Port Spencer deep-water grain export port secures funding, construction to start

A $250m grain export port has secured funding from a Dubai-based firm, paving the way to construction next month.

Construction of a $250m grain exports port on Eyre Peninsula is expected to begin in June, after it secured funding from a Dubai-based commodities trading firm.

The Port Spencer grain export facility, located 20km northeast of Tumby Bay, will have the capacity to store 800,000 tonnes of grain and is planned to be operational in time for the 2023 harvest.

It is being backed by Aria Commodities – a global commodities trading company that invests in agricultural infrastructure projects across the world, and has recently broken into the Australian market.

As part of the deal Free Eyre – a consortium of close to 500 Eyre Peninsula grain growers – will remain a shareholder in the deep-water port, which is expected to create up to 150 jobs during construction and a further 20 permanent jobs once operational.

Artist's impression of the Port Spencer facility. Picture: Supplied by Peninsula Ports

That number is expected to peak at 80 staff during grain harvest periods.

Peninsula Ports took over the project from mining company Centrex Metals in 2019, and its chair John Crosby said the deal with Aria would unlock economic benefits for the region and the state.

“Aria Commodities is expanding in Australia and it sees Port Spencer as the ideal location to support Eyre Peninsula farmers as they export their high-quality grains to countries throughout the world,” he said.

“Once the deep-water port is built there will be significant benefits for the region, and we hope it will provide an economic boost to not just the Eyre Peninsula, but to the state as a whole.”

Mr Crosby said the port would significantly reduce truck movements through to Port Lincoln, and would save growers up to $20 a tonne in costs by eliminating double handling.

Grain would be stored directly on site and then transported via conveyor belts on to ships with a loading capacity of 2400 tonnes per hour.

Mr Crosby said the facility would also provide a closer export option for dozens of farmers in the region, significantly cutting delivery times and transport and handling costs.

“The directors of Free Eyre and Peninsula Ports are delighted to be able to take the final step towards building a new port to aid the further development of the grain industry on Eyre Peninsula, while maintaining the direct connection between farmers and their market,” he said.

Peninsula Ports secured final state government approvals for the project in 2020.

It has signed an Indigenous land use agreement with the local Barngarla community, and says job opportunities will be available to the group.

Aria has offices in Dubai, across Europe and in the US, and recently partnered with WA company AAAX Agricultural Exports to bulk ship and trade grain from several WA ports.