Iron Road’s SA port a national priority project

IRON Road’s $US1.28 billion plan to build a heavy rail network and deepwater port on the Eyre Peninsula has been named as one of the top infrastructure priorities for the nation.

IRON Road’s $US1.28 billion plan to build a heavy rail network and deepwater port on the Eyre Peninsula has been named as one of the top infrastructure priorities for the nation.

Leapfrogging other local projects such as the sealing of the Strzelecki Track, the AdeLink Tram Network and the Gawler rail line upgrade, the project has been named as one of six priority projects nationwide.

This is the second highest ranking behind “high priority” projects of which there are four, two in New South Wales, one in Queensland and one in Western Australia.

The Darlington upgrade as part of the North South Corridor project has also been named a priority.

In theory Infrastructure Australia’s priority list provides guidance to the Federal Government about the projects which should be funded or supported first.

Iron Road’s total Central Eyre Iron Project (CEIP) involves a $US4 billion mine, port and rail solution, however the IA assessment was only for the port and rail elements, which would also have capacity for third party use.

The deepwater port would be situated at Cape Hardy, north of Tumby Bay, with the 148km rail line leading to an iron ore mine near Wudinna.

Once fully operational the project, if developed, would produce 24 million tonnes of ore per year.

The company is currently aiming to finalise a whole of project financing solution for the CEIP by the end of next year.

“Assessing a project for inclusion on the Infrastructure Priority List follows a rigorous process,’’ IA chief executive Philip Davies said.

“This enables us to give decision makers the information they need to invest in projects that best align with Australia’s national interests.

“Subject to the iron ore project going ahead, the Eyre Infrastructure Project has been added to the Infrastructure Priority List as a Priority Project. It addresses the need for additional high-capacity port and rail infrastructure on South Australia’s Eyre Peninsula to enable mineral resources exports.

“Should the iron ore development proceed, a heavy rail connection and deep water port at Cape Hardy will be essential in realising the mine’s substantial economic benefits, including up to 1000 new jobs in the region.

“When fully operational, the mine is expected to generate gross revenues of around $3 billion per year for a period of 25 years. This includes around $500 million per year in royalties and taxes for the South Australian and Australian Governments.

The Darlington project, an SA Government proposal to upgrade a 3.3km section of the North-South Corridor between South Road and the Southern Expressway, was seen as “central to realising the value of the overall corridor upgrade program.

“Along with its strategic value in reducing congestion in Adelaide, the Darlington upgrade will deliver improved access to Flinders University, Flinders Medical Centre and the Tonsley Park Redevelopment,” Mr Davies said.

Visit www.infrastructureaustralia.gov.au for the business case summaries and latest Infrastructure Priority List.