The Geraldton Iron Ore Alliance says it is shocked by the Opposition's promise to withdraw state funding for the deepwater port project at Oakajee.

WA Labor wants to use $339 million that would have been allocated to the Oakajee Port and Rail project to help fund its urban Metronet rail network.

The alliance's CEO Rob Jefferies says it is not a sustainable plan and the Mid West iron ore province is relying on the port being built.

He says Labor is placing the needs of the city above those of the Mid West.

"If they're simply swapping the funding for a regional project with a project that's about services to a metropolitan area, than it's quite clear that they're putting their priorities elsewhere," he said.

He says Labor needs to clarify how the port could succeed without Government funding.

"What we need is a clear approach set out that would create a pathway for the industry to develop and for Oakajee to developed to enable us to take that next major step in production when industry is ready and when it's an appropriate time for Oakajee to be constructed to facilitate that," he said.

Labor signalled last month it would withdraw state funding for the project if it wins government and ensure the project was privately funded.

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