swan gives oakajee port the coin, page-4

Oakajee to receive $339m from budget

12-May-09 by AAP

West coast mining companies stand to be big winners from $22 billion of infrastructure spending contained in the federal government's 2009/10 budget, with the Oakajee deepwater port to receive $339 million.

Treasurer Wayne Swan told parliament on Tuesday the centrepiece of his second budget was its investment in infrastructure, the biggest since the Snowy Mountains Scheme in the 1970s.

"Infrastructure investment will be the cornerstone of the recovery of the Australian economy going forward," the government said in its budget papers.

Road projects along the east coast of Australia will receive $3.4 billion in funding, while $4.6 billion has been flagged for metropolitan rail projects in all states.

The federal government has also set aside $389 million for two major port projects, in Western Australia and the Northern Territory.

In Geraldton, WA, a deepwater port and common use rail link has been proposed, with the government to tip in $339 million of the estimated final price tag of $4 billion.

The Oakajee Port will serve the mining needs of the Mid West region of WA, where the activity of junior iron-ore producers has been restricted by a lack of critical infrastructure.

The move is likely to please resource industry groups, with the Association of Mining and Exploration Companies lobbying for infrastructure funding ahead of Tuesday's budget.

""If they don't start addressing the problem now, there are going to be diabolical problems down the track," association chief executive Simon Bennison told AAP last week.

Construction of the Oakajee Port has been flagged to start in 2010/11, with completion by mid-2014.

The federal government also set aside $50 million for the expansion of the Darwin Port.

The port is the primary method of transportation linking NT miners to the Asia-Pacific region.

The funds would be used to begin work allowing large ships transporting bulk resources and commodities.

Both port projects still require approval from Infrastructure Australia before negotiations can begin with the relevant stakeholders.

Each projects will also require private sector equity.

The government's funding commitments will come from Building Australia Fund.

"Through this investment, the government is positioning Australian business to take advantage of future economic growth as the Asia-Pacific region recovers from the global recession," the government said.

East coast miners also stand to benefit from the centrepiece of the government's road spending, $1.5 billion for a new dual carriageway in NSW's Hunter region.

The Hunter Expressway is scheduled for completion in 2013, with funds also to come from the NSW government.

The government has also reaffirmed its $43 billion commitment to a national broadband network, which will be built with investment from the private sector.

All new estate developments from July 1, 2010 will be required to install fibre-to-the-premises(FTTP) technology under the government's plans.