Bulk cargo is like gold dust for the Australian Government and it is therefore no surprise that major investments in boosting iron ore and/or coal trade are fully supported. Recently, two major initiatives boosted port expansion and development in Australia – one is part of new Australian agreements with China while the other is a major initiative by the New South Wales government. At Abbot Point, Queensland the Chinese are involved in a new coal mining development including the railway infrastructure while at Oakajee in Western Australia they support a rail project and the construction of a deepwater port. The planned initial annual capacity of the port is 45 million tonnes and features two Cape Class berths. The terminal will be designed for easy expansion in order to increase capacity as and when. The integrated rail network would connect the new port with mines in the Mid-West, and would be linked to other rail links in the state. According to former Prime Minister, Kevin Rudd, the development in Abbot Point is linked to a trade agreement with China and is worth USD8 billion and “is expected to result in approximately AUSD4 billion in exports every year for 25 years.” The construction of the new port at Oakajee will be financed by Karara Mining and China Development Bank Corporation. Both parties agreed to an investment of USD1.2 billion for the construction along with its rail infrastructure, while the New South Wales government (together with the Australian Government) is contributing an additional USD345 million for the port infrastructure including the construction of the channel, breakwater, turning basin, navigational aids, port administration offices and associated roads and utilities. This infrastructure will be government-owned with port users being charged for its use on a commercial basis. The state will also own the adjacent industrial estate. The port is scheduled to open in 2014. Earlier this year, BHP Billiton announced approval for USD1.93 billion of capital expenditure to increase installed capacity at the company’s Western Australia iron ore assets to 240 million tonnes per annum during calendar year 2013. The expenditure will allow early procurement of long lead time items and detailed engineering to continue the expansion of the inner harbour at Port Hedland, progress rail track duplication works and expand the Jimblebar mining operation. “This investment is the continuation of our long-term strategy of adding capacity in our high quality iron ore business to support our confidence in the longer term demand for iron ore globally,” said Ian Ashby, BHP Billiton President, Iron Ore. In June 2009, BHP Billiton and Rio Tinto signed an agreement of core principles to establish a production joint venture covering the entirety of both companies’ Western Australian iron ore assets. As a result, Rio Tinto will have the option to participate in the developments by paying its share of invested capital but this decision will be made after the Joint Venture transaction is completed, estimated to occur in the second half of 2010. But it may not only be dry bulk that the Government is interested in, other investments in container port expansion plans have also been announced despite the fragile global economy. Recently, Sydney Port Corporation announced that it will invest AUSD314.4 million to improve Port Botany. This will include a further AUSD168.7 million to be spent on the Port Botany Container Terminal Expansion project, which is to create a new 1.8km wharf with five new shipping berths. While, Port Kembla Port Corporation announced that it will invest AUSD23.8 million in reclaiming an initial 8-10 hectares of land and developing the Outer Harbour. And the Port of Newcastle will see investments of almost AUSD8 million to improve port infrastructure and services.
Brisbane optimistic about the future
For the first time in 25 years, the port of Brisbane recorded a decrease in container throughput in 2009 handling 876,744 TEU down 10.10% on 2008 when it handled a total of 952,678TEU. However, the Port is optimistic about the future and says that a return to positive container growth is expected by the end of the year, due to increased construction activity and import retail products. Port of Brisbane Pty Ltd (PBPL) is committed to the long-term growth and development of the port. Over the last two decades, PBPL has invested over AusD1.6 billion in capital works, and plans to spend another AusD870 million over the next five years. Major infrastructure projects finalised in 2009, included the early completion of berth 10, PBPL’s seventh dedicated container berth. This project enabled Patrick Terminals to open its new state-of-the-art terminal 10 Autostrad facility and DP World Brisbane to begin an expansion of its container terminals on berths 4, 5 and 6. Each operator now has approximately 900m of quayline, which can simultaneously accommodate six large container vessels. PBPL is also progressing with the construction and design of its next two container facilities – berths 11 and 12 – to be operated by the port’s new stevedore Hutchison Port Holdings. The berths are due for completion in 2012 and 2014, respectively. Beyond this, PBPL is continuing to develop its 230ha Future Port Expansion precinct, to provide additional land and quayline for future port-related activities. In 2009 PBPL also completed its second common-user wharf, the general purpose wharf, which will provide additional capacity for bulk and project cargoes. Work is also underway on the duplication of the Captain Bishop Bridge, which will include major upgrades to the port’s main entry point to maintain efficient port access. Development of PBPL’s port transport and logistics precincts is continuing. Port Gate, located minutes from the main Fisherman Islands port complex, is already well established as a warehousing and freight-forwarding precinct, and negotiations are underway to secure tenants for the remaining land. While Port West, located 6km from Fisherman Islands at Lytton – ultimately boasting 90ha of land, three wharves and over 900m of quayline – is in the early stages of planning and will support the future needs of the motor vehicle and general cargo industries. 2009 marked a significant year in the port’s history, with a decision made by the Queensland Government that the Port of Brisbane Corporation (now Port of Brisbane Pty Ltd) will become a private entity. This process is well underway and it is likely the final transaction will occur in the last quarter of 2010.
Melbourne predicts modest growth
In 2009 the Port of Melbourne handled 2,085,988 TEU representing a drop of 9.43 percent on the 2008 figure of 2,303,186 TEU. Encouragingly, the Port is forecasting an estimated 2,235,800 TEU for 2010. Port of Melbourne Corporation (PoMC) owns and manages 510 hectares of port land including 34 commercial berths at five docks and at river wharves with a total length of nearly seven kilometers. Two modern, purpose-built international container terminals at Swanson Dock are the centrepiece for Australia’s international container trade and a number of multi-purpose terminals handle cargo including timber, paper, iron and steel. In terms of international container trade, Patrick, part of the Australian publicly listed company Asciano Limited, operates berths 1-4 at the Swanson Dock East terminal with a total land area of 40 hectares and a length of 884m. DP World operates berths 1-4 at the Swanson Dock West terminal with a land area of around 30 hectares. The Port of Melbourne hosts the largest motor vehicle terminal in Australia and also provides specialised berths for dry cargo including cement, sugar, grain and gypsum, as well as berths for handling bulk liquids from petrochemicals to crude oil and molasses. The Station Pier facilities cater for both international and domestic passengers. In November 2009, Port of Melbourne Corporation completed its award-winning Channel Deepening Project – the largest marine infrastructure project in the history of the port. Completed well under bud
get, ahead of schedule and within strict environmental guidelines, project provides a draught of 14m at all tides exceeding the previous 11.6m constraint. In addition to dredging nearly 23 million cubic meters of sand and silt, the project involved numerous major construction works, including re-positioning and installing 25 land-based and marine navigation aids and providing vital berth upgrades for use by shipping vessels. According to PoMC the project set new benchmarks for innovation in terms of its alliance contracting arrangement with the Dutch dredging partner Royal Boskalis, the scope and methodology of its environmental monitoring and in the solutions it devised and adopted to meet specific challenges including underwater service protection and dredging of hard rock at the entrance to the bay. Major rehabilitation of all eight berths at Swanson Dock (East and West) has been completed representing a US$335 million investment. This important project extended the life of the berths at Swanson Dock by repairing or replacing steel piles and concrete sheeting, rehabilitating the fenders and replacing crane rails. The project also included the largest cathodic protection program of its type ever undertaken in Australia and helps bolster Swanson Dock’s claim to being the largest and most efficient container terminal in this country.
Sydney highlights its strength
Sydney Ports Corporation reported total container throughput of 1,792,320 TEU in 2009 representing a drop of 3.49% on the 2008 figure of 1,856,971 TEU. The drop is attributed to the global financial crisis with low businesses confidence and the reduction of private investment affecting the import consumption across New South Wales (NSW). Full container imports were down 4.8% on the previous year. However, healthy growth conditions in North-West and Central-West regions of NSW and a favourable exchange rate have supported the rise of full container exports which were up 6.2% on the previous year. Like many ports worldwide, Sydney is expecting a modest rise this year and says a total of 1,842,861 TEU is forecast for 2009/10. This represents a 3.3% growth in comparison to 2008/09 TEU throughput. Sydney Ports Corporation is highlighting its strength as a leader of Australian ports through a number of major infrastructure developments and regular engagement with industry stakeholders and customers to improve port performance and facilitate future trade growth. As Sydney continues to grow, so does the demand for imports and exports and the associated distribution and delivery of these goods. One of the future challenges for Sydney’s ports is to accommodate this steady growth in trade. As such, Sydney Ports is taking a leadership role by working with industry to implement various initiatives and infrastructure projects to improve the port’s performance and help facilitate this forecast future trade growth. These initiatives and projects include the Port Botany Landside Improvement Strategy (PBLIS); the Port Botany Expansion (PBE) Project and the Intermodal Logistics Centre (ILC) at Enfield.
The AUSD1 billion, 60 hectare, Port Botany Expansion (PBE) project involves constructing a third container terminal (T3) at Port Botany and is one of the largest port infrastructure projects undertaken in Australia in the last 30 years. Once completed, the new terminal will double the current container handling capacity of the port as well as introducing further competition and efficiencies at the stevedoring level. In December 2009, Hutchison Port Holdings (HPH) signed a 30-year lease with Sydney Ports Corporation (SPC) to develop and operate four of the five T3 berths. Construction of T3 is well underway and operations are scheduled to commence in 2012. In an ambitious move to increase efficiency, consistency, transparency and productivity at the port, the New South Wales (NSW) Government in Australia is pioneering a world first by regulating stevedore and carrier performance at Port Botany. These landmark reforms will help ease daily truck congestion and freight delays at the port. The first phase of the reforms will involve a new Operational Performance Management (OPM) framework between stevedores and transport carriers at Port Botany. The proposed framework establishes a clear commercial relationship between carriers and stevedores whereby penalties would be paid by either party for failing to achieve agreed performance benchmarks. As part of the PBLIS solution, the OPM will also be supported by new technology at the port which will accurately and transparently monitor landside operations. Sydney Ports will introduce new truck tracking monitoring technology to independently monitor the flow of trucks in and out of the port precinct. This will ensure there can be no argument over the performance of stevedores and truck carriers. A key part of the plan to manage congestion will be the proposed construction of a truck marshalling area in the precinct. This will provide a designated facility including driver amenities for truck drivers waiting to access stevedore terminals PBLIS will complement both the PBE Project and ILC at Enfield development by improving landside transport infrastructure over the next 10 years.
Hedland gearing up for growth
The Port Hedland Port Authority (PHPA) achieved a record port tonnage of 178.6 million tonnes in financial year 2009-10 (168.8mt in calendar year 2009 with projected throughput of 201.4mt for 2010), representing growth of approximately 20 million tonnes from the previous financial year. The PHPA is the largest tonnage port in Australia and the largest iron ore port in the world and largest bulk minerals export port in the world. Iron ore exports continue to dominate port trade (Port Hedland Port’s trade by tonnage is 97% iron ore), with the balance comprising other bulk minerals, salt, petroleum products, general cargo, livestock and acid. Should existing port customer expansion plans and a number of proponent development plans within the Inner Harbour proceed, it may well see the port more than double the current tonnage levels in the next 3 years. The full development of the inner harbour in the coming years could well see trade levels exceed 400 million tonnes a year. Expansion beyond 495mtpa or so would require to be handled through the planned multi-user Outer Harbour port facility which will have a capacity of 400mtpa, bringing PHPA’s iron ore export potential to beyond 800mtpa. Future plans including the Outer Harbour will clearly provide export means for the next 20 years for those seeking to export via Port Hedland. PHPA has also been concentrating on the construction of a multi-user berth at Utah Point. The Utah Point project includes dredging, the multi-user public berth with a capacity of about 18 million tonnes per annum and is able to accommodate Panamax and small Cape size vessels of up to 120,000dwt, a travelling shiploader designed to load at a rate of up to 7,500 tonnes per hour will be installed and associated materials handling infrastructure, a multi-user stockyard facility and new access road to Finucane Island. The wharf, access road and civil works for the project are now complete. The bulk of the outstanding scope, involving the completion of final steel erection and mechanical and electrical fit-out and commissioning is scheduled for the end October 2010. Once constructed, the Utah Point berth will bring significant economic and regional benefits including facilitating trade for current and emerging iron ore and other mineral producers; helping alleviate the impact of truck movements through the town of Port Hedland and reduce congestion at the three existing PHPA common-user berths, It will also free up available capacity for extra trade of general cargo, containers and new bulk trade over the existing PHPA berths and improving amenity, reducing dust and health risks at the west end of the town of Port Hedland with the relocation of manganese and chromite stockpiles away from the town to be exported through the Utah Point berth. Export capacity in the Inner Harbour is limited and constrained
to a maximum of 495 million tonnes per annum due to a number of factors including significant tidal variations, operational constraints and necessity to have safe separation distances between departing ships. Furthermore, there are a limited number of berths that are able to be constructed as well as and environmental and heritage constraints. With the expected increase in vessel movements, size of ships and throughput in the Port Hedland Inner Harbour the Port Authority is continuing to investigate ways in which capacity can be optimised in the Inner Harbour, whilst still ensuring that the harbour is managed with a high standard of safety. The PHPA recently completed a high spot dredging campaign in the Inner Harbour channel to increase the available draught of departing vessels, thereby optimising the capacity available in the Inner Harbour to meet the medium term requirements for future iron ore exporters. The objective of the project was to identify and remove high spots within the channel using the Leonardo da Vinci dredger and achieve an increase in available draught of between 0.2m and 0.5m using a cutter suction dredger. This project has been successfully completed and currently the Port Authority is awaiting the results of a survey to quantify the improvement in the channel draught. The PHPA also identified the need to undertake yearly maintenance dredging campaigns to maintain the depths within the channel to design depth and remove siltation losses in order to be able to operate at the higher level of throughput. The PHPA is planning to lease a trailer suction hopper dredger to undertake the maintenance dredging annually in lieu of 3 yearly. Other Port Authority’s in Western Australia would benefit from this arrangement as the PHPA will provide hire opportunities and sharing of the dredger amongst other Ports needing to undertake maintenance dredging campaigns. The PHPA conducted an Expression of Interest process and has received submissions from companies/consortia to provide a long term lease and manning of the trailer suction hopper dredger. The submissions are currently being assessed. PHPA has also been investing in new equipment and technology. The Cavotec MoorMaster suction mooring system, the Rocktec twin mobile feed hopper trains and the custom built shiploader are innovative and specialised pieces of equipment sourced for Port Hedland Port Authority’s Utah Point multi-user berth project. The new MoorMaster suction mooring system offers a number of benefits over conventional rope mooring, including increased speed of mooring and releasing vessels, and enhancing the safety for personnel and crews working on wharves. The suction mooring system uses 14 vacuum units, capable of handling ships with 120,000 tonnes deadweight at Utah Point. The installation of this new system at Utah Point may encourage other proponents in the Port Hedland Inner Harbour investigating for their future berths in the port, to do away with ropes and use suction pads to secure their vessels. The Rocktec twin mobile feed hopper trains, which are part of the Utah Point shiploading system, have been delivered at the Utah Point wharf site. The mobile feed hoppers are a specialised piece of equipment which will be installed and connected together on 400m of railway, that can drive alongside the stockpiled ore and take the ore from large front-end loaders, loading from the stockpile, through the feed hopper into an overland conveyor, which then feeds the shiploader directly into the ship’s hold. The two mobile feed hopper trains can feed onto the shiploading system at a rate of 7,500 tonnes per hour and the equipment is fully automated and can be controlled remotely from the Port Hedland Port Authority’s control room.