Fremantle Port privatisation rests on timeline for outer harbour, Colin Barnett says

source: abc news

Fremantle Port privatisation rests on timeline for outer harbour, Colin Barnett says

West Australian Premier Colin Barnett wants the construction timeline for an outer harbour containment port off Perth determined before Fremantle Port is privatised to avoid the prospect of later compensation.

The port is part of a broader asset sales program the Government hopes will raise between $3 billion and $5 billion as it looks to reduce the state's climbing debt.

The Government has flagged privatisation of Fremantle Port on a long-term lease arrangement, but Mr Barnett said there was still "a long way to go" before any move goes ahead.

"A prospective buyer needs to know exactly the timetable in terms of container capacity at Fremantle and the timetable and capacity of a new container port," he said.

"Giving certainty to a bidder is fundamental to the sale of the port.

"I'm not one to hypothecate compensation, I would rather deal with the issue so there is not a question of compensation."

Mr Barnett made the comments in response to questions in State Parliament on whether the Government would consider compensating the potential future lessee of Fremantle Port, if a rival container facility is developed in Kwinana.

The comments also follow concerns raised by the Australian Competition and Consumer Commission about the Port of Melbourne's sale.

One of the competition watchdog's concerns centred on the Victorian Government creating a system to compensate the operator if the state builds a rival port ahead of schedule.

Mr Barnett said other issues also needed to be worked through before any deal regarding Fremantle could go ahead.

"Some of the issues include the ultimate capacity ... in terms of containers. It will also be affected by what happens in terms of freight connections to the port and to the Roe Highway system," he said.

"It will also be determined as to whether any prospective buyer has a right or first entitlement to be involved in the expansion of a container port at Cockburn Sound, and add to that a whole range of detailed issues as to exactly what is being sold in terms of land and assets on that.

"This project has got a long way to go and we are concentrating on the sale of the first identified asset, which is the Perth Market Authority, and the second one which is [port facility] Utah Point in Port Hedland."

If the Government does decide to put the facility under private control, it is expected to be in the form of a 50-year lease.

posted originally by the ABC HERE