Heavy Haul Rail Conference - June 2015 The role of ports in successful heavy haul supply chains CEO Roger Johnston

Pilbara Ports Authority (PPA)

• Ports Legislation Amendment Act was passed in May 2014 as a result of State

Government reforms to improve port governance

• Port authorities of Port Hedland and Dampier merged on 1 July 2014 and PPA

was established

Vision

“To be the global leader in port planning, operations and marine

services”

Our Location

Note: Map to

have capital

cities

The Pilbara, Western Australia • Biggest shire in the world • Covers an area of 502,000km2

• Approximately same land size as Spain • Total population 66,000

Pilbara, Western Australia

• 95% of Australian iron ore exports

• Iron ore: 56% of WA’s total export value

• 42% of world’s seabourne iron ore exports

• 510.5 million tonnes

Source: WA Department of State Development

PPA’s contribution to iron ore exports 2013/14 Financial Year (FY)*

• Annual average growth rate - 30.4% over the

past ten years

• Western Australia’s iron ore royalties rose

38.5% to $5.3 billion in 2013-14

Australia

• 46% of world’s iron ore exports

• Brazil (27%)

• Rest of world (26%)

• India (1%)

(*Financial year: July 2013 - June 2014)

Port locations

PPA’s current operating ports

Port Hedland Dampier Ashburton

• Largest bulk export port in the

world (25% of global

seaborne trade 2013/14 FY)

• Total throughput of 372.3 Mt

in 2013/14 forecasting

440 Mt in 2014/15

• Average 20% annual growth

2009 – 2014

• Trade in 2013/14:

Iron ore exports (98%)

Salt exports (1%)

Other exports/imports (1%)

• One of the world’s largest

bulk export ports

• Consists of PPA and private

port terminals and facilities

• Total throughput of 177.5 Mt

in 2013/14

• Trade in 2013/14:

Iron ore exports (82%)

LNG/LPG exports (12%)

Condensate (2%)

Salt exports (2%)

General cargo/other (2%)

• Multi-user port with common

use infrastructure with

ultimate export capacity of 50

million tonnes LNG

• Capacity for heavy industry

exports, and general cargo

including fuel, and with supply

base capability to service

offshore operations

• General cargo capacity

transfers to PPA mid 2016

Major transport networks (Pilbara)

Major road networks (Main Roads WA)

Private rail

• The Pilbara region requires extensive

road and rail infrastructure to connect port

users with global markets

• Major port users transport iron ore directly

from mine to port by rail

• Junior miners use quad trucks (road

trains) to move product along major multi-

user road systems in the North West

• PPA collaborates with government

agencies to minimise interaction between

passenger vehicles and industrial trucking

Connectivity to Pilbara ports

IN

PORT

COMMODITY TYPE TRANSPORT METHOD

Iron ore Rail (major miners)

Road (junior miners)

Chromite Road

Manganese Road

Salt Road

Scrap metal Road

• 95% of Australia’s iron ore exports

come from the Pilbara region

• Major port users transport iron ore

directly from mine to port by rail,

which is then loaded on bulk carriers

for export

• Where rail infrastructure is not

available, product is moved by road or

conveyor to nearby rail infrastructure

and subsequent rail to port

• Junior miners transport iron ore by

road to port using large road trains

Iron ore supply chains

MINES

PORT

RAIL LOOP

Road Rail

Rail

Road

Conveyor

PORT

EXPORT MARKET

Sea

Source: Bureau of

Infrastructure, Transport

and Regional Economics

• Total length of rail operating in the Pilbara: Approx. 3,600kms

• Average number of iron ore cars per train: 230+

• Average train length: Between 2.5kms - 3kms

• Tonnes hauled per train: Approx. 32,000 tonnes

• Axle weights: Between 35 - 40 tonnes

Iron ore rail infrastructure

Average number of train

deliveries per day

Port Hedland- Approx. 30

West Pilbara Ports- Approx. 30-35

• The majority of iron ore exports

are currently supplied by PPA’s

major port users:

Rio Tinto

BHP Billiton and

Fortescue Metals Group

Roy Hill (first ore

shipped in September

2015)

• These companies privately

own and operate their rail

transport infrastructure to move

product from mine to port

Iron ore rail infrastructure

Heavy haul road networks

Great Northern

Highway

Rippon Hills Road

Marble Bar Road

North West Coastal

Highway

Telfer Road

Utah Road

Wilson Street

• Junior miners use road infrastructure where iron ore volumes are smaller, and/or rail infrastructure

is not available

• These roads provide the route to deliver minerals from these mining operations to Port Hedland

Port and Utah Point Multi-User Bulk Export Facility. These roads include;

Map courtesy of Main Roads WA

Utah Point Multi-User Export Facility

Increase in product haulage rates

• Commissioned in 2010

• Port users include Atlas Iron, Process Minerals International,

Consolidated Minerals and Moly Mines

• Total throughput (2014 FY) = 18.7 million tonnes

12 July 2013 - 448 road trains in 24 hours

26 Oct 2013 - 500 road trains in 24 hours

23 July 2014 - 698 road trains in 24 hours

Great Northern Highway realignment Road improvements to support trade growth (Port Hedland)

Background

• In 2012, construction was undertaken to realign Great Northern Hwy around Wedgefield industrial area

• This realignment supports the increased trade growth through Port Hedland, particularly road train movements

• The amount of traffic on the Port to South Hedland link has grown by 25% over the past three years and

currently serves 15,000 vehicles per day

Scope of works

• Approx. 8km of new road

• Major interchange at Broome turn-off, enabling uninterrupted flow for local traffic

• New intersection at Utah Point Road to provide access to western port area

• New road bridge over the BHP rail line

• Access to the port’s proposed area of development, north of Wedgefield

Status

• New alignment opened to traffic on 17 June 2014

• Reduced road train incidents with local traffic

• Improved road safety

• Improved access to new port and harbour areas

• Improved traffic flows between Port and South Hedland

Road improvements to support trade growth Port Hedland

2009 2014

Port of Cape Preston East

• Planned as a transhipment port facility capable of

exporting up to 40 mtpa of iron ore

• Proponents will be required to secure their own approvals

to haul product on North West Coastal Highway

• The foundation proponent has been granted approvals by

PPA to export up to 20 mtpa – subject to the land being

vested in PPA pursuant to the Port Authorities Act 1999

• Main Roads has approved the transport of up to 4 mtpa

by quad-road-trains (115t payload) on North West Coastal

Highway (conditional approval), ramping up to 8 mtpa and

beyond in years to come

• Foundation proponent aims to establish an independent

and dedicated private haul road connecting its mine to the

Port of Cape Preston East to facilitate triple-road-trains of

up to 200t payload (and 49m in length)

105km from its mine (located in the Western

Pilbara) to North West Coastal Highway

70km from North West Coastal Highway to Port of

Cape Preston East

Port of Balla Balla

• Port and rail infrastructure project

known as the Balla Balla Infrastructure

(BBI) project is currently underway in

the Pilbara region

• Located 100km east of Dampier and

120km south-west of Port Hedland

• Transport link for the project will

consist of 160km of heavy haul railway

line from an inland mine site to the

proposed port

• Railway line will initially carry 25 mtpa

of iron ore from the mine to the port

area, be stockpiled and transhipped

through the export facility at the port

• The location and details of a heavy

haul intersection along North West

Coastal highway has been approved

by Main Roads Western Australia

Port of Anketell

• Plans continue for this proposed iron ore export

facility and strategic industrial area with an

ultimate capacity of more than 350 mtpa

• Located approximately 30km east of Karratha

• Provision for the export of other bulk

commodities and the import of fuel/general cargo

• Anketell Port Ultimate Development Concept

includes;

Rail corridor to accommodate rail and

associated infrastructure for up to four port

builders/users and includes marshalling yards,

rail workshops and maintenance facilities

located towards the southern end of the

Infrastructure Corridor

Four marshalling/maintenance yards to be

located side by side in the rail corridor

The marshalling facilities will be 200m to 300m

wide, with the length being determined by the

length of trains specified by the port

builders/users