Freight costs hurt region
A new study is investigating ways the Pilbara’s high freight costs can be brought down through better connections between the region and outside world.
The Pilbara Freight Demand Analysis, driven by the City of Karratha in response to concerns raised by Karratha and Districts Chamber of Commerce members, is looking into regional air, sea and road freight opportunities to tackle chronic issues faced by local businesses including high costs, uncertainty and limited scalability.
Karratha Mayor Peter Long said the majority of freight to and from Karratha was processed through various distribution channels in Perth.
“Industry has shown a high degree of interest and demand for more efficient and affordable freight options, including the potential of maritime and aviation routes,” he said.
“Working closely with industry stakeholders and government, the City is keen to better understand the demand for freight into the Pilbara, with a view of facilitating improvements in efficiency and reducing costs to support businesses.”
KDCCI chief executive Kylah Morrison said freight costs in the Pilbara put local businesses at a disadvantage when competing for major contracts.
“The cost of freight is making them not as costcompetitive as businesses from outside the region,” she said.