Iron Road: $250m Eyre Peninsula port moves a step closer following Macquarie Capital agreement
A major investment bank has signed on to help develop a new port in South Australia’s west in a project proponents say will transform the region.
SA Business
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A $250m multi-commodity port at Cape Hardy on the Eyre Peninsula has moved a step closer after Macquarie Capital signed a joint development agreement for the project.
The port will help grain producers export their produce from the peninsula, and after further development stages, it would be used for other commodities, including iron ore.
About 7km south of Port Neill, it will feature a 900m jetty, wharf and landholding of 1100ha.
The port’s proponents say it would provide cheaper freight for up to 1.5 million tonnes of grain each year.
Eyre Peninsula Co-operative Bulk Handling (EPCBH) chief executive Tim Scholz said the project would be “transformational” for the cropping community and getting the backing of “a leading Australian institution” was a major step.
“It’s been a lot hard work to get to this point so it’s terrific,” the Wudinna farmer said.
The Federal Government last year announced a $25.6m upgrade of key lower Eyre Peninsula freight routes in a bid to attract multimillion-dollar developments to the region, including supporting the deepwater port.
The project, to generate about 400 direct and indirect jobs during construction, is also on Infrastructure Australia’s priority list.
“Iron ore is a key element of the project but we’ve had a lot of interest from other sectors for other commodities … so that will be a developing project. Grain is merely the first stage,” Mr Scholz said.
Macquarie Capital will provide financial advisory services as well as being a joint developer.
The State Government granted major development authorisation for the port in 2017, as part of the broader $2.4bn Central Eyre Iron Project, which aims to link an iron ore mine near Wudinna with the proposed port.
The proponents will now seek a variation to the approval to allow it to be developed in stages.
Iron Road chief executive Larry Ingle said the company had been working with key stakeholders on the port plan since 2012.
“A major partnership milestone with Macquarie Capital and EPCBH represents a key step forward in de-risking this important project for South Australia,” he said.
Project proponents hope to reach financial close during the second half of next year, allowing construction to start ahead of it being operational in early 2023.
Free Eyre is pursuing plans for a separate port about 10km south of Cape Hardy.