THE KWINANA Industries Council is calling for urgent action to update Kwinana Bulk Jetty, the state’s biggest import facility.
The council claims congestion at the jetty is costing West Australian industries nearly $70 million a year in demurrage fees because of delays.
The council has released a new report ‘The Critical Case for Expanding Kwinana Bulk Jetty’, which says Cockburn Sound has become an expensive parking lot for vessels bringing vital products into the state.
“KIC’s research has confirmed widely held industry views that the jetty is operating at or near full capacity, with demand already outstripping supply and forecast to worsen,” it said in a media release announcing the report.
“Industry has been clear: the bottlenecks at KBJ are imposing unwanted and unnecessary costs across the economy - not just for business, but for every West Australian who relies on strong jobs, a diversified economy, and efficient infrastructure.
“Kwinana Bulk Jetty is the critical gateway for fuels, fertilisers, and chemicals that helps power many sectors of the WA economy.
“The petrol we put in our cars and trucks, the bitumen for our roads, and the fertilisers to grow our food, largely comes through Kwinana.
“In the 2023-2024 financial year, around two-thirds of Kwinana’s trade was through KBJ – making it one of the most significant pieces of common-user infrastructure in the state.
“The delays being experienced by industry are driving up costs – and threatening WA’s ability to attract new investment in emerging industries like critical minerals and renewable energy.
“Inevitably these higher costs are passed onto consumers meaning we all pay more for everyday items. If the WA government is serious about economic diversification, job creation, and attracting global investment, then upgrading the Kwinana Bulk Jetty must be at the top of the State’s infrastructure agenda.
“WA simply cannot afford to keep paying the price of standing still.”
The council’s research involved tracking every vessel arriving at Kwinana Bulk Jetty throughout 2024 and in-depth analysis of port performance data.
The report said one company reported a 700% increase in annual demurrage costs between 2018 and 2024.
Shipping delays have ballooned to an average of 96 hours, up from 12.5 hours in 2015-16.
Both berths at KBJ operated over 80% capacity on average for the year, with one of the berths exceeding 90% capacity for seven months of the year and for nine months of the year, 80% of ships unloading at the jetty experienced delays in accessing a berth, and for five months of the year, every ship was delayed.
One vessel spent 67 days in port, potentially incurring a $4 million demurrage charge.
“The state government must act urgently. It needs to commit to an expansion and upgrades of KBJ to support existing industry and help attract new projects to our premier heavy industrial area.”
CEO of the Kwinana Industries Council, David Harrison, said that the case for upgrading Kwinana Bulk Jetty is compelling.
“Cockburn Sound has gained the unwanted reputation of being the most expensive parking garage in the state,” Mr Harrison said.
“On any even given day you can see a queue of ships in Cockburn Sound waiting to gain access to the port.
“Congestion and inefficiency at KBJ risk driving new investment elsewhere. Emerging industries in critical minerals, renewable energy and advanced manufacturing all depend on efficient bulk import capacity. If companies cannot rely on Kwinana to deliver, they will take their projects — and their jobs — elsewhere.”