MARKETS

NT seeks private partners for Darwin port expansion

THE Northern Territory government is setting a new regulatory framework for its port, putting out...

Anthony Barich

The port expansion comes under NT government’s Greater Darwin Plan 2012, which outlined increased capacity for exports and trade and major gas and oil projects, with several resources projects in the pipeline.

They include Phase 3 of the McArthur River mine this year; Prelude FLNG and Beetaloo Basin oil (PetroFrontier and Central Petroleum) next year; PTTEPAA FLNG and Bonaparte FLNG in 2016; Mt Peake iron, vanadium and titanium in 2017; and Sunrise FLNG and Wonarah phosphate in 2018.

Further out, it also includes freight from Roxby Downs-Olympic Dam in 2019, along with gas value-adding with Dow petrochemicals and methanol; with a final plan for new ports in the Darwin region slated for 2020, as these will serve increased traffic and infrastructure produced by other projects.

The FLNG projects rely on trade through Darwin, increasing the traffic through the port.

Within Darwin’s broader port precinct is the government-owned marine supply base, which the ASCO Group runs under a 20-year lease, and Shell’s supply base used for maintenance on its Prelude equipment.

A government-commissioned report by independent advisory Flagstaff Partners found there was plenty of room for expansion, and NT Chief Minister Adam Giles said the government was “testing the market” to gauge private sector interest in a possible long-term lease, or other options that would provide investment for the port.

Government officials will begin meeting with prospective investors next week and registrations of interest will open late next month.

The Darwin Port Corporation has also started briefing its staff about the new legislation and the market-testing process that is about to begin.

“We want to help the port to be bigger and better,” Giles said. “A long-term lease could assist with this expansion, creating new jobs in the marine, manufacturing, service and supply industries by making the investments the Port needs.

“No final decisions have been made on private investment but the government is keen to explore the options.

“Proceeds from such a lease could also add to the pool of money available in our $215 million Infrastructure Development Fund for re-investment in other long-term projects that are vital to the Territory’s future.

“Legislation will be introduced to parliament allowing for a market-testing process to begin and establishing a new regulatory model for the Port of Darwin and designated Territory Ports, to better position them for future growth.”

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