PORT HEDLAND PORT AUTHORITY PORT DEVELOPMENT PLAN GATEWAY TO THE PILBARA, GATEWAY TO WORLD MARKETS.

Transcription

1 PORT HEDLAND PORT AUTHORITY PORT DEVELOPMENT PLAN GATEWAY TO THE PILBARA, GATEWAY TO WORLD MARKETS.

2 PORT HEDLAND PORT AUTHORITY PORT DEVELOPMENT PLAN

3 A CLEAR VISION FOR THE FUTURE The Port Hedland Port Authority Board is committed to ensuring that the Port is well positioned to deliver on its vision and mission whilst meeting its legislative obligations in the future. To achieve this outcome, the Board has endorsed the PHPA Port Development Plan ( ). It is critical that the Port adopts a well considered plan comprising robust, strategic initiatives in order to achieve expansion in coming five to ten years. Both a conceptual and planning document, this Plan outlines a clear path to achieving its long term vision. The Plan underpins the Ports planning and development strategies as it grows to meet the needs of port users and facilitate the ever increasing global demand for mineral commodities sourced from the East Pilbara. On behalf of the PHPA, I present our vision for the next four years. RISING TO THE CHALLENGE In recent years, the Port Hedland Port Authority (PHPA) has rapidly transitioned from being a small regional Port to becoming one of the world s leading Ports. Australia s resources boom and the increasing global demand for mineral commodities have cemented the Port s position as the largest tonnage bulk export port in the world. As gateway to the resource-rich East Pilbara region, the PHPA has capitalised on global commodity demand and proximity to current and future resource projects by expanding harbour services to facilitate trade and deliver a commercial return for its customers, the region and the State. The PHPA Port Development Plan ( ) builds a vision for the Port s future and is aligned to the State Government s WA Ports policy and export industry growth forecasts. Guided by extensive modelling studies, forecasting and stakeholder involvement, the Port Development Plan unveils a bold vision for the future of the Port Hedland Port Authority. FAST FACTS 2011/12 FINANCIAL YEAR vs 2016/17 PREDICTED 2011/ /17 ANNUAL TOTAL VESSEL MOVEMENTS 3,686 5,776 KEN PETTIT CHAIRMAN ROGER JOHNSTON CHIEF EXECUTIVE OFFICER 03 PORT HEDLAND PORT AUTHORITY PORT DEVELOPMENT PLAN NUMBER RAIL MOVEMENTS PER YEAR 13,140 27,000 TOTAL EXPORT TONNAGE 245MT 440MT TOTAL IMPORT TONNAGE 1.6MT 2.2MT TOTAL STAFF EMPLOYED BY PHPA

4 WESTERN AUSTRALIAN ENGINEERING EXCELLENCE AWARD - RESOURCE DEVELOPMENT WINNER 2011 GOLDEN GECKO ENVIRONMENTAL EXCELLENCE AWARD 2011 WINNER LLOYDS LIST AUSTRALIA ENVIRONMENTAL TRANSPORT AWARD 2011 WINNER AUSTRALIAN ENGINEERING EXCELLENCE AWARD WINNER 2011 CONTENTS 05 INTRODUCTION 07 SERVICING WESTERN AUSTRALIA S FLOURISHING EXPORT TRADE 15 DEMAND FOR PILBARA MINERALS 16 TRADE FORECASTS 18 THE PORT HEDLAND ADVANTAGE 22 BERTH SERVICES 26 A VISION FOR OPTIMAL CAPACITY WITHIN THE PORT 29 CONSTRAINT MANAGEMENT 30 PORT CAPACITY 32 MARINE CAPACITY 33 LAND CAPACITY 37 DREDGE MATERIAL MANAGEMENT AREAS 39 CONNECTING THE PILBARA TO THE WORLD 41 HINTERLAND CONNECTIVITY 42 CREATING A NEW VISION FOR THE PORT 47 LANDSIDE DEVELOPMENTS 48 MARINE DEVELOPMENTS 52 OUTER HARBOUR DEVELOPMENT 58 ENVIRONMENTAL SUSTAINABILITY 65 OUR UNIQUE ENVIRONMENT 66 SOCIAL SUSTAINABILITY 75 STAKEHOLDER ENGAGEMENT 80 PORT HEDLAND PORT AUTHORITY THROUGHPUT ESTIMATES 82 ACRONYMS 83 CONTACT US 84 CONTENTS

5 INTRODUCTION 07 THE PORT HEDLAND PORT AUTHORITY IS A VERY REAL MEASURE OF THE SCALE OF THE MINERALS AND RESOURCES BOOM The Port Hedland Port Authority (PHPA) is a statutory authority established under State Government legislation. Situated in the Town of Port Hedland, the Port exists to facilitate trade and to earn a commercial return for the State. As a state-owned asset, the PHPA endeavours to use state resources wisely so that planning for the future is undertaken in a considered and sustainable manner. In 2003, the PHPA released its first Ultimate Development Plan (UDP). The UDP was a planning strategy to ensure the sustainable future facilitation of trade. In 2007, the second iteration UDP evolved alongside the Town of Port Hedland s Land Use Master Plan (LUMP). The 2007 UDP update brought substantial changes, including the identification of further capacity within the Inner Harbour, accommodation of an Outer Harbour facility, establishment of Finucane Island and stockyards associated with the Finucane Island development and support infrastructure south of the port at the Boodarie Stockyards. During this time the PHPA articulated a vision to become the world s leading bulk commodities port. By the end of 2011, this vision was substantially achieved. Port Hedland is currently the largest iron ore and bulk export port in the world. Growth in the last five years doubled throughput to 199Mtpa worth A$40bn by financial year end Export tonnage is expected to more than double to an estimated minimum throughput of 440Mtpa upon completion of harbour development works in The economic success of the Pilbara region has been driven by the resources sector - in particular the iron ore and oil and gas industries. This is expected to continue into the future with export trade likely to be dominated by bulk mineral exports. The Port Hedland Port Authority Port Development Plan (the Plan) is a culmination of research, studies and consultation that maps sustainable development for the future. To accommodate future growth, planning must not only consider the import and export of products, but the services and workforce necessary to support this growth and improve overall economic activity within the region. The Plan addresses social, employment, environmental and heritage impacts of future developments contained herein. The PHPA has a clear vision for engaging with the Port Hedland community through the provision of enhanced social and recreational opportunities. The Plan is a snapshot of the Port today and a bold vision for its future; one in which the PHPA strengthens its reputation as Australia s primary gateway to resource hungry global markets, and works alongside local and State authorities to make Port Hedland a desirable place to live and work. INTRODUCTION TAKING PLACE IN AUSTRALIA. AUSTRALIAN RESOURCE FOCUS, OCTOBER 2011

6 OUR MISSION To safely, profitably, sustainably, efficiently, and innovatively operate the port to promote, facilitate, and expand regional trade. OUR VALUES Port Hedland Port Authority s success is based on demonstrating commitment to the following organisational values: Respect Operate fairly and honestly in all dealings with all stakeholders. 09 INTRODUCTION Excellence Strive to be the best in all we do, and maintain strong focus on continuous improvement and innovation. Courage Do the right thing every time, act with integrity in all we do, and always speak up. OUR VISION The world s leading port, helping to create a sustainable region. The PHPA s commitment to quality is demonstrated in it s ISO Accreditation in quality, safety and environmental management attained in SEASIDE SCULPTURES

7 PORT HEDLAND TOWNSHIP (CIRCA ) A PROUD HISTORY IMAGE SOURCE: NATIONAL LIBRARY OF AUSTRALIA Discovered in 1863 by Captain Peter Hedland, who was seeking to offload cattle for a nearby station, the Port Hedland Harbour was originally known as Mangrove Harbour. The settlement initially developed around the pastoral and pearling industries, until the discovery of gold in nearby Marble Bar. The need to export the valuable mineral drove investment in the very first export port, comprising a jetty and eight kilometre causeway into the Port Hedland township, constructed in The first shipment of gold bullion in 1900 signalled a significant commercial change for the small settlement. Throughout the early 1900 s the Port primarily facilitated trade in gold, livestock, wool and pearl shells and provided an import facility to support stations located within the Pilbara. The first railway was built in 1911 to connect Marble Bar and Port Hedland to enable the easier shipment of gold. Despite Port Hedland being targeted during World War II as a result of the flourishing trade experienced, the loss of life and destruction of the township was fortunately less significant than that of Darwin and Broome. In 1951 the railway was closed due to falling demand. The Port was forced to rely on road transportation to facilitate the majority of its trade. With the discovery of iron ore shortly after World War II, this reliance was short-lived. This exciting discovery and subsequent changes to legislation in the 1950 s that permitted exportation of the newly discovered mineral signalled a new and stimulating phase in the Port s history Construction of the first Port Hedland jetty began and was extended in 1908 when gold was discovered in Marbie Bar Goldsworthy Mining Ltd (now BHP Billiton Iron Ore) dredged an approach channel and turning basin for ships of up to 65, 000 Dead Weight Tonnes (DWT). THROUGHPUT 100,000T 1976 The turning basin was extended and channel widened to accommodate ships up to 225,000 DWT. THROUGHPUT 37.1 MT 1986 The channel was deepened by 2.5m and a computerised under keel clearance program introduced. The first program of its kind utilised in Australia permitted access to ships 330m long with 260,000 DWT. THROUGHPUT 35.6 MT 2004 BHP Billiton Iron Ore constructed a second berth on Finucane Island, and construction was underway to extend the Port Authority s No.1 berth to create No.2 berth. THROUGHPUT 89.7 MT 2008 FMG completed construction of its Herb Elliott port facilities comprising two cape size berths with an installed capacity of 45Mtpa and shipped its first ore in May. THROUGHPUT MT 2010 The first pile was driven in March 2009 to commence construction of the new berth at Utah Point, that was completed in Construction of two new berths at Harriet Point commenced. THROUGHPUT MT 2011 First ore on ship at the new Utah Point berth. BHPBIO commissioned two new berths and commenced construction of an additional two berths. FMG commenced construction of its third berth. THROUGHPUT MT 11 INTRODUCTION On 27 May 1966, a new era in mineral exportation was born with the first shipment of iron ore by BHP Ltd being loaded at the Port. Construction of the Mount Goldsworthy and Newman Railways to connect Port Hedland with towns some 400 kilometres away resulted in unprecedented growth in commodities and export for the region. The introduction of Fortescue Metals Group (FMG) into the market in 2006 cemented Port Hedland s reputation not only as a true multi-user port, but the largest bulk export facility in the world. PORT HEDLAND HARBOUR RAILWAY BRIDGE (1943) IMAGE SOURCE: AUSTRALIAN WAR MEMORIAL SHIP AT BERTH (1967) IMAGE SOURCE: BATTYE LIBRARY

8 THE COMMUNITY The PHPA co-exists with the residential areas of Port Hedland, Spinifex Hill, Cooke Point and Pretty Pool. These are located on an island approximately 12 kilometres long and one and a half kilometres wide and are linked to the mainland via causeway. The causeway connects the Port with South Hedland 18 kilometres inland where the majority of the population resides. Numerous initiatives introduced by the local business community and residents, have enhanced the town s amenities to ensure Port Hedland is a place where people want to live, work and retire. PHPA staff live in either Port Hedland or South Hedland, with both communities relying on the support of the Town of Port Hedland. Throughout the years of the PHPA s operation, the Town and the PHPA have worked together to minimise impacts of the Port s operations on the community. THE ENVIRONMENT The Port Hedland climate ranges from hot and humid during summer (October to April), to warm days and cool nights during winter (May to September). Climate data averages taken over the past 80 years show that Port Hedland s coolest month is July, with an average maximum temperature of 27 degrees Celsius and an average minimum of 12 degrees Celsius. The warm months are December and January with an average maximum of 37 degrees Celsius and an average minimum of 24 degrees Celsius. During summer, maximum temperatures of 46 degrees Celsius are not uncommon. Rain falls on average 31 days per year with an average annual rainfall of 307 millimetres. Large volumes of rain can fall within a very short period during cyclone season. Cyclone season runs from 1 November to 30 April. An approaching cyclone can necessitate evacuation of all facilities and vessels may be ordered to clear the Port. 13 INTRODUCTION Wind speeds greater than 250 kilometres per hour and central pressures as low as 905 hectopascals can be experienced. Northerly swells generated by low pressure systems can also cause wharves to close. The PHPA s systems and processes are designed to minimise the impact on vessels, in turn minimising the impact on export operations. Tides are semidiurnal with two lows and two highs experienced within a 24 hour period. AERIAL VIEW OF PORT HEDLAND PORT

9 15 SERVICING WESTERN AUSTRALIA S FLOURISHING EXPORT TRADE THE PORT HEDLAND PORT AUTHORITY IS AUSTRALIA S LARGEST TONNAGE PORT, THE LARGEST IRON ORE EXPORTER IN THE WORLD AND THE LARGEST BULK MINERALS EXPORTER IN THE WORLD WITH A TOTAL THROUGHPUT OF 199 MILLION TONNES WORTH A$40BN IN 2010/11. SERVICING WESTERN AUSTRALIA S FLOURISHING EXPORT TRADE

10 DEMAND FOR PILBARA MINERALS THE PORT HEDLAND PORT AUTHORITY ANTICIPATES A PROLONGED PERIOD OF FUTURE GROWTH DRIVEN BY CONTINUING STRONG DEMAND FOR COMMODITIES. 17 The Port of Port Hedland is currently the world s largest bulk export port and will continue to grow rapidly. Figure 1 demonstrates growth in Port throughput capacity since the mid-1960 s. By 2005, tonnage had exceeded the 100 million tonne per annum milestone. The PHPA celebrated its fortieth anniversary in 2011 by almost doubling the 2005 trade milestone, finishing marginally below the 200 million tonne milestone for the 2010/11 financial year with a total throughput of 199,002 million tonnes. Depending on the timing of developments proposed within this Plan, the Port s tonnage is expected to exceed 440 million tonnes by 2015/16 (refer Figure 2). A variety of methods are employed to plan for future Port development and throughput. Internal forecasting and projections from proponents combined with international forecasting service subscriptions, industry project collaboration, monitoring of media reports and stakeholder consultation are all used to determine projected resource production and export and import levels. Through these methods the Port Authority anticipates a prolonged period of future growth driven by continuing strong demand for commodities (particularly from China). General cargo handling across three PHPA berths has increased commensurate with the development of iron ore mining and related industries. FIGURE 1: PORT HEDLAND PORT AUTHORITY ANNUAL THROUGHPUT ( ) ,000 TONNES FIGURE 2: PHPA CARGO THROUGHPUT ESTIMATES 2012/13 TO 2016/17 ACTUAL 2010/11 Tonnes 000's ACTUAL 2011/12 Tonnes 000's 1984 BUDGETED 2012/13 Tonnes 000's FORECAST 2013/14 Tonnes 000's FORECAST 2014/15 Tonnes 000's FORECAST 2015/16 Tonnes 000's 2012 FORECAST 2016/17 Tonnes 000's Total 197, , , , , , ,355 Exports Total 1,275 1,670 2,921 2,526 2,178 2,329 2,631 Imports Total 199, , , , , , ,986 Tonnes % Change 19% 15% 18% 11% 10% 8% It is anticipated that the existing PHPA berths will reach their maximum operating capacity by 2014 as a result of increased general cargo trade. The PHPA is exploring opportunities to expand its berthing facilities to include a logistics and supply base at Lumsden Point and is evaluating construction timing of new South West Creek berths to cater for long term growth in the cargo handling trade. BHP Billiton Iron Ore (BHPBIO) is fast tracking approved expansion projects with a view to increasing export tonnage to 350Mtpa. BHPBIO will commission two new berths at Nelson Point (Berths C and D) within the Inner Harbour and install a fifth rail car dumper at its Finucane Island facility. Fortescue Metals Group (FMG) is also increasing its production, with its annual export tonnage expected to reach 120Mtpa by FMG s AP3 Berth at Anderson Point became operational in 2012 and AP4 Berth will be operational by Aspiring miners Roy Hill Infrastructure (RHI) and North West Infrastructure (NWI) plan to commence exports in late 2014 and early 2015 respectively. While iron ore remains the main export product at 97% of total export trade, Port development plans have been carefully constructed to ensure capacity accommodates demands on port services made by producers of other bulk commodities. Fuel oil represents more than 78% of total imports reflecting its use in rail transportation, electricity generation and direct mining operations. Commissioning of Utah Point Multi-User Bulk Export Facility (Utah Point) in late 2010 has contributed to increased export volumes. The current 14Mtpa capacity estimate of Stockyard 1 is expected to be reached within the 2012/13 financial year. Stockyard 2 is expected to become operational in Whilst the potential capacity of Utah Point is restricted by limited channel access and ship movements, its unique stacker/reclaimer operation and addition of a second stockyard will contribute to a growth in capacity nearing 18Mtpa by year end VESSEL MOVEMENTS As represented in Figure 3, vessel movements reached 3,686 in 2011/12, equating to 1,843 vessels for the year. Vessel movements are expected to more than double to 6,100 movements (3,050 vessels) per annum by 2015/16. FIGURE 3: PHPA VESSEL MOVEMENTS ( ) 2001/ / / / / / / / / / / / / / / ACTUAL FORECAST SERVICING WESTERN AUSTRALIA S FLOURISHING EXPORT TRADE

11 TRADE FORECASTS 19 The major commodities market is expected to strengthen over the next decade. The following section details the types of commodities traded through the Port and five year forecast for commodity trade growth. EXPORT TRADE GROWTH Iron Ore Iron ore accounts for approximately 97% of all exports through the Port, equating to a gross product value of A$31.8 billion per year. Unprecedented demand for iron ore has resulted in a doubling of tonnage transported across PHPA berths in the last five years. Figure 4 compares the Port Hedland s projected iron ore export volumes to 2016 with Australia s and the world s total forecast volume growth. Whilst Chinese demand for iron ore continues to rise significantly in the short term, the rate of growth is expected to slow over time. Despite this slowdown, exports are still expected to remain strong with China anticipated to be importing 1,219Mtpa of iron ore by Of this 1,219Mtpa, a large proportion is expected to be supplied by Western Australia, in particular, the Pilbara region, as mining companies expedite expansion programs and bring new operations online. The rate of growth in global seaborne trade is still rising despite weaker demand from Japan, North Africa and Western Europe. Manganese and Chromite Previously handled across the east-side berths, these products have now moved to the new Utah Point Multi-User Bulk Export Facility located on the western side of the port. Utah Point not only increases capacity, but addresses potential environmental impacts by moving sources of dust and traffic away from the Port Hedland township. Manganese is primarily used in steel production with demand closely aligned to the demand for steel products. China produces the majority of the world s manganese, with South Africa and Australia following closely behind with similar annual production volumes. Continued growth in manganese exports is anticipated as a result of a 44.1% increase in manganese exports in December 2011 compared to the previous year. General and Containerised Cargo General cargo is serviced via the east-side facilities where Berth No. s 1, 2 and 3 accommodate a range of different product types and cargo sizes. The option of feeding containerised cargo to other ports within Australia is currently being investigated. FIGURE 4: IRON ORE TONNAGES: AUSTRALIA vs WORLD EXPORTS 1,065, ,000 TOTAL 1,083, , ,128, ,000 1,184, ,000 1,257, ,000 1,378, , AUSTRALIA 1,505, ,000 1,594, ,000 1,677, ,000 1,774, ,000 SERVICING WESTERN AUSTRALIA S FLOURISHING EXPORT TRADE FINUCANE ISLAND BHPBIO BERTHS (FOREGROUND), PHPA PUBLIC BERTHS 1 AND 2 (REAR)

12 AUSTRALIA PRODUCES UP TO SALT Approximately 210Mtpa of salt is produced globally. Australia produces up to 12Mtpa and is the world s fifth largest producer of salt (refer Figure 5). The only producer of salt in Port Hedland, Dampier Salt generates an average of 2.5Mtpa for shipping under its State Agreement through PHPA s Berth No.3. Salt production is significantly affected by rates of evaporation and cyclonic activity. An unusually dry year was experienced in 2010/11, resulting in Port Hedland salt exports nearly doubling the previous year s exports with total throughput of 2.2Mtpa It is anticipated that production will increase to over 5Mtpa in the next five years. PHPA is currently planning for these increases and considering modified transport methods to reduce the impact of road haulage on the Port Hedland township. FIGURE 5: TOP FIVE SALT PRODUCING COUNTRIES 6.73% 22.14% 17.67% 7.14% 5.34% 12 MILLION TONNES PER YEAR AND IS THE WORLD S LARGEST EXPORTER OF SALT. Concentrates Although trade is dominated by iron ore and other commodities described within this Plan, trade in concentrates has also increased in the past five years. Newcrest Mining is the main exporter of concentrates through the Port. Approximately 6Mtpa of gold concentrate and gold copper concentrate is currently trucked from the Telfer Gold Mine into the PHPA s Berth No. 1, bound for smelters in the East Asia region. Total throughput is forecast to increase within the next couple of years as Telfer Mine expansions are completed. Aditya Birla Minerals flagship Birla Nifty copper mine located within the Great Sandy Desert region of the eastern Pilbara is one of the largest underground copper mines in the world to be commissioned this decade. Aditya Birla Minerals exported 56.5kt of copper concentrate through the Port in 2012 compared to 49.7kt in This figure is expected to dramatically rise to meet demand and achieve the mine s 15 year 2.5Mtpa capacity. Gold concentrate trade has experienced significant growth in demand. Copper concentrate has also been augmented in part by the increasing variety of uses for copper. Livestock The livestock trade has diminished in recent years; however the PHPA maintains its ties with the pastoral industry and is able to ship livestock through existing berths as required. IMPORT TRADE FORECASTS The majority of imports into the Port of Port Hedland are related to the support of the mining industry. Figure 6 represents PHPA s total imports by product for the 2011/12 financial year. Oil & Bitumen Oil and bitumen are imported for use in iron ore related processes. Currently, fuel imported into the Port of Port Hedland is stored in tanks on the eastern side of the Port and is predominantly used by mining companies. The demand for oil in Port Hedland is expected to rise as mining growth continues. In 2012, Caltex Australia expanded its Port Hedland operations with the construction of two new 20 million litre diesel tanks installed to service short-term future demand. Major road construction projects planned will result in increased demand for bitumen. Bitumen will be primarily used in building roads licensed under the Town of Port Hedland s Wedgefield Industrial Area and Great Northern Highway (GNH) Realignment projects. Ammonium Nitrate Ammonium nitrate and other explosives are brought into the Port via specially made bags and transhipped into the hinterland for use across various sites. Import of ammonium nitrate will rise in the coming years with Incitec Pivot recently commencing construction of its $40 million ammonium nitrate explosives plant east of the Port Hedland township. Production is due to commence in Once operational, Incitec Pivot is expected to supply a large proportion of explosives to the mining sector across the north west of Australia. Dyno and Orica are also expected to continue importing ammonium nitrate to align with production targets. Cement Cement imports have also experienced significant growth in recent years due to the high levels of construction around Port Hedland. As the iron ore market expands, so too will this trade. Acid & Caustic Soda Much of the acid currently imported is used in concentrate production and to a lesser extent, water treatment. Acid and caustic soda imports combined are expected to remain at around 10,000 tonnes per annum for the foreseeable future. 21 SERVICING WESTERN AUSTRALIA S FLOURISHING EXPORT TRADE 1. UNITED STATES 46,500,000 WORLD 210,000, % 2. CHINA 37,101, INDIA 15,000, CANADA 14,125, AUSTRALIA 11,211,000 FIGURE 6: PHPA TOTAL IMPORTS BY PRODUCT 2011/12 DAMPIER SALT STOCKPILE FUEL 74% OILS GENERAL/ 23% CONTAINERS CEMENT 1% SULPHURIC 1% ACID

13 THE PORT HEDLAND ADVANTAGE 23 WESTERN AUSTRALIA S MINERAL RICH NORTH WEST Of the 1,082.4 million tonnes of iron ore exported in 2010, nearly half of the iron ore originated from Australia (433.2 million tonnes) with Port Hedland exporting 176 million tonnes of the nation s total. For the same year, Brazil exported million tonnes of iron ore. The combined export volumes of Australia and Brazil are forecast to exceed 80% of global totals by 2015 (CRU Iron Ore Market Services Guide, October 2011). of cargo traffic support services to onshore and offshore proponents in the north west. The close proximity of the airport to Lumsden Hub (10 kilometres from runway to wharf) ensures rapid deployment of emergency equipment for the oil and gas industry. MARINE CAPACITY Port Hedland has large areas of sheltered deep water available for future development. The PHPA has worked closely with proponents and undertaken complex modelling to unlock and augment Inner Harbour capacity to 495Mtpa in order to meet anticipated mining and exportation needs of Western Australian mineral producers. Planning is also well advanced for a new Outer Harbour port facility off Finucane Island to provide additional capacity in the order of 400Mtpa to meet the aspirational demands of Port users. THE PORT HEDLAND ADVANTAGE The PHPA s ability to sustain its current advantage as a major iron ore exporting port is dependent on continued expansion of capacity, high performance technology and efficiency in port operations. FIGURE 7: PHPA VESTED LAND AND RESERVES STRONG ROAD NETWORKS The PHPA is close to the Boodarie Industrial Estate (BIE) and Great Northern Highway (GNH) Realignment with strategically planned direct access corridors to the Port Hedland Harbour. Growth in containerised and general cargo trade via 140 hectares of reclaimed land at Lumsden Point will be facilitated largely through these access corridors and direct links to the GNH. The adjacent Wedgefield Light Industrial Estate also provides direct access to the Port Hedland International Airport to assist in the easy facilitation AERIAL VIEW OF UTAH POINT MULTI-USER BULK EXPORT FACILITY (FOREGROUND)

14 LAND CAPACITY The Port of Port Hedland is the closest port to the main mineral reserves of the eastern Pilbara region. Its close proximity to major Asian iron ore markets provides significant strategic advantage for Port proponents. This prime location is enhanced by areas of largely undeveloped land bordering the sheltered Inner Harbour. The Port is situated near the Boodarie Industrial Estate and the GNH Realignment to permit direct access to the Port Hedland Harbour. The Port is in close proximity to the town, providing established social infrastructure that is not available at other proposed greenfield port sites in the Pilbara. The PHPA has worked closely with proponents to provide further opportunities for port users to export their products to market. A Capacity Modelling exercise to determine potential future Inner Harbour and Outer Harbour capacity is ongoing. Planning is also well advanced for a new multi-user Outer Harbour port facility off Finucane Island, providing additional capacity in the order of 400Mtpa and meeting port user projections. Outer Harbour facility development plans are outlined on pages % CHINA 13% JAPAN 11% REPUPUBLIC OF KOREA 3% TAIWAN 3% AUSTRALIA FIGURE 8: IRON ORE EXPORTED FROM THE PHPA BY DESTINATION (2010/2011) FIGURE 9: DIVERSITY OF VESSELS IN HARBOUR 25 THE PORT HEDLAND ADVANTAGE The PHPA also has land available to support berth development within the Inner Harbour. It is further increasing capacity through the vesting of additional land to cater for future industry growth and to accommodate proponent stockyard and service developments needed to support the Inner Harbour and Outer Harbour port trade. MAXIMISING VESSEL LOADING DRAFTS Ports around the world capable of receiving deep draft vessels are limited. The PHPA is one of few ports to promote the use of larger, draft efficient ships to improve Port efficiency and throughput. The Port is capable of accommodating vessels up to 260,000T deadweight at several berths, and utilises state of the art technology in the form of the Dynamic Under Keel Clearance (DUKC) system to safely maximise vessel drafts and optimise tidal sailing windows. The PHPA has adopted the following strategies to further exploit this competitive advantage: > encourage the use of draft efficient vessels, such as the Wozmax class vessels, which are purposedesigned for Western Australia s Pilbara ports. With a greater than normal design beam (width), these vessels are able to increase cargo uplift whilst maintaining a relatively shallow draft in comparison to conventional design vessels of a similar class; > introduce larger and more efficient tugs to address access difficulties resulting from large tidal ranges, strong tidal flows, restricted channel dimensions, separation demands between vessels and tropical storms. These new tugs will improve navigational safety for Capesize (and larger) bulk carriers; > facilitate the development of optimal rail corridors within the Port precinct to encourage the development of rail facilities to reduce noise and protect valuable land assets. Furthermore, the Port Authority continues to look at synergies in developing common maintenance roads as well as water and electricity supply corridors; > increase Port land through land reclaims (from dredging spoils) in close proximity to the Inner Harbour; > vest additional land in the Port Authority to support development of Inner Harbour and Outer Harbour trade; > provide support and logistics supply based infrastructure for iron ore and related cargo developments in the Pilbara. The development of the Gobi Area in close proximity to the public berths and Lumsden Point lends itself to developments of this nature; > undertake further development of leading technology in the handling and management of shipping movement; > increase Port capacity by facilitating the development of the Outer Harbour facility off Finucane Island; and > provide administrative office facilities and a new harbour control tower on Port land to cater for future growth in Port activities and meet the accommodation needs of the PHPA and Port users. BHPBIO FINUCANE ISLAND BERTHS A & B (FOREGROUND), UTAH POINT STOCKYARD 1 (REAR)

15 BERTH SERVICES FIGURE 10: INNER HARBOUR CAPACITY ALLOCATION 27 The Port Hedland Port Authority operates primarily to facilitate trade and business opportunities within and through the Port, with an emphasis on providing stakeholders with suitable, reliable and competitive port facilities. PRIVATE BERTHS In most instances, these operations occur under State Agreement with the Western Australian Government. These Agreements clearly identify rights, obligations, terms and conditions for the development of projects whilst providing a framework within which all parties must operate. Inner Harbour capacity is allocated to BHP Billiton Iron Ore, Fortescue Metals Group Pty Ltd, Roy Hill Infrastructure Pty Ltd and Northwest Infrastructure. Private berth owners are shown in Figure 10. BHP Billiton Iron Ore PUBLIC BERTHS Four public berths operate in the Inner Harbour, offering highly valuable opportunity for other miners to access export markets previously unavailable within the Port. East Side (Berth No. s 1, 2 & 3) Salt Dampier Salt utilises PHPA Berth No.3 to export salt from Port Hedland under their State Agreement. MAJOR IMPORTERS Facilitation of imported trade through the PHPA Berth No. s 1, 2 & 3 continues to grow in line with commodity demand and population growth. BHP Fuel imported an estimated 1.1Mtpa of fuel through these berths in 2010/11. The facility is also used by Dyno and Orica to import ammonium nitrate. THE PORT HEDLAND ADVANTAGE BHP Billiton Iron Ore (BHPBIO) currently operates four berths at Nelson Point and four at Finucane Island for exclusive export of iron ore. BHPBIO s allocated capacity is 240Mtpa. Fortescue Metals Group Pty Ltd Fortescue Metals Group Pty Ltd (FMG) occupies three berths at Anderson Point and has another planned to support their planned capacity of 120Mtpa. Prior to being exported from Port Hedland, salt must reach specification. Once this has occurred, the salt is transported nine kilometres to the port stockpile area located near the Port Hedland berth where it is loaded onto ships at Berth No.3 s ship loader. This ship loader has a peak capacity of up to 3,500 tonnes per hour and has the ability to load vessels of up to 75,000 DWT. Concentrates CMI 9% MOLY 8% Roy Hill Infrastructure Pty Ltd Roy Hill Infrastructure (RHI) is a wholly owned subsidiary of Hancock Concentrates are principally exported through the public berths. Newcrest Mining operates out of the Telfer mine in the eastern Pilbara, exporting six Mtpa of gold concentrate and gold copper concentrate. Operating from Prospecting, an exploration and development company with interests in coal and iron ore deposits. RHI is scheduled to construct a dual berth at South West Creek which, on commissioning, will facilitate up to 55Mtpa of exports. its flagship Nifty mine in the eastern Pilbara, Atidya Birla exports 56.5kt of copper concentrate annually. Utah Point Berth Facility (Berth No. 4) PMI 21% ATLAS 62% North West Infrastructure The fourth PHPA berth is a multi-user bulk minerals berth at Utah Point with North West Infrastructure (NWI) consists of three iron ore companies - a total capacity of approximately 18Mtpa. Atlas Iron Limited, Brockman Resources Limited and FerrAus Limited (owned by Atlas Iron). Capacity of 50Mtpa is linked to the construction of their two berths at South West Creek. It is an outlet for high value boutique products that do not need containment, such as manganese, chromite, illmenite and titanomagnetite. Main exporters using Utah Point facilities are Atlas Iron Limited, Process Minerals International (PMI), Consolidated Minerals Limited (CMI) and Moly Mines. FIGURE 11: PROPORTION OF EXPORTS BY PROPONENT FROM UTAH POINT /11

16 29 A VISION FOR OPTIMAL CAPACITY WITHIN THE PORT CAPACITY WITHIN THE PORT MUST BE CONSIDERED CAREFULLY AND STRATEGICALLY, TAKING IN TO ACCOUNT BOTH MARINE AND LAND AVAILABLE NOW, AND WHAT DEMANDS MAY BE PLACED ON THESE RESOURCES IN THE FUTURE. A VISION FOR OPTIMAL CAPACITY WITHIN THE PORT

17 CONSTRAINT MANAGEMENT Port Hedland depends heavily on trade between Australia and the rest of the world. Restrictions on the development of land and channel capacity as well as the movement of vessel traffic directly impact the PHPA s ability to service these markets. Through this Plan, the PHPA outlines a clear strategy to address and manage these factors in order to optimise access and movement across Port berths for all users. SHIP ANCHORAGE With the increasing number of ships visiting Port Hedland and the unprecedented growth in berth construction, the PHPA conducted a Whole of Port Risk Review. One of the recommendations from the Review was to investigate the effectiveness of implementing Designated Anchorages within the PHPA s sphere of responsibility. With the assistance of, and advice from, Hydro RAN, an extensive hydrographic survey was conducted in those areas considered suitable for the placement of anchorage positions. Forty suitable anchorage positions were identified and transferred onto the appropriate Marine Charts. On 14 June 2010, the Designated Anchorages came into effect and the positions and anchorage reference numbers were promulgated in appropriate Marine Notices. TIDAL CONDITIONS Port Hedland has a large tidal range with a difference between low and high tides of up to seven metres. The semidiurnal tides influence the movement of SEA LEVEL [m] High tide to low tide is generally 5 between 5 and 7 hours TIME [hours] vessel traffic requiring protocols to optimise vessel movement and ensure priority sailings can take place. The PHPA uses the Vessel Tracking Management Information System (VTMIS) to track ships visiting Port Hedland. It also employs the Dynamic Under Keel Clearance (DUKC) TM software system to calculate maximum drafts and times that vessels may sail on impending tides. Vessel sailing times are carefully planned and monitored given high drafts of approximately 18 metres can be experienced. A comprehensive ship scheduling tool (DUKC TM Optimiser) is currently in development to complement existing software by calculating the order of sailing and berthing using a wide range of variables. HIGH TIDE IS ~21m 14.3m Cd FIGURE 12: TIDAL RANGES Current Port protocols stipulate time spacing for outward bound ships passing Hunt Point and for inbound ships. Through the use of new Inner Harbour turning basins, inbound spacing has been reduced. Further reductions in ship spacings may be experienced in the future should tug numbers increase and changes to export capability risk management be modified. The PHPA will be in a position to consider further reductions in separation distances once the full fleet of enhanced 80t bollard pull tugs are mobilised and operating experience has been gained from multiple tide departures over an extended period of time. THE PORT HEDLAND PORT AUTHORITY ANTICIPATES THE NUMBER OF VESSELS WAITING TO ENTER THE PORT WILL ESCALATE FROM THE CURRENT 26 PER DAY TO APPROXIMATELY 80 PER DAY WHEN THE PORT REACHES 495MTPA. CYCLONIC ACTIVITY Severe tropical cyclones have the potential to deliver The Port Hedland Port Authority employs leading Port Hedland is susceptible to cyclonic activity flooding rain, storm surges and damaging winds well technology to achieve efficiency across all Port between November and April each year. in excess of 200 kilometres per hour. operations. Customised infrastructure design and construction ensures optimal efficiency across Cyclone development is complex and can depend on Consequently, the preparation, closure and all operations and is continually being upgraded, many factors, including sea water temperature, upper re-opening of the Port in the event of a cyclone or enhanced and extended to meet growth in demand. level winds, and pressure gradients. Leading indicators tropical low will be managed in accordance with these Utah Point is Australia s first berth in a bulk port to such as the Southern Oscillation Index (SOI) and the obligations under the authority of the Port Hedland install the Cavotec Mooring System to improve safety Madden-Julian Oscillation (MJO) provides a forecasting Harbour Master who will issue clear, specific and and reduce vessel capture, moor and release times by indicator as to whether an active or less active season timely instructions to all Port stakeholders. These up to two and a half hours per vessel. can be expected. Port Hedland may be impacted by as procedures ensure that the Port is kept as safe as Similarly, the addition of Stockyard 2, design and little as one system or in excess of seven systems from possible under the threat of cyclonic activity and that installation of customised mobile hopper trains, year to year. the PHPA properly discharges its duty of care to all transport and truck management system and mariners, their vessels and users of other marine The PHPA subscribes to the Bureau of Meteorology associated communications network at Utah Point facilities located within the Port. (BoM) special weather service and gains specific advice effectively manage stockyard efficiency to eventually on any formation and potential impact of all tropical The procedures also acknowledge the sensitive facilitate 18Mt to be delivered to ship per year. lows and/or cyclones within our ocean region. nature of the marine environment, including the The PHPA maintains a current cyclone contingency Port Hedland creek system, and the PHPA s plan, which is updated annually prior to responsibility under legislation to protect the commencement of cyclone season. All vessels environment of the Port. operating within the Port area must proceed out to INFRASTRUCTURE AND EQUIPMENT sea prior to any expected impact from impending cyclones or tropical lows. This plan excludes smaller Demand for current and proposed future access and craft which may secure to approved cyclone moorings the need for high capital investment to support this prior to such condition taking effect. demand is carefully planned in consultation with government authorities and industry. 31 A VISION FOR OPTIMAL CAPACITY WITHIN THE PORT

18 PORT CAPACITY MARINE CAPACITY 33 Port Hedland has historically been constrained by landside operations of proponents. Limited development within the Harbour often results in Port wide bottlenecks due to delays in ship berthing and loading. As customers invest in more efficient out-loading infrastructure to improve ship loading times, new capacity constraints will emerge due to current land availability and Inner Harbour channel configuration. The PHPA s five year Strategic Development Plan (SDP) aims to optimise Port efficiency through continued optimisation of marine and landside capacity. MODELLING WITHIN THE HARBOUR The PHPA commissioned a discrete event simulation model to derive particular assessments of Port Hedland s total potential annual iron ore cargo throughput capacity for a range of different development scenarios. The models include scenarios for developing new landside operations, construction of new berths within the Harbour and proposed changes to Port operating procedures and guidelines. This simulation modelling study built on areas of potential export capacity highlighted within the 2009 UDP as a result of proposed infrastructure development by the PHPA and current and future proponents, with a focus on identifying risks associated with achieving capacity growth. The simulation model is based on seventeen berths being constructed within the Harbour. A shipping channel profile that had undergone a 0.5 metre high spot dredging program was assumed, resulting in a proposed channel shallow point of 14.8 metres. It was also assumed that vessels departing during flood tide were spaced 40 minutes apart. In addition, estimates of the vessel fleet which may visit Port Hedland in the future were made that include both larger vessels and a greater range of vessel drafts. A reduction in channel depth or lengthening of vessel movement spacing from the values assumed were estimated to result in a decline of iron ore export capacity to approximately 419Mtpa. Whilst analytical tools such as simulation modelling are mainly used to support high level master planning activities, the 2010 study has been particularly useful to identify more effective departure slot allocation management practices and interaction with the proposed Outer Harbour development. Studies proposed in the future will need to respond to changes in the design of new terminals, emerging trends in ship design and portside infrastructure technologies. FIGURE 13: AERIAL PHOTO OF PORT HEDLAND AND SURROUNDS Marine capacity relies on the skill of schedulers and other staff to effectively plan and manage assets to ensure expected mineral product export volumes can be accommodated. Current marine management policies and procedures are outlined below. SHIPPING PROTOCOLS The PHPA has developed detailed vessel movement protocols for the Port. These encompass the order of arrival of vessels, wharf configuration of the berth they will be visiting and departing ship priorities. These protocols can found on the PHPA website. KEEPING THE CHANNEL CLEAR Each year over 250,000m 3 of sand is deposited in the channel as a result of drift and erosion. Dredging maintenance is necessary to not only ensure sailing drafts are maximised and minimal shortloading of vessels occurs, but guarantee that the width of the channel is maintained for safety purposes. DYNAMIC UNDER KEEL CLEARANCE TM The Dynamic Under Keel Clearance (DUKC) TM is one tool used by the PHPA to optimise vessel transit by calculating the maximum draft and time that a vessel is able to sail. During a vessel s transit out of the Harbour, it may come within 250 millimetres of the channel bed. Using real-time sensors to feed swell condition information into the system, DUKC TM can estimate conditions the Port will encounter up to 30 hours before they occur to accurately predict draft clearances. These predictions enable the PHPA to provide sailing instructions to customers at regular intervals to ensure safe clearance of the Port. SCHEDULING/DUKC OPTIMISER The PHPA has been actively involved in the development and testing of leading industry specific software - the Optimiser. Working hand in hand with the DUKC TM, the Optimiser Scheduling programme uses real time DUKC TM tidal window information to assist Ship Scheduling staff with the compilation of daily shipping schedules. The Optimiser processes Port parameters contained within Vessel Movement Guidelines and Vessel Movement Protocols, towage restrictions, tug availability and DUKC TM tidal windows to produce daily shipping schedules. MAXIMISING USE OF THE HARBOUR Information technology supports vessel movement protocols and set out basic operating parameters for the Harbour. Inbound vessels have traditionally been permitted one hour between each arrival, with 30 minutes the maximum time between outbound vessels as they pass Hunt Point. Through modelling and the use of new Inner Harbour turning basins, inbound spacing has been reduced to an average of 45 minutes. Further reductions would require supporting tugs to provide an escort service to the inbound vessels to ensure that risks are mitigated. SUPPORT FLEETS Export and import vessels are not the only vessels that require careful management within the Inner Harbour. The PHPA is also supported by a large number of service providers who assist in maintaining smooth Port operations. PILOT TRANSFER SERVICES A dedicated pilot transfer vessel (including back up vessel) is located within the Inner Harbour to transport personnel to inbound or outbound ships. In addition to pilot boats, the PHPA also has two dedicated helicopters available to transport personnel to vessels quickly. As the Inner Harbour expands, so too will pilot ship transfers. It is forecast that the Port s helicopter fleet will expand to meet increases in pilot transfers. THE PORT CONTROL TOWER The existing tower is planned to be replaced by a new Vessel Traffic Service Centre in the coming years. This new control centre will have large screen displays, the ability to see all areas of the Port and a co-located incident control centre to ensure that the PHPA is able to respond to any event. A VISION FOR OPTIMAL CAPACITY WITHIN THE PORT

19 AS THE PORT EXPANDS, THE PHPA WILL EXAMINE ALL OPPORTUNITIES TO MAXIMISE CAPACITY. PILOTS Port Hedland Port Authority s 16 pilots are fully trained in harbour navigation and are supported by electronic positioning as they navigate the channel and berth. The Portable Pilotage Units (PPU) display real-time ship positions as pilots manoeuvre vessels, a system that is particularly valuable at night and during challenging weather events. During 2010/11, a total of 3,027 piloted shipping movements were undertaken, representing a 15% 35 increase on movements made within the previous MARITIME TRAINING FACILITY Staff training is of paramount importance to efficient Port operations. Currently, the PHPA s pilot training is conducted in Port Ash (New South Wales) with some also carried out in Port Revel (France). Marine officers generally need to travel to the east coast of Australia to become qualified. To address these issues, the PHPA plans to create a purpose built training facility to provide specialist maritime industry training services. These services will include: > a bridge simulator to service not only the PHPA s needs, but those of other ports within Australia and > oil spill and emergency response training to ensure that the State is well equipped to deal with any incidents in the north west; > vessel traffic system operator training to provide practical training to marine officers; and > training for service providers and operators of all ports at low cost. Establishing a maritime training facility within Port Hedland provides immense benefits to industry and the local community through professional upskilling and employment opportunities. TUGS FUTURE PLANS As the Port expands, the PHPA will examine all opportunities to maximise capacity. A number of new initiatives are planned to ensure that maximum operational efficiency is achieved as the Port continues to grow: > installation of a vessel simulator in Port Hedland; > investigation into reducing vessel spacing between inbound vessels; > working with customers to investigate ways of minimising the time at berth including using Cavotec or other technology; financial year. FIGURE 14: TOTAL PHPA PILOTED SHIPPING MOVEMENTS (2006/ /11) 1, /07 2,060 14% 2007/08 A VISION FOR OPTIMAL CAPACITY WITHIN THE PORT the oil and gas industry; The Port s tugs provide an escort service within the > targeted high spot dredging campaigns; > small vessel simulators capable of performing with the bridge simulator to create an approximation of a towage escort service or independently to give training for offshore supply vessel pilots; > training for pilotage exemption for masters of small vessels that do not need to be tug assisted, minimising the demands on the PHPA s pilots; harbour and are important to minimisation of vessel spacing and enhancing Port capacity. A mixed fleet is currently employed, with smaller tugs managing general cargo shipments and larger tugs handling bulk vessels. Acquisition of an additional twenty four 85 tonne bollard pull tugs by the Tugs and Towage Licensee will > creation of refuge pockets within the channel to aid in the event of vessel mishap within the channel; and > the use of new technology to help enhance the PHPA s management of shipping. 2,456 19% 2008/09 2,624 6% > ship interaction simulation modelling enabling customers of the Port to accurately measure be required as the Inner Harbour expands to ensure that vessels are escorted safely and efficiently. 2009/10 and record interaction forces at the wharf due to passing ships; 3,027 15% 2010/11 < PORT CONTROL TOWER

20 FIGURE 15: PHPA PORT DEVELOPMENT PLAN 2011 LAND CAPACITY 37 Extensive forward planning has been undertaken to ensure portside land availability can accommodate increased mine to Port activity and that dredged materials may be used to create additional facilities within the Harbour. Current and future land capacity is detailed in the Planning Precincts and Dredge Material Management Areas (DMMA) information presented below. AREA A Iron Ore Stockpiles General Cargo Lay Down Anderson Point Island Fuel Storage Area A is substantially developed with approximately 200 hectares set aside for bulk mineral stockpiles able to support exports in excess of 120Mtpa. The remaining 50 hectares is reserved for the main Pre-Assembled Module (PAM) Corridor from South West Creek to Boodarie Industrial Estate and a general cargo lay down area to support berths AP5, 6 and 7. Four hectares at Anderson Point Island east have been set aside for up to eight fuel storage tanks in the future and sub-harbour fuel pipeline planned to accommodate fuel ships at existing PHPA public berths No s 1, 2 and 3. This location promotes the ability to feed fuel from all these tanks to the back of the Harbour, thereby reducing tanker traffic within the Port. Anderson Point Island west will provide immediate lay down areas in close proximity to berths AP5, 6 and 7 with provision to be serviced from the existing Anderson Point multi-user access road. The existing The Pilbara Infrastructure (TPI) conveyor shall be raised to a 10 metre clearance height and broadened to a 20 metre clearance width under PHPA direction when used by other exporters. Approximately four hectares of land on the island to the west of the TPI conveyor will be cleared upon development of the South West Creek common user berths. With the raised conveyor, an additional two and a half hectares will also be created for lay down. In the event that salt exports are relocated to either AP5 or AP6 (in lieu of PH5 or Lumsden), salt stockpiles may be accommodated at Anderson Point Island west, fed by a 1,000 to 1,500 tonne per hour conveyor seven and a half kilometres overland from the evaporation ponds near the airport. At current estimates, this will remove 3Mtpa (approximately 160 movements per day) of road train transit through the Port Hedland township. Within five years, this could remove up to five Mtpa (approximately 260 movements) from the town. The development of four berths either side of South West Creek provides maximum berths with minimal dredging and environmental impact, with spoils reclaimed to Areas A, B and G. AREA C Lumsden Point Area C s Lumsden Point covers 140 hectares of reclaimed land to the north of Wedgefield. This facility is discussed in more detail on page 51. AREA E Redbank Light Industry This 15 hectare area will be allocated to Port related industrial activities such as a biodiesel fuel production. Such facilities must be located close to berths in order to pump imported oils and export biodiesel. Until such time as new land allotments are created, this naturally high land will continue to be utilised for supplementary lay down and storage. AREA F Salt Stockpile Area Area F covers approximately 17 hectares and is intended to be used as a future salt stockpile area in the event that salt loading is relocated from PHPA Berth No. 3 to a new berth east of Anderson Point. A significant amount of road train traffic will be removed from the road networks should this relocation eventuate. As Area F forms part of BHPBIO s State Agreement lease area, BHPBIO will be required to agree to such a proposal. Alternative arrangements will need to be made if an agreement with BHPBIO is not reached. AREA K Construction Lay Down Storage and Staging Area This 15 hectare zone at Finucane Island near Hunt Point comprises reclaimed land from the dredging of the Harriet Point berths. Main access to this area is via the 130 metre long and 11 metre wide Temporary Contractor Load Out Facility (TCLOF). This facility will revert to PHPA ownership and control in the future. Current plans involve the extensive refurbishment of the TCLOF by BHPBIO to facilitate the Outer Harbour development project. Restricted access through BHPBIO operations to the rear of this area is possible, with light vehicle access also achievable via the coastal access track to Hunt Point. Approximately 12 hectares of useable flat land to the rear of the vegetated berms (noise and dust barrier) and panoramic port viewing platform will be primarily used for construction lay down areas in support of future Port developments. A VISION FOR OPTIMAL CAPACITY WITHIN THE PORT

21 AUSTRALIA PRODUCES UP TO 12 MILLION TONNES PER YEAR AND IS THE WORLD S LARGEST EXPORTER OF SALT. DREDGE MATERIAL MANAGEMENT AREAS 39 FIGURE 16: MANGROVE AREAS A supplementary staging area not requiring significant land interface to support Port activities may be accommodated at Lumsden Point. AREA L Multi User Outer Harbour Support Facilities A portion of Area L north of BHPBIO s Finucane Island D Berth (FID) contains the existing TCLOF. Discussions are underway with BHPBIO to facilitate further development and enhancement of the marine facilities in Area L to support the development of the Outer Harbour. Proposed plans for the Integrated Marine Facility (IMF) include: > the extension and refurbishment of the existing TCLOF; > construction of a Materials Offloading Facility (MOF) with lift on/lift off and potential roll on/ roll off capability for construction equipment and modules; and, > construction of a Crew Transfer Facility (CTF) and associated landside facility for the purpose of enabling crew transfer boats to deliver and collect construction personnel. An access road for high wide load module movements extending from the MOF is planned. The west of Finucane Island and west of BHPBIO s Outer Harbour infrastructure will be connected to Boodarie and Utah Road at the proposed level crossing near Area H and the future level crossing south east of Area G. Increased Inner Harbour shipping volumes and planned Outer Harbour Development, has necessitated planning for a future tug haven. A portion of Area L has also been designated for this purpose, to provide the shelter and protection needed for new tug pens (refer Figure 17). AREA D AND AREA J Mangrove Re-Propagation Area (1/25 Scale Model of Port) Area D and Area J form a dedicated mangrove re-propagation zone to re-propagate mangroves destroyed by current and future Port developments. This project will comprise an approved 1:1 environmental offset. A 1/25 sized scale of the Port is to be integrated within the mangrove re-propagation project. The project also provides for millions of cubic metres of red pindan material suitable for filling low lying areas of Styles Road between seven and nine kilometres away. The proximity and high quality fill enables cost effective land raising where required and lowering of intertidal zone ground and mangrove planting with significant cost savings. The PHPA envisages extension of the mangrove re-propagation area beyond its current boundaries to the GNH/Port Hedland -South Hedland road. Mangrove populations linking Area D to Redbank (Area E) will be enhanced by recreational public boardwalks to vastly improve amenity for all visitors. FIGURE 17: PROPOSED BHPBIO TUG HAVEN AT HUNT POINT Dredge Material Management Areas (DMMA) are areas of vested land whereby a percentage of material dredged to maintain a safe clearance between vessel hulls and the bottom of the shipping channel is used in the improvement of current land holdings and raising of the current ground profile. The following areas are defined as DMMA locations where dredged materials are used for new Port developments. AREA B Bulk Mineral Stockpiles Area B comprises 170 hectares within the existing Port boundary. This area is set aside for future expansion of bulk mineral stockpiles. It has the capacity to support iron ore exports of a further 140 Mtpa approximately. This area may also support heavy industries that will develop in line with the Boodarie Industrial Estate expansion. AREA G AND AREA H Outer Harbour Corridor Road Train Receival Dewatering & Magnetite Storage Water Reservoir Area H comprises approximately 72 hectares within which fine slimes from Harriet Point berth dredging are disposed. This material will dry out, contract and be rehabilitated for use for the following purposes: > construction of a conveyor and services corridor to BHPBIO s future Outer Harbour berths on the > development of the northern end of Area H to accommodate RHI and NWI feed conveyors from the PHPA Boodarie Stockyard areas to South West Creek berths. Infrastructure will include a bridge over BHPBIO s existing and future service corridor to the Outer Harbour and restricted use service road connecting Areas H and G; and, > development of an Atlas Iron road train receival facility on the western side of Area H is also possible. This facility will bypass Port Hedland s main road network, transporting ore between Area H and Utah Point Stockyard 2 via dedicated haul road. As development at the PHPA Boodarie Stockyard Area 2 is progressed by NWI, road haulage will be superseded by rail transportation, freeing up stabilised land for construction of a new dewatering facility and a storage facility for NWI s magnetite export services at its South West Creek berths. The remainder of Area H shall be used for storage of water used in dust suppression, making use of significant berth water volumes produced from pumping magnetite by slurry pipeline to the Port. Given Area H perimeter walls have been designed and built to retain slime created by dredging operations, modifications would be required to level the base and a liner installed to convert the reservoir into a water containment facility. These modifications would result in significant cost savings otherwise associated with major earthworks for topographical adaptation and importation of soil and vegetation. materials are ongoing. The PHPA has several million cubic metres stored should a viable commercial purpose be identified. If viable, the removal and commercialisation of dried out fine material from dredged areas within Area H will augment the dam s potential water storage capacity, and the greater depth to surface area ratio reduce the volume of water loss to evaporation. Area H storage reservoirs also have capacity to capture and store storm water runoff from the stockyard areas. This reservoir is similar to the large settlement pond built to contain a one in 100 year storm event at Utah Point. AREA I PHPA Boodarie Stockyards 1-6 The multi-user Outer Harbour is designed to transfer stockpiled commodities to an area north west of the Boodarie Industrial Estate via conveyor. The PHPA Boodarie Stockyards are conveniently located to service ore shipments via the Inner Harbour berths of South West Creek. The PHPA holds management authority for Stage 1 development of the PHPA Boodarie Stockyards, the vesting of which will be progressed during the 2011/12 financial year. The PHPA has been working collaboratively with government agencies and proponents to plan for Stage 2 of the PHPA Boodarie Stockyard land vesting. This second stage is critical to the expansion of both Inner Harbour and multi-user Outer Harbour Port trade in the future. More information on the vision for Boodarie A VISION FOR OPTIMAL CAPACITY WITHIN THE PORT eastern side of Area H; Investigations into the potential reuse of dredged Stockyards is presented on page 48 of the Plan.

22 41 CONNECTING THE PILBARA TO THE WORLD CONNECTING THE PILBARA TO THE WORLD BALANCING THE IMPORTANCE OF DEVELOPING EFFICIENT TRANSPORT CORRIDORS TO CONNECT MINERS TO EXPORT MARKETS WITH THE IMPACT ON LOCAL RESIDENTS IS AN ONGOING CHALLENGE FOR THE PHPA AND ITS STAKEHOLDERS.

23 HINTERLAND CONNECTIVITY 43 Port Hedland is Western Australia s northern gateway to the world. The vast nature of this region requires extensive road and rail infrastructure to connect Port users to resource hungry global markets. Significant quad truck movements occur along major multi-use road systems within north west Western Australia. Collaboration between the PHPA and government agencies aimed at minimising interaction between passenger vehicles and industrial trucking is a key priority of all parties. The Main Roads WA GNH Realignment will facilitate efficient transportation of ores into Utah Point on dedicated commercial access roads, thereby avoiding interaction with domestic traffic between South Hedland and the Port. Currently, the PHPA delivers cargoes for export using the following methods: Product Type Current Transit Method Chromite Road Iron Ore Primarily Rail Smaller producers via road Livestock Road Manganese Road Most general cargo leaving the Port is placed on the road network with the existing road transport hubs. Significant growth in exports of iron ore and imports of mining related services is anticipated in the future. The challenge facing the PHPA is to carefully plan suitable future facility locations and transport corridors to support them. Although iron ore is likely to remain the Port s largest export commodity, growth in the exportation of industrial and alternative products means that future planning must consider the needs of all users and product types. This section highlights each transport corridor under review and forecast industrial growth requiring consideration MINE TO PORT ACCESS The larger iron ore producers are primarily focussed on rail access to the Port with their transit corridors largely aligned to the State Government s Western Corridor Infrastructure Plan (WCIP). Identification and planning of suitable access corridors into the Port by the Department of Transport and PHPA customers was meticulously undertaken to facilitate sequential development of proponent operations whilst minimising impacts on the GNH and Town of Port Hedland. Not only do the recommended railway access corridors contained within the WCIP achieve these objectives, but provide current and future iron ore producers with a valuable document from which to plan their entry into the Port and take advantage of capacity available at the proposed Outer Harbour. The WCIP provides for the following corridors and future developments (from east to west) in the Boodarie area: > the Boodarie Industrial Estate (BIE); > a BHPBIO Investigative Corridor with a minimum width of 300 metres to facilitate future rail connection to the BHPBIO Boodarie Stockyards and allows future optimisation of the eastern boundary of this corridor to maximize the BIE area; > a 100 metre wide Other Proponent Corridor that facilitates access to the PHPA Boodarie Stockyard 4 (SY4) area; > a 50 metre wide BIE Access Corridor that will initially form the eastern construction corridor for the RHI development and facilitate access to the Outer Harbour Corridor; > a RHI Corridor based on their definitive feasibility study design shape that has been optimised to be located immediately adjacent to the proposed BIE border; > a 50 metre wide multi-user road corridor that will initially form the western construction corridor for the RHI development > a series of three successive and adjacent 300 metre wide Other Proponent Corridors to facilitate future access to the PHPA Boodarie Stockyards SY2, SY3, SY5 and SY6 areas; > potential construction of a level crossing at the GNH until such time that proponent developments necessitate an upgrade to a grade separated crossing by way of a single bridge structure comprising multiple individual bridge structures. Earth fill embankment infilling between individual bridges will allow the bridge structure to be lengthened as proponent numbers increase; and, > indicative potential overpass/ underpass infrastructure to allow connection of the BIE and the Outer Harbour Corridor. The WCIP has already been implemented, with RHI s tenure aligning with the access corridor and NWI s planned access point also following these outlines. Corridors are planned to enable easy access to the South West Creek berths whilst minimising the interference with existing infrastructure within the Port. Forecasts indicate that the Boodarie Stockyard Outer Harbour corridor can potentially support up to 200Mtpa additional iron ore exports. Projected volumes of this size confirm rail to be the most economical transport option now and for the future. Port users operating outside PHPA boundaries generally need to enter into the discussions with the State Government in order to build a railway system to support business operations. Provisions for third party access by mining companies exists in various State Agreements, however success in gaining the required approvals has been limited. CONNECTING THE PILBARA TO THE WORLD Salt Road Scrap Metal Road FIGURE 18: MAJOR ROAD AND RAIL NETWORKS

24 THIRD PARTY RAIL SIDING TO The PHPA will make a 50 metre wide corridor available SUPPORT UTAH POINT To support and further complement the Utah Point facility and the Inner Harbour, potential exists for a third party rail siding to be developed. Figure 20 describes the preferred arrangement for a siding coming off BHPBIO s Finucane Island railway with a rail car discharge hopper near Utah Point. Should access to BHP Billiton Iron Ore s railway be granted to junior miners in the future, this extension will facilitate iron ore delivery to Stanley Point stockpiles prior to ship loading at Utah Point Multi-User Bulk Export Facility. This proposal is subject to the availability of capacity, or transfer of capacity from road hauled to rail hauled minerals. GNH REALIGNMENT to Main Roads Western Australia (MRWA) for the GNH Realignment. It will work with MRWA, the Town of Port Hedland and leaseholders to develop guidelines for the maintenance of design standards, use of appropriate building tools and structures and implementation of a landscaping rebate plan to maintain the amenity of the area. GNH to Lumsden The PHPA will develop and construct a service road linking GNH to the Lumsden hub berths and Area C so that this area may be commercialised upon completion of the Area C land rehabilitation works. RHI & NWI Road to South West Creek A new shared service road is planned over existing BHPBIO infrastructure to link RHI s Boodarie Stockyard 45 CONNECTING THE PILBARA TO THE WORLD FIGURE 19: PROPOSED GREAT NORTHERN HIGHWAY REALIGNMENT FIGURE 20: UTAH POINT RAIL LINE SIDING AND RAIL CAR DUMPER The GNH Realignment at the rear of Wedgefield (refer Figure 19) is jointly funded by the State Government ($40 million) and Infrastructure Australia, Auslink ($140 million) and scheduled for completion by mid and NWI facilities to new South West Creek Berths (SP1 - SP4). Road access will be restricted to area owners. Common User Stockyards Boodarie to GNH Access Road IMPROVING ROAD NETWORKS TO THE PORT Road access is vital for day-to-day Port operations. Not only does the road network in and around the Port provide access for PHPA employees and proponents, but permits junior miners access to global export markets. The road network capacity will need to expand in line with industry growth to provide efficient access to Port facilities. Below is an outline of road works planned to meet increased Port capacity and road network demand. and 39. It is expected that rehabilitation of these areas will be well advanced over the next five years upon which Port users are able to establish their business. New Finucane Island Road BHPBIO Finucane Island service road and the Finucane Island boat ramp will replace BHPBIO s existing road alongside Goldsworthy to accommodate loads 10 metres wide and 10 metres high. It will be reconfigured to include a new intersection Anderson Point Road Upgrades As part of The Pilbara Infrastructure s (TPI) capacity allocation, expansions will include sealing of the existing multi-user access road from Utah Road to Anderson Point to the east of the TPI stockyards. The PHPA will develop a service track linking Utah Road to PHPA lay down areas to the west of TPI stockyards. This development is due for completion following TPI s agreed land rehabilitation works following dredging works undertaken at Anderson Point Berth 4 (AP4). The realignment features grade-separated crossings at main intersections to improve road train traffic flow into the Port and will significantly reduce private traffic congestion on the existing Port Hedland/South Hedland/Wedgefield road network. This road will also assist in the development of Area C (Lumsden) and will provide links to Wedgefield via a Pinga Street extension. A common user PHPA road linking RHI infrastructure at Boodarie Stockyard 1 around the west and south side of the Boodarie Industrial Estate will be developed as part of the RHI project. This access road will service future Outer Harbour developments at the multi-user stockyard areas and is described in more detail on page 49. Utah Road at Utah Road within Area G, a level crossing of the The PHPA s new Utah Road to Finucane Island will Goldsworthy railway and a new public access road facilitate the commercialisation of land areas A, B and G parallel to the future Outer Harbour conveyor corridor as detailed in the Port Development Plan on pages 37 on the western side of the Goldsworthy railway.

25 47 CREATING A NEW VISION FOR THE PORT CREATING A NEW VISION FOR THE PORT THE PHPA HAS A CLEAR VISION FOR THE PORT OF PORT HEDLAND - ONE IN WHICH CLEARLY DEFINED SERVICE DEVELOPMENT AND FACILITY UPGRADES WILL FOSTER EFFICIENCIES IN EXPORT TRADE AND INDUSTRY GROWTH.

26 LANDSIDE DEVELOPMENTS 49 PHPA BOODARIE STOCKYARDS The PHPA Boodarie Stockyards development is a major project that will see the strengthening of Port proponent infrastructure to support their mining operations. The development of the PHPA Boodarie Stockyards will increase land capacity to the Port whilst being located at a distance that maximises efficiency and productivity. This stockyard is suitable for mining and port purposes and will serve industry well with wide access corridors to connect to the Outer Harbour via conveyor. The PHPA is progressing relevant approvals to enable vesting of the PHPA Boodarie Stockyards in the Port, to facilitate future growth in Inner Harbour and Outer Harbour Port trade. BOODARIE INDUSTRIAL ESTATE Provision for future expansion of the Boodarie Industrial Estate (BIE) is contained in the PHPA s long term Port evolution plans given the significant increases in iron ore exports anticipated to occur in the coming years. Additional berths have been earmarked to support the Estate. Unknown factors influencing future Inner Harbour berth demand lie in the scope of future industrialisation of BIE. Expanded exportation of dry bulk from downstream minerals processing may be accommodated within the Outer Harbour, however the proximity of Port operations to Port Hedland s West End may constrain significant expansion of hazardous cargo within the Inner Harbour. Although the types of industries to be accommodated in any future development of BIE are presently unknown, it is anticipated than development of the Estate is inevitable given proponent growth predictions. As such, planning of a 300 metre wide corridor is currently underway. This corridor, commonly known as the BIE Corridor, is designed to cater for these anticipated BIE throughput increases and will also provide a critical link for the Estate to the Port and its surrounding areas. The PHPA s Utah Point Multi-User Bulk Export Facility has first-class service corridor links with BIE. Boodarie Infrastructure and Access Corridor The Boodarie Infrastructure and Access Corridor will future industry operational, transport and service needs. It is anticipated that the 300 metre wide corridor to the east of South West Creek will be used to accommodate conveyors to service the Inner Harbour. Corridor to the east of the Boodarie Infrastructure and Access Corridor linking the BIE It is anticipated that the corridor to the East of South West Creek will be used to accommodate conveyors to service the Inner Harbour. CREATING A NEW VISION FOR THE PORT The PHPA s Outer Harbour concept was borne out of connect the BIE to the berths in South West Creek. a key recommendation made within the Woodward Clyde Study Report (1996) for a dedicated hazardous cargo jetty outside the Inner Harbour to be developed. Originally devised in 2003 to cater for storage and export of liquid materials, the Outer Harbour concept has evolved in recent times to cater to growth within the iron ore export market. Commissioned by the DSD and the PHPA, an initial planning study assessed the suitability of the proposed Boodarie Infrastructure and Access Corridor. It focussed on accommodating a slurry pipeline, access road (including PAM) and other products not requiring conveyor transportation to ensure optimal access for BOODARIE INDUSTRIAL ESTATE IS CRITICAL TO FIGURE 21: BOODARIE INDUSTRIAL ESTATE AND STOCKYARDS THE PORT S FUTURE SUSTAINABILITY AND DIVERSIFICATION OF SERVICES AND INDUSTRY.

27 FACILITATING GROWTH - WITH GENERAL CARGO CAPACITY AT PHPA S PUBLIC BERTH S APPROACHING FULL ALLOCATION THE LUMSDEN POINT IS SEEN AS A VIABLE SOLUTION TO OVERCOMING THE IMMINENT SATURATION OF PHPA S BERTHS 1, 2 AND 3. LUMSDEN POINT To address growth in general cargo and containerised trade, the emergence of new Port services and to overcome the imminent saturation of public berths PHPA 1, 2 and 3, planning is underway to develop berthing infrastructure at Lumsden Point. Located in close proximity to the deep water dredged harbour basin, Lumsden Point will capitalise on the 140 hectares of land reclaimed and GNH realignment to the areas southern boundary following BHPBIO dredging of Burgess Point in Lumsden Point is located to the north of Wedgefield light industrial estate and is ideally suited to future general cargo trade and accommodating future Port support trades and services. First stage development will complement PHPA Berth No s. 1, 2 and 3 and provide berths capable of handling Handimax vessels for ammonium nitrate, cement, service vessels and general cargo shipping industries. Lumsden Point developments align closely with the Town of Port Hedland and Landcorp s vision for the Wedgefield light industrial area to become an international freight hub closely linked to the nearby international airport. The PHPA s Area B situated immediately east of FMG stockpiles is in the process of being reclaimed following the recent dredging of South West Creek, with a further 150 hectares of useable land becoming available from CREATING A NEW VISION FOR THE PORT With the GNH to Lumsden Point s east, the newly constructed Utah Road already in operation to its south and FMG s road to Anderson Point situated to its west, this stretch of reclaimed land is well serviced and ideally situated to provide low cost overflow land for lay down and long term storage needs. These two areas nearing 300 hectares in total are sufficient to meet the needs of the Lumsden Point wharves and provide sufficient land area for future distribution centres. The facility will also be designed with provision to accept larger vessels in the final stages of development. FIGURE 22: THE LUMSDEN POINT AERIAL VIEW OF THE LUMSDEN HUB (PHPA)

28 PHPA Berth No. 4 MARINE DEVELOPMENTS PHPA Public Berth No. s 1-3 The PHPA manages three public berths at the eastern side of the channel at Nelson Point with a combined capacity of approximately 6Mtpa. The PHPA controls an area behind its existing PHPA Berths No. s 1, 2 and 3 that largely support berth activities. A study has been commissioned into the redesign of this area to accommodate containerised and general cargo trade following the relocation of chrome and manganese trades to Utah Point in early 2011 and the proposed future relocation of salt to a new berth either at PH5 at Lumsden Point or either AP5 or AP6 at South West Creek. Future plans include removal of the PHPA Berth No. 3 shed, the potential construction of infill decking behind Berth No. 2 to facilitate efficient general cargo and container handling, and the development of additional bulk concentrate storage facilities. Future trade facilitated across Berth No. s 1 to 3 will be carefully managed to ensure road movements, noise and dust are minimised at Port Hedland s West End. Utah Point Multi-User Bulk Export Facility The Utah Point Multi-User Bulk Export Facility (Utah Point) addresses the resource industry s need for expanded Port facilities to meet current and future growth in global demand for Western Australian mineral resources and enables emerging mineral producers to export their products to global mineral markets. Construction of this new multi-user user bulk export facility on the west side of the Harbour at Utah Point s narrow neck of the Harbour between Harriet Point and Finucane Island berths commenced in March The facility consists of a dredged berth pocket and 270 metre long concrete wharf, travelling ship loader, 24 hectare stockyard and associated materials handling infrastructure, administration and controls facility, and a 10 kilometre dedicated access road. A number of sustainable technology initiatives have been adopted to address the complexities associated with constructing a Port facility to transport, store and export a multitude of minerals with potentially adverse environmental and community impacts. Innovations include a 45,000m 3 water recirculation and stormwater harvesting system, bentonite geosynthetic lined stockyard floor with plastic reinforced seawall embankments, quad road-train wash facilities. The development also features a mangrove repropogation farm to address the loss of mangroves elsewhere in the Harbour. 53 CREATING A NEW VISION FOR THE PORT Berth Berth 1 Berth 2 Berth 3 Exports / Imports Exports Copper concentrate, petroleum products, bulk chemicals (sulphuric acid/caustic soda), containers and livestock Imports Oil Exports General cargo, containers, livestock, bulk liquid chemicals (sulphuric acid/caustic soda), containers, heavy lifts and petroleum products. Exports Salt - Dampier Salt own and operate a ship loader with restrictions on cargo loading. General cargo acid, fuel, oil, container and break bulk cargoes FIGURE 24: UTAH POINT MULTI-USER BULK EXPORT FACILITY Utah Point had an initial approved capacity of 9Mtpa and is designed for expansion to accommodate export volumes of approximately 18Mtpa. To reach this capacity, Utah Point utilises an innovative new automatic mooring system to berth larger vessels and a materials handling system peak loading rate of up to 7,500 tonnes per hour. The first shipment of ore was achieved within four years on 17 September By the end of June 2011 Utah Point exceeded the previous year s export tonnage by 360%, achieving the facility s nameplate capacity of 9Mtpa with an estimated total export value of A$1.5 billion. Imports Oil FIGURE 23: EXPORTS AND IMPORTS TO PHPA PUBLIC BERTH NO. S 1, NO. 2 AND NO. 3 FIGURE 25: AERIAL VIEW OF PHPA PUBLIC BERTHS

29 BHP Billiton Iron Ore s Finucane Island, Burgess Point and Nelson Point Berths 55 BHP Billiton Iron Ore s current mining operations in the Pilbara include Mt Whaleback mine, the largest single-pit open-cut iron ore mine in the world. Smaller BHPBIO deposits and satellite mines comprise the balance of deposits near Newman and Port Hedland. It is primarily due to the extensive iron ore mining projects currently underway and commissioned for future development that shipments have increased so significantly in the past decade. A series of Rapid Growth Projects (RGP) have been developed to expand systems and infrastructure incrementally and facilitate future export growth. BHPBIO s latest RGP produced five new berths along Finucane Island (and Harriet Point) and Nelson Point (including Burgess Point) extending BHPBIO s berthing facilities to eight, excluding access opportunities available at Utah Point Multi-User Bulk Facility. CREATING A NEW VISION FOR THE PORT Finucane Island and Nelson Point development works saw millions of cubic metres of soil dredged for new berth pockets, extension of the existing departure channel and introduction of swing basins to accommodate vessels of approximately 250,000DWT. BHPBIO is currently studying the development of dedicated Outer Harbour facilities, which could have a notional ultimate capacity of 200Mtpa following completion of all phases as detailed in Outer Harbour Concepts on page 58. FIGURE 26: BHPBIO BERTHS FIGURE 27: NELSON POINT

30 Fortescue Metals Group s Anderson Point Berths South West Creek Dredging for NWI berths will take place after RHI and (AP1 AP4) FMG achieved first ore on ship from Anderson Point s Herb South West Creek is located between Stanley Point and Anderson Point. FMG will occupy one berth FMG have completed dredging of their berths, with the first shipment of ore forecast for 2016/17. Elliott Port in May 2008 following construction of Berth 1 (AP1). Fortescue Metals Group Pty Ltd (FMG) is the third largest iron ore producer in Australia. It has mine, rail and Port operations in the Pilbara with extensive operations at Chichester Hub. Rail and Port assets servicing Anderson Point berths are owned by FMG subsidiary - The Pilbara Infrastructure Pty Ltd. In December 2011 FMG broke previous shipping records in moving a total of 14.4 million tonnes for the quarter equating to an annualised full capacity run rate of 58Mtpa. A second (AP2) and third (AP3) berth have now been completed, with dredging for a fourth Anderson Point berth (AP4) currently underway. Additional services to support FMG export trade include the expansion of the Chichester Hub operations and the construction of a new ore processing facility at the Christmas Creek Mine site, as well as further rail expansions in 2012/2013. on the Anderson Point side of South West Creek (referred to as AP4) for which dredging has commenced. 55Mtpa and 50Mtpa of capacity have been allocated on Stanley Point to RHI and NWI respectively. Roy Hill Infrastructure Pty Ltd (RHI) Berths SP1 and SP2 RHI is a wholly owned subsidiary of Hancock Prospecting, an exploration and development company with interests in mineral resources. RHI is allocated 35Mtpa of A Class priority sailing and 20Mtpa of B Class capacity. Dredging has been completed for RHI s SP1 and SP2 berths. The two berth wharf is expected to accommodate a 12,000 tonne per hour shiploader/unloader, stockyard and conveyor system, with first production anticipated in 2014 i. Anderson Point Berths (AP5-7) These berths are currently designated to the PHPA to service general and containerised cargo trade and include opportunity to import fuel through these berths. Upon development, AP5 and AP6 are currently planned to receive salt exports. 57 CREATING A NEW VISION FOR THE PORT North West Infrastructure (NWI) Berths SP3 and SP4 NWI comprises Atlas Iron Limited, Brockman Resources Limited and FerrAus Limited. Allocation is for B Class capacity at the back of South West Creek to enable vessels of 150,000 to 205,000 tonnes to sail on either side of the highest point of the tide. i 2007 Ultimate Development Plan Update (PHPA) FIGURE 29: SOUTH WEST CREEK DEVELOPMENT FIGURE 28: FMG ANDERSON POINT BERTHS

31 OUTER HARBOUR DEVELOPMENT Construction Staging 59 Staged development of the Outer Harbour is anticipated to meet EVOLUTION OF THE CONCEPT The PHPA developed the concept of a multi-user Outer Harbour located to the north of Finucane Island in response to industry demand to load greater volumes of iron ore within the Inner Harbour. Accommodating a bold vision for improved Port accessibility and developing a multi-user Outer Harbour will allow the PHPA to make best use of landholdings to grow Port capacity in line with long term industry growth expectations. To achieve this expansion, the PHPA will be required to achieve the following: > consolidate exports within an existing facility and avoid costs and environmental impacts associated with establishing a greenfield port facility; > reduce risks associated with having reliance on a single channel; > provide opportunity to accommodate an initial design vessel of 250,000DWT with the potential to increase this through provisions made in infrastructure design specifications; > improve sailing windows through reducing in-channel transit distances; > development of the BIE; > economies of scale in port management and support services costs; > mitigate operating risks by employing the best port management structures, pilots, tugs, helicopter transfers, training, simulators and emergency response capability (including the PHPA s enhanced oil spill response) across both harbours; > increased throughput and support services industries to drive job creation and career progression opportunities within Port Hedland; > support an improved array of local services and amenities to meet population growth; and, > facilitate the State Government s Pilbara Cities blueprint and assist Port Hedland s transition to become a sustainable city of Western Australia s north. The 2009 Outer Harbour concept is based on a minimum throughput capacity of 400Mtpa of iron ore over and above the Inner Harbour s capacity of 495Mtpa. Introducing a second channel for the Outer Harbour to accommodate increased shipping is the best solution to achieving this increased capacity. Widening or deepening of the existing channel via maintenance dredger is not a viable option given the heightened navigational and safety risks for the Port and dramatically increased dredge standby costs associated with existing shipping movements. Creating a new channel will require significant dredging to remove high areas within the channel length to enable deep draft vessels to maintain a safe clearance from the ocean floor. BHPBIO has been identified as the initial proponent for the Outer Harbour and has conducted significant surveys and studies for Outer Harbour development including geophysical, geotechnical, bathymetry, hydrological, current/tide/wave modelling, seabed coral/sea grass, biological (fauna and flora), spoil disposal, heritage and environmental impact assessments to assist in developing design concepts. Components of the Outer Harbour Development The Outer Harbour concept (Refer Figure 15, page 36) contains the following components: > rail infrastructure; > transfer facilities; > onshore ore stockyards and materials handling infrastructure; > infrastructure and transport corridors; > access jetties and causeways; > berths, basins and channel; and > spoil disposal (including identified land reclaim area off Finucane Island) FIGURE 30: SUMMARY OF ESTIMATED DREDGING BY PROJECT STAGE Approximate Dredging Approximate volume Stage Period (months) dredged (Mm 3 ) Total proponent demand, with packaging of construction stages possible to meet capacity throughput requirements. BHPBIO is studying a staged approach to the construction of its proposed Outer Harbour development, with up to four phases, which is the most effective way of delivering the Port s throughput objective. BHPBIO co-operated with PHPA on the development of the Fatal Flaw Study in 2007 and has since progressed the evaluation of its Outer Harbour development with construction anticipated to occur in four stages. Each stage is expected to take two to three years to complete, the timing of each to depend on market demand for iron ore and external and internal approvals. BHPBIO s four stages provide for marine infrastructure development and include: > Stage 1 - Development of the approach jetty and wharf structure to accommodate the first two berths; > Stage 2 - Development of second set of two berths; > Stage 3 - Development of third set of two berths; and > Stage 4 - Development of fourth set of two berths Marine infrastructure (including jetty, transfer platform, wharf, dolphins, navigation aids and ship arrester) will require numerous piles to be driven for the development. The approximate duration of the dredging stages and respective volumes of dredged material (approximate only), are summarised in Figure 30. The dredging durations allow for down times such as maintenance, weather related interruptions and include allowances for potential coral spawning periods where dredging activities may be affected. CREATING A NEW VISION FOR THE PORT It is proposed that dredging will occur in a staged manner as follows: > Stage 1 - Dredging includes dredging for a 32km departure channel as well as for berth pockets, tug access channel and departure basins. > Stage 2 - Includes dredging for extended departure basins. PORT HEDLAND TOWNSHIP (FOREGROUND), PROPOSED LUMSDEN POINT & WEDGEFIELD INDUSTRIAL ESTATE (REAR). > Stage 3 - Includes dredging for additional berth pockets and extended departure basins.

32 ELEMENTS OF THE OUTER HARBOUR CONCEPT Offshore Loading Facilities The concept details development of two separate finger jetties extending approximately four kilometres out to sea from Finucane Island. The 2009 Outer Harbour concept is based on a throughput capacity of approximately 200Mtpa for the initial proponent (BHPBIO) and 200Mtpa for other users. The finger jetty nearest the existing channel is proposed for use by BHPBIO to construct eight berths. berths, with one travelling ship loader servicing each sequential pair of berths. Alternatively, four sets of back-to back berths each serviced by a ship loader capable of loading from each side of the central finger jetty (similar to the Cape Lambert berth configuration) are possible. Rail Currently, three rail routes to deliver iron ore to Port Hedland s Outer Harbour for export have been identified. These routes are: The concept also has the potential to save infrastructure development costs through design solutions such as the shared grade separated crossing. Since development of the 2009 Outer Harbour concept, BHPBIO has proposed the Goldsworthy Railway Loop which potentially involves expansion of railway lines on the existing Goldsworthy railway alignment into the Port. Other proponents such as North West Infrastructure are also investigating transport options including rail. Ore Stockyards and Handling BHPBIO s proposed stockyard has the potential to deliver a minimum throughput of 200Mtpa with a fully developed layout comprising of up to four sets of 50Mtpa stockpile modules. An opportunity to increase Outer Harbour export capacity beyond 400Mtpa is possible on the proviso that mine to port systems are designed to avoid capacity restrictions resulting in bottlenecks. Whilst ground levels must be raised to provide protection against flooding from cyclonic surges, the PHPA s Boodarie Stockyards area is conveniently located for shipping ore to the Outer Harbour. The PHPA s Boodarie Stockyards to the south west of the Port Hedland Port, are reserved for use by other made for a reserve to the west of the Outer Harbour dry bulk corridor for bulk liquids to be transported to and from tankers at a third finger jetty or single point mooring buoys to the west of the multi-user iron ore berths and the BIE. Based on the proposed stockyard and equipment profile, the BHPBIO Stockyard will have a notional capacity of 200Mtpa. The route identified for the transportation and infrastructure corridor from the stockyards to the Outer Harbour has been informed by: > existing infrastructure, namely the existing Hot Briquetted Iron (HBI) conveyor corridor, Finucane Road and Goldsworthy railway line to Finucane Island; Jetty and Causeway Two four kilometre long and 60 metre wide access jetties have been considered leading to Outer Harbour wharves. The jetties will consist of a concrete deck over steel piles along the entire length. It is expected that separate routes carrying conveyors, access roads and services will be developed from the north shore of Finucane Island to each of the wharves via a combination of a solid core causeway in the near shore zone with an open piled trestle jetty further offshore. Provision has been made for a craft crossing beneath the access trestles to allow recreational and commercial craft to transit unhindered along the coast. 61 CREATING A NEW VISION FOR THE PORT A second multi-user finger jetty is planned to the west of the BHPBIO jetty. This jetty will comprise a separate approach jetty and eight berths to cater for approximately 200Mtpa export capacity. Common user marine elements such as the channel, turning and berthing basins may be shared by users of the facilities. It is not viable for multiple proponents to develop separate marine and port infrastructure off Finucane Island given the significant capital costs and environmental impacts on mangrove habitats associated with multiple infrastructure systems. The concept shows a new channel, which, although totally separate in Figure 15 (page 36), has the potential to be linked to the existing channel along its length. This new channel would be dredged to a depth suitable to a nominated design vessel. Four loading streams are > BHPBIO s proposed western spur rail route commences with a rail spur linking BHPBIO s Boodarie Stockyards with a branch off the existing Mount Newman railway; > Roy Hill Infrastructure s (RHI) planned railway feeding Stockyard 1 at the PHPA Boodarie Stockyards; and, > spur line and rail loop access to Stockyard 2 within the PHPA Boodarie Stockyard for use by multiple proponents. Crossings of the Great Northern Highway (GNH) will be grade separated (road over rail) Locating rail routes side by side will increase community and environmental impacts along the route, however Materials Transfer BHPBIO intends to dump ore into bins below the car using a twin cell rotary car dumper. Apron feeders will transfer dumped ore onto an underground conveyor that rises to a transfer station. At the transfer station, ore may be sent to stockpile modules located within the stockyard, a lump re-screening plant or directly onto ship loaders. It is expected that other ore exports will employ similar handling techniques to those outlined by BHPBIO. Outer Harbour proponents with a combined capacity of up to approximately 200Mtpa. This does not include the combined RHI and NWI export capacity of 105Mtpa currently being planned within the Port s Inner Harbour. Transport and Infrastructure Corridor The Outer Harbour concept includes two major landside transport corridors primarily for the transport of iron ore from the various Boodarie stockyards to ships moored at offshore Outer Harbour wharves. These transport and infrastructure corridors are expected to include conveyors, access roads for conveyor inspection and maintenance and services such as power and water. Provision has also been > minimisation of mangrove destruction; > minimisation of impact on the relatively unmodified Salmon Creek; environment to the west of the corridor; and, > retention of public access to recreational boating facilities at the western end of Finucane Island, the eastern end of Finucane Island and Hunt Point. Proposed measures to achieve the above objectives include roads and services within a single corridor located adjacent to the western side of the HBI conveyor route with graded separated crossing of conveyors over the road to the western end of Finucane Island and consideration of an alternative route for PAM s via Lumsden Point or South West Creek. FIGURE 31: PROPOSED EIGHT BERTH BHP FINGER JETTY envisaged for each finger jetty, feeding four sets of two will limit the total number of areas impacted.

33 AS THE PORT GROWS, SO TOO DOES THE PHPA S Other Proponent Dredge Volume 32 Million m 3 BHPBIO Dredge Volume 42 Million m 3 Total Dredge Volume 74 Million m 3 RESPONSIBILITY TO ENSURE THAT MAXIMUM TONNAGE CAN BE ACHIEVED THROUGH THE CHANNEL. 63 FIGURE 32: DREDGE VOLUMES BY PROPONENT* *All figures estimated Wharves For the purposes of a fatal flaw analysis, various options were developed and analysed for two wharf arrangements to service both the initial proponent and other proponent users. This arrangement will allow the initial proponent a proposed total of eight berths to facilitate the export of 200Mtpa and a proposed six to eight berths for export of 200Mtpa for other proponents. Appropriate ship navigation simulation modelling will be undertaken to inform final development layouts. Berths, Basins & Channel A standard arrival would involve the incoming vessel, assisted by four tugs, coming to a standstill in the swing basin before turning and manoeuvring to the designated berth with tug assistance. It is likely that up to four tugs of 85 tonne bollard pull would be required to assist an incoming vessel. Berth pockets capable of safely accommodating the fully laden design vessel are proposed within the Outer Harbour concept. The plans permit the design vessel to be fully loaded to its design draft and safely remain in the berth pocket until the next tidal window in the event that a scheduled high tide sailing is missed. Departing vessels will take advantage of high tides to maximise their load of ore whilst still being able to safely traverse the length of the departure channel. The Outer Harbour concept allows for a maximum overlap of channel, swing and departure basin to permit minimal dredge volumes. Final dredge volumes are dependent on final confirmation of other proponent wharf locations. To accommodate larger draft vessels at Outer Harbour wharves and improve sailing windows, the new channel will need to be dredged approximately two metres deeper than the current declared channel depth. Dredging Dredging volumes of Outer Harbour berth pockets, basins and departure channel is expected to be in the order of 70 million cubic metres to reach 400Mtpa export volumes. As Outer Harbour layout, required depths and the distance offshore of the wharves has not been finalised, dredging quantities may change. Subject to accepting reduced accessibility or draft limits on shipping, dredging depths and quantities may decrease. There are several depressions in the seabed in close proximity to the dredge works that could be suitable for relocation of dredged material. State and Commonwealth Government approvals will be required for the dredging and disposal of dredged material. Indicative estimates of the dredge quantities are provided on page 62 and are based on minimal dredging requirements determined from previous studies. NEXT STEPS BHPBIO s Outer Harbour development has received environmental approval. BHPBIO has approved US$917 million dollars of pre-commitment funding towards feasibility studies and procurement of long lead time items. The State has also amended BHPBIO s State Agreements to facilitate and provide BHPBIO with certainty for its Outer Harbour development. BHPBIO has significantly progressed Outer Harbour infrastructure planning and is currently working towards a start-up date of 2016, subject to further BHPBIO board approval. Since the initial design concepts for the Outer Harbour were created, several new developments have been facilitated within Boodarie area, most notably the allocation and approval of a development envelope for the construction and operation of rail, stockpile, conveyor corridor and wharf infrastructure to support RHI iron ore export via South West Creek. The proposed development by Atlas to export iron ore product from the PHPA Boodarie Stockyards via Utah Point and the proposed NWI development in South West Creek is also significant and worth noting. The various State, Port and proponent developments and the subsequent need for further corridor planning to facilitate projects are captured within Mine to Port Access on page 43. CREATING A NEW VISION FOR THE PORT AERIAL VIEW OF SPOIL BANK

34 65 ENVIRONMENTAL SUSTAINABILITY ENVIRONMENTAL SUSTAINABILITY THE PORT HEDLAND PORT AUTHORITY IS COMMITTED TO PROTECTING THE NATURAL BEAUTY OF THE PORT HEDLAND COASTLINE THROUGH ITS USE OF INNOVATIVE ENGINEERING PRACTICES AND POLICIES.

35 THE PORT HEDLAND PORT AUTHORITY IS DILIGENT IN OUR UNIQUE ENVIRONMENT DISCHARGING ITS DUTIES AS REQUIRED UNDER THE PORT AUTHORITIES ACT (1999), WORKING PROACTIVELY TO DELIVER ROBUST ENVIRONMENTAL PROTECTION INITIATIVES WITHIN A RIGID ENVIRONMENTAL MANAGEMENT 67 The Port is located within Port Hedland Harbour - a complex estuarine system with significant environmental value. The wide variety and diversity of mangrove species in the Harbour act as a major source of food and shelter for a myriad of marine and terrestrial fauna. It also provides a major source of nutrients for the coastal marine environment and stabilizes coastal sediments. Port Hedland s offshore waters are rich in ecological biodiversity and support a wide range of marine ecosystems including seagrass, sponge colonies, and both soft and hard coral colonies. Various species of marine organisms including diatoms, plankton, infauna, epifauna, fish, reptiles and mammals are common within the Harbour and adjacent waters. A number of listed migratory and threatened species exist within the Port Hedland Harbour area including the flatback turtle (Natador depressus), the black-ringed sea snake (Hydrelaps darwiniensis) and the white-bellied sea eagle (Heliaeetus leucogaster). Adjacent to the operational port area is Cemetery Beach which is a major flatback turtle nesting area. The PHPA s 2003 Ultimate Development Plan (UDP) identified three major environmental issues requiring careful planning and management in order to mitigate trade restrictions for primary producers across the north west, namely benthic primary producer habitat (mangroves), dust and noise. This section outlines consideration of these environmental issues and PHPA s plans to protect Port Hedland s unique environment. Several other factors will also be discussed in this section, which have been identified as being of less significance than those highlighted in the UDP. PROTECTING PORT HEDLAND MANGROVES In 1963, the total area of mangroves existing within the Port Hedland management unit (as defined under Environmental Protection Authority (EPA) Guidance Statement 29) 1 was 2,676 hectares. Since 1963, hectares of mangroves have been disturbed, with a further 40.1 hectares approved by the EPA for disturbance as part of the South West Creek Dredging and Reclamation Project. The total actual and approved disturbed mangrove area is hectares since Without the PHPA adopting measures to address the impacts of such disturbances, additional areas of mangroves to be disturbed under the Port Development Plan are unlikely to be accepted under strict application of Guidance Statement 29. To that end, the PHPA employed the V & C Semeniuk Research Group (VCSRG) to study mangroves in the harbour and investigate their propagation potential in The VCSRG report subsequently produced has been used as a basis upon which the EPA is revising its Position Statement No.9 Environmental Offsets in order to refine the list of critical environmental assets contained therein. The VCSRG report notes two methods of addressing mangrove loss offsets, namely the creation of area(s) that attempt to re-create the function of disturbed mangrove areas, and tradeoffs whereby existing wetlands elsewhere in the vicinity are designated conservation reserves to replace areas of mangrove loss as a result of industrial development. The aim of re-propagation is not just to replace the area of mangroves lost, but to replicate the habitat, vegetation structure, vegetation composition and ecological composition of mangrove communities disturbed wherever possible. The VCSRG report concluded that carefully selecting tidal creek systems intended to replicate disturbed mangrove populations could in fact increase the ecological productivity of the Port Hedland Harbour. The PHPA is actively working to re-propagate those areas identified within the report as being important, highly productive and cost effective ecological habitats to replicate (refer Figure 33). 1 Guidance Statement 29 was replaced by Environmental Assessment Guidelines No.3 Protection of Benthic Primary Producer Habitat in Western Australia s Marine Environment on 1 December FRAMEWORK TO PROTECT THE PORT HEDLAND ENVIRONS. The EPA has also expressed an interest in the impacts on other benthic primary producer habitats within the Port Hedland industrial local assessment unit including: > salt marsh; > cyanobacterial mats; > macroalgae; > coral; and > seagrass. To date, little work has been undertaken to classify the cumulative impact on these habitat types and the effect that these impacts have on ecological function. A condition of the South West Creek Dredging and Reclamation Project is to map these benthic primary producer habitat types to identify their coverage and diversity. The data collated is likely to be used further to determine the role these habitat types play within the local ecosystem and subsequently determine their importance to the ecological function. ENVIRONMENTAL SUSTAINABILITY FIGURE 33: MANGROVE STUDY

36 MARINE WATER QUALITY More frequent berth pocket dredging will avoid Ballast Water Discharge Industrial Waste Discharge The discharge of industrial waste into Port waters is not currently an issue. Vigilance will be required to ensure this remains the case in the long term in view of future developments at Boodarie Industrial Estate contaminant level build up and permit continued disposal at sea. Notwithstanding this, the PHPA shall seek to develop settling ponds within Area C to dispose of any potential future silt contaminants. Shared Dredging Ballast water poses significant risk due to the real possibility of ballast water containing foreign marine species that are destructive to native species. As such, the discharge of ballast water in ports is governed by international policy and Australian legislation. and Wedgefield light industrial area. The costs associated with Australian dredging Under AQIS authority, the discharge of ballast water is Product Spillage During Loading Minimal product spillage during cargo handling occurs within the Port. The relocation of chrome and manganese exports to the Utah Point Multi-User Bulk Facility has removed heavy metal handling from No. 1 Berth, allowing the PHPA to modify ship loader and feed systems to overcome such spill risks at No. 1 Berth. DREDGING Dredging is an essential part of developing and maintaining depth in the Port. Cutter suction and trailer suction dredgers typically create a plume of suspended sediments around the equipment. It is accepted that dredging will have an impact within the immediate area and have potential adverse effects on water quality and sedimentation outside of the zone of impact. Capital dredging projects using backactor and cutter suction dredgers can take a number of years. As such, comprehensive monitoring programs are required to ensure there are no adverse indirect impacts on benthic primary producer habitats. Maintenance dredging is generally short lived, although potential still exists for adverse water quality outcomes. The reclamation of land using cutter suction dredge spoil can be undertaken such that reclamation area water can be retained long enough to sufficiently settle all sediments prior to clear wastewater being returned to the Harbour. operations have increased threefold in recent years due to lack of availability and mobilisation expenses. The Australian Quarantine Inspection Service (AQIS) is mandated to dry dock dredgers prior to entering Australia. This coupled with doubling up of crews during maintenance campaigns are significant cost considerations when undertaking dredging campaigns. The benefits to Western Australian ports in having a shared maintenance dredger are significant. Currently, the PHPA is in negotiation with the Geraldton Port Authority and the Bunbury Port Authority to maintain a shared dredging service. Oil Spillage Commercial oil spillages are a rare event within the Harbour. Disposal of contaminated bilge liquids into the Harbour is prohibited and accidental discharge occurrences are rare. Occasional accidental petroleum product spillages by dredgers, small commercial craft and recreational craft occur with small volumes entering marine waters as a result of such incidences. Spill risks are managed via regulated PHPA procedures to ensure suitable equipment and sufficiently trained staff are on hand to respond to moderate spills. The PHPA s Exercise Black Jack undertaken in September 2008 identified the Authority s limited ability to prevent spilled oil entering sensitive mangrove environment. The PHPA has subsequently invested significant resources into purchasing oil spill boom equipment permitted in Australian ports provided ships exchange their ballast with clean seawater during transit between ports. In a bulk loading port such as Port Hedland, the discharge of large quantities of ballast water is essential during the ship loading process. Alternatives to this procedure such as pumping to onshore treatment tanks or onboard chemical treatment have been investigated by the PHPA, with no viable alternative yet identified. As such, existing protocols remain in place to ensure protection against the introduction of foreign marine pests. The PHPA has undertaken in-depth base line studies of the Port and has a continuing involvement in the monitoring of marine pests in ports as part of a Ports WA collaboration with the Department of Fisheries Western Australia. 69 ENVIRONMENTAL SUSTAINABILITY In light of the projected shipping growth and the need to maintain a second channel to support this for rapid deployment should oil spills threaten mangrove populations. increase activity, the PHPA is planning to increase the frequency of channel maintenance dredging from every three years to biannually. This will reduce sediment accumulation within the channel, increase sailing drafts, shorten ship loading times, and improve Port capacity and efficiency of the shipping task that in turn increases In the unlikely event of a major oil spill, state and national response procedures are in place with the relevant authorities. FIGURE 34: CUTTER SUCTION DREDGER UNLOADING SPOIL CONTENTS (PHPA) profitability for commodity producers. UTAH POINT MULTI-USER BULK EXPORT FACILITY

37 Scenario Developments Tonnages Cumulative Total Wind Roses Anti-Fouling Paints In earlier shipping days, it was a common occurrence for older paint treatments to flake and become trapped in berth pocket sediments during ship loading operations. In 1997, the Australian and New Zealand Environment and Conservation Council (ANZECC) issued a Code of Practice for all commercial vessels in Australian waters prohibiting in-water removal of fouling except in emergency conditions. Before sea chests or ship propellers can be cleaned, administering authorities must be given five days notice, including details of the collection process and disposal of removed material. The PHPA prohibits any in-water removal of fouling which may cause foreign marine pests to be introduced to Western Australian waters or cause harmful anti-fouling paints to fall into the water. The International Maritime Organisation (IMO s) International Convention on the Control of Harmful Anti-fouling Systems on Ships (AFS 2001) to which Australia was the first signatory, dictates no ship shall have anti-fouling systems containing organotins from 2008 onwards. These harmful anti-fouling paints shall not be present on the hull with old Tributyltin (TBT) to be either removed or sealed. These conventions and practices ensure anti-fouling paints containing organotins such as TBT have been a minimal source of contamination for berth pocket sediment for the Port of Port Hedland. AIR QUALITY Air quality, in particular dust, is a significant environmental issue in Port Hedland given the nature of minerals conveyed in and out of the Port. The EPA s Environmental Protection Bulletin (EPB) No.2 Port Hedland Dust and Noise (2009) necessitated a coordinated effort by Government and industry to develop and execute an integrated strategy to address Port Hedland s dust and noise issues. The Western Australian Premier, Colin Barnett, formed the Port Hedland Dust Management Taskforce, with The Port Hedland Air Quality and Noise Management Plan subsequently released in March This Plan established goals to be achieved in order to meet EPB No. 2 requirements. The Best Practice Dust Management Guidelines established as part of The Port Hedland Air Quality and Noise Management Plan underpin the Port Development Plan, with the following strategies incorporated to address environmental concerns related to dust emissions: > relocation of BHPBIO crushing and screening to Newman as part of Rapid Growth Project 5 (RGP5); > maximisation of direct ship ore, namely product loaded direct from trains on to ships without being placed on the ground; > establishment of dust minimisation guidelines on new developments; and > enhanced Dust Extinction Moisture product conditioning. For dust particles 10 microns (PM 10 ) or less in size, National Environmental Protection Measure (NEPM) criteria stipulates that the maximum concentration, averaged over a 24 hour period, should not exceed 50 μg/m 3 on more than five occasions per year. A Sinclair Knight Merz (SKM) study undertaken in 2010 compared the results of its modelling to the limit of 150 μg/m 3 for residential areas stipulated in the Kwinana Environmental Protection Policy (EPP) (EPA 1999) to assess potential amenity impacts. The results of the modelling are summarised in Figures 35 and 36. Based on these findings, the Port Hedland Dust Management Taskforce has proposed an interim guideline for Port Hedland being 70μg/m 3 to be exceeded on no more than 10 occasions per year. Decreases in PM 10 concentrations at the Harbour and hospital monitoring stations will be achieved by implementing the following measures: > cessation of all crushing and screening operations at the BHPBIO Nelson Point; > select Nelson Point stackers/reclaimers and transfer stations to be decommissioned; and > relocation of high dust emitting operations to Utah Point. Further modelling of dust will be carried out to determine the likely impact of developments on a scale commensurate with those foreshadowed by this Plan. Where modelling indicates unacceptable dust concentrations, mitigation options will need to be implemented. Existing BHPBIO Existing PHPA 3 BHPBIO - RGP4 155 FMG - Anderson Point PHPA - Utah Point 18 PHPA - Nelson Point 1 3 BHPBIO - RGP FMG - Anderson Point Hancock Prospecting - SW Creek NWIOA - SW Creek 50 6 BHPBIO - OHD a PHPA - Boodarie b PHPA - Boodarie FIGURE 35: COMPARISON OF PREDICTED PM 10 CONCENTRATIONS IN PORT HEDLAND Statistic Maximum 24-hour Average (μg/m3) Current Operation Proposed Utah Point Development Harbour Monitoring Location Hospital Monitoring Location South Hedland High School 8 12 Wedgefield FIGURE 36: COMPARISON OF PREDICTED PM 10 CONCENTRATIONS IN PORT HEDLAND Airborne dust is dispersed according to wind direction and strength. An understanding of the likely areas to be impacted by dust and of the extent of impact can be gained by reviewing Port Hedland s wind roses. Wind roses have been generated at monthly intervals for the time series. Figure 36 indicates wind is generated predominantly from the north west (September to February). South easterly winds generally occur between March and August. Prevailing winds cross the western end of Port Hedland from the Port s bulk mineral operations to coincide with high Trisodium Phosphate (TSP) concentrations recorded at Harbour monitoring stations. Dust Dispersion Modelling There have long been concerns about Port Hedland dust levels. The large volumes of mineral products held in stockpile and loaded onto ships are sources of dust that, when added to ambient levels, create dust levels that exceed the NEPM criteria in the western part of Port Hedland at different times of the year. SKM s broad scale modelling study in 2010 predicted the likely air quality impacts in implementation of the Port Development Strategy. The study modelled current operations based on 2004/05 data and compared it with the proposed development scenario (Figures 35 and 36). The most publicly available up-to-date dust levels referenced were those of the Port Hedland harbour, hospital, Port Hedland South and Wedgefield dust monitors. NORTH 25% 20% 10% 15% 5% EAST WEST WIND SPEED (m/s) 71 ENVIRONMENTAL SUSTAINABILITY SOUTH FIGURE 37: WIND ROSE FOR THE DATASET (SINCLAIR KNIGHT MERZ) PORT HEDLAND INNER HARBOUR (FOREGROUND) PORT HEDLAND TOWNSHIP (REAR)

38 73 PORT HEDLAND INDUSTRIES COUNCIL Following the release of the EPA s Environmental Protection Bulletin No.2 Port Hedland Dust and Noise and the subsequent formation of the Port Hedland Dust and Noise Taskforce, Port Hedland industry groups sought to develop a cooperative approach to the management and monitoring of air quality. Based on the Kwinana Industries Council model, the Port Hedland Industries Council (PHIC) was formed in July 2009 and was comprised of 11 industry representatives. The PHIC provides a cooperative approach to air quality monitoring and management in Port Hedland and allows industry to directly address the recommendations of the Port Hedland Dust and Noise Report as a unified body. The PHIC has established the Port Hedland Air Quality Monitoring Network which will provide valuable data for future research into the health impacts of dust in Port Hedland. NOISE Noise levels in the western end of Port Hedland are known to exceed the levels that are acceptable according to the Environmental Protection (Noise) Regulations 1997 (Noise Regulations). Given the nature of industrial port activity that causes the high noise levels has been carried out for some forty years, the primary focus is not to prohibit existing noise sources but to manage cumulative noise levels. Particular effort is required to mitigate the noise from new developments so that the noise within the western end of Port Hedland is maintained or preferably reduced. Acceptable noise levels are regulated under the Noise Regulations, with any new developments ordered to demonstrate their compliance prior to development works being undertaken. However as with dust, detailing of noise modelling lies beyond the scope of this Plan. Nevertheless, the important question needing to be answered in considering the implementation of the Plan is to what extent the developments proposed in this Plan will be constrained by noise levels. Whilst it is recognised that future developments will generate additional noise, further modelling of noise is to be carried out progressively as expansions and new infrastructure are brought on line, with measures taken to minimise the impacts of noise from such developments. Where modelling indicates noise levels in excess of those limits nominated in the Noise Regulations, mitigation options will need to be implemented. The Port Hedland Dust Management Taskforce has also been tasked to address noise issues in Port Hedland. Recommendations to deal with noise include the development of an ambient noise monitoring program and the potential to develop a specific Environmental Protection Policy for noise in Port Hedland. OFFSHORE REEF AREAS Development of the Inner Harbour in accordance with this Plan will not cause further disturbance to the offshore reef systems. The development of an Outer Harbour will, however, involve dredging and potential reclamation of areas of offshore reef. The implications of such disturbances will need to be considered in more detail as part of the planning and investigation process for the Outer Harbour. FAUNA - TURTLES The most sensitive to port developments of all marine fauna is the turtle. Turtles are known to return to the same beach to lay their eggs where they themselves were hatched. The loss of a beach through development will break such breeding cycles and place the reproduction of turtles at risk. There are no known hatching beaches used by turtles within the Inner Harbour. Most developments outlined in this Plan do not pose a risk to turtle populations. No research has been undertaken into turtle use of the northern foreshore of Finucane Island, however Outer Harbour developments will include studies into potential impacts on turtle activity in this area to mitigate any adverse affects on turtle populations. Indirect impacts on turtle populations such as use of lights, dredging and water quality have been identified by the PHPA. Environmental Assessment Guideline No.5 Guidelines for protecting marine turtles from lighting impacts (November, 2010) sets out parameters for lighting design in sensitive areas and dredging activities and imposes environmental approvals to ensure impacts on turtle populations are minimised. To date, no turtle fatalities have been recorded as a result of dredging in Port Hedland. STORM SURGE - STUDIES Most of the Port Hedland township and its Port are below six metres Australian Height Datum (AHD), making it extremely vulnerable to the effects of storm surges causing inundation during the tropical cyclone season. Storm surge studies have been commissioned by the PHPA in recent years to determine potential impacts of tidal changes caused by adverse weather conditions in the region, namely the Port Hedland Storm Surge Inundation Study commissioned by BHPBIO and undertaken by the Bureau of Meteorology (BoM) and Global Environmental Monitoring Systems (GEMS) in The Port Hedland Storm Surge Inundation Study estimated inundation levels at BHPBIO s Hot Briquetted Iron (HBI) development site for a 1 in 50 and 1 in 100 storm event. A hydrodynamic model of the area containing eleven tag points found inundation occurs more quickly to the west of Downes Island and through the harbour entrance. The rail/road acts as an effective barrier to the flow of water and contains the flood to the east of the HBI plant site. Because Finucane Island and the sand bars to its immediate south west act as a barrier, flow into the region on the western side of the road/rail embankment is restricted. Study findings resulted in the BoM s storm surge estimates for Finucane Island being revised down to +5.1m AHD for a 50 year event and +5.9m for a 100 year event. The more recent Greater Port Hedland Storm Surge Study (2000) commissioned by the Town of Port Hedland, Department of Regional Development (DRD) and the Ministry for Planning and conducted by BoM and GEMS assessed the effects of catchment flooding to derive new estimates for 50 and 100 year events previously examined in the 1995 study. Difficulties in extracting sufficient and appropriate data obtained in the Study to make a full assessment of how catchment modelling could be incorporated in inundation levels were encountered in this Study. It was found that finer scale features such as drainage channels, natural levee banks, roads and the like are more useful indicators of local flooding likelihood than catchment modelling. The report also found that flood levels vary considerably throughout the region, with a portion of Wedgefield at greatest risk of inundation within 50 year flood limits. Reclamation levels equivalent to or higher than a 1 in 100 year event are recommended. A level of 5.9 metre Australian Height Datum (AHD) is equivalent to 9.8 metre Chart Datum (CD), which is consistent with other port reclamation levels. The reclamation of development Areas A, B and C to a level of 5.9 metre AHD to slow inundation rates will provide additional protection to Wedgefield. Additionally, the GNH realignment to the rear of Wedgefield will provide further protection from storm surge flooding. POTABLE WATER SUPPLIES The suppression of dust from stockpiles is typically performed by water cannons. Fresh or potable water must be used for watering stockpiles as higher seawater salinity levels may introduce impurities that adversely affect steel making in blast furnaces. Extension of existing underground water supplies in some areas and identification of additional underground water sources may support expansion of industrial and Port activity, but are unlikely to have sufficient capacity to cope with the scale of future Port developments. Desalination, as currently used in Denham, Perth and Dampier, provides a viable solution for Port Hedland s long term water requirements. GREENHOUSE GASES Large scale Port operations result in increased greenhouse gas emissions through various sources including transport, mobile plant and fixed plant operations. PHPA has undertaken gas modelling in an effort to predict the likely impact of increased transport vectors on air quality. This included both nitrogen dioxide (NO 2 ) and sulphur dioxide (SO 2 ) emissions and diesel particulate matter. Despite significant increases in greenhouse gas emissions, modelling indicates these levels are consistently within guidelines and acceptable to maintaining acceptable air quality. ENVIRONMENTAL SUSTAINABILITY

39 75 SOCIAL SUSTAINABILITY SOCIAL SUSTAINABILITY PORT HEDLAND IS BEING TRANSFORMED INTO A MODERN AND VIBRANT REGIONAL HUB WITH STRONG LINKS BETWEEN COMMUNITY AND ENTERPRISE.

40 SOCIAL SUSTAINABILITY PORT HEDLAND IS WESTERN AUSTRALIA S NORTH WESTERN GATEWAY TO RESOURCE HUNGRY GLOBAL EXPORT MARKETS. 77 In recognising the importance of supporting local communities and the role industry plays in making Port Hedland an attractive place to live and work, the Port Development Plan addresses key areas to support the State Government s long term sustainable Pilbara Cities initiative. The Plan is closely aligned to the Town of Port Hedland s Land Use Master Plan (LUMP) 2007 and aims to achieve the following economic and social sustainability goals: > significant trade growth and industrial development to increase local employment opportunities and drive prosperity for the residents and businesses in Port Hedland; > support for recreational boating facilities with a safe boat haven/marina development at Spoil Bank and road access improvements to Finucane Island boat launching facility (Refer Figure 39 on page 78); > accommodation of cruise ships to bolster tourism trade; > reduction in the number of heavy road trains accessing the Port via Wilson Street; > reduction of dust in the west end of the town by relocating manganese and chrome to Utah Point Multi-User Bulk Facility and the establishment of guidelines for future developments. Future stockyard developments to be located at the back of the port to the north west of the Boodarie Industrial Estate to avoid prevailing winds that impact Port Hedland and South Hedland; > recognition of existing communities and land use and the establishment of on-site and off-site buffers to avoid conflicting land use; > recognition of heritage value sites through the Cultural Heritage Management Plan; > support for a single enlarged rail corridor for future railway lines to access the west side of the Harbour, located to the west of the Boodarie Industrial Estate; > diversify trade and services of the Port and Town through the development of the Lumsden Point; > improve the Port/Town interface by renovating the Port entrance and constructing a 10-storey office building; and > implementation of the Landscape Master Plan to enhance all port lease areas through appropriate and appealing landscaping, fencing and signage. ECONOMIC BENEFITS Forecast trade increases equate to commodity value increases from A$20 billion to an estimated A$66 billion by 2015/16. Employment growth will not only be experienced as a direct result of trade growth, but in creating the infrastructure and support services network to support industrial activities. With Lumsden Point and Outer Harbour developments expected to be operational by 2015/16 and additional services being introduced to support these developments, Port Hedland s workforce is expected to expand from 5,212 in 2008 to 13,000 by Port Hedland s total population is expected to grow by 14,000 to reach a total of 25,000 within the same period. With population growth comes the need for improved quality and choice in medical, education, recreational, retail and commercial services. It is via prosperous economic conditions that Port Hedland will step ever closer to its goal of becoming a vibrant and prosperous regional centre and Western Australia s north western gateway to global export markets. BUFFERS AND COMPATIBLE DEVELOPMENT As part of the LUMP process, the PHPA agreed to establish a 500 metre on-site buffer to the north and west sides of Wedgefield in exchange for a plot of unallocated crown land to the west of Wedgefield being vested with the PHPA. Development within these on-site buffers will be limited to low impact light industry uses. Land reclamation described within this Plan and the GNH realignment will offer additional protection from storm surges to ensure productive use of Wedgefield continues. Low impact development is also proposed for the area surrounding Redbank s residential community. Given the inability for the PHPA to establish buffer zones at the west end of the Port Hedland township, the PHPA will employ measures outlined within the State Government s Port Hedland Dust and Noise Management Plan and described within the Environmental Sustainability section of this Plan, to address the challenges linked to management of adverse dust and noise conditions. In all other areas of the Port, a 500 metre wide off-site buffer applies to minimise the risk of incompatible developments occurring adjacent to the Port in the future. ABORIGINAL HERITAGE Previous research undertaken by the Department of Indigenous Affairs quantifies numerous archaeological sites of potential significance existing within the Port Authority Reserve. These sites primarily consist of midden and tool fragment deposits occurring within the limestone ridge country. Other archaeological findings include shell and stone artefacts and limestone engravings. The PHPA s CHMP identifies all known sites of indigenous cultural significance. Under the CHMP, the PHPA or duly authorised proponents must apply to the Department of Indigenous Affairs Aboriginal Cultural Material Committee (pursuant to Section 18 of the Aboriginal Heritage Act) to notify the Committee of any potential damage progressive development of the Port will have on known or possible heritage sites. Extensive consultation with relevant stakeholders occurs to ensure protection of the region s unique cultural history before any development approvals are granted. The PHPA has successfully employed measures outlined in the previous UDP and will continue to do so under this Plan to guarantee conformity to requirements of the Aboriginal Heritage Act. It is through a continued commitment to its CHMP that the PHPA will effectively address any issues that may prevent future development of the Port. SOCIAL SUSTAINABILITY

41 VISITING CRUISE SHIP RECREATIONAL BOATING Boat launch Buildings enclosing the lagoon: housing over mix of retail, cafés, offices Full service marina Weir maintaining constant Swimming beach, water level in lagoon paddle boat hire Eco-resort: fixed tents, nature trails, turtle monitoring etc Existing Yacht Club Island with performance stage Hotel: to 10 storeys Residential complex SUTHERLAND ST Mixed-use: housing over KINGSMILL ST retail, cafés, restaurants etc Moore Street complex MORGANS ST Tamarind Tree ANDERSON ST FIGURE 38: PROPOSED SPOIL BANK DEVELOPMENT Port Hedland has long needed protected moorings for recreational vessels. Recreational boating is currently restricted to trailer-sized vessels. Yachting in particular is very limited; shallow drafted trailersailer craft that can be launched at existing boat ramps are the only class of yacht that can be regularly used. Plans for a marina and small boat haven at the Spoil Bank have evolved significantly alongside plans to develop the southern end of the Spoil Bank for hotel and residential use given the area s popularity as a recreational site for residents and visitors. Figure 38 shows the broader marina and residential development concept. The marina/safe boat haven will offer secure moorings for commercial and larger recreational vessels such as fishing vessels, charter boats and other tourist related craft in bad weather situations. The Lumsden Point cyclone mooring facility also has the capacity to secure larger craft. The Main Street jetty shall continue to service the needs of small craft and local anglers and will offer an alternate facility for berthing commercial craft, the Leeuwin and visiting super yachts. Establishing a variety of new, secure moorings within the Harbour will enhance recreational boating opportunities for the region and encourage new business operations to service its needs. INDUSTRIAL TOURISM Cruise Ship and Mega Yacht Port Calls Relocation of manganese and chrome exports to Utah Point and PHPA s desire to develop Lumsden Point and South West Creek on the southern side of the Port for future general cargo and container growth will enable cruise ships to be accommodated at the existing Port Authority wharfs. Growing interest has been shown by cruise ship operators to include Port Hedland on their itineraries given the industrial tourism opportunities available within the Harbour. Whilst cruise ship calls are not a significant revenue generator for the PHPA, the PHPA recognises the direct and indirect benefits this industry has for the town and the region, helping putting Port Hedland on the map as a tourist destination and facilitating growth of the local tourism industry. Port Hedland enjoys a similar climate to tourism mecca Broome, but boasts a point of difference in its industrial tourism, unique indigenous, heritage and arts culture. It is also located in close proximity to Karijini National Park and is a prime place to experience offshore whale migration and turtle beach nesting. Cruise ships berthed at the public wharves will have an elevated view over the entire Port, overseeing ships of all sizes (including leviathans of the sea) loading, turning in close quarter and berthing around the clock. Hospitality opportunities such as the proposed Salmon Creek resort facility will develop in response to growth in sea bound tourism. Given the number of mega yachts currently sailing the Kimberley, potential also exists for Port Hedland to welcome these vessels. Coastal Vessel The State currently subsidises the operation of the Kimberley Queen coastal vessel - a 4,766DWT self-geared multi-purpose ship capable of lifting up to 384 twenty-foot equivalent units (teu) with 60 refer capacity with two 40Mt cranes. This vessel primarily services the needs of the Kimberley with fortnightly sailings from Fremantle to Broome and Wyndham and Darwin with inducement calls available to other ports such as Dampier and Port Hedland en route. The Kimberley Queen caters for all types of cargo including containerised, breakbulk and bulker bags capable of handling products such as cement, lime, fertiliser, small vessels and construction and mining machinery. With development of the Lumsden Point, the PHPA envisages more regular coastal vessel calls through Port Hedland will improve freight competition by providing local industry options to employ sea freight over road freight to remove subsidies currently in place. 79 SOCIAL SUSTAINABILITY

42 STAKEHOLDER ENGAGEMENT The PHPA values the role it has played, and will continue to play in the economic development and sustainability of the region. As the demand for bulk commodities such as iron ore grows, so will the need for increased throughput capacity and expansion at Port Hedland Port. Given the PHPA s major role in supporting economic growth and environmental sustainability within the Pilbara region and the resources sector, it is keenly aware of the importance of building and maintaining positive stakeholder relationships to ensure the best outcomes for industry, the State and the Port Hedland community. The PHPA is a vital part of the Port Hedland and Pilbara community and works closely with the State Government, the Town of Port Hedland and the Pilbara Development Commission to build a vision for the region s future. Aligning this Plan to regional strategies such as the Town of Port Hedland s Pilbara s Port City Growth Plan, and the State Government s Pilbara Cities vision will enhance its efforts. Open, transparent and effective two-way stakeholder engagement and communications are regarded as critical to building the support, confidence and trust necessary to deliver upon this Plan. As part of its performance measurement and reporting requirements, the PHPA conducts an annual survey of key stakeholders to obtain feedback on the PHPA s operations and services. Considerable importance is placed on views acquired within the survey process and as such, decisions about future growth and prosperity of the Port are made in consultation with its stakeholders through this formal process and other mechanisms. It is via best practice communication and engagement strategies that the PHPA aims to engender stakeholder awareness, understanding and support of its operations and activities. The PHPA s six strategic stakeholder engagement objectives are: 1. PLAN: consider stakeholder engagement and communication as an integral component of PHPA s strategic planning and management process - identify, assess and prioritise stakeholders. 2. ENGAGE: facilitate stakeholder engagement through the provision of information and consultation - monitor and review engagement strategies to ensure their effectiveness. 3. INCLUDE: carry out stakeholder engagement and communications activities in an inclusive and appropriate manner - incorporate stakeholder feedback into the decision making process. SHIP TURNING WITHIN PORT (PHPA) 4. RESPOND: provide information through channels and via formats that meet the needs of all stakeholders - build and maintain relationships that lead to mutual trust and confidence. 5. IDENTIFY: ensure the PHPA is visible and identifiable to stakeholders - create and maintain awareness and understanding of the PHPA s operations and activities. 6. PROMOTE: positively promote the PHPA and present information in a consistent, objective and apolitical manner - meet legal and regulatory responsibilities. The PHPA aims to demonstrate its values through managing stakeholder expectations, easily identifying issues and improving relationships and interactions whilst striving to deliver upon its Vision and Mission. The PHPA communicates with its stakeholders through strategies outlined in the Engagement Strategy and Communications Action (ESCA) Plans and include some of the following: EXTERNAL COMMUNICATIONS INTERNAL COMMUNICATIONS Stakeholder briefings and presentations Staff intranet PHPA website and online newsletter Internal updates Reputational surveys Staff survey Community enquiries/complaints process Internal briefings and workshops Community liaison groups CEO updates Change notifications and Health, Internal newsletters Safety & Environment bulletins KEY PHPA STAKEHOLDERS The PHPA engages directly with a diverse range of Port users and stakeholders including: > State Government (Ministers and Departmental representatives) > Federal Government (Ministers and Departmental representatives) > Local Government (Councillors and administration) > Regulatory authorities > PHPA employees > Port users and customers (exporters and importers) > Contractors and suppliers > Special interest groups (environmental and indigenous) > Business and industry groups As well as engaging with stakeholders on an individual basis, the PHPA also has dialogue with stakeholders through a number of other important, ongoing forums such as the: > Port Consultative Group > Local Emergency Management Committee > Community Consultative Group > Port Hedland Industries Council > Port Hedland Dust and Noise Taskforce > Port Hedland Air Quality Reference Group > Port Hedland Economic Development Forum > Utah Users Strategic Management Group 81 SOCIAL SUSTAINABILITY VIEW FROM VESSEL TOWER AS SHIP ENTERS PORT

43 PORT HEDLAND PORT AUTHORITY THROUGHPUT ESTIMATES ACRONYMS 83 Exports Actuals 2009/2010 Tonnes 000 s Actuals 2010/11 Tonnes 000 s Actuals 2011/12 Tonnes 000 s Budget 2012/13 Tonnes 000 s Forecast 2013/14 Tonnes 000 s Forecast 2014/15 Tonnes 000 s Forecast 2015/16 Tonnes 000 s Forecast 2016/17 Tonnes 000 s Livestock Iron Ore 174, , , , , , , ,200 Salt 1,165 2,623 3,197 4,100 4,100 4,400 4,400 4,400 Manganese 1,646 1,882 1,958 2,500 2,950 1,900 1,900 1,900 Chrome Copper Zinc Bulk Minerals Container Exports General Cargo Exports Hazardous Cargo , , , , , , , ,355 AHD Australian Height Datum ANZECC Australian and New Zealand Environment and Conservation Council AQIS Australian Quarantine Inspection Service BHPBIO BHP Billiton Iron Ore BIE Boodarie Industrial Estate BoM Bureau of Meteorology CD Chart Datum CHMP Cultural Heritage Management Plan CTF Crew Transfer Facility DoT Department of Transport DRD Department of Regional Development DRI Department of Resources & Industry DSD Department of State Development IMF Integrated Marine Facility IMO International Maritime Organisation LUMP Land Use Master Plan MOF Materials Offloading Facility NEPM National Environmental Protection Measure NWI North Western Infrastructure PAM Pre-Assembled Module PHIC Port Hedland Industries Council PMI Process Minerals International PHPA Port Hedland Port Authority RGP Rapid Growth Project RHI Roy Hill Infrastructure SDP Strategic Development Plan SKM Sinclair Knight Merz ACRONYMS Imports Oil & Bitumen ,230 1,750 1,900 2,050 2,200 2,500 Acid Container imports General imports , Coal New Import ESCA Engagement Strategy and Communications Action EPA Environmental Protection Authority EPB Environmental Protection Bulletin EPP Environmental Protection Policy FMG Fortescue Metals Group GEMS Global Environmental Monitoring Systems TBT Tributylin TCLOF Temporary Contractors Load Out Facility TEU Twenty- foot equivalent units TPI The Pilbara Infrastructure TSP Trisodium Phosphate UDP Ultimate Development Plan GNH Great Northern Highway VCSRG V & C Semeniuk Research Group 1,155 1,275 1,670 2,921 2,526 2,178 2,329 2,631 HBI Hot Briquetted Iron WCIP Western Corridor Infrastructure Plan Total Throughput 178, , , , , , , ,986 % Change

44 CONTACT US Website: PORT HEDLAND OFFICE Phone: (08) Fax: (08) Postal Address: PO Box 2, Port Hedland Western Australia, 6721 Street Address: The Esplanade, Port Hedland Western Australia, 6721 PERTH OFFICE Phone: (08) Fax: (08) Street Address: Level 1, 1195 Hay Street, West Perth Western Australia, 6005 DISCLAIMER This plan is for informational purposes only. The Port Hedland Port Authority make no representations or warranties about the accuracy, reliability, currency, completeness or suitability of this plan for any particular purpose and notes that the plan may be subject to change without notice. The Port Hedland Port Authority accepts no liability or responsibility of any kind (whether in contract, tort or otherwise) for any expenses, losses, damages and/or costs (including indirect or consequential damage) which are or may be incurred by any party as a result of the plan being inaccurate, incomplete or unsuitable in any way or for any reason. DOCUMENT VERSION NUMBER /01