THE Port of Esperance has undergone a seismic shift in the past year.
For nearly 30 years, iron ore from the Koolyanobbing mine was a major export from the state’s southeastern port.
That changed in December last year when Mineral Resources turned off the tap at its Yilgarn hub, which had become depleted to the point it was no longer viable.
The move has provided both concern and opportunity at Esperance port, with the former mostly related to local jobs and stability.
However, the MinRes move provided an opportunity for Gold Valley to fill part of the void with its Goldfields iron ore: a move previously deemed unviable due to capacity constraints in Esperance.
The exit of Koolyanobbing ore from Esperance’s port has led to some novel adaptations.
In February, ADM Trading Australia enlisted the services of Qube Holdings’ rotainers, which are usually used for mineral concentrates.
ADM used the container system to load 4,200 tonnes of faba beans provided by Esperance Quality Grains.
It is a relationship the Chicago-headquartered trading house appears eager to continue.
“We look forward to working with [Esperance Quality Grains] and Esperance grain growers to further develop pulse production in the region,” ADM Trading Australia and New Zealand ag services managing director Tim Henry said in February.
Closure of the Yilgarn hub also led to changes for rail operator Arc Infrastructure, which counted MinRes as a major customer.
Arc has shifted focus to the provision of iron ore haulage from Gold Valley’s operations near Wiluna and is working with the private miner to boost bulk freight capacity from the region to 2.8 million tonnes per year.
Currently, 1.2mpta is hauled to Esperance for export.
Work is under way on the Leonora and Esperance branch lines to facilitate that trade.
“The new agreement will see record volumes transported on the Leonora branch line, helping achieve the shared goal of more freight on rail and delivering broader community benefits through improved road safety and reduced emissions,” Arc Infrastructure active chief executive Nathan Speed said.
Another key development this year has been the state government’s decision to work on a business case to buy-back the freight rail network.
The idea is in its infancy and was announced during the election campaign, so there is not much meat on the bones yet.
WA’s biggest freight rail user, CBH, is on board, with the co-operative’s chief executive, Ben Macnamara, standing next to Transport Minister Rita Saffioti when she announced the plan in January.
One complication is the fact the state government sold the rights to operate the rail line to Arc Infrastructure in 2000.
That contract still has 24 years to run.
In September last year, the state government committed $45 million to upgrade the Midland freight line at Carnamah and Mingenew.
Arc is tipping in $22 million.
North of Perth, big plans for big ports are progressing.
The major limiting factor at Geraldton is the size of bulk carriers it can accommodate.
Gold Valley cited this directly as a reason to export out of Esperance, where larger ships can come to port.
Mid West Ports Authority is planning a $350 million upgrade at the Port of Geraldton, known as the port maximisation project.
The project will move the tug pen to facilitate a cruise ship berth, demolish an old berth, and expand the port’s breakwater.
Early work is under way, but the bulk of construction is expected to start in 2026.
One of the highest-profile projects in WA at present is Lumsden Point in Port Hedland.
A one-kilometre causeway has been built out to the site, Acciona has won the contract to build the wharfs, and Finland’s Konecranes will supply two 200t mobile harbour cranes in 2026.
Tenders are now open for conveyors, ship loaders, transfer stations and support infrastructure. The maritime side of the facility is due to come online late this year.
An industrial precinct attached to Lumsden is expected to take about 15 years to develop and attract $150 million of private investment.
In Dampier, Clough won a contract for the $283 million cargo wharf extension last year.
A $300 million bulk handling facility build is also in the works.
The private Gascoyne Gateway project near Exmouth is being shopped around to global investors eager for exposure to a defence-focused asset.
And construction of BCI Minerals’ salt export jetty south-west of Karratha is well advanced.
Anchored plans
Sinosteel’s $9.7 billion Oakajee rail, port and mine project is still waiting in the wings.
The state government last year put $20 million into building a road to the greenfields port’s future industrial area, which is a start.
Fortescue still hasn’t come to a decision as to whether it will take up to a 50 per cent stake in the port-and-rail development.
The miner started a “rapid” study into such a deal three years ago.
Another port plan – Balla Balla – has fresh hope through Ngarluma Water’s proposed $5 billion desalination plant.
No longer envisaged as an iron ore port, it’s hoped the Balla Balla facility could be developed as a service wharf for the project and other businesses that establish nearby.
Anketell near Karratha and Bejaling near Carnarvon have fallen off the radar.
The latter could be revived if a nearby green energy project gets legs.
Ashburton Link near Onslow has some wind in its sails via Fenix Resources’ acquisition of the port’s funding partner, CZR Resources.
Fenix appears eager to develop the port and use it to unlock more iron ore assets, though it is not rushing into any decisions and other suitors have emerged for CZR.
One of those suitors, Rio Tinto, would be unlikely to build the port.
