BHP to Spend $240 mln on Iron Ore Tug-Boat
Port Hedland. Photo: BHP Billiton
BHP Billiton plans to construct a new eight pen tug harbour at Hunt Point in Port Hedland, as well as purchase six additional tugs, for $US240 million ($A326 million).
The investment will also include an upgrade of workshop facilities, operational and service berths and two small boat moorings at the existing Nelson Point tug harbour.
The project is expected to create up to 200 jobs in Port Hedland during construction phase.
BHP is expected to show it shipped a record 250 million tonnes of iron ore through the port in fiscal 2015 when it releases its year-end operations report on Wednesday.
"This project will enable BHP Billiton to safely meet projected demand for tug services and effectively manage shipping risk for all users of the Port Hedland Port," BHP iron ore division head Jimmy Wilson said in a statement.
The new tug harbour improves upon previous designs with the facility requiring minimal dredging and marine-based infrastructure and having less environmental and visual impact.
Port Hedland, which is also used by iron ore miner Fortescue Metals Group, shipped a record 446.9 million tonnes of cargo in the 12 months to June 30, port data shows.
Earthworks are scheduled to commence in the December 2015 quarter with construction expected to be complete in the September 2016 quarter. The project is expected to create up to 200 jobs in Port Hedland during construction.
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