ATSB probe launched into how iron ore carrier FMG Nicola almost blocked WA’s Port Hedland

The ATSB says it wasn’t given ‘reportable factual details’ and it will now investigate an emergency at Port Hedland when the fully loaded iron ore carrier FMG Nicola broke down.

Port Hedland, Western Australia. Picture: istock

Australia’s peak transport safety authority has launched a belated investigation into an emergency triggered by a Fortescue iron ore carrier at the world’s biggest bulk export port.

The Australian Transport Safety Bureau was by its own account kept in the dark about the full extent of the FMG Nicola incident at Port Hedland on the West Australian coast, as revealed in The Australian last week.

The ATSB said on Tuesday that it is investigating a propulsion failure during pilotage of the FMG Nicola on February 7.

The authority said “reportable factual details about the incident were not provided to the ATSB” in a statement that case doubt on compliance with reporting procedures.

The Australian on July 8 and 9 revealed a whistleblower’s account of how seven tugs pulled the FMG Nicola to safety and prevented a grounding that had the potential to shut down Port Hedland for months and cut off iron ore supply to China.

The port is used by BHP, Fortescue and Gina Rinehart’s Roy Hill.

The world’s biggest iron ore gateway: Port Hedland.

Fortescue and the WA government controlled Pilbara Ports Authority had remained publicly silent on the emergency until contacted by this masthead.

The ATSB said it was only made aware of new information about the incident this month, and made follow-up inquiries with the port authority and the Australian Maritime Safety Authority.

It opted to launch its own investigation.

It said the fully-laden bulk carrier named after the spouse of Fortescue executive chair Andrew Forrest, from whom he is separated, departed its berth in Port Hedland with three harbour pilots and with four tugs assisting at about 2pm on February 7.

“At 1516 (3.16pm), as the ship approached the turn to port through beacons 31 and 32, the ship’s main engine shut down and propulsion was lost. The ship veered off track, travelling along near the side of the channel. Port Hedland vessel traffic service was contacted and directed three additional tugs to assist the ship.”

The ship was stabilised and restarted.

“The additional tugs arrived and were secured at 1545, and the third pilot returned via helicopter. The ship was then conducted along the remainder of the channel.”

The ATSB has started collecting available evidence from relevant parties for its investigation.

The port authority on Tuesday defended its actions and its track record in handling the export of iron ore and lithium valued at more than $170bn last year.

“At the time of the incident, the matter was reported to AMSA by the vessel’s management (Fortescue). The incident was also reported to the vessel’s classification society and the flag state (Singapore),” Captain Philip Christy, executive general manager marine at Pilbara Ports, said.

“The incident is not a secret. It, together with the findings of a detailed investigation, have been broadly shared with port users, marine pilots, tug crews, and other stakeholders. Numerous process changes have been made following the incident, including changes to training protocols and vessel transit speed in the channel.”

The Australian highlighted concerns about the operation and management of Port Hedland among senior figures in the ports and resources industries, who said the FMG Nicola emergency and other unreported incidents were cause for alarm.

A “hard” grounding in the shipping channel would take at least six months to clear and deal a huge blow to the terms of trade.

Sources with knowledge of the incident, who asked not to be identified, said the FMG Nicola may have hit the edge of the shipping channel. But Fortescue maintains the FMG Nicola did not leave the channel.

BHP’s tug fleet – including the Iron Brolga, Iron Corella and RT (roto-tug) Atlantis – played a key role in the rescue.

In response to series of questions last week, the port authority declined to reveal whether the carrier strayed outside the narrow shipping channel and into shallower territory. “The vessel had not grounded,” Pilbara Ports said.

Pilbara Ports said last week that a report was made to the Australian Maritime Safety Authority, and the ATSB was informed but determined that no investigation was needed.

On July 4, the port authority issued a marine safety bulletin describing a series of vessel emergencies at Port Hedland in the first six months of 2025.

There were nine incidents involving engine failures or other problems. In six cases, vessel emergencies were declared and additional tugs deployed. In another, berthing was aborted and the vessel returned to anchor offshore.

The ATSB said on Tuesday that an anonymous report at the time of the FMG Nicola incident was followed up with relevant authorities, however no further information was provided nor were any official reports submitted.

“In response to recent media coverage, the ATSB made further enquiries with responsible reporting parties and subsequently received information to justify an investigation decision,” it said. Fortescue was contacted for comment.