PORT HEDLANDPORT AUTHORITY

Lumsden Point Development

August 2012

Port Hedland Overview• Iron Ore Exports

– 105 mtpa 2005/06– 246 mtpa 2011/12– 487 mtpa 2016/17 (forecast)

• Berths– Current

• 11 Cape Size Iron Ore Berth• 1 Multi User Mini Cape Bulk Berth (Utah Point)• 3 General Cargo Berths

– Approved (inner harbour)• 16 Cape Size Iron Ore Berths (inc. South West Creek)• 1 Multi User Mini Cape Bulk Berth (Utah Point)• 3 General Cargo Berths

Iron Ore Exports

Actual

Forecast

Non Iron Ore Overview

• Port Hedland Berths 1 – 3 used for General & Bulk Cargo– Fuel– Salt– Copper Concentrates– Containers– General Cargo – Project Cargo– Rail – tracks, locomotives, bogies

General Cargo – Existing Berths

Non Iron Ore Trade Growth• General cargo activity linked to exports – Department

of Transport estimates this at 1 – 1.5% of throughput• Cargo forecast, including general cargo, to grow from

4.9 mtpa in 2011/12 to 9.2 mtpa 2016/17• Capacity of 6.3-6.5 mtpa at existing berths to be

reached in 2012/13 • Significant congestion of the berths expected beyond

this timeframe• Growth in export berths has not been matched by

growth in general cargo berths

Non Iron Ore Trade Growth

Acid & Caustic Soda0%

Containers0% Copper Concentrate (bulk)

10%Gen-eral

Cargo7%

Oil22%Salt

60%

2010/11 ActualAcid & Caustic Soda

0%Containers

3% Copper Concentrate (bulk)4%

Gen-eral

Cargo8%

Rock18%

Man-ganes

e (bulk)10%

Oil17%

Salt40%

2016/17 Forecast

Relation berth occupancy/waiting time – General Cargo

Port performance and Productivity: Source United Nations Conference on Trade and Development (UNCTAD)

2 - Berth case

Berth CongestionLumsden Constructed 2014

* Rock Load Out for 2 years 2015/16-2016/17* 100% berth occupancy reflects 70% actual berth usage, plus vessel sailing and change over, and berth maintenance

2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

-20%

0%

20%

40%

60%

80%

100%

120%

140%

Berth Occupancy 2011-2017

PH1

PH2

PH3

Lu1

Lu2

Bert

h O

ccup

ancy

(%)

Berth Congestion Lumsden Constructed 2015

* Rock Load Out for 2 years 2015/16-2016/17* 100% berth occupancy reflects 70% actual berth usage, plus vessel sailing and change over, and berth maintenance

2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

-20%

0%

20%

40%

60%

80%

100%

120%

140%

Berth Occupancy 2011-2017

PH1

PH2

PH3

Lu1

Lu2

Bert

h O

ccup

ancy

(%)

Channel Capacity• A & B Class

– Priority sailing for iron ore vessels – loaded and empty

– Tidal constrained• C Class

– PHPA Utah Point and General Cargo– Typically non tide constrained

• Other – D Class

Inner Harbour Capacity

AllocationsInner Harbour

PHPA 30 Mtpa

BHP 240 Mtpa

FMG 120 Mtpa

RHI 55 Mtpa

NWIOA 50 MtpaTotal 495 Mtpa

Outer Harbour

BHP “Quantum” 200 Mtpa Multi-User 200 Mtpa

Total* 400 Mtpa

* Can be increased

Channel Capacity

18.3m

14.3m

AM Peak

A & B Class Tide Sailings

C Class Non Tide Con-strained Sail-

ings

A & B Class Entry - Empty

Theoretical Channel Capacity based on a 6 Cape Size Vessel per tide configura-tion:4380 number of Slots Calculated as follows: 365 days x 2 Tides x 6 vessels per tide

4 Hrs4 Hrs

PM Peak AM Peak

24 Hrs

Lumsden Point• Identified originally in the 2007 Ultimate

Development Plan as site for multi user berths

• Early concept work by PHPA created the ‘triangle’ option– Multiple land backed berths– Variety of cargoes – ore, fuel, containers, general– Staged development

• Involved substantial capital investment

Lumsden Point

Current Concept Predominantly general cargo (excluding iron ore,

salt) Staged development to match cargo demand

Stage 1 entails– 2 Handymax berths, 400m length, land backed

Optimise capital investment Operationally aligned to PHPA service delivery

objectives – reliable, competitive & efficient port Minimise dredging and environmental impact

Stage 1: Concept design

Lumsden Estate• Approx. 140 Hectares • Mix of light and medium

industries to support port activities

• Direct access to Lumsden Point and Common User Facility (CUF)

• Direct access to Great Northern Highway realignment

• Developed in stages to meet industry demand

• Pre Assembled Modules (PAMs) access road for Boodarie

CUF Concept Design

*Concept only for illustrative purposes.

• Maritime Servicing Facility• Wharves• Ship lift• Laydown area• Supporting Industries• Synergies with General

Cargo at Lumsden• Proposed location

adjacent to Lumsden general cargo berths

General Cargo Investment Sequencing

• Lumsden Point - 2 Berths (Handymax) 2014/15

• South West Creek – Anderson Point 6 Berth (Fuel – Post Panamax) – Demand Driven

• Lumsden Point – 2 Berths (Handymax/Panamax) – Demand Driven

Lumsden Funding Approvals• Concept Design & Strategic Business Case

complete– PHPA Board approved a market sounding study

on concept design and business case• Liaise concept design with key agencies• Next stage of approvals dependent on

preferred procurement / funding strategy– PHPA / Government Funded– Proponent Funded / PPP

Approvals process

Infrastructure option

assessment and

short listing

Determine funding and

procurement approach

plus projectdevelopment

Finalise final

business case/project

definition plan for

Funding approval

Prepare procurementstrategy focusing

on commercialframework, risk

andapprovals

Place fundingPrepare tender

andgo to

market

Build

NOW

‘Next Steps’

If privately ‘owned’

If publicly ‘owned’

Actions

Seek Board endorsement of the preferred concept.

Seek Board approval to appoint a consultant tasked with conducting a market sounding process to fund and/or operate the project.

PHPA to explain progress with Department of Transport and Treasury.

Submission of Application for Concept Approval to Minister.

Actions

Seek Board approval for recommended funding and procurement approach.

Seek endorsement of Government on funding, operating and procurement approach including, requests for state funding (if required).

Seek funding approval for a consultant to conduct the procurement process.

Actions

Seek Board approval to prepareto go to market for funding

Seek endorsement of Government to go to market forfunding

Thank You