Facilitating trade growth and

optimising operations at Port Hedland

Port Hedland - Historical trade growth

4140 vessels 12/13

4800+ vessels 13/14

370+ Mt throughput#

2013/14

Average 20%

annual growth

in throughput

(2009 – 2014)

* 280.2 Mt iron ore # forecasting (half year = 173 Mt)

288.4 Mt throughput*

2012/13

Port Hedland - Historical trade growth

* forecasting 27% in 2014

• WA produces over one quarter of the world’s iron ore

(26% in 2012).

• WA export volumes account for 42% of global shipments

once domestic use is taken out.

Port Hedland -

24%*

Rest of World -

76%

Global Iron Ore Sea Bourne Trade (2013)

Port Hedland - Iron ore export volumes

-

100

200

300

400

500

600

All of WA

Port Hedland

‘95 ‘96 ‘97 ‘98 ‘99 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ’08 ’09 ‘10 ’11 ‘12 ‘13 ’14 ‘15 ‘16 ‘17

Million

tonnes

Financial Year

Port Hedland - Economic importance

• WA mining royalties forecast for 2013 -14 =

$5.8B $3B derived through PH exports

• Total value of exports for 2014 FY = $40B *

* Iron ore price at $110/tonne

Port Hedland – Operational performance

Monthly throughput trending upwards - reached 1M tonnes per day by Dec 2013

0

5

10

15

20

25

30

35

40

Jan-

12

Feb

-12

Mar

-12

Apr

-12

May

-12

Jun-

12

Jul-1

2

Aug

-12

Sep

-12

Oct

-12

Nov

-12

Dec

-12

Jan-

13

Feb

-13

Mar

-13

Apr

-13

May

-13

Jun-

13

Jul-1

3

Aug

-13

Sep

-13

Oct

-13

Nov

-13

Dec

-13

Jan-

14

Feb

-14

Mar

-14

Apr

-14

May

-14

Monthly throughput

Million

tonnes

Port Hedland – Operational performance

Single tide milestones:

6 Apr – 1,111,109t

2012

2013 2014

(as @ June 2014)

First one million tonnes on a single tide

Progressive growth of tonnes

shipped on each tide

4 June - 947,775t

x 5C

18 June – 1,040,062t

x 6C

24 Nov – 1,065, 483t

x 6C

17 Dec – 1,052,446t

x 6C

5 Nov – 1,056,597t

x 6C

17 Nov – 1,083,210t

x 6C

8 Mar – 1,007,164t

x 5C

25 Oct – 1,062,515t

x 5C + 1P

15 Jan – 1,059,740t

x 6C

6 Apr – 1,111,109t

x 6C

28 Apr – 1,025,962t

x 5C

28 Apr – 1,002,143t

x 6C

C = Cape size P = Panamax

7 June – 1,270,721t

x 7C

22 Apr – 1,057,711t

x 6C

9 May – 1,105,015t

x 5C

28 Apr – 1,025,962t

x 5C

Port Hedland – Operational performance

INCREASING VESSEL SAILING TONNAGES

Hugo N

(263,962 t)

Abigail N

(254,010 t)

Wugang Innovation

(247,906 t)

Recent single shipment milestones:

Maximum sailing draft has increased from

19.05m (Abigail N, 15 Nov 2012) to 19.65m (Hugo N, 5 Dec 2013)

15 Nov 2011

15 Nov 2012

5 Dec 2013

Port Hedland – Operational performance Facilitating larger vessels

Fleet profile moving to larger vessels WozMax/ PH Max/ PSU Series/ N Series

Recent DWT milestones at Port Hedland:

4 Oct 2012 - Daniel N (297,359t)

2009/10: 10% of fleet > 200k DWT, nil > 250k DWT

2013/14: 33% of fleet > 200k DWT, 6% > 250k DWT

5 Nov 2013 - Wugang Haoyun (299,385t)

17 Dec 2013 - CSB Talent (315,041t)

15 Nov 2012 - Abigail N (297,430t)

1 Feb 2014 – CSB Glory (315,063t)

Operational enhancements at Port Hedland

• Provides for minimum 90cm clearance

• Upgrades to DUKC system (Series V)

Dynamic Under Keel Clearance System

Tidal Range: 7m Current: 2-3 knots Depths: 14.8m (IH), 15m -16.6m (channel)

• Targeted dredge campaign:

Removal of siltation allowance

High spot dredging in Inner Harbour

Revision of tidal model

Net average benefit = 71cm

= 14,000t/vessel = $1.5 million/vessel

Specialised Dredging Campaign

Operational enhancements at Port Hedland

• Increased departure window from 3.5 hours to 4.5

hours - with 30min gaps

• Capacity to increase number of vessel departures

from 6 to 8

Increased tidal departure window as a result of Port enhancements

Increased towage requirements and provisions

• On departure, four tugs escort to Hunt Point, three tugs

escort to Beacon No. 30/31

• Channel width at Hunt Point = 183m

• Nineteen tugs required to manage ≥ 460Mtpa

• In 2009: 10 tugs (stern-drive) 2014: 15-16 tugs (8-9 rotor tugs)

Future PHPA Initiatives

• Channel escape areas - shorter departure windows

(30mins 20mins)

• 400m survey outside channel (complete)

• Real time data feed to Portable Pilot Units (complete)

• Improved tidal network & DUKC Series V (complete)

• Significantly improved channel transit management

Channel Enhancements

Future PHPA Initiatives

• Partnership with HR Wallingford – to operate an

advanced ship navigation and maritime simulation

facility in Fremantle.

• Optimisation of marine operating procedures, and

professional development and training of individual

pilots, tug masters and port staff.

• Vessel traffic services (VTS) simulator plus six real

time ship simulation bridges (including four dedicated

tug bridges)

Advanced site familiarisation and scenario based emergency and failure training.

World-class Maritime Simulation Facility

Utah Facility - Stockyard 1

Utah Multi User Facility

0

500000

1000000

1500000

2000000

2500000

Utah Facility monthly throughput

ton

nes

Utah Multi User Facility

Optimising out-loading performance:

• Cavotec mooring system - optimised berthing

times

• Stockyard 2 developed - increased throughput

• In 2011 the average GLR was 2500 tph, currently

achieving GLR’s of 5000+ tph.

Increase in product haulage rate:

626 quads* in 24hrs

31 Nov 2013

448 quads* in 24hrs

13 July 2013

*quad = quadruple trailer road-train with 110 tonne payload

Ports Review – Pilbara Ports Authority

Operational Benefits:

• Single entity oversight of all shipping

across the Pilbara region

• Leverage operational capabilities, e.g.

Dredge Manager, and engineering

oversight

Development Benefits:

• Single point of contact for proponents

• Streamlining of processes, e.g.

environmental and DA processes

Strategic Objectives

As of 1 July 2014 - consolidates all ports across (11 in total) the Pilbara region

Dampier Port Authority (2012-13) = 180.4 mt

Iron ore = 148.4 Mt Gas products = 21.7 Mt

Ports Review – Pilbara Ports Authority

Port Hedland

Dampier