Just to give a somewhat realistic insight into this news.
I've been a local in Geraldton nearly all my life, and the whispers of a port being built in Oakagee come and go every few years. When OPR looked serious 3 years ago to build one (again) with the backing of Colin Barnett, times got exciting again and as this was more serious community forums were held. Now, I'm all for infrastructure, job creation, and liking the flow on effect for local businesses, housing price increase and what not, but after attending these forums, talking to many people, I'm not sure Oakagee will ever progress further than an announcement on paper and heres why:
1) The swells at the local port in Gero (even after all the trenching done) where Karara atm have a 16mtpa capacity restrict free flow off ships, and contribute to hundreds of ship ropes being snapped each year; this is a great safety concern as when one of those ropes snap, it will ripped in two anything or human in its recoil. The concern here is that no locals can even anchor anywhere near Oakagee as the swells are too rough.
The response given by OPR at the time is that a rock crushing company in Iceland create a breakwater as expected, but there is no natural cove area at Oakagee and the tidal energy coming into the port even with a breakwater would see those panamax ships at a stand still for days being rocked around on the rough seas.
2) The second biggest concern raised at the community forums was the proposed rail link. There is annual flooding proven where the line is proposed to go, making trains at a stand still for days on end if they were to ever lay the line.
Then there is the fact that the port would be an eyesaw for the region, if you have ever visited the coast of Geraldton and its foreshore its quite stunning. So all in all, it might be a waste of money if free flow of ships and trains cannot occur to support the output of IO from the region.
HOWEVER, at one of the forums a local man from Dongara stood up and told OPR for years many people have known that a place 20km south of Dongara (a half hour drive south of Gero) on the coast exists which has a natural cove, is already deep water so want need trenching, and is closer for a rail link than geraldton, and the price, only $500 million rather than $6 Billion.
I asked Colin Barnett myself why this wasn't looked at, and he said the area wouldnt be world class, as in too small for the demand of ships. IMHO a study should be done to see if the Dongara location could be expanded to accompany future IO growth and allow free flow of ships, trains and the safety of all those involved in construction and maintenance.
GBG Price at posting:
6.0¢ Sentiment: Hold Disclosure: Held
