A re-elected Labor government will provide $150 million to a new port authority to oversee the development of a deepwater port in regional South Australia.
The funds will allow the authority to borrow more than $500 million to develop the port in the Spencer Gulf, giving a boost to the agriculture and mining industries, Premier Jay Weatherill says.
"The evidence is the free-market hasn't delivered the port we need for South Australia so government is stepping up," Mr Weatherill told reporters on Saturday.
The port will help new mining projects export copper and iron ore to international markets, as well as lowering the costs of exporting grain.
"The flow-on benefits will be extraordinary for the whole state," Mr Weatherill said.
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It will create 400 jobs in the construction phase and roughly 100 ongoing positions.
Mr Weatherill said government has a role in partnership with private business to help develop critical infrastructure such as ports.
"The port business is a good business, it's just you need that capital investment from government to get it underway," Mr Weatherill said.
Opposition industry spokesman Corey Wingard said it was all talk and more detail was needed.
"After sixteen years Labor has talked about ports on and off ad nauseam and they haven't delivered, it is all talk," Mr Wingard said.
The South Australian Chamber of Mines and Energy said new port infrastructure was critical as the industry was facing an impending bottleneck due to expansion.
"Currently a third of South Australia's exports are generated by the resources sector and we have growth in this sector," chief executive Rebecca Knol said.
The port will be able to host cape-sized cargo ships and should be up and running within the next four years.
Mr Weatherill said a number of locations were being considered.
South Australia heads to the polls on March 17.
