The Western Australia state government plans to sell Fremantle Port, the country’s fourth largest general cargo port, through a long-term lease, to retire debt and fund major new projects, according to the government’s official statement.
The state’s Premier Colin Barnett and Treasurer Mike Nahan announced the plans as part of a second tranche of asset sales in the proposed state budget.
Premier Barnett said the Government had decided to sell Fremantle Port in order to continue building the economic infrastructure of the state without adding to debt.
”The decision to pursue a sensible program of further asset sales will enable the Government to build new infrastructure to support future growth without putting further pressure on the State’s finances,” Barnett said.
The statement does not say when Fremantle Port will be put up for sale, neither does it reveal the amount the state expects to get from the sale. But based on the recent sales of Newcastle and Botany ports, it is expected that Fremantle Port will fetch up to AUD 1.5 billion (USD 1.2bn).
The move to sell the port was interpreted as a response to China’s lowered demand for the state’s natural resources, as well as falling iron ore prices.
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