Oakajee Industrial Estate and Port Project

The port and rail project involves direct infrastructure expenditure of approximately $3.5 billion.  This involves private sector financed private use infrastructure at the port with the State and Commonwealth Governments funding common use infrastructure.

On 20 March 2009 the Western Australian Government signed the .Oakajee Port and Rail State Development Agreement. with Oakajee Port and Rail, Murchison Metals, Crosslands Resources and Mitsubishi Development. The State Development Agreement appoints OPR on an exclusive basis as the infrastructure provider for the port and provides for an open-access rail line servicing northern mid-west iron ore mines.

The State Government will fund construction and own the common-use infrastructure, which includes the breakwater, navigational aids, channel and turning basin and port-related services.

State Government funding will be recovered over time through user charges to be levied on a commercial basis. The State is seeking Commonwealth funding support for this significant component under the Infrastructure Australia program.

OPR will construct, finance, lease and operate private-use port infrastructure including at least one cape-class berth within the port, with an opportunity for a second berth should it be required.

After 50 years the lease arrangement will terminate, with control of the private infrastructure reverting to the state. Any further expansion of the port will be decided by the Government. This could include other parties constructing additional berths and associated facilities for exports of iron ore and other products, and rail lines along the Oakajee-Narngulu corridor for the transport of non iron ore products.

The port design will provide for a future second breakwater with capacity for up to seven additional cargo berths to be provided.

The Department of State Development will work closely with OPR over the next 12 months to negotiate an Implementation Agreement, which details terms and conditions for the development of port and rail infrastructure.

The project depends on a positive bankable feasibility study, which is due for completion by 31 March 2010.

Maps

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The establishment of an Industrial Estate at Oakajee is a key component of the State’s longer term vision for resource development in the Mid West region. The industrial estate has the potential to accommodate value adding downstream processing of minerals and oil and gas sourced from the Mid West as well as export of products from the region's mines.

The proposed Oakajee Industrial Estate, would be situated approximately 23km north of Geraldton and include a strategic industrial core area of 1134 hectares, two general/support industry areas of 190 hectares (total), a coastal/port uses zone of 1002 hectares and an industrial buffer of 4071 hectares.  The total land area is bounded to the north by Coronation Beach Road, to the east by the Moresby Ranges, the south by the Buller River and to the west by the Indian Ocean. 

The Western Australian Government has progressively acquired the land over the past 15 years.  The land is zoned for industrial uses under the Shire of Chapman Valley Town Planning Scheme and structure planning has commenced. 

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This will provide the opportunity to develop a railway, road and services corridor to connect the existing rail system to the port and road networks.

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