Rio Tinto announced that it has secured a new commercial freight shipping service connecting Western Australia’s Pilbara region to the shipping hub of Singapore that will provide the company with a quicker, cheaper and cleaner alternative to the existing freight delivery route via Perth.
Rio Tinto Iron Ore managing director of port, rail and core services, Richard Cohen, said the service – which is also open for use by local businesses in the north-west of Australia – is expected to reduce the lead-time for goods in to the Pilbara by six to 10 days compared with freight via Fremantle.
“This is an important new service that connects the Pilbara to the rest of the world via the major international shipping hub of Singapore. It will provide a number of benefits by delivering cheaper, cleaner and faster freight to the region,” Mr Cohen said.
“It is an important breakthrough not only for our business, but it will also provide a great opportunity for the local Pilbara economy by helping to unlock small business growth and supporting job creation.”
The new freight service commenced Friday with the arrival of the MCP Graz at the Port of Dampier. Rio Tinto said the vessel delivered essential maintenance supplies for its Iron Ore’s operations in the Pilbara, including rail wagon wheels, wagon parts, oil and lubricants.
The company anticipates that more than half of its freight requirements to the Pilbara will utilise this service, providing an annual saving of around three million litres of diesel fuel by reducing road train travel from Perth by more than 3.8 million kilometres.