Peninsula Ports presses forward with Eyre Peninsula plans
The first contracts have been signed on Peninsula Ports planned new Eyre Peninsula grain-only port facility.
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The company behind the proposed $200 million specialist grain port at Port Spencer on the Eyre Peninsula has signed up two key contractors and is in advanced negotiations with a third.
Adelaide-based national engineering and project management team Wallbridge Gilbert Aztec has begun detailing design for the site, as well as defining the scope and design of the causeway – the lead-in to the proposed deep water jetty which is the centrepiece of the project.
Major South Australian civil engineering and construction company Bardavcol will also shortly begin early stage earthworks on the site, which will initially hold 800,000 tonnes of grain in bunkers and 50,000 tonnes in silos.
Project spokesman, Gary Neave of ProManage, said a contract to model wave movements at the site was expected to be awarded in the near future. ProManage is managing delivery of the Port Spencer project on behalf of Peninsula Ports.
“Port Spencer is well on track to realise its plans to become Eyre Peninsula’s newest grain export terminal,” Mr Neave said.
Grain receivals are expected to start from the 2021 harvest.
“Since Peninsula Ports purchased the project from Centrex Metals in June last year – complete with approvals and major project status from the State Government – the team has been working steadily towards the 2021 harvest target,” Mr Neave said.
The work has included appointment of four ECI (Early Contractor Involvement) contractors to fast-track specialist components of the project including the wharf, shiploader, bunker storage and silo storage facilities. ECI is a method of construction contracting that allows a builder to become involved, and potentially start work, before the design has been completed.
Local Adelaide stockbrokers Baker Young were appointed lead managers for project fundraising last year.
There were also discussions with Deputy Prime Minister Michael McCormack about funding support and road construction support in January.
Earlier this month, Baker Young negotiated a joint fundraising position with a leading London-based investment house to top up expected interest from local farmers and investors and provide further equity support for the project.
When complete, Port Spencer will be one of two deep water ports in the region enabling large Panamax vessels, carrying up to 80,000 tonnes of grain, to be loaded efficiently, cost effectively and largely irrespective of weather conditions.
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Mr Neave said the Port Spencer facility would also reintroduce grower ownership and control of critical grain supply infrastructure and deliver up to about $40 million in annual freight savings to Eyre Peninsula growers.
He said another advantage of the Port Spencer proposal was the potential removal of about 20,000 truck movements through Port Lincoln – an unwelcome consequence of the closure of rail on the Eyre Peninsula last year.
Mr Neave said the final steps on the pathway to construction included sign-off of the amendment to the Public Environmental Report, and Ministerial sign-off and registration of the Indigenous Land Use Agreement unanimously endorsed by the Barngarla Determination Aboriginal Corporation.