3.2 Regions and Prospects

The South West benefits from a high-quality road network, strengthened by the recently completed Wilman Wadandi Highway and Bussell Highway duplication. These projects have improved access to the future Waterloo Industrial Area, Kemerton, Bunbury Port, the timber precinct and the Capes region, while delivering an efficient, continuous dual carriageway between Perth and Busselton.

As traffic grows, future constraints are expected along the coastal route from Mandurah to Dunsborough. Priorities include grade-separated intersections on the Forrest and Bussell highways, duplication of the Busselton Bypass, and construction of the Vasse-Dunsborough Link which will support residential and industrial growth, airport access, and increasing freight movements. Additional passing opportunities are also required on South Western Highway.

The main Perth-Bunbury (Claisebrook-Picton) line has been close to capacity for some time, particularly from Brunswick to Picton where freight from Worsley and Collie join the line to Bunbury Port.

Priority should be given to practical staged investments: Brunswick–Picton capacity improvements, Bunbury Port rail access, grade separation where justified, and strategic assessment of intermodal terminal opportunities to support supply chain efficiencies, productivity and industry growth.

Upgraded Bunbury-Perth passenger services have been restored and will be boosted by four new, three-car train sets that will enter service in stages over 12 months.

The Australind train will return to full service levels later in the year and will double services from 2027.

The port operates across the Inner and Outer Harbours, although management of the southern section of the latter has been handed to the WA Department of Transport. This will free up land for integration into the Bunbury Waterfront project over the coming decade.

The Inner Harbour features 400ha of quality and available development land with potential to accommodate overflows from Kwinana and Fremantle. Bunbury Port has continued to meet regional trade demand since it was founded in 1864 and adapts to market changes. Current trade continues to be 17-18mtpa. Organic growth is expected in the years ahead.

While the Westport Taskforce recommendations on container options focused on Perth, about 30,000 TEUs (Twenty-foot Equivalent Units) are now generated in the South West each year. Pressures on the Western Trade Coast has maintained interest in Bunbury as a roll on/off (ro-ro) port, and several studies continue to focus on the future trade scenarios on the West Coast.

Regionally, the port has a critical role in facilitating trade and servicing the resources sector which produces the bulk of the region’s output wealth. With changing energy demands, the port is experiencing greater engagement with renewable energy projects and will continue to facilitate the future energy trade requirements for the region.

Busselton Margaret River Airport (BMRA) is the region’s principal aviation gateway. Recent airside redevelopment has delivered a 2,520m runway capable of accommodating Code 4E aircraft (Boeing 737s, Airbus A320 and A330 models) with the capacity to reach China.

Jetstar is the primary passenger carrier, operating direct flights to Melbourne and Sydney. BMRA also supports 36 scheduled fly in fly out (FIFO) charter flights to eleven mine sites across Western Australia, reinforcing its importance to the resources sector.

Passenger growth has surged, with over 200,000 travellers ex-pected again in 2026 - almost a tenfold increase over six years. This growth is delivering strong economic returns, boosting visitor spending across accommodation, hospitality and tourism experiences, and supporting hundreds of local jobs. However, demand is now exceeding existing landside capacity, placing pressure on facilities and limiting further growth.

To fully realise BMRA’s potential, targeted investment is essential. A fit for purpose terminal and expanded landside infra-structure are critical to accommodating future demand, improving passenger experience and attracting additional airline services. Without this investment, the region risks constraining tourism growth and missing broader economic opportunities.

Beyond scheduled services, BMRA supports emergency services, tourism operators, charters and general aviation, and serves as an alternate airport to Perth. With adjoining greenfield land available, the airport features lease-ready lots and is well placed to support future expansion in freight, logistics and aviation related industries - strengthening its role as a key economic driver for the South West.

Bunbury Airport has WA’s highest number of light aircraft movements after Jandakot in Perth. Bunbury services private aviators and supports three flying schools as well as the region’s rescue helicopter and seasonal water bombers. The site is home to more than 50 hangars and 100 aircraft. Expansion would require the realignment of the South Western Highway.

Manjimup Airfield caters for various aviation services such as the RFDS, emergency fire-fighting, private aircraft and has a small number of FIFO flights.

The energy landscape is creating opportunities and unprecedented threats in equal measure. The Australian Energy Market Operator (AEMO) 2025 report concludes that 1,700 MW of ageing coal and gas power stations are expected to retire from 2027-32. There are plans to phase out coal by 2030, but renewable energy projects will not be developed fast enough to cover a predicted 932 MW shortfall in the next two years.

Coordinated by WA Treasury, the SWIS Demand Assessment estimates peak demand in the South West Interconnected System (SWIS) will more than triple by 2042. That means the South West could require up to 51GW of new energy generation and storage capacity to meet the needs of industry over the next 20 years. That will leave the South West with a serious energy supply deficit although 500MW of new grid-scale batteries are help balance supply and demand which is being challenged a lengthening demand period – and growth.

Batteries are also helping to stabilise the grid as Australians ‘electrify’ their homes.

With shortfall predicted, the reality is that if coal-fired power stations closures are firm, then there will need to be significant (and immediate) energy investment.

Collie is at the centre of the SWIS transmission network and has attracted multi-billion-dollar battery investments. These will help stabilise the grid and better manage solar. Domestic penetration of rooftop solar in WA is the highest in the world and it is expected to blow out to 50% by 2030.

The 2025 Electrical Statement of Opportunities report notes: “In 2027-28, following the closure of more coal-fired generation, more capacity will need to be procured … to avert energy shortfalls that are otherwise forecast to become more prevalent. While there is substantial continued interest in battery storage to help maintain reliable supply, investment in storage alone will not suffice. At least 110 MW of new generation sources such as gas, wind and solar generation will be required.”

The South West economy is dominated by manufacturing. Albemarle, South32, Iluka Resources, Tronox and Simcoa all have huge energy demands. Resolving the energy challenge is the leading issue in the region. It is unlikely that sufficiently scaled wind infrastructure will be producing energy before 2033-34. It is therefore increasingly urgent that projects are fast-tracked as soon as possible, along with an extended transmission line network to take best advantage of low population and consistent, clean wind opportunities.

The region also needs to look to green hydrogen. The WA Renewable Hydrogen Roadmap supports remote communities and fuelling vehicles, particularly in return-to-base operations such as mining and waste services.

Water security will be one of the region’s greatest challenges. CSIRO found that the South West was ‘one of the most water challenged’ parts of the country. Rainfall has declined 15% since 1975 and continues to see a contraction along a NW-SE axis towards Cape Leeuwin.

Agriculture uses about 60% of all water in the region and 185GL Wellington Dam (the State’s second largest surface water supply) is increasing in salinity. The dam’s salinity levels of 1,000-1,500 mg/L (WA Government) have resulted from clearing in Collie River East Branch and are well above the 500 mg/L total dissolved salts acceptable for potable water. It is also considered too high for sustaining irrigation. Industry leaders believe that water is under-valued and so users can be wasteful, particularly in industry.

The prospects for water security are concerning without significant investment. It is preferred that interventions are pre-emptive rather than reactive.

The South West is well served by reliable nbn digital infrastructure, with Business Fibre Zones operating in Bunbury, Busselton, Margaret River and Collie, and an expanding fibre footprint across the region.

Eligible residential customers can access services supporting download speeds of up to 2 Gbps on full fibre connections, while businesses within Business Fibre Zones can access enterprise-grade fibre services supporting symmetrical speeds of up to 10 Gbps.

Continued investment in nbn’s fixed wireless network, fibre expansion and Low Earth Orbit (LEO) satellite technologies is improving connectivity across all regional communities. These developments provide a strong foundation for the South West’s ambitions to establish a Digital Innovation District and Advanced Manufacturing and Technology Hub.

Telstra, with partners Ericsson and Qualcomm, recorded the world’s fastest 5G Standalone uplink speed on a live commercial network. Using mid band 5G spectrum assets, including aggregated spectrum in the 2.6 GHz and 3.6 GHz bands, the breakthrough reached peak uplink speeds of 682 Mbps which will ultimately support upload performance for real time, data intensive experiences such as live streams and the next generation of AI-first mobile apps.