Movements of bulk cargoes along the Australian coast services are threatened by proposed new regulations governing domestic shipping, writes Michael King.
The national Labor government led by Julia Gillard ambitiously plans to overhaul and rebuild Australia’s maritime and seafaring sector with wave of legislation due to enter force in July 2012. But a cacophony of criticism has rained down on minsters. The naysayers believe the reforms could end up driving cargo off the ocean and onto rail and road. Others believe that some consumers of bulk products could instead turn to imports rather than pay for higher-cost domestic products.
Dale Cole, executive chairman of the National Bulk Commodities Group, which represents commodity shippers and receivers, told DCI that the first salvo of the planned reforms which entered into force at the start of this year was already making Australian suppliers of some cargoes uncompetitive in their domestic market.
Introduced under the Fair Work Act, it ruled that foreign-flag vessels must pay crew Australian wages when in Australian waters if they have loaded coastal cargoes under permit twice before in the previous 12 months.
Cole said this was encouraging some buyers to source dry bulk products overseas because freight costs for coastal shipping had become prohibitive. “Some cargoes are shipped in small parcels,” he explained.
“Because the freight costs along the coast have risen, the costs of importing the same cargo from overseas are similar. The higher shipping costs are, for example, making soda ash from Portland, Oregon in the US competitive against suppliers in Adelaide into markets like Newcastle in New South Wales. We’re also seeing this trend in fertilizer markets.”
Cole believes Australian shippers will be further negatively affected in domestic markets if government plans to scrap the existing permit system are pushed through. Cole said the government must “guarantee its reforms do not lead to a further escalation in coastal freight rates.”
At present international bulk carrier operators are able to operate on coastal routes if they first acquire a licence and pay Australian wage rates to seafarers. However, more commonly, and usually as part of a series of port calls on an international service, they apply for Single Voyage (SVP) or Continuing Voyage Permits (CVP).This allows foreign-flag carriage of domestic cargo if no licensed or declared Australia-flag vessel is available three
days before or after the proposed loading date. Although the system has been tightened up in recent months, hundreds of permits have still been issued this year — issued on the basis that the voyage was in the public interest and no licensed vessel was available.
However, a discussion paper Reforming Australia’s Shipping published last December proposed the scrapping of the present system of continuing and single voyage permits. The Labor government hopes this will create room for Australia-based shipping operators to compete more effectively in coastal markets.
The plan is supported by a range of measures such as new maritime tax arrangements to attract greater investment into the industry, the establishment of a second Australian shipping register, the overhaul of seafarer training and the modernization of domestic maritime laws.
Under the proposals, shipping lines loading cargo on coastal routes would have three options post July-2012. If the ship were registered or owned by an Australian and crewed by Australians, the operator could apply for a general licence. The alternatives would be to apply for either a temporary or a single voyage licence. However, unless the crew, flag or owner/operator were Australian, these would only be issued if strict criteria were met. The conditions of a successful application are, at present, rather vaguely defined but could in theory apply if the vessel was to ply a new route of unique benefit to Australian industry, if the vessel was a short-term replacement for a licensed ship, or if the temporary or single voyage licence in some way benefitted the interests of the Australian shipping industry’s long-term development.
While supporting most of the reforms, including the creation of a second register, a submission to Ministers by NBCG concluded that changes to the permit system “at the same time or in advance of financial, taxation and second register reforms are counterproductive and should be reconsidered”.
Cole said that SVPs and CVPs existed to fill a gap. “As the proposed fiscal and financial reforms boost the Australian fleet their purpose will automatically decline,” said NBCG. “To act prematurely before the reforms have become embedded will leave some NBCG members disadvantaged.
Dry bulk cargo movements in 2008/09, according to one source, totalled almost 33mt (million tonnes). Of this only 7.5mt were carried by vessels using a permit. “The government must guarantee its reforms do not lead to an escalation in freight rates to transport the 7.5mt currently carried by permit vessels,” said the NBCG submission. “Because consignees and/or receivers have access to international alternatives, the challenge for Government is to warrant that the employment opportunities for those Australians employed by Australian dry bulk suppliers are not placed in jeopardy as a consequence of increases in domestic freight rates.
“Some NBCG members manufacture dry bulk commodities that are under severe competitive pressure from international suppliers. Any increase in domestic shipping freight rates due to changes in the regulatory framework has the potential to undermine their businesses and put at risk employment opportunities for Australians and undermine their company’s investment strategies.”
Final input on the planned reforms from three Ministerial reference bodies was due to be submitted at the end of May for assessment. Given that the government hopes to have a new system in place by mid-2012, this means new legislation will have to be drafted and passed by the end of this year.
Cole is optimistic that ministers might re-assess their initial policy plans. “They have been surprised by the extent of the push-back from industry,” he said. “I wouldn’t want to judge the outcome, but I think different departments know there a number of issues still.
“Specifically, industry would like to know what, if the permit system is invalidated, will be introduced in its place? We believe that for now, foreign-flag ships are needed here in Australia under a form of permit arrangement.”
Llew Russell, CEO of Shipping Australia, told DCI that there was no reason to scrap the current permit system and was optimistic that the reforms would not pass into law in their current outline form. “They could have further tightened the existing permit system to further favour Australian vessels.
“They have done this to some extent already and the market has accepted it, even though it has basically just translated into higher costs.
“Ministers have suggested that in some way the existing system is somehow an abuse — that consignees and operators conspire so there is no Australian-licensed ship available to take the load. That’s really hard to see, that someone would delay their own shipments.
“The 100-year-old coastal permit system was itself a compromise between the competing interests of the ship owners and the shippers of coastal cargo.
“Under the current system, if a licensed Australian flag vessel is available on the coast a permit cannot be issued. Why change a system if it ain’t broke?”
“We think this is wrong and bad policy. They are aiming to have this underway by mid-2012 which we think is optimistic.
“We’re not going to give up on this and as time goes on we’re getting more confident of a positive outcome. We think they might be starting to rethink their approach.”
 
 
QMASTOR’s supply chain management software used throughout the globe
QMASTOR Limited is a major global provider of software solutions catering to the needs of the dry bulk sector. Its software has been implemented by some of the world’s largest mining companies and port operations and has been utilized for coal, iron ore, nickel, bauxite and copper/gold.
QMASTOR provides two product suites, each addressing the specific requirements of each component of the dry bulk sector supply chain. The Mine Suite comprises Pit to Port®, Pit to Plant®, Port to Plant®, SMS3D®, iFuse®, HorizonTMAPS and Metallurgical AccountantTM, while the Port Suite features PortVuTM, SMS3D®, iFuse® and HorizonTMAPS.
The benefits of using a supply chain management information system have become well recognized. In many instances mining operators and ports have run multi-million dollar operations on spreadsheets. While use of these tools is commonplace, they lack audit, business continuity and security functions and are not easily scaled to meet corporate growth requirements.
While the above key benefits of implementing QMASTOR’s Mine and Port Suites relate to audit and security, QMASTOR’s clients have experienced further benefits which contribute towards both the top- and bottom-line, including:
  • increased tonnage throughput;
  • reduced demurrage charges;
  • improved quality/grade control; and
  • achievement of a single view of the supply chain visibility.
 
At a practical level, these benefits have been achieved through:
  • proactive planning and management of contracts, shipments, transportation and stockpiles;
  • alignment of planned outages;
  • reduced actual operational delays and stock outages; and
  • reduced quality penalties which reduces a shipper’s top line revenue
 
Significant productivity and efficiency improvements are common outcomes as a result of high degrees of automation of data capture from bulk terminals control systems, transportation providers, laboratories, and bulk commodity shippers.
This increased awareness of the benefits of using specialized bulk supply chain management systems has seen recent success for QMASTOR in the bulk terminals sector. Dalrymple Bay Coal Terminal (DBCT), Newcastle Coal Infrastructure Group’s (NCIG) new terminal at Newcastle Port,Westshore Terminals and an unnamed iron ore export terminal have all recently selected QMASTOR’s Port Suite.
At DBCT at the Port of Hay Point, QMASTOR’s Port Suite will provide a comprehensive coal management system, providing coal tracking and inventory management across the Dalrymple Bay supply chain, including:
  • rail receivals;
  • stockyard management;
  • shiploading;
  • vessel management;
  • shipping documentation; and
  • web-based reporting.
 
QMASTOR has also supplied NCIG with a bulk terminal management system that has formed a mission critical component of the coal export terminal’s core operations. Functionality provided by QMASTOR includes: y core supply chain modelling; y supplying mine nominations and interactions; y transportation/logistics scheduling and tracking; y stockyard inventory management including advanced 3D stockpile modelling; y terminal task and route management; y delay management; y shipping and marine management; y shipping documentation; y advanced planning and scheduling; and y systems integration including terminal equipment via historian (OSIsoft Pi), laboratories, third-party rail systems, maintenance system.
Westshore Terminals, Canada’s largest coal terminal, recently selected QMASTOR’s Port Suite components PortVu, iFuse and QMetrics to provide a bulk terminal management system. Functionality to be provided by QMASTOR includes:
  • stockyard and inventory management;
  • voyage and vessel management;
  • rail and logistics planning;
  • equipment, task and route planning;
  • customer and third party web interfaces;
  • integration to rail providers; and
  • QMetrics KPI and Management Dashboards.
 
The newest addition to QMASTOR’s Mine and Port Suites, HorizonTMAPS, provides a platform for optimized planning and
execution of shipping logistics. This latest addition to QMASTOR’s software suite portfolio has provided an optimized Advanced Planning and Scheduling solution for a client’s two iron ore export ports in Western Australia.
Peter Charnock, General Manager – Global Sales & Marketing of QMASTOR Limited stated “It is imperative that bulk terminals look to not only maximize terminal throughput and minimize demurrage with their existing capacity, but also look at ways in which to achieve significant time and cost efficiencies within their core terminal operations. QMASTOR can provide such business benefits.”
QMASTOR’s software suites are currently contracted to manage over 750 million tonnes of bulk commodity movements per annum in coal, iron ore, nickel, bauxite and copper/gold.Their client list includes BHP Billiton,Vale, Rio Tinto,Anglo American, Xstrata and Peabody.
With offices now located in Australia, Africa, North America and South America, QMASTOR’s international expansion is continuing and enquiries are welcome, wherever the customer’s bulk terminal or mining operation is located.
 
 
Port of Newcastle, diverse Australian port
The Port of Newcastle is one of Australia’s most diverse regional ports and one of the world’s largest coal export ports.
With over 1,700 ship visits a year, the port provides major economic benefit to the city, the region and the State of New South Wales (NSW).
The export of coal is the ports’ core trade, however over 40 different commodities are handled through the port including alumina, aluminium, cement, fertilizer products, forestry products, grain, mineral concentrates, petroleum products and steel. As one of the most diverse regional ports, businesses in the Port of Newcastle have the expertise to manage all types of cargo.
Infrastructure within the port can handle all types of cargo including dry bulk, bulk liquids, break bulk, project, passenger and containers.The Port of Newcastle is a critical supply chain interface for the movement of cargo and includes 18 operational berths, 11 of which are allocated to handling a range of cargoes and 7 dedicated to the handling of coal.
Newcastle Port Corporation is a state owned corporation. Its role is to provide safe, effective and sustainable port operations and deliver efficient port development that enhances the economic growth of the Hunter Region and New South Wales. By working with its stakeholders the Corporation aims to deliver opportunity that is mutually beneficial.
Whilst coal continues to be the port’s major export, expertise in handling other project cargo, dry bulk and bulk liquid products has enabled strong growth in these commodities. Total trade through the port in 2009–10 was valued at $13.05 billion, with coal trade valued at almost $10 billion. In 2009–10 the total tonnage handled through the port increased by 7.5% to reach over 103 million tonnes.
Newcastle Port Corporation owns and manages over 610 hectares of port land within five defined precincts – Carrington, Mayfield,Walsh Point, Kooragang Coal and Kooragang Future Development. Much of this land is allocated to current or future trade but a range of development opportunities still exist for port related industry.
The former BHP Steelworks site located within the Mayfield Precinct has 90 hectares of river front land and can support a diverse range of infrastructure, including bulk and general cargo, bulk liquid and container terminals. Newcastle Port Corporation envisages development on this site will focus on the growing maritime trade and offer regional and statewide commercial rewards.The Mayfield site is close to the Newcastle CBD and perfectly positioned within the Port of Newcastle accessible by effective road, rail and sea links.
In support of this unique development opportunity, Newcastle Port Corporation invested $25 million to provide new berth infrastructure at the site. Mayfield No.4 Berth was officially opened in March 2010 and consists of a 265 metre long wharf area and 10,000m2 adjoining hardstand for port-related uses such as cargo handling, storage and assembly area.
The Port of Newcastle is a thriving commercial port recognized as a major strategic asset for the New South Wales economy and a generator of employment for thousands of people both directly and indirectly.
 
Laing O’Rourke delivers new BHP railway in the Pilbara
The first train has travelled on the recently completed 42km railway through the Chichester Range in Western Australia.
Laing O’Rourke has been constructing additional rail track in Western Australia as part of BHP Billiton Iron Ore’s growth plans in the Pilbara.
As part of this project, the organization recently delivered a new 42km railway for the Chichester Deviation works — including earthworks of 1.4 million cubic metres, of which almost 900,000m3 was rock.
Work began on the railway in January 2010. Laing O’Rourke’s
Michael McCann said the project included 10km of duplication and 32km of new railway through the ranges. “This project allowed us to demonstrate our expert capabilities in delivering projects in challenging environments. We were extremely aware of the environmental sensitivities of the Chichester Range area throughout the entire delivery of the project,” he said.
“We put measures in place to make sure we did not bring any dirt, dust, seeds, vegetation or insects into the area and that we did not take anything out. We are extremely pleased with the way the project was completed.”
 
 
India’s Adani to buy Australia’s Abbot Point for $2 billion
India’s Adani Enterprises has agreed to buy Abbot Point Coal Terminal in Australia for $2 billion in an all-cash deal to tap into growing coal traffic in overseas markets, a unit of the Indian firm said recently.
Indian firms are eyeing coal assets overseas to supply power plants in India, looking to benefit from the energy-hungry nation’s aim to halve its nearly 14% peak- hour power deficit within two years.
The Abbot Point Coal deal is one of the largest acquisitions of an Australian asset by an Indian company since Adani acquired Linc Energy’s Galilee coal project for $2.7 billion last August.
Analysts said the acquisition of the terminal by Mundra Port and Special Economic Zone, the port operating arm of Adani, would help Adani ship coal from Galilee to its power plants in India and tap into the growing coal cargo in the region.
“It’s a good deal for Mundra Port as the Abbot Point terminal will have assured cargo from Adani’s own mine there as well as other coal mines in the region,” said Kapil Yadav, a sector analyst with Mumbai brokerage Dolat Capital.
“The deal will have an impact on the company’s balance sheet in the near term due to the debt taken for this,” he added.
Mundra Port’s chief financial officer B. Ravi said the company had arranged short-term mezzanine debt to fund the deal and said Standard Chartered was arranging the debt. He did not disclose the amount.
India holds 10% of the world’s coal reserves, but a shortfall in local supplies has grown rapidly because of an increase in coal- fired power plants. The country is likely to import 135mt (million tonnes) of coal in the fiscal year that began on April 1.
 
BEATING COMPETITION
Mundra Port said the coal export port sold by the government of the state of Queensland is expanding to increase capacity to 50mt per year from about 20mt now.
Abbot Point Coal Terminal.
There is room to increase the port’s capacity to 80mt, Mundra Port said in a statement. The unit is India’s largest private port operator and handles 50mt of cargo annually.
Abbot Port is expected to generate revenue of A$110 million ($120.3 million) in 2011, growing it to A$305 million in 2016, Mundra Port said.
Sources familiar with the deal said that Adani, which was competing with Australian mining tycoon Nathan Tinkler, had won the bidding.
Located in North Queensland in Australia, the Abbot terminal services three mines in the Bowen Basin. The state of Queensland is selling the terminal as part of a A$15 billion infrastructure privatization programme.
The Queensland government has already raised at least $6.3 billion from the sale of the Port of Brisbane and the $4 billion float of rail freight business QR National Ltd.
“The (Abbot) transaction has delivered proceeds well above initial expectations of $1.5 billion,” Queensland Premier Anna Bligh said in a statement.
Bank of America Merrill Lynch advised the Queensland government on the deal. Mundra Port’s Ravi said the company did not use external advice for the acquisition.
($1 = 0.914 Australian Dollars)

 
Scantech introduces the XL analyser
Scantech, provider of process control solutions for bulk materials, announced the release of its New extra large (XL) model COALSCAN 9500X and Geoscan analysers earlier this year. The new analysers have significantly increased belt and bed depth capacities. The COALSCAN 9500X measures the quality of coal, the Geoscan-M measures the composition of various minerals and the Geoscan-C is used in cement plants for real time process control. The COALSCAN 9500X-XL and Geoscan-XL analysers accept a bed depth of up to 530mm and a belt width of up to 2,400mm.
 
COALSCAN
Historically the COALSCAN has been Scantech’s flagship. The first analyzer sold by Scantech was the COALSCAN
4500. Since then, the bestselling analyser has been the COALSCAN 3500, of which more than 100 have been installed all over the world.
COALSCANs are built to run 24 hours a day, 7 days a week, 365 days a year.
“The continual challenge is to harness technical development and focus it firmly on the needs of the end user,” says Ken Smith, chief research scientist at Scantech.
 
GEOSCAN
The GEOSCAN is an on-belt elemental analysis system for monitoring bulk materials such as limestone and iron ore.
It can be used on a very wide variety of applications, with automatic bed depth correction included as a standard feature. The GEOSCAN continuously analyses conveyed materials in
real time, providing accurate results as often as every one minute for demanding process control applications. Since the GEOSCAN fits on existing conveyor belts, additional sampling equipment, transfer points and material handling equipment are not required.
The GEOSCAN utilizes the technique known as Prompt Gamma Neutron Activation Analysis (PGNAA). The GEOSCAN incorporates high efficiency detectors and state-of-the-art digital spectrometer, which overcomes the limitations of conventional, low efficiency detection systems. The optional moisture analyser uses the microwave transmission technique to measure the moisture content of the material.
GEOSCAN — C is used in cement industry applications such as stockpile building and raw mix proportioning. The world’s major cement companies are successfully optimizing their plant operations using this technology.
GEOSCAN — M is used for minerals applications including ore and concentrate analysis. Units are currently installed in iron ore, manganese and copper mining and processing operations to
provide real time, full stream analysis for process control. The multi- element analyses are transmitted to the control system as weighted averaged dry weight percent through the use of belt weigher and moisture analyser inputs.
 
CUSTOMER SUPPORT
Scantech seeks to establish an on-going relationship with its customers.
This ensures they obtain optimum returns from the chosen process control
solution and if there is a problem, then it is addressed promptly and properly.
The company knows that downtime means a loss in productivity.
Scantech’s philosophy is that its 24 hour a day, seven day a week customer service and support must be second to none and that Scantech is associated with outstanding customer service and support via its global support network.
The company has an extensive range of warranty options, product and customer service agreements all of which can be tailored to suit each customer’s requirements.
 
PWCS approves latest phase of expansion worth $227 million
The Port Waratah Coal Services (PWCS) Board has approved commencement of the final stage of coal loading expansion at the Kooragang Island Terminal, ahead of the delivery of the new Terminal 4 (T4) loader.
PWCS, located in the Port of Newcastle, NSW, Australia, has committed $227.4 million to the ‘Project 145’ expansion, which will see PWCS capacity rise to 145mt (million tonnes) by the end of 2012.
The Project 145 approval means PWCS has now committed more than $1.8 billion dollars to coal loading infrastructure expansion projects over the past decade.
PWCS currently has nameplate capacity of 113mt, which will rise to 133mt later this year as a current $670 million expansion programme is finalized.
Project 145 will involve the installation of a fourth rail dump station, additional track infrastructure and upgrades to existing bucket-wheel reclaimer machines and ship loading facilities.
Project 145 is expected to be completed by December 2012.
“The coal industry is telling us it requires more coal loading capacity, and we are contractually obliged to deliver new capacity in the most timely manner possible,” PWCS chief executive officer Graham Davidson said.
“It is important that PWCS continues to expand to meet industry demand, in alignment with the Hunter Valley’s long-term coal export plan that was agreed by the entire industry and authorized by the Australian Competition and Consumer Commission.
“As per the industry agreement, we are confident that this latest expansion and the subsequent delivery of T4 will comfortably cater for the Hunter Valley’s long-term coal loading requirements.”
Davidson said as has been the case for many years at PWCS, preference would be given to employing local labour.
Subject to planning approvals, the multi-billion dollar T4 proposal could add more than 100mt of additional coal loading capacity at Newcastle once Project 145 is completed.
Pre-feasibility and planning work on T4 is well advanced, and the project is currently being assessed by the New South Wales Government, with the Commonwealth Government playing a key environmental assessment role.
“Given the demand to export coal from Newcastle, it is essential that PWCS continues to work closely with the New South Wales and Commonwealth Governments to ensure a smooth planning process and the timeliest delivery of T4,” Davidson said.
 
KOORAGANG COAL TERMINAL
Kooragang Coal Terminal, located on 255 hectares of land on Kooragang Island, began operating in 1984 with an initial shiploading capacity of 15mtpa (million tonnes per annum). “Kooragang” is an Aboriginal word meaning ‘place where birds gather’ (or alternately,‘place of many birds’). Originally managed by BHP, PWCS purchased the Kooragang facility in 1990. In the period from 1994-2008, PWCS has invested over one billion dollars to expand the capacity of the terminal. The shiploading capacity currently is 88mtpa.
 
ABOUT PWCS
PWCS operates one of the world’s largest coal handling operations.
PWCS operates two coal terminals, Carrington and Kooragang which are located in the Port of Newcastle. Carrington Coal Terminal has a shiploading capacity of 25mtpa and Kooragang Coal Terminal has a shiploading capacity of 88mtpa. These terminals receive, assemble and load Hunter Valley coal for export to customers around the world.


North Queensland Bulk Ports’ outlook positive, unaffected by wild weather
While Queensland’s wild weather has impacted on coal trade volumes this year, the outlook for North Queensland Bulk Ports Corporation (NQBP) is looking more positive than ever.
NQBP chief executive officer Brad Fish said extreme weather patterns around the world in the first part of 2011 had not left Queensland untouched, with flooding and cyclones taking their toll on infrastructure and delivery.
But while the industry had struggled to get coal to port at the unprecedented levels experienced before this year’s wild weather, it has now bounced back to produce what are expected to be respectable export totals by the end of the financial year.
Fish said NQBP’s coal ports at Abbot Point and Hay Point had suffered very little damage and, despite the weather, had managed to reach completion of one of the state’s most significant port projects.
“The 2009/10 year was a record year for NQBP, with port throughput significantly higher than the year before,” Fish said.
“We had been looking at even higher totals this financial year, but the heavy rain and strong winds experienced from January through to April have made it difficult for our customers to get their coal to the ports.
“Even so, we’re looking at strong throughput by the end of this financial year.
“In addition, we are now completing Queensland’s largest government-funded port expansion in history. The first ship to
receive coal from the massive X50 Expansion of Abbot Point Coal Terminal 1 (APT1) left the port with 44,000 tonnes of coal on May 10.
“We’re delighted to have met this milestone despite the significant challenges 2011 has posed.”
The X50 project began in 2008 as the largest government- funded port expansion project ever to be undertaken in Queensland. It more than doubles the current export capacity from 21mt (million tonnes) per annum to 50mt.
“It has been a successful construction process, and the outcome is being achieved with a second period of 1,000,000 man hours without any lost time injuries,” Fish said. “We congratulate consultants Aurecon Hatch and all who have been involved with this project.”
The X50 expansion includes the construction of a second berth 2.75km off-shore involving the installation of about 9,500 tonnes of structural steel and 2.9km of conveyors to transport the coal from the stockyard to the ships.
The new shiploader, which will allow coal to be loaded at a rate of up to 7,200 tonnes an hour, was fully fabricated in Brisbane, and the four new stacker reclaimers were built primarily in Queensland.
The Queensland Government has also announced a $1.8 billion, 99-year lease of Abbot Point Coal Terminal 1 to Mundra Port Pty Ltd, a subsidiary of Indian mining group Adani.
Proceeds from the $1.8 billion lease of APT1 will go to Queensland’s natural disaster recovery.
Under the agreement, NQBP will continue as lessor for the X50 terminal site and perform the role of Port Authority for the Port of Abbot Point, not only of the state-owned land in and around the Port of Abbot Point but also: y the port land on which the X50 coal loading facility is being built; y the existing jetty and wharf infrastructure; and y future expansion sites for terminals T2-T7 including the Multi Cargo Facility (MCF).
The transaction includes all infrastructure associated with the existing terminal, including the X50 upgrade that is nearing completion.
The Adani group is going ahead with plans for a $6.5 billion coal project in the Galilee Basin.
While there have been hiccoughs in the industry this year, Fish said projected demand was not only strong, but required further significant expansion of the port’s capacity.
He said NQBP was working with preferred developers Hancock Coal Limited and BHP Billiton Limited to progress two terminals (APT2 and APT3) which would take the port to a nominal capacity of 110mtpa (million tonnes per annum) and potentially 170mtpa.
Design work and environmental approvals are already under way for this project.
Queensland Premier Anna Bligh has also announced proponents are being sought for a $6.2 billion expansion which, when completed, will leave the port with a total of seven coal terminals and a capacity of close to 300mtpa — making it one of the largest coal ports in the world.
An expression of interest in the project is being advertised nationally and closes on 1 August.
Construction is expected to start in 2015, with exports starting from Terminal 4 (APT4) in 2017.
Each of the terminals will provide a nominal capacity of 30mtpa and will be located within the Abbot Point State Development area close to the deep water port.
Fish said the expansions would not only meet the steadily increasing demand for Queensland coal, but would underpin financial and economic growth in the Abbot Point State Development Area, and in Queensland.
“The Abbot Point expansion is a success story for Queensland,” Fish said.
“Confidence in our coal continued even throughout the global financial crisis and, through these projects, NQBP is taking a long-range view and working to ensure we stay ahead of that demand.
“We are also looking at Abbot Point as the next major industrial development in Queensland through development of a multi-cargo facility to look beyond coal.”
 
 
James Point Port announces schedule for port development
James Point Pty Ltd (JPPL) has formally advised the government of its intention to commence construction of its ‘Bulk and General Facility’ on 2 January 2013.
Both the Bulk and General Facility, together with a subsequent International Container Facility, are being developed in accordance with an operating agreement with the state government, and will be fully funded by the private sector.
The James Point Port will be located in the heart of the Kwinana Industrial Area between the BP refinery and the Kwinana Power Station and will abut existing industrial land on a 3.5km stretch of coast, within an overall water area of about 240ha.
JPPL was recently granted development approval for dredging and reclamation work required for its Bulk and General Facility.
“Environmental approval for the Bulk and General Facility was obtained in 2004,” said Dr Chris Whitaker, the chairman of JPPL. “In the meantime, it took nine years for the necessary amendment to be made to the Metropolitan Region Scheme. This was followed by a very protracted process to obtain development approval from the WA Planning Commission, and this necessitated an appeal to the State Administrative Tribunal.
“The company is delighted to have at last reached this stage, especially given the increasing pressure from prospective users for additional facilities to be provided as a matter of great urgency,” he said.
“James Point has been continually pressured by prospective users to nominate a start-up date, but we have been unable to do so until the necessary environmental and planning approvals were in place.
“Now that this has been achieved, the company has moved immediately (in accordance with the provisions of its operating agreement) to formally advise government of its intention to commence construction on 2 January 2013.
“This formal notice means that the government must now
excise the port area and lease it to JPPL. The company expects that this formal process will be finalized promptly.
“Construction will take up to eighteen months, meaning that the facility is planned to be operational in mid 2014,” Whitaker said.
Before construction commences, the company will be progressing a number of detailed studies which are required to satisfy the conditions attached to the approvals, together with technical studies for the final design. It is estimated that $15 million will be spent on these studies.
“The company has recently established a Stakeholder Reference Group. Its role is to advise the Minister for the Environment and the company on matters relating to the environmental approval,” Whitaker said.
“The Group has already held its first meeting, and the eminent scientist Dr Des Lord has been appointed as the independent chair.”
Meanwhile, the company is also advancing its work on an International Container Facility. In December 2010 the Environmental Protection Authority finalized the Environmental Scoping Document for the project, and the detailed scoping of studies is now under way.
“It is the company’s view that additional container facilities will be required about five or six years from now, and will help alleviate the growing pressure on road and rail infrastructure leading to and from the inner harbour. James Point is embarked on a timeline to enable additional facilities to be developed within this timeframe,” said Whitaker.
“James Point’s facilities for both bulk and container port infrastructure will provide much- needed additional capacity, and through competition with the Fremantle Port Authority’s facilities will provide real choice for importers and exporters.
That can only be good news for the state’s prospering economy,” Whitaker concluded.