Derby Port management to be handed back to Kimberley Ports Authority

The Shire of Derby/West Kimberley has voted unanimously to transfer management of the Port of Derby to the Kimberley Ports Authority, ending almost three decades of local government control.

Councillors backed the move at their June 25 meeting, authorising chief executive Tamara Clarkson to negotiate the surrender of the shire’s port management lease and transfer responsibility for the port’s operations, maintenance and liabilities to the State-run authority.

The shire has managed the port under a lease and management agreement since 1997 and is the only local government in Western Australia to operate a port.

A report to the council said the ageing port had become an increasingly costly and risky asset.

“The port is a considerable piece of infrastructure, and its operations are complex, risky and contain significant unfunded liabilities,” the report said.

Council documents describe a 60-year-old wharf as in poor condition, with deteriorating ship-loading infrastructure requiring demolition, limited cargo capacity and no realistic prospect of dredging because of the cost.

The report said while the port still had strategic value for barging operations, small domestic vessels and potential defence-related activity, “the overall management of a port is not a core service traditionally delivered or funded by local government”.

The decision follows negotiations that began last year under then-commissioner Jeff Gooding, who said the port had become an unsustainable financial burden after recording more than $1.2 million in losses over 14 years.

“We must cut off the bleeding part, which is the liability of the port,” Mr Gooding said at the time.

“After 27 years, we haven’t been able to get to a position where that port is going to pay for itself and we don’t see anything in the immediate future that’s going to change that.”

Under the new arrangements the shire will retain responsibility for community access to the recreational jetty and boat ramps.

Reading the motion before councillors, Shire of Derby/West Kimberley president Peter McCumstie said the chief executive would be directed “to ensure ongoing consultation with Kimberley Ports Authority to ensure community and recreation use of the jetty and boat ramps”.

The shire has previously said the transfer would not affect public access to the jetty or coastline, with community, tourism and recreational use to continue unchanged.

The motion was carried unanimously, with all seven councillors voting in favour.