Fortescue lands the second towage licence at Port Hedland

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Image credit: fmgl.com.au

Fortescue Metals Group has announced that its wholly owned subsidiary Pilbara Marine has won the tender for the second towage licence at the Port of Port Hedland.

Image credit: fmgl.com.au
Image credit: fmgl.com.au

Fortescue Chief Executive Officer, Mr Nev Power welcomed the decision of the Pilbara Ports Authority (PPA) and Western Australian Minister for Transport Dean Nalder to increase competition in towage services at the Port.

“The introduction of choice and competition through the award of a second licence will benefit as users of the Port, and will ensure Fortescue can provide long-term, sustainable towage services crucial to meeting the demands of our customers,” Mr Power said.

“We look forward to working with the PPA and others to finalise arrangements that will safely deliver flexibility efficiency and value.”

Last year, iron ore exports from Port Hedland topped 435 million tonnes. In 2014/15, the Port of Port Hedland registered 5,867 vessel movements.

Under the terms of the licence, Pilbara Marine will construct marine and landside facilities for the development of a tug haven behind Anderson point berths 1 to 3 and provide towage services for an initial term of 15 years, expected to commence 2019.

According to Fortescue, the capital cost of developing the infrastructure and operating vessels is expected to be less than US$200 million and will be incurred in FY17 and FY18.