The Western Australia’s State Government will among other assets sell port handling facilities in Port Hedland and Kwinana in the first round of asset sales to reduce the state’s debt levels.
The Western Australia’s State Government will among other assets sell port handling facilities in Port Hedland and Kwinana in the first round of asset sales to reduce the state’s debt levels. Announcing the projects listed for disposal, Premier Colin Barnett said the state’s priority was to reduce debt and regain the triple-A credit rating.“These are the first assets we will open up to the market. They have been identified as priority assets for sale,” Premier Barnett said.“The assets are expected to generate between AUD 1 billion and AUD 2 billion.”The Premier said the sale process would balance risk and return and would assess how the assets could be managed, while providing benefits to stakeholders and the Western Australian community.“These assets are better placed in the private sector. They are likely to be better run by the private sector,” Premier Barnett said.Port Hedland’s Utah Point Bulk Handling facility is one of four berths owned by the Pilbara Ports Authority. It includes a shiploader, two stockyard product storage facilities and supporting infrastructure. In 2012-13, it earned AUD 86.5 million in revenue, with AUD 44.1 million in expenditure.“The port assets are likely to be sold as a long-term lease,” Premier Barnettsaid.Kwinana Bulk Terminal / Source: Freemantle Ports Owned and operated by the Fremantle Port Authority, the Kwinana Bulk Terminal exports and imports bulk products including coal, iron ore, liquefied petroleum gas, cement clinker, gypsum, nut coke and slag. With a total throughput of 5.2 million tonnes, in 2012-13, total revenue was AUD 61.6 million, with total operating costs of AUD 36 million.The Premier will chair the process of assets and land sales. Detailed work will be undertaken by Treasury through an asset sales taskforce. Treasurer Mike Nahan, Finance Minister Dean Nalder and Lands Minister Terry Redman will play major roles in the ongoing process.
