SW infrastructure support urgent

The urgency for more infrastructure in the South West has ‘‘ramped up’’ following the sale of Griffin Coal assets to an Indian power company, according to the Bunbury-Wellington Economic Alliance.

Alliance chief executive officer Matt Granger said last week’s announcement that Lanco Infratech Ltd agreed to buy Rick Stowe’s failed coal mining empire for an undisclosed sum should prompt Government attention towards upgrading key transport infrastructure.

It is expected that the winning bidder will be looking to export significant tonnages of coal for power generation in India, with the Port of Bunbury the closest export port.

Mr Granger said the announcement boosted the case for investment in transport infrastructure.

‘‘This represents an exciting opportunity for Collie and the South West, but should also focus government attention on transport bottlenecks,’’ he said.

‘‘The Roads to Export report clearly demonstrates the business case for public funding towards duplicating the rail line between Brunswick and Bunbury port, diverting the Preston River to unlock the inner harbor, finishing the Bunbury Outer Ring Road, and fully upgrading the Coalfields Highway and Eelup roundabout.

‘‘BWEA in partnership with the South West Development Commission, the Bunbury Port Authority and the Chamber of Minerals & Energy, has been strongly advocating the case for addressing infrastructure bottlenecks with State and Federal Governments and industry.

‘‘The urgency has just ramped up.’’

Last week Griffin Coal’s administrator, Brian McMaster from Korda-Mentha, said Lanco’s ownership was expected to bring substantial investment to the region.

The company, one of India’s largest private power traders, is expected to expand the mine operations and associated infrastructure, particularly for the port and rail.

Lanco chief financial officer Suresh Kumar said the company was committed to ‘‘making a significant contribution to the Collie community and the South West region’’.

The company appears financially stable with a market capitalisation of about US$3 billion.

Chamber of Minerals and Energy WA chief executive Reg Howard-Smith said the latest WA Budget snapshot highlights the crucial role the resource sector is playing in securing the State’s finances.

The 2010-11 Government Mid-Year Financial Projections Statement shows an increased projected budget surplus of $758 million, built on the back of a 25 per cent increase in predicted royalty revenue.