MACRO Realty Developments

Hedland port looks to increase access

Mar 25, 2014  View More Articles

The Port Hedland Port Authority has been quietly working on proposals to increase access to port space for iron ore miners, considering proposals for new terminals at Finucane Island and Lumsden Point.

PHPA yesterday confirmed it was considering proposals for both outer and inner-harbour developments aimed at providing precious new space for existing exporters and mining hopefuls. The plans could lift Port Hedland iron ore exports well above the theoretical 500 million-tonne-a-year export cap set by the limitations of the shipping channel.

New facilities, likely to be built and run by specialist infrastructure companies, would also increase third-party access to the harbour, dominated by BHP Billiton and Fortescue Metals Group.

The Qube Ports-run Utah Point facility, capable of exporting 20mtpa to 22mtpa, is the only third-party export terminal at Port Hedland. Even Utah – likely to be sold by the State Government over the next year – is not an option for new players as it is locked into contracts with Atlas Iron, Mineral Resources and Consolidated Minerals.

The only other undeveloped area set aside for juniors, North West Infrastructure’s South West Creek berths, is controlled by Atlas and Brockman Iron.

A PHPA spokesman confirmed it was considering a number of industry-backed proposals at Lumsden Point, east of Fortescue’s Anderson Point berths.

Lumsden is also the site of plans for improved general cargo facilities and a Department of Commerce-backed fabrication and services facility.

While PHPA would not comment on specific proposals, it is believed one industry-backed plan has pitched a trans-shipping arrangement in which shallow-draft barges would ship ore to bulk carriers offshore. Barges would likely move at low tide, when bigger vessels are stuck at their berths. That would reduce the need for harbour dredging and drastically cut costs.

Sources suggest there is demand for a facility capable of shipping at least 15mtpa.

PHPA is likely to circulate proposals to stakeholders within the next six to 12 months.

The outer harbour plan includes options to build up to eight berths off Finucane Island, next to BHP’s mothballed $20 billion outer-harbour development.

That would likely be more expensive because it would need channel dredging and construction of a long jetty servicing ship berths sitting off the coast.

Source: http://au.news.yahoo.com/thewest/business/a/22088987/hedland-port-looks-to-increase-access/

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