The State Government of Western Australia has introduced enabling legislation to State Parliament for the long-term lease of Fremantle Port to the private sector.

According to sources, Port Assets Bill 2016 would provide the legal framework for the Government's plan to move Fremantle Port to the private sector through a long-term lease for a period of up to 99 years.

The legislation is another key milestone in the Government's plan to reduce debt and fund future infrastructure.

In May 2015 we published that ​The government of Western Australia had announced plans to imminently sell the Fremantle port, its largest and busiest general cargo port.

The government would sell the port in an effort to maintain its AAA credit rating by reducing its debt, which is expected to reach $30 billion by 2018.

According to sources, without the long-term lease of Fremantle Port, the Government would not be able to invest in important infrastructure to allow the movement of livestock facilities from the Inner Harbour to the Outer Harbour.

The access and pricing regime, key elements which are now set out in the legislation, includes a number of protections designed to ensure continued fair access to relevant port facilities and services and to mitigate the risk of potential abuse of market power and unfair pricing.  The Economic Regulation Authority will be the regulator of the access and pricing regime.

Referring to sources, the legislation also ensured the Government would retain oversight of any new Port Lessee through a restructured Fremantle Port Authority (FPA).

The introduction of the legislation follows extensive consultation with key stakeholders, including the Chamber of Commerce and Industry of WA, WA Livestock Exporters Association, the Pastoralists and Graziers Association of WA, the WAFarmers and CBH Group.

It also comes after the consideration of key policy issues and supporting analysis related to the divestment from joint lead financial advisers Rothschild and Deloitte, which included infrastructure needs to support trade growth and modelling of the Inner Harbour's capacity to determine the timing for the proposed Outer Harbour development.

Premier Colin Barnett said:

"The long-term lease of Fremantle Port will be a cornerstone of the Government's fiscal management plan, aimed at reducing Government debt and unlocking the potential for private sector capital investment to develop economic infrastructure to support and grow the Western Australian economy.

Together with the proceeds of other transactions under the Government's asset sales program, the Fremantle Port divestment is an important enabler of the funding future infrastructure initiative announced by the Treasurer when he delivered the 2016-17 State Budget last week."

Treasurer Mike Nahan said:

"The Harbour Master function will be maintained by the FPA, allowing effective oversight over marine safety and access for users to the waterways.  The Government will also be responsible for approving the Port Lessee's master plan for development and have an ongoing supervisory role for any future development proposals.

Recognising the importance of maximising the taxpayers' return on investment from the existing infrastructure, the Government is committed to the continuation of the Fremantle Inner Harbour as a container and general cargo port for the longer term.

Analysis of capacity and trade growth has confirmed the Outer Harbour, which would be additional to the Inner Harbour operations, will not be required for at least 15 years and probably much longer.  Allowing the Inner Harbour to reach its natural capacity means port prices will remain lower for all users, with the benefits passed on to the community."