$75m Port Kembla upgrade gets started
$75m Port Kembla upgrade gets started
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Work commenced today, on a project to develop a new multi-user grain handling facility at Port Kembla.
Minister for Roads and Freight Duncan Gay MLC along with Dom Figliomeni, NSW Ports Executive General Manager Commercial and Tony Day, Chairman of Quattro Ports officiated at a ground breaking ceremony to mark commencement of the project.
The project will include an upgrade to berth 103, construction of new grain bulk storage and rail discharge facilities, conveyors and a mobile ship loader.
Tony Day Chairman of Quattro Ports said that Port Kembla was chosen as the preferred location for the new facility due to its strategic location, access to deep water and the Ports preparedness to invest in the project.
“Port Kembla is a strategic location with good rail access and deep water for Panamax vessels. NSW Ports has been very supportive of Quattro’s project.”
Grain growers are set to benefit from Quattro’s new grain export terminal at Port Kembla which will provide more competition along the grain supply chain throughout the grain growing regions of New South Wales.
The significant investment in Port Kembla demonstrates Quattro’s commitment to building infrastructure to provide an efficient pathway for Australian grain to the world.
Quattro Port Kembla will be an open-access terminal which will provide grain export opportunities to all grain traders and exporters in the New South Wales grain market. The Quattro facility is specifically designed to receive grain by rail and will utilise the existing Inner Harbour rail sidings. It will have the capacity to handle in excess of 1.3 million tonnes of export grain per annum plus the ability to also handle import cargo and is scheduled to open before the 2015 harvest.
In addition Quattro’s innovative design will allow for other agri-products be both imported and exported through the facility. The facility will be constructed by Kerman Contracting Pty Ltd and includes significant input from local Illawarra and NSW sub-contractors.
As part of the project NSW Ports has committed to an extension and deepening of the existing berth (Berth 103) to allow it to accommodate large bulk carriers. Executive General Manager Commercial Dom Figliomeni said that upgrading existing port assets in support of new trade opportunities was an investment that NSW Ports was happy to make.
“This investment will allow for increased utilisation of our existing port assets and as owners of the port rail network, it is great to see increased usage of rail infrastructure” said Mr Figliomeni”.
Construction of the facility and berth extension is expected to create 75 new jobs during construction and Quattro will employ around 10 staff when fully operational.
Kerman Contracting Pty Ltd (Kerman) has been awarded a $67M contract for the design and construction of a grain export facility for Quattro Ports, a joint venture between Qube Holdings, Noble Group, Cargill Australia and Emerald Grain. The new export facility will be located at Berth 103 Inner Harbour Port Kembla at the east coast of NSW.
The construction works are due to start in mid July 2014 with an estimated completion in October 2015.
The new grain export terminal at Port Kembla will be designed to cater for a minimum
throughput capacity of 1,200,000 tonnes of grain per annum.
The grain will be received by rail and road, with both receiving facilities forming
part of the development. In order to provide the best possible design and construction outcome, Kerman and Kotzur Pty Ltd (Kotzur) have formed a strategic partnership
specifically for this project.
Both organisations have a proven track record for the delivery of bulk storage and
materials handling facilities at various ports around Australia, including considerable
experience with grain.
“Quattro Ports has been impressed with the collaborative approach that Kerman and Kotzur have
taken to working with Quattro during the period from tender close to contract award,” said Tony Day, Chairman of Quattro Ports. “Quattro is confident that in selecting Kerman it has a partner who will deliver this important new development on time and on budget.” Tony added,
“This project is an important step in the process of establishing a new port logistics chain that services the needs of a competitive grain market.”
Kerman in its role as Head Contractor is able to contribute its extensive experience in the
delivery of large design and construct projects.
Whilst Kotzur as Kerman’s major sub contractor will contribute with innovative structural, mechanical solutions for the Grain Storage Area.
The export terminal development will comprise of a road receival hopper, a rail receival facility, an elevated overland inloading conveyor system, eight flat bottom and nine small cone bottom silos at the Grain Storage Area, bucket elevators and conveyors for materials handling, ship loading conveyor and batch weighing system, weigh bridge and control buildings.
“Kerman and Kotzur have an excellent working relationship and have previously worked together on grain handling projects,” explained Mark Nagle, Executive Director at Kerman.
“The respective strengths of the two organisations are complimentary to each otherand hence create a strong and workable team.”
Qube Holdings announced today that it has entered into a joint venture with Noble Group to develop a multi-user grain handling facility at Port Kembla, New South Wales. The joint venture will trade as Quattro Grain. The proposed facility will have the capacity to handle in excess of 1.3 million tonnes of export grain per annum.
To establish the proposed joint venture, Noble will commit to use the facility and acquire rail services from Qube Logistics for the transport of grain to the new facility, in each case, on a "take or pay" basis.
To further support the establishment of the proposed joint venture and new facility, Qube and Noble have granted call options to each of two other major grain marketing businesses, Emerald and Cargill. If these options are exercised in full, Qube's and Noble's interest in Quattro Grain will be reduced to 30% each. Both Emerald and Cargill own existing regional grain storage sites that will service the facility and have made similar commitments to use the facility and to acquire rail services under "take or pay" arrangements.
The proposed new facility will have capacity to provide services to other grain customers on an open-access basis.
All of the above arrangements are conditional on receiving any necessary authorisations and approvals.
The investment from Qube into the facility and rail equipment is expected to be up to $50 million.
The new facility is expected to be operational in early FY 2016. The rail haulage agreements to transport grain to the new facility will significantly build upon the rail agreements with Noble, Emerald and Cargill which commenced operation earlier this year.
NSW Ports will extend and deepen the berth at Port Kembla to accommodate Panamax vessels.
The transaction provides Qube with significant growth opportunities and further diversification of its earnings.
The investment is expected to generate attractive financial returns with significant risk mitigation through take-or-ay arrangements with quality counter parties, and is expected to be earnings accretive from FY 16 once operations commence.
Marice James, the Managing Director of Qube said, "The investment is consistent with Qube's strategy to invest in port infrastructure that aligns with Qube's operations.
"This is a significant strategic project which we beliebe will alter the dynamics of the tightly controlled grain handling market. The joint venture looks forward to supporting grain producers by providing high levels of service and modern infrastructure to customers seeking to export grain from Port Kembla. "
Further Inquiries: Paul White +61 417 224 920