The proposed sale is part of the state budget revealed on Friday, 15 May. Last year, the government announced the privatisation of Port Hedland and the sale of Utah Point Terminal and Kwinana Bulk Terminal.
The cause of the sale is due to plummeting ore prices and lost royalties. The fall in iron ore prices also threatened to put iron ore miner Atlas out of business and out of the market for port facilities after it emerged it would take over the Utah facility.
In a bid to keep miners afloat the government also offered a reduced rate per tonnes in user charges for 12 months at Utah Point, which made the port a less attractive option to buyers.
The Port of Fremantle, Australia’s fourth largest container port, is expected to come onto the market within the next 12 months for an estimated USD1.2 billion and a 49-year concession.
In financial year 2014 the port generated USD53.6 million in earnings before interest and taxation.