AN INCREASE in the use of larger box ships is set to pose port capacity challenges, Infrastructure Australia (IA) says. The independent statutory body has just published its 2026 Infrastructure Priority list, with implications for container ports, bulk ports, rail and aviation.
The authors noted the global trend towards larger container vessels “raises questions about whether and when to invest in infrastructure upgrades to accommodate them”.
“While ships visiting Australia remain small by international standards, projections suggest that vessels of 15,000TEU could arrive by the late 2020s, with 18,000 TEU ships possible by the early 2040s,” the report stated.
“This shift would require significant investment in both landside and portside infrastructure, including upgrades to terminal operations, deepening and widening shipping channels and adding cranes to maintain service levels as vessel sizes increase.”
The 2026 Infrastructure Priority List identifies the Westport (Kwinana port development) proposal in Western Australia as a future investment opportunity.
With Fremantle expected to reach capacity around 2040, Westport represents a proactive solution to support continued growth in container volumes.
IA noted the need for rail.
“The use of rail for freight transportation within our cities has been limited as rail journeys to and from capital city ports are typically short and often compete against passenger services,” it stated.
“Investment in dedicated freight lines will improve service frequency and utilisation, enabling rail to better compete with road freight.
"In addition, investment in intermodal terminals can increase the share of freight moved by rail in and out of ports and for every 1% of the national freight task that moves to rail, society gains $72 million a year resulting from lower carbon emissions, safety and health benefits.”
The report noted strategic planning was underway for some of Australia’s bulk ports to diversify operations and support Australia’s energy transition.
The full report can be viewed here.
ALC chief executive Hermione Parsons said the IPL provided “a clear roadmap of national infrastructure needs and opportunities”.
“Inclusion on the list is a positive first step. The real test now is timely delivery, funding certainty, and integrated planning across all modes of transport,” Dr Parsons said.
“The list rightly identifies high productivity freight networks, ports capacity and connectivity, and decarbonisation as national priorities. Australia’s supply chains and regional economies depend on more than planning—they require projects to be fully funded, resilient, and connected to last-mile and intermodal infrastructure.”
Dr Parsons also spoke of the decarbonisation challenge.
“Decarbonising freight must happen in parallel with improvements to capacity and resilience – otherwise, we risk creating stranded assets and missing emission reduction targets,” she said.
Looking ahead, Dr Parsons urged the Australian government to move quickly from planning to delivery.
“We now have a blueprint. The focus must be on execution, integration, and delivering measurable benefits for Australia’s economy, communities, and supply chains.”