THE $250-million multi-commodity and multi-user deep-water port proposed at Cape Hardy on the Eyre Peninsula has taken another important step, with Macquarie Capital signing a joint development agreement with Iron Road and EP Co-operative Bulk Handling as part of stage 1 of the project.
Macquarie Capital division director Andrew Newman said the company invests in new opportunities through the development and construction of infrastructure and energy projects.
"We are pleased to be working with Iron Road and EPCBH on this very important project for the EP and SA," he said.
"Cape Hardy is a project of national economic significance and competitive advantage, with a strong proposition for graingrowers and the potential to unlock significant future economic activity.
"A deep-water port would support producers across the state, and Cape Hardy is ideally situated to house a multi-commodity port that could be accessed by agricultural and resources producers alike."
EPCBH chief executive officer Tim Scholz was "delighted that an Australian institution with the investment capability of Macquarie Capital is putting its weight behind Cape Hardy".
"The Cape Hardy development will deliver direct benefits to farmers through creating much-needed supply chain competition and transport cost savings to the EP grain industry," he said.
"Importantly, the joint development agreement has a clear objective that farmers will be significant shareholders in the facility in what will be first opportunity for EP graingrowers to have an equity stake in infrastructure since the 2008 deregulation of Australia's wheat trade."
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The proposed port at Cape Hardy, about 7km south of Port Neill on the EP, expects to unlock "a quarter of a billion dollars in investment and will provide new infrastructure for local graingrowers and other commodity producers, while also delivering economic development and diversification opportunities for the EP and SA".
The 1100-hectare site has space for a range industries beyond minerals and agricultural exports, including the potential to become a hydrogen export hub.
It expects to deliver "significant transport savings for growers" for the possible 1.5 million tonnes of grain it plans to export, while also aiming to remove road train traffic from the main streets of Port Lincoln, the Tod Highway and Lincoln Highway.
During its construction, the port development is expected to generate more than 400 jobs, with operations expected to start in early 2023.
Iron Road CEO Larry Ingle agreed the new partnership was a "major milestone", representing a "key step forward in de-risking this important project for SA".
"We are pleased that Macquarie Capital shares our vision of the near-term benefits and future opportunities this vital infrastructure unlocks for EP communities," he said.
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