Annual Report 2020/21
Vision To be BOLD supply chain enablers for the sustainable longterm future of regional Australia. Purpose To provide a sustainable gateway for trade and tourism. Values Accountability Caring Courage Collaboration Integrity Image: Public art piece “Horizon” on Beresford Foreshore, Geraldton. Mid West Ports Authority Annual Report 2020/21 2
Contents 1.1 Acknowledgement of Country 1.2 About this Report 1.3 2020/21 Highlights 1.4 Chair & CEO Report (combined) 1.5 Ports WA Metrics Table 2.0 Overview 2.1 Port Overview 2.2 Organisational Chart 2.3 Board of Directors 2.4 Executive Leadership Team 3.0 Performance 3.1 Goals & Objectives 3.2 Major Achievements 3.3 2020/21 Key Projects 3.4 Operating Summary 3.5 2020/21 Trade Data 3.6 Safety 3.7 Stakeholders 4.0 Governance 5.0 Annual Financial Statements 5.1 Directors’ Report 5.2 Statement of Comprehensive Income 5.3 Statement of Financial Position 5.4 Statement of Changes in Equity 5.5 Statement of Cashflows 5.6 Notes to the Financial Statements 5.7 Directors’ Declaration 5.8 Independent Auditors Report 04 05 06 08 13 14 15 19 21 24 26 28 30 32 38 39 44 46 54 58 59 65 66 67 68 69 95 96 Mid West Ports Authority Annual Report 2020/21 3
Acknowledgement of Country Mid West Ports Authority acknowledges and respects the Wilunyu, Nhanagardi and Naaguja peoples of this land and waters we stand on. Elders past and present, the youth and Yama(t)ji people of the Mid West region who hold the stories and hopes for the future leaders. 1.1 Mid West Ports Authority Annual Report 2020/21 4
About this Report Statement Of Compliance For the year ended 30 June 2021 To the HON Rita Saffioti BBus MLA Minister for Transport; Planning; Ports In accordance with section 63 of the Financial Management Act 2006, I hereby submit for your information and presentation to Parliament, the Annual Report of Mid West Ports Authority for the reporting period ended 30 June 2021. The Annual Report has been prepared in accordance with the provisions of the Financial Management Act 2006, Port Authorities Act 1999 and other relevant legislation. Noel Hart Chair Mid West Ports Authority The aim of this report is to inform MWPA customers, community and other stakeholders about the organisation, its strategy, performance and governance for the 2020/21 financial year. An online version of this report is available at: www.midwestports.com.au For any inquiries please contact us at: [email protected] 1.2 Mid West Ports Authority Annual Report 2020/21 5
tonnes‘000 Total Trade Exports 14,418 Total Trade Throughput tonnes‘000 15,074 2020/21 Highlights 1.3 Throughput tonnes‘000 Total Trade Imports 656 Bulk Imports Petroleum General Cargo 427 tonnes‘000 221 tonnes‘000 8 tonnes‘000 2,327 tonnes‘000 10,121 tonnes‘000 886 tonnes‘000 609 tonnes‘000 475 tonnes‘000 Iron Ore Grain Mineral Sands Non-Mineral Sands Concentrates Mid West Ports Authority Annual Report 2020/21 6
Ship visits 351 Ships & Trade *excludes casual employees Safe vessel movements 831 in revenue $75.8M of payments to the State Government $18.7M People Male Staff* 116 Direct local spend $11.4M Training sessions attended 361 Safety Total Recordable Injury Frequency Rate (TRIFR) 12.5 Lost Time Injury Frequency Rate (LTIFR) 8.3 Female Staff* 29 Sub contract local spend $1.4M Mid West Ports Authority Annual Report 2020/21 7
Combined Chair & CEO Report 1.4 Summary of the year To realise Mid West Ports Authority’s (MWPA’s) vision of being BOLD supply chain enablers for the sustainable long-term future of regional Australia, MWPA remains committed to achieving a balance between safe and efficient port operations, improving economic performance, working sustainably with the environment, and investing in the community in which we operate. 2020/21 has demonstrated MWPA’s capability when achieving this balance. This was displayed with a strong financial performance, considerable new trade, delivery of major infrastructure projects, successful management of numerous emergency situations, and improved stakeholder and community consultation, whilst continuing to maintain safe and efficient day-today operations. MWPA’s first priority is always to the health, wellbeing and safety of its people – employees, stakeholders, as well as the greater Mid West community. With international vessels arriving on its doorstep every day, the ongoing risk of Covid-19 is in the forefront of its minds as we continue to ensure that effective measures are in place. Ongoing engagement with government authorities, port users and service providers has seen port operations continue throughout the pandemic with little impact on the provision of landside and marine operations. MWPA thanks it’s stakeholders for their understanding and ongoing support as it continues to manage this ever-present risk. Performance MWPA trade volume for 2020/21 was 15.074 million tonnes, slightly up on the previous year by 0.123 million tonnes. Several new customers were welcomed to the port in 2020/21 and we are excited to see that trend continue in the coming year. This new trade is across a range of products including iron ore, sands and fertiliser, reinforcing MWPA’s ability to meet the needs of a diversified range of boutique clientele. As a Government Trading Enterprise (GTE), MWPA needs to deliver financial returns from its activities. In 2020/21 we delivered a profit before income tax of $23.3 million and dividend return to the State of $11.6 million. These results demonstrate MWPA’s contribution towards the State economy and its value to all Western Australians. 2021/22 is shaping up to be an exciting year for MWPA with numerous projects in the region due to commence production, construction, or likely to gain final investment decision. The accumulation of this new and increased trade looks to have a significant impact on throughput in the near-term and as such MWPA is positioning itself to be prepared for a possible ’23 by 23’ - 23 million tonnes per annum by 2023. This in itself is an enormous feat by any standards given it represents a 53% increase in trade. MWPA recognise that its employees are central to delivering this objective and as a result, in 2020/21 has embarked on a Business Improvement Program to further engage and enhance its internal capabilities. Community MWPA continued to focus on engaging with the local Mid West community, proactively communicating and offering ongoing conversation opportunities about its role, purpose, services, strategy, performance and issues. Using a range of communication channels, MWPA’s reach into the community is on the rise. During the last financial year MWPA awarded $105,606 through its Community Grants Program to organisations and programs that align with the values, with an aim to support community events and initiatives which benefit the social, environmental and economic prospects in the region. The annual Community Grants Program advances an important link between the Port and the community, supporting groups who often work with small budgets to develop new and exciting projects that ultimately benefit the Mid West. Mid West Ports Authority Annual Report 2020/21 8
Image: Damaged vessel MV Barkly Pearl being loaded on to heavy lift vessel MV Falcon. Mid West Ports Authority Annual Report 2020/21 9
Image: Svitzer Australia tug boats assisting in piloting a vessel in to port. Mid West Ports Authority Annual Report 2020/21 10
In addition, employees led the fundraising of $11,000 for Men’s Shed Geraldton. The Men’s Shed movement is one of the most powerful tools in addressing health and wellbeing in a community through the provision of a safe and friendly environment. The Geraldton Men’s Shed members are also active volunteers in the local community and it was a pleasure to support their organisation this year. Emergency management and response 2020/21 could be defined as “the year where MWPA tested its emergency management response”, with the Port being presented with several emergency situations which were all very successfully navigated. During the year the Port responded to and successfully managed the international arrival of a positive Covid-19 case, the 8 week detainment of the damaged livestock carrier MV Barkly Pearl, an oil leak from a ship within the harbour, and Cyclone Seroja. It is a credit to MWPA’s employees that all four of these emergency incidents were handled so professionally and in successful collaboration with a multitude of stakeholders including; Department of Transport – WA, Department of Health, Department of Agriculture (Biosecurity), WA Police, Australian Maritime Safety Association (AMSA) and the Department of Primary Industries & Regional Development (DPIRD), among others. Acknowledgements After two and a half years CEO, Dr Rochelle Macdonald resigned in January 2021 with her final day in mid-April. Rochelle was instrumental in driving a strategy reset for the Port, implementing considerable technological solutions and ensuring that MWPA is an outward looking organisation. All of these advancements have played a significant role in setting the organisation up for the future. MWPA takes this opportunity to thank Rochelle and wish her all the best at her new role in private industry in Queensland. Finally, MWPA also extends its sincere thanks to Hon. Alannah MacTiernan MLC for her support and guidance since assuming the Ports portfolio through until March 2021 and welcome incoming Minister Hon. Rita Saffioti BBus MLA, Minister for Transport; Planning; Ports, back to the Ports portfolio and look forward to continuing a successful and fruitful relationship with her. In 2021/22, in collaboration with its stakeholders, MWPA remains committed to delivering value to the Mid West and Western Australian communities. Noel Hart Chair Damian Tully Acting CEO Mid West Ports Authority Annual Report 2020/21 11
Image: Manouvering a vessel on to Berth 3 in a full commercial harbour. Mid West Ports Authority Annual Report 2020/21 12
Ports WAMetrics Table 1.5 K E Y P E R F O R MA N C E I N D I C A T O R 2 0 2 0 / 2 1 T A R G E T S 2 0 2 0 / 2 1 A C T U A L S Return on assets (%) 10 10.3 Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) 24,346 30,584 Economic Rate of Return (%) 10.2 12.7 Debt to Equity Ratio 0.06 0.05 Total Port Trade (‘000 Tonnes) 14,003 15,074 Total Number Vessel Visits 377 351 Customer Satisfaction Score (%) >70 81 Loss Time Injury Frequency Rate (LTIFR) 0 8.32 Number Reportable Environmental Incidents <10 9 Employee Satisfaction Score (%) >75% 73.5% Mid West Ports Authority Annual Report 2020/21 13
Section 2.0 OV E R V I E W Mid West Ports Authority Annual Report 2020/21 14
Port Overview 2.1 Mid West Port Authority’s (MWPA) vision is to be bold supply chain enablers for the sustainable long-term future through the provision of an essential trade service for regional Australia and Australia’s economy by providing facilities that connect the regions to national and international markets. MWPA is responsible for the efficient, safe, and effective operation of the Port of Geraldton, planning for the future and maintaining its infrastructure while operating in balance with the environment. As one of Australia’s most diverse ports, MWPA is known as a specialist port catering to boutique operations. Accustomed to modifying operations to suit specific requirements, it collaborates closely with its customers to achieve success. MWPA recognises the value in its diverse operations and the opportunity this extends to the regions, playing an essential role in planning, facilitating trade, and striving to future-proof growth of the Mid West region for current and future generations. As a Government Trading Enterprise (GTE) MWPA operate under the Port Authorities Act 1999 and associated regulations. As the gateway to trade and tourism for the Mid West and as the key economic stabiliser and growth driver, Mid West Ports Authority facilitates the export of grain, minerals and livestock, and imports fuel, minerals, fertiliser, and bulk cargo while welcoming cruise ships, oil rig tenders and other expedition craft. Port Assets Used To Facilitate Trade MWPA operates with seven (7) commercial berths and associated marine assets including the harbour basin and channel. These assets are critical to delivery of port services. ■ Berths 1 through to 6 are owned, operated and maintained by MWPA. ■ Berths 1 and 2 are accessed by grey ships, fuel bunkering, and other assorted vessels. ■ Berth 3 ship loading infrastructure is owned, operated and maintained by Co-Operative Bulk Handling (CBH) for the export of grain. CBH also owns and operates a train unloader within the Rail Terminal. Berth 3 is also accessed for cruise ship visits and import of minerals (self-discharge vessels). ■ Berths 4 and 5 circuit and shiploaders are owned, operated and maintained by MWPA. These berths are primarily utilised for the export of iron ore, industrial minerals, mineral concentrates and sand. ■ Berth 6 is accessed for fertiliser, minerals and fuel imports, cruise ship visits, livestock and mineral exports, and break bulk cargo. ■ Berth 7 berth and ship loading infrastructure is owned, operated and maintained by Karara Mining in the export of iron ore. Karara Mining also owns, manages and maintains their dual wagon rail tipper. MWPA is responsible for the operation of the Rail Terminal, maintenance of three of the four rail tracks within the Port and the bottom dump iron ore train unloading infrastructure. Environmental Licences MWPA owns and manages environmental licences for commodities exported and imported through the Port of Geraldton. Geraldton Fishing Boat Harbour MWPA manages Geraldton’s Fishing Boat Harbour (FBH) supporting the region’s largest fishing industry (primarily Western Rock Lobster) through the provision of berthing facilities, wharf assets (jetties, walkways and toilets), maintenance, waste disposal, utility services and security. The FBH comprises 149 boat pens and a significant landholding with sites leased principally to businesses that support the local fishing and mining industry. The harbour also supports tourist based operations. Mid West Ports Authority Annual Report 2020/21 15
Land Asset There is a total of 83 hectares of land within the Geraldton Port boundary and an additional 6.9 hectares made up of leases to the south of Marine Terrace. MWPA acts as a landlord by leasing or licencing land to private asset owners who operate and manage their assets on this land. There are currently 51 separate commercial leases, which along with various licences, generating revenue for the Port. Included in the Port owned land is the land reserved for the future development of a deep-water port at Oakajee. There are no fixed assets located within the Oakajee Port land. This landholding consists of approximately 200 hectares of undeveloped farmland and constitutes a small portion of the total land requirement for this future proposed development. Customers While some of MWPA’s existing customers saw a downturn in trade in 2020/21 due to the effects of COVID-19, several other customers benefited from a positive environment of solid demand and strong prices. During 2020/21, MWPA’s customer base grew with the development and commissioning of three new iron ore mines underpinned by record iron ore prices. Trade was also diversified with the commencement of shipping from a new construction sands operation in the Mid West region. There were also several significant developments in the Mid West that will underpin future trade. Two additional iron ore mines were approved for development in 2020/21 with construction commencing during the year. The first shipments from these mines are expected in early 2021/22. Several other iron ore projects are also under development, with longer timeframes. Construction activity continued at two new sulphate of potash projects during 2020/21. Commissioning of these projects is expected in early 2021/22, with first bulk shipments from Geraldton expected in mid-2021/22. A Final Investment Decision on a third sulphate of potash project is expected in 2021/22 that could result in additional export shipments in 2023/24. During 2020/21, a Final Investment Decision was also approved for a $339 million mineral sands project. Construction commenced late in 2020/21, with first shipments expected in 2022/23. Several other base metal, lithium, sand and fertiliser projects were also advanced in 2020/21, with a number of Final Investment Decisions expected to be reached in 2021/22, and shipments expected in 2023 and beyond. Overall, the significant number of new projects under development in the Mid West region will underpin MWPA’s target of ‘23 by 23’ (23 million tonnes per annum by 2023). Suppliers MWPA recognises that the local procurement of goods and services is key to developing the region in which it operates. With this in mind, the Port’s procurement activity is focused on the continued development of local suppliers to improve local capability. The current Procurement Strategy is well placed to incorporate further local opportunities to aid in the growth of the region and to support its local supply base through the Western Australian Industry Participation Strategy (WAIPS) and Aboriginal Procurement Policies. The implementation of enhancements to the Port’s Enterprise Resource Planning (ERP) and longer-term contracts has commenced and will continue to be an area of considerable focus for MWPA. The Port is keen to establish supplier relationships with those local companies who continue to deliver value and who can partner with MWPA to deliver on its business strategies. Image: MWPA Pilot Vessel ‘Glengarry’ returning after a successful Marine Pilot transfer. Image: Point Moore with the Geraldton Fishing Boat Harbour in the background. Mid West Ports Authority Annual Report 2020/21 16
Berth 1 Berth 2 Berth 3 Berth 4 Berth 7 Berth 5 Berth 6 Fishing Boat Harbour Mid West Ports Authority Annual Report 2020/21 17
Community MWPA continues to value and invest in its community presence and connections. 2020/21 saw the continuation of community service initiatives including: ■ Sponsorship of $205,606 toward community events and initiatives making a positive contribution to the community aligning with MWPA’s organisational values. This amount includes a $100,000 per annum (for three years) towards the ‘Shore Leave Festival’; ■ Increased levels of community consultation through various committees, information sessions, social media, port tours, student career days and newsletters; and ■ Beach Nourishment Program; MWPA has a MOU with the City of Greater Geraldton. In 2020/21 MWPA delivered 15,458m3 of sand, at a cost of $259,823, from Pages Beach as nourishment to stabilise erosion at the northern beaches of Geraldton. Security Maintaining a secure port is essential to ensuring that MWPA people and port users remain safe. It also ensures that trade can continue unhindered and that infrastructure remains available for the future. MWPA works closely with Port users and customers to ensure that the Port remains safe and secure. Like all security regulated ports throughout Australia, port users must have an operational need to be on the port and possess a Maritime Security Identification Card (MSIC). MWPA is a recognised MSIC Issuing Body. With the impending introduction of an online MSIC application a streamlined and flexible process will be introduced for the MSIC applicant. Cruise Industry MWPA supports WA’s cruise tourism industry by acting as a transit port and aims to retain its Tier 2 status and grow its position to become a Tier 1 cruise destination port in time. The development and promotion of local tourist activities and experiences in Geraldton by local operators is crucial in improving the passenger experience. The Cruise Geraldton Steering Committee, an industry and government collaboration of which MWPA is a member, is responsible in overseeing the strategic direction of cruise in Geraldton. In response to COVID-19, the Federal government imposed restrictions that effectively banned domestic cruise ships (capable of sleeping 100 or more passengers), and all foreign cruise ships from operating within Australian waters, and from entering Australian ports. As at 30 June 2021, this restriction is in place until 17 September 2021. Image: Cruise ship ‘Sun Princess’ entering port in 2019. Image: Tug boat leaving the Tug Harbour with the Geraldton harbour visible. Mid West Ports Authority Annual Report 2020/21 18
Organisational Chart 2.2 Mid West Ports Authority (MWPA) is governed by the Board of Directors appointed by the Minister. Legend MWPA BOARD EXECUTIVE TEAM LEADERSHIP TEAM BOARD OF DIRECTORS EXECUTIVE OFFICER GENERAL COUNSEL CHIEF EXECUTIVE OFFICER PROCUREMENT SPECIALIST BUSINESS DEVELOPMENT MANAGER FINANCE & TAXATION MANAGER INFORMATION, COMMUNICATION & TECHNOLOGY MANAGER HUMAN RESOURCES MANAGER SUSTAINABILITY MANAGER SAFETY MANAGER GENERAL MANAGER SUSTAINABILITY, CULTURE & PEOPLE MANAGER PROJECTS & TECHNICAL SERVICES MANAGER MAINTENANCE SERVICES ASSETS & PORT DEVELOPMENT MANAGER GENERAL MANAGER ASSET DEVELOPMENT & STRATEGY OPERATIONS MANAGER HARBOUR MASTER / MARINE MANAGER GENERAL MANAGER OPERATIONS & LOGISTICS GENERAL MANAGER TRADE & CORPORATE SERVICES Mid West Ports Authority Annual Report 2020/21 19
Image: Point Moore Lighthouse at sunset. Mid West Ports Authority Annual Report 2020/21 20
The role of the Board is to “perform the functions, determine the policies and control the affairs of the port authority” as stated in the WA Port Authorities Act 1999. In carrying out its responsibilities and exercising its powers, the Board at all times recognises its overriding responsibility to act honestly, fairly, diligently and in accordance with the law in serving the interests of the State of Western Australia, as well as its employees, customers and the community. The Board is collectively responsible for operations, strategy, risk, culture and stakeholder relations of MWPA. The MWPA Board consists of a Chair and five Directors, all of which are appointed by, and report to the Minister. Board of Directors 2.3 Noel Hart | Chair MBA, Master Mariner Class 1 Appointed to the Board as a Non-Executive Director in July 2019 and promoted to Chair in January 2020. Mr Hart brings significant maritime and shipping experience to the role, having previously been a General Manager for North West Shelf (LNG) Shipping Service Company, a Director of numerous maritime companies, in addition to holding his Master Mariner Class One. Mr Hart is formally Commissioner of the Australian Transport Safety Bureau. He is also formally the Chair of Maritime Industry Australia Limited, Australia’s peak shipping body. In addition, Mr Hart spent 25 years in senior management of BP Shipping around the World. He has been previous Chair of the Governance, People & Culture subcommittee. Dr Sue van Leeuwen | Deputy Chair* DBA, MBA Dr van Leeuwen was been Deputy Chair from February 2018 until July 2020. She is an accomplished consultant, community leader and board member with over 25 years’ experience. Dr van Leeuwen has been the previous Chair of the MWPA Governance, Governance & Risk, and Risk subcommittees during her appointment. She is a Fellow of the Australian Institute of Company Directors, having undertaken Company Directors Diploma and Mastering the Boardroom programs. Owner of ‘Amity Leadership and Consulting’ she works in the areas of innovation, strategy, governance and leadership development. *(Until 13 July 2020) Mid West Ports Authority Annual Report 2020/21 21
Kate Watson | Non-Executive Director Ms Watson was appointed to the Board as a Non-Executive Director in February 2018. She is a company director and project manager. Ms Watson brings a wealth of experience in project management and consulting in electrical contracting; HSE; engineering and construction; mining; haulage operations; utilities; and banking and insurance. Ms Watson is the Chair of the Strategy & Risk subcommittee. She holds a Higher National Diploma in Computer Science, is a former member of the Australian Computer Society, has a Health, Safety and Environment Certification, and is a graduate of the Australian Institute of Company Directors. Lara Dalton | Non-Executive Director* Ms Dalton was appointed to the Board as a Non-Executive Director in August 2019 and retired in March 2021 after being elected to Parliament. She was a Lecturer in Hospitality, Tourism and Events at Central Regional TAFE located in Geraldton and a Board member of the Leaning Tree Steiner School. Ms Dalton is an active Mid West community member and an experienced Board Member having sat on, and chaired numerous community and government Boards in the Mid West region. *(Until 29 March 2021) Susan Barrera | Deputy Chair* MBA, B Ed, BSc (Hons) Ms Barrera was appointed to the Board as a Non-Executive Director in July 2018 and promoted to Deputy Chair in July 2020. She is a consultant for the Nexus Network and specialises in management of change in public sector agencies. Ms Barrera has been previous Chair of the Strategy & Risk, Finance & Audit and Governance, Culture & People subcommittees. She holds a Foundation of Directorship Certificate from the Australian Institute of Company Directors, a Master of Business Administration, a Bachelor of Education and a Bachelor of Science Hons. She is Chair of the Construction industry Long Service Leave Payments Board and Chair of the South Regional TAFE Governing Council. *(From 13 July 2020) Mid West Ports Authority Annual Report 2020/21 22
Robert Willes | Non-Executive Director* Mr Willes was appointed to the Board as a Non-Executive Director in July 2020 and is Chair of the Governance, Culture & People subcommittee and a member of the Finance & Audit subcommittee. Mr Willes has over 30 years of extensive international experience in the oil and gas and energy industries, covering senior commercial and leadership positions with BP in exploration & production, gas & power and mergers & acquisitions as well as ASX board roles. He is also a Non-Executive Director and Chair of the Audit and Risk Committee of Buru Energy Limited, and former Managing Director of Challenger Energy Limited. Mr Willes is a graduate of the Australian Institute of Company Directors and holds an honours degree in Geography from Durhma University (UK). *(Commenced 13 July 2020) Peter Creek | Non-Executive Director CA Mr Creek was appointed to the Board as a Non-Executive Director in January 2020 and is the Chair of the Finance & Audit subcommittee. He is a former Fellow Chartered Accountant and retired partner of Horizon Accountants. Mr Creek has been a former Board Member on numerous local organisations and continues to be an active member of the Mid West community, investing his considerable financial knowledge and experience in Boards across the region. He holds a Bachelor of Accounting from the WA Institute of Technology (Curtin University of Technology). Mid West Ports Authority Annual Report 2020/21 23
Executive Leadership Team 2.4 Dr Rochelle Macdonald Chief Executive Officer* Dr Macdonald is an accomplished strategy and development executive with extensive experience in the resources, energy and transport industries. Dr Macdonald has led strategic planning and organisational change of some of Australia’s leading ports, played an integral role in the development of Wheatstone in WA’s Pilbara region and as only the fourth female Port CEO in Australian history, is also a strong advocate of equality in the workplace. She has her PhD, Masters in Engineering Management, Bachelor of Science with Honours, and a graduate of the AICD. In 2014 she completed the Program of Leadership Development (accelerated MBA program) at Harvard Business School. Damian Tully General Manager, Operations And Logistics Acting CEO* Mr Tully is a highly accomplished and experienced maritime industry professional and joined the MWPA team in March 2020. Mr Tully oversees the safe, efficient and reliable operation of both marine and landside operations within the port. He is also responsible for ensuring that the port remains secure and that MWPA is ready to respond to emergencies in a timely and effective manner. He holds a Masters of Business Administration in Maritime Logistics and Management, a Graduate Diploma in Defence Studies, a Bachelor of Arts in Management and an Advanced Diploma in Work, Health & Safety. Damian is a graduate of the AICD Company Directors Course and is an Associate Fellow of the Nautical Institute. Sandra Pigdon General Manager, Trade And Corporate Services Ms Pigdon is a senior finance executive with a wealth of experience in the mining and resources sector, having led operational and cultural change through the application of her proactive management style. Ms Pigdon is responsible for delivering financial value for Port customers, ensuring a culture of good governance and controllership, and providing appropriate technology and systems infrastructure to support MWPA operations. She has a Masters Degree in Business Administration, a Bachelor of Business, and is a graduate of the AICD Company Director’s Course. She has also completed the AICD Chair’s Mentoring Program and is a Fellow of the CPA Australia. * (Until 16 April 2021) * (From 9 April 2021) Mid West Ports Authority Annual Report 2020/21 24
The MWPA Executive brings a diverse range of skills, backgrounds and experience to the team. Responsible for steering MWPA to achieving the Strategic Plan, modelling a high standard of ethical behaviour, and embedding the organisation values into the workforce. All four General Managers and General Counsel report directly to the Chief Executive Officer, who in turn is governed by the MWPA Board of Directors. Peter Duplex General Manager, Asset And Infrastructure Mr Duplex has been with the Port in various roles since 1998, promoted to General Manager in early 2019. He has assisted and often led the delivery of major projects, Port operations and strategic planning in the engineering space at the Port. Mr Duplex is responsible for the development and maintenance of MWPA critical assets and infrastructure. He holds a range of academic achievements including a Masters of Business Administration, a Graduate Diploma of Management, a Graduate Diploma in Municipal Engineering and a Bachelor of Civil Engineering. Vickie Williams General Manager, Sustainability, Culture & People Ms Williams is an accomplished organisational development and cultural change specialist. Her experience includes communications, public relations, human rights, community development, and learning and development. Ms Williams joined MWPA in 2018 and oversees the strategic direction of Human Resources, Community Engagement, Communications, Cruise, Health, Safety, Environment, Sustainability and Quality at MWPA. She has a Bachelor of Arts, majoring in Sociology from Deakin University, a Masters of Business Administration, completed Cambridge University’s Sustainability Leadership and is a graduate of the Australian Institute of Company Director’s Course. Anne DeSoyza General Counsel Ms De Soyza is a lawyer with a depth of experience as key adviser to government and in the private sector providing legal and strategic advice on major projects and infrastructure development. Ms De Soyza’s work has in particular, included advising on regulatory matters, land access, state agreements, stakeholder management and procurement in project planning and development. She has advised government on intergovernmental agreements and decision-making on project approvals. She has also worked in executive management and leadership positions. She holds a Bachelor of Jurisprudence, Bachelor of Laws and Bachelor of Arts. Mid West Ports Authority Annual Report 2020/21 25
Section 3.0 P E R F O RMA N C E Mid West Ports Authority Annual Report 2020/21 26
Image: Svitzer North assisting with the positioning of MV Ocean Alignment on to Berth 7. Mid West Ports Authority Annual Report 2020/21 27
Goals & Objectives 3.1 S T R A T E G Y O B J E C T I V E S GO A L S M E T R I C 2 0 2 0 / 2 1 T A R G E T Objective 1 Facilitate, Protect & Grow Efficient Trade & Tourism Improve Revenue Diversification and Growth Return of Assets. Achieved No product >50% of throughput (Diversity). (2020/21 Progressive Target <70%). Achieved Review Exmouth with a business plan to identify if it is a commercial opportunity. Deferred Develop Continuous Improvement Program. Achieved Map End to End Processes to identify Opportunities for Improvement. Delivery in Progress Improve Underlying Profit Profit Margin After Tax. Achieved Improve Long Term Business Value Cost Base Improvement Point. Not Achieved Proof of Concept - Multi User Port Facilities. Achieved Increase Regional Economic Contribution Number Cruise Vessel Calls. Achieved Develop a Cruise Geraldton Strategy. Achieved Objective 2 Enabling Supply Chain Facilitate Strong Strategic Partnerships Stakeholder & Community Survey Action Plan Implemented. Delivery in Progress Develop Strategic Agreements between Suppliers, Local, State and Federal Government Agencies. Delivery in Progress Maintenance Dredge Strategy. Achieved Development Plan prepared for Fishing Boat Harbour. Delivery in Progress Port Development Strategy (4 locations + inland port). Deferred Realignment of Ian Bogle Road. Deferred Facilitate transfer of Useless Loop & Cape Cuvier (Tranche 2) Implementation Plan developed and implemented, transfer subject to other government agency priorities. Deferred Transparent Service Offering & Clear Role as Supply Chain Enablers Deliver 2020/21 Projects. Delivery in Progress Rollout of Continuous Improvement Training to all staff across organisation. Delivery in Progress State Goal Building strong & resilient regions through economic expansion and inter-regional collaboration. State Goal Enhancing global competitiveness through continued economic diversification. This Balance Scorecard was developed prior to the Covid-19 global pandemic, which has impacted on the organisations ability to deliver on the outcomes MWPA strives for. Mid West Ports Authority Annual Report 2020/21 28
State Goal Enhance conservation of the environment by sustainable development and efficient resource use. State Goal Achieving efficiencies and synergy through infrastructure planning & coordination in pursuit of economic growth. State Goal Enhancing sustainable communities by investment in infrastructure and social capital. S T R A T E G Y O B J E C T I V E S GO A L S M E T R I C 2 0 2 0 / 2 1 T A R G E T Objective 3 Realising Development Strategies Plan for the future and provide a gateway for trade and tourism Geraldton Narngulu Infrastructure Corridor (GNIC) Concept Design & Feasibility Study commenced. Achieved Inundation Study to inform Future Port Development. Achieved Asset Management Plan for all Asset Classes. Achieved Capital Dredge Study. Delivery in Progress Provide Quality Infrastructure Projects & commitments are delivered to agreed scope, time & Budget expectations. Delivery in Progress Upgrade Gate 1 Security Infrastructure. Deferred Replacement of Navigation Beacon Tops and Refurbish Pylons. Delivery in Progress Wharf 4 Deck Refurbishment and Rail Replacement Project. Delivery in Progress Phase 1 Mooring Optimisation, including Shore Tension Units & Bollard Upgrades. Achieved Objective 4 Engaged Customers, Community & Stakeholders Run a Safe, Efficient and Cost Effective Service Offering Availability of Berth 4 and 5 Ship-loading Infrastructure when required by customers. Achieved Availability of MWPA Train Unloading Infrastructure when required by customers. Achieved Fire Fighting detailed design completed. Achieved Develop Marine Terrace Traffic Controls. Deferred Engaged, Easy to do business with and deliver on our Promise Stakeholder & Community Survey Action Plan Implemented. Delivery in Progress Community Projects completed. Achieved Develop Customer Survey Action Plan. Achieved Shape Government Policy and Legislative Reform Ready for implementation of the GTE Reform. Achieved Prepare a Stakeholder Map that highlights Stakeholders of Influence. Delivery in Progress Objective 5 Operate in BALANCE with the Environment Improve Whole of Port Environmental Outcomes Compliance with Environmental License, Legislation and Best Practice. Achieved Obtain Works Approval for the increase Annual and Daily Throughput Licence Limits. Delivery in Progress Amend First Point of Entry Determination to facilitate Growth of Cruise and Import. Deferred Develop Biosecurity Laydown Area. Deferred Increase Environmental Advocacy and Transparency Number of Environmental Complaints. Achieved Finalise Sustainability Strategy and Implementation Plan. Delivery in Progress Develop Organisational Sustainability Reporting Metrics. Deferred Mid West Ports Authority Annual Report 2020/21 29
Major Achievements 3.2 ■ Fishing Boat Harbour and Tug Harbour Seabed Levelling Trial delivered. ■ Minister Endorsed the MWPA Geraldton Port Master Plan. ■ First shipment of construction sand for Australasian Sands International (new customer and new trade). ■ Champion Bay Seagrass Health Survey commenced. ■ Development Application Form published for external lodgement. ■ Safe Management of COVID-19 Positive Seafarer on MV Key Integrity. ■ Port Access and Services Agreement signed with GWR Group (new customer). ■ Port Access and Services Agreement signed with Strandline Resources (new customer). ■ Awarded Office of Auditor General Best-Practice Agency (7th year running). ■ Safe and Successful Management of Vessel with Damaged Hull, MV Barkly Pearl (03/11/20-06/01/21). ■ Successful Drag Plough Operation to Increase Berth Pocket Depths. ■ Buildings Strategy developed. ■ The first of three new tugs arrived at the Port of Geraldton. ■ Development of the Daily Works GIS Solution delivered. ■ Asset Class Asset Management Plans completed. ■ Port Access and Services Agreement signed with Fenix Resources (new customer). ■ MWPA Geraldton Port Groundwater Monitoring Plan delivered. ■ Beneficial Use Assessment for Dredge Material completed. ■ Winner of IPAA WA “Best Practice in Collaboration Across Government Agencies” award for the StateWide Array Surveillance Program (SWASP) a marine pest detection and monitoring program with State Port Authorities and DPIRD. ■ MGI shipped their 50 millionth tonne from Geraldton Port. JUL 07/20 AUG 08/20 SEP 09/20 OCT 10/20 NOV 11/20 DEC 12/20 Mid West Ports Authority Annual Report 2020/21 30
■ Awarded Wharf 4 Upgrade and Rail Replacement Project. ■ Key Stakeholder Consultation Commenced for 2021 Maintenance Dredge Project. ■ The second of three new tugs arrived at the Port of Geraldton. ■ $105,606 of annual Community Grants Program recipients announced. ■ Damaged livestock carrier Barkly Pearl safely and successfully departed Geraldton Port waters. ■ GWR Group Ltd first shipment of iron ore. ■ First shipment of Iron Ore for Kimberley Metals Group. ■ First shipment of Iron Ore for Fenix Resources Ltd. ■ MWCCI Business After Hours held with co-hosts Geraldton Fisherman’s Coop and Svitzer. ■ Successful handling of oil spill on Berth 5 in collaboration with the Department of Transport. ■ West End Detailed Site Investigation submitted to Department of Water and Environmental Regulation. ■ Australasian Sands Pty Ltd reached 500,000T milestone since commencing operations in July 2020. ■ The final of three new tugs, arrived at the Port of Geraldton. ■ Licence amendment for increase to Daily Throughput issued by DWER, including additional products (MSC, Construction Sands and Fertiliser). ■ MWPA Development Guidelines published. ■ Champion Bay Seagrass Health Survey delivered. ■ Cyclone Seroja preparation, response & community support. ■ Navigational Beacon Refurbishment project commenced. ■ First shipment of gas pipes for $460M ‘Goldfields Pipeline’. ■ Strandline Resources Ltd approved a Final Investment Decision for the Coburn Mineral Sands project, triggering the commencement of a Port Services Agreement signed in late 2020. ■ Port Service Agreement executed with Abra Mining Limited, pending a Final Investment Decision for the Abra lead mine. ■ Cooperation Agreement executed with Strike Energy for 1.4Mtpa ‘Project Haber’ urea fertiliser project (new customer). ■ Port Development Strategy, Marketing Version delivered. ■ Capital Dredge Study completed. ■ Large vessels (235 m x 43m) at Berth 7- A successful reduction in trial parameters leading to these vessel sizes being rolled in to routine vessel operations. ■ Navigational Beacon Refurbishment partially completed with 12 of the 17 beacons refurbished. ■ Pilot eMpx (Electronic Master/ Pilot exchange software) developed, acquired and in use. ■ Galena Mining Limited approved a Final Investment Decision for the Abra Base Metals Project. JAN 01/21 FEB 02/21 MAR 03/21 APR 04/21 MAY 05/21 JUN 06/21 Mid West Ports Authority Annual Report 2020/21 31
2020/21 Key Projects 3.3 Wharf 4 Strengthening & Rail Replacement Constructed in 1965, Wharf 4 is MWPA’s busy multi-user bulk minerals facility which reached the end of its design life in 2015. Over time numerous improvements and additions have been made to the wharf to accommodate larger vessels and infrastructure capabilities. To improve safety, MWPA imposed load restrictions associated with the use of Wharf 4 in 2016 in response to the deteriorating condition and capacity of the wharf deck slab and shiploader rails, thereby reducing revenue and operational efficiency. The refurbishment will greatly enhance the structural capacity, eliminating all existing load restrictions and allow for larger mooring capacities. To increase the deck’s load carrying capacity, the existing non-structural topping slab will be removed and replaced with a thickened reinforced concrete slab. The deck strengthening works are to focus on the original part of the Wharf 4 structure while the rail replacement will be over the entre wharf (including the newer Wharf 4 extension). Strengthening of the wharf will be by encasing the existing deck in new concrete, from above and below. MWPA has taken this opportunity to increase mooring capacity by installing new higher capacity mooring bollards and Quick Release Hooks with remote operation and line load monitoring capability. Works are being funded through the State Recovery Fund and MWPA engaged Fortec Australia as the main contractor to undertake the works. Fortec has engaged a significant number of local subcontractor sand suppliers to assist in project delivery. Work scheduling is very challenging given that the works are being undertaken in an operational environment with below deck activities exposed to tides. To meet the programme, the project team are staging the works, identifying opportunities for using existing shutdowns, extending shutdowns, and taking advantage of shipping movements. Innovative construction techniques are being used for this technically challenging and bespoke project. Work required on the underside of the deck is being completed on a scaffolding platform which is installed below water level. To reduce manual handing, workers transport the steel in by floating barges and when a section is complete, the scaffolding platforms are disconnected and floated to the new location. Works commenced in March 2021 and Practical Completion is scheduled for January 2022. Image: Location of Wharf 4. Image: Wharf 4 works in progress. Mid West Ports Authority Annual Report 2020/21 32
Navigation Beacon Refurbishment MWPA’s main shipping channel into Geraldton Port is approximately 4.8km long and 180 - 220m wide. In 2003, twenty one (21) navigation beacons were installed to mark the main shipping channel and assist in the safe transit of vessels into port. Navigation beacons are considered critical infrastructure for safe port operations. The beacons provide visual references for the pilots and are of particular importance when transiting through the bend in the channel on approach to Geraldton Harbour. The beacons have been strategically located in such a manner that allow the pilots to line up one set of beacons for initial positioning and then a subsequent set, providing a safe passage through this area. In 2021, MWPA embarked on a Navigation Beacon Refurbishment Project to address the deteriorating condition of the beacons including signs of wear, corrosion and paint degradation. In addition, some beacon ladders and platforms had sustained damage due to a recreational vessel collision (Beacon 2) and high seas. This maintenance program is their first major maintenance upgrade. The project aimed to replace sixteen fixed navigation beacon tops, completely replace beacon 2 and complete other associated maintenance repairs as identified. In April 2021, jack up barge ‘Margaret’ and her support vessels ‘Anne-Marie’ and ‘Marie-Pierre’ were mobilised to Geraldton from Onslow and Fremantle respectively. The refurbishment of the navigation beacons was programmed to coincide with the Beacon 2 Replacement works to take advantage and maximise utilisation of the specialist equipment that was to be mobilised for both works. Unfortunately, due to excessive inclement weather (including a cyclone) and associated stand-by costs, a decision was made to demobilise the contractor in early June before completing the full scope of the project. Planning is now underway for alternate methods to complete maintenance on the remaining outer channel beacons. Image: Working on the refurbishment of a pylon above water level. Image: Underwater divers assisting with the refurbishment of navigational pylons. Mid West Ports Authority Annual Report 2020/21 33
Image: Australian Sealions regularly rest and recuperate on rocks within port waters, demonstrating MWPA’s ability to operate in balance with the environment in which it operates. Mid West Ports Authority Annual Report 2020/21 34
Environmental Impact Assessment And Technical Studies To Prepare For Maintenance Dredging Mid West Port Authority commissioned a series of baseline studies to better understand the current state of the marine environment and to inform a detailed environmental impact assessment for the proposed 2021 maintenance dredging activities. Understanding Benthic Communities And Habitats To protect the biological diversity and understand the health of ecological systems within port waters, MWPA sought to build on its benthic habitat (seabed) mapping work to assess current seagrass condition with historical data to understand: ■ Long term trends in seagrass coverage; ■ Seagrass health (density, height, biomass, and percent cover); and ■ Provide a baseline for monitoring and quantifying seagrass changes over time. This mapping was completed in 2019. Understanding Marine Environmental Quality Mid West Port Authority recognises the importance of maintaining a healthy marine environment for the community to enjoy and to ensure the ongoing success of local tourism, commercial fishing, aquaculture industries and to support healthy marine life. MWPA is committed to maintaining the quality of water, sediments and biota within port waters. The survival and growth of seagrasses depend on several factors, including suitable substrate and sediments for roots and rhizomes to establish, appropriate water quality, and enough sunlight at the seabed. To ensure marine environmental values are understood and protected during maintenance dredge activities, MWPA completed studies on: ■ Sediment Characterisation ■ Water Quality and Seabed Light Climate This baseline data is important to better understand the current environmental quality of Champion Bay. Understanding Coastal Processes To better understand the coastal environment in which the Port is located and the geophysical processes that help to shape it (e.g. wind, wave, currents and sediment transport) MWPA commissioned several studies that looked at the interaction between the Port’s fixed infrastructure and the natural morphology. Understanding how coastal processes may be impacted and altered over time helps MWPA plan for future development and specific activities such a maintenance dredging. A Coastal Processes Study was undertaken to gain a greater understanding of the coastal processes affecting the beaches to the north and south of the Port of Geraldton, and at the Geraldton and Oakajee Port sites. The main purpose of this study is to feed into the development of a sediment transport simulation model. Dredging Operations Hydrodynamic Modelling A conceptual model of the marine system was custombuilt using wind, wave, currents and tides to predict the oceanographic behaviour. Using this model, dredging operations can be simulated and sediment fate determined. These baseline studies will inform planning of future projects such as maintenance dredging, as well as trade and development projects. Mid West Ports Authority Annual Report 2020/21 35
Emergency response and management 1. Covid-19 positive seafarer on board vessel MV Key Integrity – October 2020 On 14 October 2020, the vessel MV Key Integrity, which was bound for the Port of Geraldton from an international port, reported that one of its crew members was displaying Covid-19 symptoms. MWPA consulted with the Department of Health, Department of Agriculture (Biosecurity) and Australian Border Force and planned for the vessel to berth at the Port of Geraldton on 17 October 2020. Training was provided to all frontline maritime workers on the proper donning and doffing of PPE prior to bringing the ship in to port. Once the vessel was alongside, nurses from the Department of Health conducted a Covid test, with the test returning a positive result. Following further consultation with the Department of Health, Australian Maritime Safety Authority and Fremantle Ports, a decision was made to sail the vessel from Geraldton to Fremantle on 18 October 2020 for further management. The Covid affected vessel was well managed and there were no impacts to trade during the handling of this incident. Image: Emergency response management of MV Key Integrity. Mid West Ports Authority Annual Report 2020/21 36
2. Port of Refuge for damaged vessel MV Barkly Pearl - November 2020- January 2021 On 02 November 2020, the Australian Maritime Safety Authority issued a direction notice to the MWPA Harbour Master to provide a Port of Refuge to the damaged livestock carrier MV Barkly Pearl. The vessel was brought alongside at the Port of Geraldton on 03 November 2020 to conduct damage assessment. The inspection revealed extensive damage to one side of the ship. Due to a scarcity of specialised ship repair facilities in Geraldton, and the delays in gaining consensus on a repair plan between multiple agencies (vessel’s Flag State and Classification Society) and stakeholders, the vessel repairs were stalled. To minimise impacts on trade, the vessel was shifted between berths as required. In addition, the vessel and its crew, who had arrived from an international port, had to be managed in accordance with MWPA’s Covid-19 protocols. Through the persistent efforts of MWPA and collaboration with multiple agencies such as Australian Maritime Safety Authority and the Department of Primary Industries & Regional Development, a decision was made to transfer the vessel onto a heavy lift vessel. MV Barkly Pearl departed the Port of Geraldton on 06 January 2021 with the vessel being transferred on to MV Falcon at the Abrolhos Islands, and departed Australian waters after safety assessments later in the month. 3. Oil leak in the vicinity of vessel MV Ya Tai 2 - February 2021 On 11 February 2021, an oil spill was observed in the vicinity of the vessel MV Ya Tai 2 which was alongside at the Port of Geraldton. All cargo operations were suspended and MWPA responders mounted a first strike response to contain the oil spill through deploying oil spill booms. Notifications were made to multiple agencies including the Department of Transport (DoT), who mobilised a team of responders and oil spill equipment from Fremantle to Geraldton the same day. MWPA assumed the Incident Controller responsibilities and the incident was classed as a Level 2 incident. MWPA and DoT personnel worked collaboratively, concluding the clean-up operations by 14 February 2021. Investigations on the source of leak were carried out and oil samples were collected for laboratory analysis. Once a determination was made that there was no further risk of an oil spill, permissions were granted to the vessel to recommence cargo operations. The vessel departed the Port of Geraldton on 17 February 2021. The timeliness of the first strike response and the minimisation of impacts to port operations from the oil spill is testament to the high degree of operational readiness at MWPA to deal with such contingencies. 4. Cyclone Seroja impacting Geraldton - April 2021 Cyclone Seroja was forecasted to approach Geraldton on 11 April 2021 from the north and make landfall. MWPA took a very cautious approach given the unpredictability of tropical cyclones. Preparations were made both on waterside and landside to minimise the impacts. On the waterside, the Port of Geraldton was closed for shipping, the commercial harbour and the anchorages were cleared of all ships, and notifications sent out to secure all vessels in the Fishing Boat Harbour by 10 April 2021. On the landside, all berth equipment, ship loaders etc. were secured. MWPA staff and contractors were advised on actions and expectations during the different stages of DFES cyclone alerts - Blue, Yellow and Red. Cyclone Seroja made landfall to the north of Geraldton on the evening of 11 April 2021. Post cyclone, inspections were carried out landside and waterside on 12 April 2021. Hydrographic surveys were conducted for port waters as a risk mitigation measure. The inspections revealed minimal damage to port infrastructure and preparations were made to recommence operations. Once the hydrographic survey results were received and electricity restored in the region, shipping recommenced at the Port of Geraldton on 15 April 2021. Image: Damaged vessel MV Barkly Pearl loaded on heavy lift vessel MV Falcon ready for transport. Mid West Ports Authority Annual Report 2020/21 37
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