New port aims to minimise cost pressures

A new grain export player could soon operate out of eastern Eyre Peninsula, with works well underway at Lucky Bay to build a port facility at the expanded harbour.

Spencer Gulf Trust, the owner of the port, has expanded the existing harbour – a development which is expected to be finished within the next six weeks.

A common user export facility is proposed for the site, which will house a bulk transhipping export operation and a grain receival and storage complex.

Spencer Gulf Trust is working alongside Sea Transport Solutions, which owns the transhipping vessels and their design.

STS has more than 18 years’ experience in transhipping for Australian and overseas mining industries.

It will be the first purpose-built grain transhipping operation in Australia. 

Sea Transport Developments SA manager Mark Cant said the inspiration behind the project was two-fold – to increase grains competition and to utilise the transhipping technology.

“Viterra controls the seven grain export ports in SA,” he said.

“With price pressures on grains at the moment, farmers want to reduce their supply chain costs, and have been calling out for more competition and investment in the state’s grain industry.

“We thought we could provide more options to farmers going forward.”

Mr Cant said the location of the facility was closer to the area of production, meaning reduced freight costs for growers in the area.

Another competitive advantage would be the environmental design of the company’s transhipping vessels, which allowed the company access to shallow waters in Spencer Gulf. 

“These can be used in existing shallow ports within the state, transforming them into Panamax-capacity facilities,” he said.

“We see big opportunities in using this technology in SA, including establishing more common user export facilities in other strategic locations in SA.”

Mr Cant said additional operations would create further efficiencies through better utilisation of the transhipping vessels