The Pilbara Port Authority announced earlier this month
that it will be increasing its capacity at the port of Port Hedland by 16% over
the next 3 years. This will see the port’s capacity increase from 495,000,000
tonnes to 577,000,000 tonnes per year. This has come following the port’s
record throughput in 2014-15 of 446,921,901 tonnes. This increase will be
allocated to the D class capacity, meaning it will be available to all
applicants. The PPA has paired with OMC International, an independent maritime
engineering company, to develop and implement what the PPA is calling the
‘Tidal Model.’ This model is based on OMC’s Dynamic Under Keel Clearance model
which it first implemented at the port in 1996.
This model increases operational efficiencies by measuring
real time swell and tide data as well as vessel’s own stability requirements to
determine accurate allowances for squat and wave response. This allows
increased loading of ships as well as increased throughput each day at the
port. OMC’s estimations indicate that this will amount to around $1.1 billion
extra revenue being generated by the port. The system is also said to
facilitate improved safety and risk management procedures by allowing for
increased manoeuvrability of ships in a carefully monitored way. This increase
in capacity has been welcomed by companies such as Fortescue Metals Group Ltd
and BHP Billiton Ltd who are both seeking to increase their capacity at the
port over the next few years.
For further information, please contact Jay Leary, Partner, or your usual Herbert Smith Freehills contact.