastructure and services corridors link the Pilbara ports with Geraldton/Oakajee, Kwinana/Fremantle and Esperance, with connections to the existing infrastructure and the “interconnectivity” between them and the Eastern States, providing the following substantial benefits.

1.Far more efficient (time/cost/carbon) delivery of eastern states freight to the North West and Mid West;

2.A significant reduction in the Great Northern Highway, North West Coastal Highway & heavy freight by road on these two key routes;

Benefits

The PortLink Project

3. A significant reduction in freight on the Kalgoorlie to Kewdale/Fremantle sector;

4. Builds security for the complete transport & telecommunication system from the Eastern States to WA’s North West & Mid West and provides access to more than one port to maximise the logical use of all ports;

5. Increases the opportunities for all ports, particularly the proposed Oakajee Port.

Benefits cont’d

The PortLink Project

Priority Projects.

1.Esperance Port Access Corridor

2.Esperance Port upgrade

3.Kalgoorlie Intermodal Hub

4.Rail Realignment

5.Wiluna-Great Northern Highway direct route seal. This is critical to the corridor development and the success of the Transport Hub.

6.Leonora to Newman rail development/connection

7.Rail from Oakajee to north/south rail corridor

The PortLink Project

The PortLink Project

CostsPROJECT STATUS COSTEsperance Port Access Corridor upgrade

Works expected to begin January 2012 Federal Government $60m + State $60m confirmed

$120m

Esperance Port expansion 11mtpa -> 30mpta

Expected to be privately funded by the Mining Industry – cost is indicative

$200m+

Intermodal Freight facility in Kalgoorlie

Strong interest shown by a number of intermodal operators - cost is indicative

$31.5m

Rail realignment around Kalgoorlie SKM engaged by RDL to review the cost of 6 options – cost will depend on the preferred option chosen

$86 - $113m

Wiluna to Great Northern Highway seal

Main Road has yet to begin planning on preferred route – cost is indicative for the Doolgunna route

$235m

Leonora to Newman rail connection

No planning undertaken to dateCost based on construction per 1km of rail

$1,600m

Oakajee connection into north/south rail line

No planning undertaken to dateCost based on construction per 1km of rail

$1,400m

The PortLink Project

• Department of Transport (DoT) has engaged with the Regional Development Council and Department of Regional Development and Lands (RDL) to work collaboratively on these projects.

• The Council is working closely with DoT, RDL and Commissions on a State Regional Freight Plan that will link with the National Land Freight Strategy.

• State Budget allocation in 2011-12 from Royalties for Regions of $5m to progress the PortLink coordination & planning.

Status

The PortLink Project

Thank youStrategic Intermodal Hub

Road - Wiluna to Great Northern Highway

Port Access Corridor

PORTLINKWe need-

•Foresight•Common Sense•Political Will•Political courage

In the national interest