Eyre Peninsula businesses say deep-sea port needed to grow region
A deep-sea port on the Eyre Peninsula would make the region globally competitive and lead to further investment along the coastline, according the regional development group.
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A deep-sea port on the Eyre Peninsula would make the region globally competitive and lead to further investment along the coastline, according the regional development group.
Whyalla and Eyre Peninsula Regional Development Australia chief executive Dion Dorward said they had advocated for a deep-sea port in the region to open up export markets.
“We advocate for infrastructure that makes us globally competitive and diversifies our economy and this sort of infrastructure does both,” Mr Dorward said.
“We believe the best proposition for a new port on the Eyre Peninsula … is to build a new port at Cape Hardy and it’s about it being a multi-commodity, multi-user port.”
The RDA identified a cost and price disadvantage for the region’s grain producers directly related to the lack of access to a multi-user, multi-use export facility.
Currently, the majority of the grain is exported from Viterra’s Port Lincoln wharf, but with the future of its rail access uncertain another port is needed, Mr Dorward said.
“A new port at Cape Hardy would take a lot of pressure off grain being delivered by road into Port Lincoln by creating an alternative destination for the grain.”
Iron Road has proposed a $145 million deepwater port at Cape Hardy for the export of iron ore from its Central Eyre Iron Project and up to million tonnes of grain per annum.
The project has received all the necessary approvals and can start subject to current partner/investor discussions and a final investment decision.
“We’ve considered various proposals over the years, but this proposal is the only one that really qualifies in terms of everything required for an integrated transport solution for our region,” Mr Dorward said.
He said the deep sea port had an attached 1100ha land area available for long-term multi-industry development, which was already generating investor interest.
He was “confident” the proposal would progress due of the “demand” for that scale of infrastructure.
So much so, there are two other proposed ports in the district and one currently underway at Lucky Bay — none are deep-sea wharves.
T-Ports is building a port and grain bunker at Lucky Bay, near Cowell, and another bunker at Lock, as part of a $115 million development.
T-Ports chief executive Kieran Carvill was aware Eyre Peninsula growers had been promised many things, but the Lucky Bay project would be operational for the 2019/20 harvest.
“We are confident this development will provide grain growers the competition in the EP supply chain they’ve been waiting a long time for,’ Mr Carvill said.
The movement of grain will be reliant on a bespoke transhipment vessel, which has a capacity of 3500 tonnes, due for delivery into Australian waters in mid-2019.
GFG Alliance has also outlined its intention to open up the steelworks port at Whyalla to drive economic development in the region and would include the export of grain.
Last week, Cu-River Mining announced its plan to build a port on the site of the former Port Augusta coal-fired power station to export iron ore.
Under the plan, barges would be loaded at the port and then sail into deeper waters in the Spencer Gulf so iron ore could be trans-shipped to larger vessels.
Port power
T-PORTS, LUCKY BAY
Project: A farmer and private equity partnership, providing an export facility and bunker storage.
Cost: $115 million
Status: Bunker sites at Lock and Lucky Bay completed. Operational to receive grower delivers for harvest 2019/20. Exports from the port in December/January.
Principal commodities: Grain and fertiliser.
FLINDERS PORTS, PORT BONYTHON
Project: A privately-funded bulk commodities deep-sea port, with storage buildings and a rail connections.
Cost: $600-$700 million
Status: Granted major project status in 2012, but the process was suspended in 2013/14 due to a lack of requirement in the area for a deep water port.
Principal commodities: Iron ore
GFG ALLIANCE/SIMEC INFRASTRUCTURE, WHYALLA
Project: Open the port, which mainly services the steelworks and SIMEC’s mines, to allow for more economic development, including grain export.
Cost: Not disclosed
Status: The port is already servicing multiple users
Principal commodities: Iron ore, coal and steel.
MULTI-USE DEEP SEA PORT, CAPE HARDY
Project: The collaboration is to develop a modern, multi-commodity, deep water port for mineral and agricultural export.
Cost: $145 million
Status: Approved as a multi-commodity port.
Principal commodities: Iron ore, grain
FREE EYRE LIMITED, PORT SPENCER
Project: Deep-sea multi-commodity port and grain storage facility. FEL is a public company owned by grain growers.
Cost: $140 million
Status: Yet to receive all approvals or funding.
Principal commodities: Grain
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