2022/23 Annual Report
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. Mid West Ports Authority Annual Report 2022/23 2
1.0 Overview 1.1 Port Overview 1.2 2022/23 Highlights 1.3 Key Business Results 1.4 Combined Chair & CEO Report 8 14 16 18 2.0 Operational Structure 2.1 Board of Directors 2.2 Organisational Chart 2.3 Executive Leadership Team 26 28 29 3.0 Performance 3.1 Performance Against Targets 3.2 Major Achievements 3.3 Key Projects 3.4 Sustainability 3.5 People 3.6 Planet 3.7 Prosperity 32 36 38 50 52 60 66 5.0 Annual Financial Statements 5.1 Directors’ Report 5.2 Statement of Profit or Loss 5.3 Statement of Financial Position 5.4 Statement of Changes in Equity 5.5 Statement of Cashflows 5.6 Notes to the Financial Statement 5.7 Directors Declaration 80 86 87 88 89 90 119 4.0 Governance 4.1 Legislation 4.2 Governing Board 4.3 MWPA Executive 4.4 Conflicts of Interest 4.5 Reporting 4.6 Financial Administration 4.7 Codes of Conduct 4.8 Freedom of Information 4.9 Record Keeping 4.10 Enterprise Risk Management 4.11 External Feedback Management 4.12 External Feedback Received 4.12 Internal Audits 4.13 Corporate Delegations Policy and Manual 72 72 74 75 75 75 75 76 76 76 76 77 77 77 Mid West Ports Authority Annual Report 2022/23 3
Vision To be BOLD supply chain enablers for the sustainable long-term future of regional Australia. Purpose To provide a sustainable gateway for trade and tourism. Values Accountability Caring Courage Collaboration Integrity Mid West Ports Authority Annual Report 2022/23 4
Statement Of Compliance For the year ended 30 June 2023 To the Hon. David Michael MLA Minister for Ports; Local Government; Road Safety; Minister Assisting the Minister for Transport 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 2023. 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 Mid West Ports Authority (MWPA) customers, community and other stakeholders about the organisation, its strategy, performance and governance for the 2022/23 financial year. An online version of this report is available at: www.midwestports.com.au For any inquiries please contact us at: [email protected] About this Report Mid West Ports Authority Annual Report 2022/23 5
1.0Overview 1.1 Port Overview 1.2 2022/23 Highlights 1.3 Key Business Results 1.4 Combined Chair & CEO Report
As an important State Government asset, Mid West Ports Authority (MWPA) provides a trading gateway for Western Australia, committed to providing efficient and sustainable port services to its customers while prioritising safety, innovation, and customer satisfaction. Throughout 2022/23, MWPA has continued to leverage its extensive experience and expertise in managing and further developing a diverse range of cargo types. MWPA remained committed to providing a high level of service and support to its customers and suppliers, while maintaining a strong focus on safety, the environment and organisational capability. 2022/23 saw the commencement of the Port Maximisation Project (PMaxP), a major infrastructure project in response to significant projected throughput increase over the next 10 years. 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 the delivery of port services. Berths 1 through 6 are owned, operated, and maintained by MWPA. Berths 1 and 2 are accessed by naval vessels, 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 from time to time for cruise ship visits. Berths 4 and 5 circuit and ship loaders are owned, operated, and maintained by MWPA. These berths are primarily utilised for the export of iron ore, industrial minerals, mineral concentrates, and mineral sands. Berth 6 is accessed for fertiliser, minerals, and fuel imports; cruise ship visits; mineral exports; and break bulk cargo. Berth 7 berth and ship loading infrastructure is owned, operated, and maintained by Karara Mining for the export of iron ore. Karara Mining also owns, manages, and maintains its own 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 holds and manages the environmental licence for commodities exported and imported through the Port of Geraldton. The licence stipulates operating conditions and monitoring that must be undertaken to minimise impact to the environment and surrounding community. MWPA reports the outcomes of monitoring programs and adherence to licence conditions to the Department of Water and Environmental Regulation (DWER) . The CBH grain terminal is not covered by MWPA’s Environmental Licence. Fishing Boat Harbour MWPA manages Geraldton’s Fishing Boat Harbour (FBH) supporting the region’s largest fishing industry (primarily western rock lobster) and is home to Geraldton’s boat building and maintenance precinct. The FBH is equipped with mooring amenities including berthing and fuel facilities, general waste disposal, utilities, and security services. The FBH comprises 149 boat pens, ranging from 6 to 25 metres, a diesel fuel facility and significant landholding with sites leased to businesses that primarily support the local fishing, boat building and maintenance, and mining industries. Port Overview 1.1 Mid West Ports Authority Annual Report 2022/23 8
Mid West Ports Authority Annual Report 2022/23 9
Land Asset MWPA has a total of 83 hectares of land vested within the Port of Geraldton boundary and an additional 6.9 hectares made up of leases to the south of Marine Terrace. MWPA is responsible for land use planning and controls and acts as a landlord by leasing or licensing to the private sector. The private sector primarily owns and manages the assets on these lease sites. There are currently 52 separate commercial leases, along with various licences, that generate revenue for MWPA. In addition, 200 hectares of undeveloped land is reserved for future development of a deep-water port at Oakajee that will support both future mine developments and the Oakajee SIA precinct for green energy projects. This land constitutes a small portion of the total land requirements for future port development. MWPA has also received interest from several parties for alternative water and land access for renewable energy projects. Customers MWPA has seen a significant recovery in confidence from its customers post Covid-19. The global focus on green energy, battery minerals and valuable minerals which the region is rich in, providing a positive outlook for both MWPA and the region. Repeated strong harvests in WA have translated to continuing records in grain export, while proposals to expand grain handling capability at Geraldton continue to be explored. Iron ore pricing has been strong over the past 12 months and a number of new developments have received final approval. In addition, the resources to support battery and advanced manufacturing are extensive with several new mines under development or working their way through approval processes. Overall, this provides an expectation that volumes through the Port of Geraldton will grow from the current 18 Million Tonne per annum (MTpa) to around 23MTpa in the near future, with further growth expected that will be facilitated through the ongoing PMaxP expansion works. Berth 1/2 Berth 3 Berth 4 Berth 5 Berth 6 Berth 7 Fishing Boat Harbour Mid West Ports Authority Annual Report 2022/23 10
Mid West Ports Authority Annual Report 2022/23 11
Mid West Ports Authority Annual Report 2022/23 12
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 enhancements provided by the organisation’s Enterprise Resource Planning (ERP) tool, together with longer-term contracts continues to be an area of considerable focus for MWPA. MWPA is establishing long-term supplier relationships with local companies that will deliver value, innovation and optimisation, and are willing to partner with MWPA to deliver on its business strategies. Community MWPA upholds its dedication to fostering and cultivating its community presence and connections and continues to prioritise community consultation for its major projects and operations. In 2022/23, MWPA commenced its reconciliation journey with the development and subsequent endorsement of its first Reconciliation Action Plan, Reflect, by Reconciliation Australia. MWPA’s annual community-funded initiatives include: ● Contributing $204,100 in sponsorship to community events and initiatives that align with MWPA’s organisational values and which demonstrate a beneficial impact on the community. This amount includes $100,000 towards Mid West’s signature event, Shore Leave Festival; ● Not-For-Profit (NFP) Partnership Program worth $22,400 over three years; and ● Beach Nourishment Program where MWPA has a Memorandum of Understanding (MOU) with the City of Greater Geraldton. In 2022/23 MWPA delivered 14,365m3 of sand, at a cost of $266,303, 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). During the last financial year, MWPA has revoked its MSIC issuing body status with this now being managed externally. Cruise Industry MWPA supports Western Australia’s cruise tourism industry by acting as a transit port and aims to grow its position in the Western Australian cruise tourism market. 2022/23 saw the reintroduction of cruise for the Port of Geraldton with our first visit in October 2022 and a total of 11 cruise ship visits for the financial year, including four maiden visits. Mid West Ports Authority Annual Report 2022/23 13
2022/23 Highlights 1.2 Throughput 17,408 Total Trade Exports tonnes‘000 16,502 Total Trade Imports tonnes‘000 906 Total Trade Throughput tonnes‘000 11,315 tonnes‘000 Iron Ore Grain Mineral Sands Concentrates Crude Oil 3,635 tonnes‘000 1,074 tonnes‘000 450 tonnes‘000 28 tonnes‘000 667 tonnes‘000 Bulk Imports Petroleum General Cargo 237 tonnes‘000 2 tonnes‘000 Mid West Ports Authority Annual Report 2022/23 14
People Not-For-Profit Partnership Program Annual Grants Program $104,100 $19,500 3.74 Total Recordable Injury Frequency Rate (TRIFR) Lost Time Injury Frequency Rate (LTIFR) 0 Male Staff* *excludes casual employees 122 Female Staff* *excludes casual employees 39 Prosperity Planet Invested in Dust Improvement Projects $1.15M Waste Diverted From Landfill 51% Reportable Environmental Incidents 5 Direct Local Spend $23.7M Total Revenue and Income Payments to Government $12.7M $99.5M Profit After Tax $25.2M Mid West Ports Authority Annual Report 2022/23 15
Key Business Results 1.3 14.0 12.0 10.0 8.0 6.0 4.0 0 2.0 16.0 18.0 Total Port Trade FY2019 FY2020 FY2021 FY2022 Mass Tonnes (Millions) 15.9 14.9 15.1 16.4 17.4 Total Iron Ore Trade FY2019 FY2020 FY2021 FY2022 14.0 12.0 10.0 8.0 6.0 4.0 0 2.0 10.9 10.8 10.1 10.3 11.3 Mass Tonnes (Millions) 16.0 18.0 Total Ship Visits FY2019 FY2020 FY2021 FY2022 420 400 380 360 340 320 300 Visits 415 379 351 389 400 FY2023 FY2023 FY2023 Mid West Ports Authority Annual Report 2022/23 16
Economic Rate of Return FY2019 FY2020 FY2021 FY2022 16 10 8 6 4 2 0 Percent 7.3 14.4 4.1 5.3 7.3 14 12 FY2023 Operating Profit Before Income Tax Equivalent Mid West Ports’ Contributions to State Government FY2019 FY2020 FY2021 FY2022 40 35 30 25 20 15 0 10 5 Profit ($ Million) 20.83 17.06 23.32 35.60 35.77 FY2023 FY2019 FY2020 FY2021 FY2022 25.0 20.0 15.0 10.0 5.0 0.0 Includes NTER & Dividends Paid 16.1 10.0 17.5 8.9 12.7 Contributions($ Million) FY2023 Mid West Ports Authority Annual Report 2022/23 17
Combined Chair & CEO Report 1.4 Mid West Ports Authority continued to see strong demand for use of its port infrastructure and services during 2022/23, experiencing its third consecutive year of growth; up 1 million tonne (MT) on 2021/22 from 16.4MT to 17.4MT for 2022/23. MWPA welcomed a number of new exporters during 2022/23 including Triangle Energy’s (ASX:TEG) crude oil, Gold Valley Resources’ iron ore, Strandline’s (ASX:STA) mineral sands, and Abra’s metal concentrates. As MWPA approaches its largest annual throughput we look to the future, ensuring the Port of Geraldton is in a position to continue to facilitate increased trade demand from the region. In May 2022, the WA State Government committed to investing $350M in the Port Maximisation Project (PMaxP); a development project of multi-user, multiproduct infrastructure at the Port. PMaxP commenced in September 2022, with the appointment of BG&E Resources as Engineering, Procurement, and Construction Management (EPCM) contractors. BG&E Resources, a multi-disciplinary engineering consultancy based in Perth, is responsible for the detailed design of the project and the supervision, management, and coordination of construction. Detailed design is now well underway with MWPA currently evaluating designs relating to wharf, storage, material handling, and marine infrastructure. Embedding sustainability across port operations continues to be a key focus. During 2022/23, we reaffirmed this commitment by voluntarily submitting to undertake a Global Real Estate Sustainability Benchmark (GRESB) Infrastructure Assessment to better understand our current performance and future opportunities. In 2023/24, we have committed to structuring the MWPA’s Statement of Corporate Intent (SCI), a formal Government document outlining the objectives for the Port for the ensuing year, as our Sustainability Strategy and Implementation Plan. The Annual Report is required to report on the deliverables in the SCI, thus ensuring there is considerable accountability toward our sustainability commitment. For the second year running we have structured our Annual Report around MWPA’s three sustainability pillars of People, Planet and Prosperity. Mid West Ports Authority Annual Report 2022/23 18
People Keeping our people safe and ensuring they go home each day remains our highest priority. After receiving very positive feedback and results from two other WA Port Authorities, MWPA engaged a consultancy named Cognicent, to deliver their safety program ‘Zero Incident Process’ or ZIP. The ZIP safety program is a psychology-based program focusing on the individual, their attitudes toward safety and their motivations for staying safe. The program has been delivered across the organisation with promising feedback and an internal ZIP Embedding Team works to ensure the ZIP safety message continues to be front of mind throughout our operations. Importantly, we recorded zero Lost Time Injuries in 2022/23. MWPA remains mindful of our place as an organisation in the local community and how we can play our part, and we embrace the fact that many of our employees are local residents. A large number of applications were once again received for our Annual Community Grants Program. Sixteen very worthy local organisations who demonstrated alignment with MWPA’s vision and values were selected with over $100,000 distributed between them. Successful applicants included local sporting clubs, varying school programs, regional events such as the Mingenew Midwest Expo, the Chapman Valley Agricultural Show, and cultural events hosted by the Midwest Multi-Cultural Association. Our journey towards reconciliation was formalised with our Reconciliation Action Plan (RAP) – Reflect, recently endorsed by Reconciliation Australia. As an organisation, we are keen to demonstrate our commitment to reconciliation and playing a meaningful role in furthering opportunities and self-determination for Aboriginal and Torres Strait Islanders. Our RAP will be launched during NAIDOC Week in July 2023. Following last year’s announcement of MWPA’s inaugural Not-For-Profit (NFP) Partnership Program with the Geraldton Surf Lifesaving Club, we were proud to Mid West Ports Authority Annual Report 2022/23 19
Mid West Ports Authority Annual Report 2022/23 20
announce this year’s recipient was ATLAS (Access To Leisure and Sport), a local group aiming to increase the inclusion of people with disabilities in mainstream sport, leisure and recreational activities. We look forward to working with and supporting ATLAS over the next three years. MWPA remained connected with the local community throughout the year whether it was through hosting Mid West Chamber of Commerce and Industry events, providing community presentations on major projects, facilitating public visits to HMAS Stalwart III (Geraldton being its ceremonial home port), and being a major sponsor for the Mid West’s signature festival, ‘Shore Leave’ for the third consecutive year. In 2022/23, we also welcomed back cruise ships to Geraldton with the revision of government policies as Covid restrictions eased. Over the year we saw eleven ships visit, bringing with them over eleven thousand passengers and crew. Teaming up with the City of Greater Geraldton and a local event activation company, Euphorium, cruise passengers were greeted in the Geraldton CBD at a Welcome Area providing visitors with entertainment, food and drink, and an opportunity to purchase wares from local businesses. Importantly, it provided visitors with a superior passenger experience with our team of dedicated community volunteers on-hand to share local insights, assistance and information. Planet Our focus on having a more sustainable impact on our environment is two-pronged; looking to improve the impact of our current operations while looking toward future opportunities. MWPA maintains an extensive environmental monitoring program in support of our Environmental Licence which includes the monitoring of air quality, seabed sediment quality, dredge sediment transportation, noise, and seagrass health. Air quality continues to be an important focus point, particularly with respect to the management of dust generation and dust migration as a result of port operations. Wherever bulk material is transferred from one location to another, dust becomes airborne and there is opportunity for it to be carried by the wind. Significant inroads have been made in the last year with a number of dust mitigation measures being enacted including whole-of-port wind modelling, the installation of a DustTamer Fence along Marine Terrace, installation of dust suppression fogging within the Berth 5 circuit, the installation of a product moisture monitor on Berth 5, the partial enclosure of the Berth 4 Truck Unloader and the installation of dust hoods, and the recommissioning of a Cascade Chute for Berth 4 loading operations. MWPA will continue to introduce further mitigation measures over the next year including dust suppression fogging on the Berth 5 Ship Loader. During the year, we undertook detailed evaluation of our Scope 1 and 2 greenhouse gas emissions and in June 2023, the Board committed to an ambitious reduction of 90% reduction in scope 1 and 2 emissions by 2030, and Net Zero GHG Emissions by 2040. Prosperity Aligning with increased trade, MWPA saw a strong financial performance with Total Revenue of $99.48M, up from $96.66M in 2021/22. A small increase in Profit Before Tax was also realised of $35.69M, up from $35.60M, which becomes the strongest ever profit result for MWPA to date. MWPA continues to project further growth over the coming years, with a number of existing customers increasing their production rates and a number of other new resource projects commencing operations in the near future. Some of these prospective trades include mineral sands, garnet, silica sands, spodumene and iron ore products. Following the WA State Government’s announcement in October 2022, MWPA has been increasingly involved in activities relating to the activation of the Oakajee Strategic Industrial Area (SIA) as a Hydrogen Hub. As part of that activation, MWPA is participating in a Trilateral Study along with the Port of Rotterdam (The Netherlands), the Fraunhofer Institute (Germany), and the Department of Jobs, Tourism, Science & Innovation (JTSI), to examine avenues for the early export of hydrogen products from the Oakajee SIA. MWPA is also an active member of the Oakajee Industry Reference Group led by JTSI and is working closely with Australian and international SIA proponents to develop options for future demand of port facilities for construction and project logistics support. Whilst new industries such as hydrogen production are emerging in the Mid West, MWPA continues to also maintain a focus on the more traditional industries, including fishing and boat building and servicing. As the only WA Port Authority to have a Fishing Boat Harbour (FBH) vested in us, we are honored to be associated with an industry that has a proud history and close ties to our local community. The development of vacant land on the FBH Northern Reclaim area facilitated local boat builder Dongara Marine, to build new facilities and expand their operations to take advantage of local trades and an increased workforce. The development included a Mid West Ports Authority Annual Report 2022/23 21
Noel Hart Chair Damian Tully CEO heavy lift boat slipway, subdivision activities, and the installation of utilities, which allowed Dongara Marine to move their first project into their newly constructed sheds in July 2022. The development of the FBH Northern Reclaim area is part of a larger body of work included in the FBH Development Plan. Following on from the release of the Geraldton Port Master Plan in 2020, the FBH Development Plan provides both a vision and planning guidance for the future. Importantly, stakeholders of the FBH were actively consulted as part of the development process, and information sessions were conducted in June 2023 following the official launch of the plan by the Minister for Ports in March 2023. Looking Ahead MWPA is looking forward to a prosperous future, pursuing our strategy of growth and diversity. We remain focused on providing safe, reliable, and efficient services while ensuring we support our employees, port users and the local community. The delivery of the Port Maximisation Project over the next four years remains at the forefront for MWPA. Complimenting this development will be several key projects across the Port focused on business improvement and maximisation of efficiencies. Acknowledgements With the departure of the Hon. Mark McGowan from the WA Government in June 2023, we welcomed the news of the Hon. David R Michael BEc MLA, Minister for Ports; Local Government; Road Safety; Minister assisting the Minister for Transport, to his new role. We look forward to working with the Minister over the coming years to help realise the growth of MWPA and the Mid West region. We would like to extend sincere thanks to Hon. Rita Saffioti BBus MLA, Deputy Premier; Treasurer; Minister for Transport; Tourism, for her commitment and guidance during her previous role as Minister for Ports, and we look forward to her ongoing support of MWPA in her current portfolios. Finally, we would like to thank the entire MWPA team. The last twelve months has seen the Port operating at a tempo not seen previously where a delicate balance has been maintained between safe and efficient current operations, the delivery of the Port Maximisation Project, and responding to the demands of future trades and emerging industries. Without the team’s dedication and professionalism, we would not have achieved all that we have. Thank you. Mid West Ports Authority Annual Report 2022/23 22
Mid West Ports Authority Annual Report 2022/23 23
2.0Operational Structure 2.1 Board of Directors 2.2 Executive Leadership Team 2.3 Organisational Chart
Board of Directors 2.1 Noel Hart Chair MBA, MAICD, Master Mariner Class 1 Susan Barrera Deputy Chair MBA, B ED, BSC (Hons) Kate Watson Non-Executive Director GAICD Robert Willes Non-Executive Director GAICD, BA (Hons) Peter Creek Non-Executive Director CA Gail McGowan Non-Executive Director PSM, GAICD, BA Mid West Ports Authority Annual Report 2022/23 26
Mid West Ports Authority Annual Report 2022/23 27
Organisational Chart 2.2 MWPA Board Executive Team Leadership Team Legend Mid West Ports Authority (MWPA) is governed by the board of Directors appointed by the Minister for Transport. MWPAcontrols operations at ports throughout the Mid West to facilitategrowth and trade for the economic benefit of the State. MWPAis responsible for the safe, secure, efficient and environmentallyfriendly operation of the ports. Human Resources Manager Environment & Sustainability Manager Safety Manager Procurement Manager Manager Trade & Commercial Finance & Taxation Manager Information, Communications & Technology Manager General Manager Trade & Corporate Services Executive Officer Chief Executive Officer Board of Directors Operations Manager Harbour Master / Marine Manager Manager Maintenance Services Assets & Engineering Manager Chief Operating Officer Executive Project Manager PMaxP Project Director General Manager Sustainability, Culture & People Mid West Ports Authority Annual Report 2022/23 28
Executive Leadership Team 2.3 Damian Tully CEO Sandra Pigdon General Manager, Trade & Corporate Services Courtney Ackland Chief Operating Officer Vickie Williams General Manager, Sustainability, Culture & People Mid West Ports Authority Annual Report 2022/23 29
3.0Performance 3.1 Performance Against Targets 3.2 Major Achievements 3.3 2023/23 Key Projects 3.4 Sustainability 3.5 People 3.6 Planet 3.7 Prosperity
Performance against targets 3.1 STRATEGY OBJECTIVES GOALS METRIC 2022/23 TARGET 2022/23 ACTUAL Objective 1 Facilitate, Protect and Grow Efficient Trade & Tourism Improve Revenue Diversification and Growth Return on Assets 17.7% 14.5%* Earning Before Interest, Tax, Depreciation & Amortisation ($'000) $64,450 $43,775* No Product >50% of Throughput (Diversity) <70% 65% Total Port Trade (Mt) 21.0 17.4* Total Number of Vessel Visits 502 400* Improve Underlying Profit Economic Rate of Return 21% 4.10% Debt to Equity Ratio including Dividends 0.38 0.03 Debt to Equity Ratio excluding Dividends 0.33 0.03 Improve Long Term Business Value Implement Improvements Identified in Continuous Improvement Plan Jun-23 Achieved State Goal Enhancing global competitiveness through continued economic diversification. Ports WA Metrics * MWPA saw a lower than forecasted trade throughput as a result of a softening iron ore market in H1 2023 and new proponents’ project startup delays. Mid West Ports Authority Annual Report 2022/23 32
STRATEGY OBJECTIVES GOALS METRIC 2022/23 TARGET 2022/23 ACTUAL Objective 2 Provide Infrastructure that Enables Customers’ Supply Chains Provide Long Term Landside Infrastructure Deliver Phase 1 of Port Maximisation Plan Jun-23 Phase 1 delivery underway. Concept Design complete. Detailed Design scopes for all project elements at 50% to 85% completed. Phase 1 now scheduled to be completed in 2023/24. Deliver Improvement Plan for Increased Operability of Berth 4 Dec-22 Project definition currently underway. A technology solution will be implemented in H2 2023 on Berth 4 circuit which will assist in identifying specific improvement actions. Provide Long Term Marine Infrastructure Develop Long Term Capital and Maintenance Dredge Strategy (including Rockwall Protection) Jun-23 Draft strategy developed. Peer review to be conducted in H2 2023 prior to release. Develop Solution of Reduction in the Effect of Long Period Wave Impact and Secure Funding Sep-22 PMaxP Project has identified a number of improvements which will reduce the effect of Long Period Wave impact. Modelling and Detailed Design scope will determine if further mitigation options are required. Provide Long Term Land Management Development of a Land Assembly and Land Use Strategy Sep-22 Strategy currently in draft with expected completion in H2 2023. State Goal Achieving efficiencies and synergy through infrastructure planning and coordination in pursuit of economic growth. State Goal Building strong & resilient regions through economic expansion and inter-regional collaboration. Ports WA Metrics Mid West Ports Authority Annual Report 2022/23 33
Mid West Ports Authority Annual Report 2022/23 34
STRATEGY OBJECTIVES GOALS METRIC 2022/23 TARGET 2022/23 ACTUAL Objective 3 Operate as an Exemplary Corporate Citizen To Be a Sustainable Port Undertake Whole of Port Sustainability Benchmarking Sep-22 Achieved. Develop a Long Term Sustainability Plan Mar-23 Achieved. Number of Reportable Incidents < 10 5 To Provide a Safe Workplace Loss Time Injury Frequency Rate (LTIFR) 0 0 Delivery of ZIP Training and Embedding a Safety Leadership Culture Dec-22 Training delivery complete. A cross functional team has been formed to ensure learnings are embedded and remain current. Operate in Harmony with our Stakeholders Suppliers Satisfaction Survey Score ** > 80% 84% (2021/22 Score) Employee Satisfaction Score ** > 80% 64% (2021/22 Score) Community Satisfaction Score^ > 80% New metric to be assessed in 2023/24 Customer Satisfaction Score- Commercial Harbour ** > 80% 73% (2021/22 Score) Customer Satisfaction Score- FBH ** > 80% 34% (2021/22 Score) Establish and Implement an External Complaints & Feedback Process Sep-22 Achieved. Finalise and Implement Reconciliation Action Plan Dec-22 Achieved. Operate in Good Governance Conduct Review of Organisational Structure to Support Port Maximisation Plan Dec-22 Achieved. Delivery of Annual Report, SOE, SCI and SAP Jun-23 Achieved. Implementation of Identified Actions Resulting from Internal Audit Plan >90% 82% of 2022 audit findings closed out with the remainder expected to close out this FY. State Goal Enhancing sustainable communities by investment in infrastructure and social capital. State Goal Enhance conservation of the environment by sustainable development and efficient resource use. Ports WA Metrics ** Survey conducted bi-annually. Current data relates to May 2022 metrics. New data due in May 2024. ^ Community Satisfaction was not measured in 2022. New data due in May 2024. Mid West Ports Authority Annual Report 2022/23 35
Major Achievements 3.2 ● Cliff Head Joint Venture crude oil shipment for Triangle Energy commenced. ● Rail tamper and ballast regulator performed maintenance in the Ports Rail Terminal. ● First movement across FBH’s new access road in the boat building and maintenance precinct. ● ZIP Safety Leadership Program implemented. ● BG&E Resources appointed as Engineering, Procurement, Construction and Management (EPCM) contractor for MWPA’s Port Maximisation Project (PMaxP). ● FBH Walkway Phase 3 Project completed. ● FBH Emergency Fire Tank commissioned. ● Connell Road and street lighting upgrades completed. ● Dry Fog Dust Suppression System (first one at MWPA) installed in Tower 501, completed. ● Mid West Chamber of Commerce Business After Hours co-hosted on port in the Maintenance Shed. ● Inaugural GRESB Sustainability Benchmarking Report received. ● Strandline commenced trucking operations into Lease Site 27 at the port. ● Mid West Chamber of Commerce Business Excellence Awards hosted on port in the Maintenance Shed. ● Trilateral Hydrogen International Study announced – MWPA, Port of Rotterdam and BMBF. ● FBH Maintenance Dredging Campaign completed. ● MWPA welcomed its first cruise ship back to the Port of Geraldton since March 2020. July 2022 07 August 2022 08 Sept. 2022 09 Oct. 2022 10 Nov. 2022 11 Dec. 2022 12 Mid West Ports Authority Annual Report 2022/23 36
● Recognised by the Office of the Auditor General as one of the 2021-22 best practice entities for timeliness and quality of financial reporting and controls. ● Construction of roundabout to improve traffic flow and safety on Marine Terrace commenced. ● Berth steel pile remediation project commenced. ● SmartBollard installation on Berth 6 complete. ● Bulk Handling Facilities Dust Extraction Systems Review completed. ● General Manager, Trade & Corporate Services, Sandra Pigdon received a Special Commendation in the Chartered Accountants Australia and New Zealand Award for Chief Financial Officer of the Year at IPAA’s W.S. Lonnie Awards. ● MWPA Fishing Boat Harbour Development Plan formally endorsed by State Government. ● Replacement of Navigational Beacon 2, previously damaged, completed. ● Berth 4 Cascade Chute refurbished and refitted to reduce dust emissions. ● Quick Release Hooks commissioned and put into operation on Wharf 4. ● Installation of a Dust Tamer fence on Marine Terrace completed. ● Berth steel pile remediation project completed. ● Annual Community Grants Program - $104,100 funding allocated. ● ATLAS announced as 2023 NFP Program Partner. ● WA Ports Governance Forum – presentation on Sustainability Governance. ● Installation of Digital Noticeboards commenced. ● MWPA’s first Reconciliation Action Plan, Reflect, formally endorsed by Reconciliation Australia. ● Installation of emergency backup generators at Vacuum Sewer Plant, Ian Bogle Road Sub 6, Reg Clarke Road Sub T5.3 and Connell Road Sub 7, completed. ● Construction commenced on the Eastern Breakwater Jetty. ● Marine Terrace Roundabout opened to traffic. Jan. 2023 01 Feb. 2023 02 Mar. 2023 03 Apr. 2023 04 May 2023 05 Jun. 2023 06 Mid West Ports Authority Annual Report 2022/23 37
2022/23 Key Projects 3.3 Port Maximisation Project (PMaxP) PMaxP is a major infrastructure project at the Port of Geraldton in response to a significant projected throughput increase over the next 10 years. The new trade will consist of multiple products, which cannot all be efficiently managed with current facilities. The over-arching objective of PMaxP is to maximise the utilisation and flexibility of the port’s capacity to accommodate the forecast increase in export trade. This will be achieved by, but not limited to the following items: ● Increase product in-load capacity (via road) by the installation of new truck unloaders; ● Maximise in-load connectivity to storage; ● Maximise out-load connectivity from storage; ● Demolition of existing Berth 2; ● New construction of Berth 1; ● Reclamation works to pilot boat area of the tug harbour; ● Port road network improvements to facilitate heavy vehicle access through the port; ● Temporary and permanent relocation of existing infrastructure to accommodate the works; ● Surge mitigation strategies to enhance the operability of berths; ● Procurement and installation of a new ship loader to be installed at Berth 6; ● Further enable multi-product capability through operation, maintenance, and housekeeping design considerations; ● Increase capacity of Berth 6 to accommodate Panamax size vessels; ● New Truck Unloader at Lease 11; and ● Outload conveyor from new materials storage area to the new Berth 6 ship loader. The project will be delivered over four years, facilitating growth by allowing MWPA to increase trade from 16MTpa to 25MTpa by 2026. MWPA aims to maximise the utilisation and flexibility of the port’s capacity to accommodate the forecast increase in export trade. Significant progress has been made in regard to PMaxP. In September 2022, the Port appointed the project Engineering Procurement and Construction Management (EPCM) consultant, WA company BG&E Resources. Since this time, the project has undertaken validation of proposed engineering solutions, defined requirements to meet future trade requirements, commenced detailed design of materials handling, storage, marine infrastructure, and networks infrastructure improvements. The concept enhancement process has embraced a whole of Port approach including subject matter experts from each of the business units of the port to contribute to design and lessons learned. The project has commenced engagement for undertaking the necessary statutory approvals including Part 4 and Part 5 Environmental Planning and Assessment. The environmental approvals are being coordinated in conjunction with SLR Consulting Australia Pty Ltd (originally 360 Environmental). MWPA expects to shortly be calling for tenders for the procurement of long lead items and the provision of construction activities associated with the Lease 11 truck unloader. The new truck unloader will replace existing aging infrastructure and will service future trucking fleet requirements of port customers while incorporating industry best practice in terms of materials handling and environmental considerations. Mid West Ports Authority Annual Report 2022/23 38
Mid West Ports Authority Annual Report 2022/23 39
Mid West Ports Authority Annual Report 2022/23 40
Marine Terrace Roundabout Marine Terrace is part of the Local Government Authority road network vested with City of Greater Geraldton. The intersection of Marine Terrace and Gillam Road provides the eastern entry and exit point into the Port of Geraldton. The intersection also services the entry point to CBH lease area and its contractors (notably heavy haulage). The site also has overhead power lines traversing the site which have previously been impacted by haulage contractors. The Marine Terrace Roundabout project was supported by Royalties for Regions funding, and aims to improve the Marine Terrace / CBH entry point as the primary entryway for CBH (and other users) by: ● Improving the road network and visibility for traveling public at the roundabout location; ● Improve safety and vehicle interaction at the location of the roundabout – with traffic calming and improved visibility; ● Improve safety for pedestrians and cyclists with dedicated travel paths at the roundabout site; ● Removal of overhead power line infrastructure to prevent future inadvertent interaction with heavy vehicles; and ● Improved lighting and separation of port and nonport vehicles. In 2022, MWPA sought tenders for the construction of the new roundabout with the works being awarded to Geraldton contractor Red Dust Holdings in January 2023. The works were constructed in a staged sequence such that the existing port road network remained operational while maintaining public safety and providing minimal disruption to local businesses. The works are substantially complete and are awaiting the undergrounding works associated with the Western Power infrastructure, to finalise completion of the remaining works. Dust Management Projects MWPA developed a specific focus on the improvement of air quality in both the Commercial and Fishing Boat Harbours during 2022/23. MWPA’s Dust Action Plan identified several initiatives to improve air quality in the port precinct. To ensure the successful implementation of these initiatives, MWPA appointed a dedicated Dust Management Project Manager in late 2022. As a result, MWPA made considerable progress in the implementation of Dust Action Plan projects and initiatives at the port. Modelling of Wind and Dust Dispersion at the Geraldton Port was used to identify problematic areas and solutions to reduce wind tunnelling and turbulence associated with port infrastructure. A 3D model of the Port of Geraldton was developed to support this study. The study also included an assessment of the effects of additional tonnage throughput at the port to identify the most beneficial locations to improve dust control. A DustTamer® wind reduction fence was installed on Marine Terrace, constructed adjacent to the talc stockpile south of the FBH. The fence is designed to reduce wind speed downwind, whilst maintaining air pressure equilibrium on both sides, this limits the lift-off of material from the downwind stockpile. In March 2023, the refurbishment of the Cascade Chute to minimise dust during Berth 4 loading was completed. MWPA had previously utilised a cascade chute to load light material over Berth 4. This chute was refurbished and recommissioned with 2 successful Garnet loadings in 2023, demonstrating a visible reduction in dust released and no reduction in throughput. MWPA has undertaken a full external review of the Bulk Handling Facility (BHF) Circuit Dust Extraction Systems. This review, by an external specialist on dust suppression, Mid West Ports Authority Annual Report 2022/23 41
looked at the capacity and suitability of the existing dust extraction systems within the BHF and provided recommendations for improvement. The Dust Extraction Systems Review has resulted in the implementation of the following projects: ● Partial enclosure of the southern end of the Common User Truck Unloader. This was recommended to reduce the velocity of southerly quarter winds through the truck unloader, allowing dust extraction to be more effective. ● Fabrication of Dust Hoods to improve Common User Truck Unloader Dust Extraction. To bring the dust extraction points closer to the truck unloader hopper, new removable hoods were constructed. Their removable nature allows the multi-product nature of the truck unloader to be maintained. ● Installation of Dry Fog Dust Suppression was trialled on the CV502 Conveyor in the BHF 500 Iron Ore Circuit. A Dry Fog Dust Suppression System was installed to measure dust reduction. The system proved to be more effective than the previous dust extraction system and MWPA will now implement the same solution onto the Berth 5 ship loader. Fishing Boat Harbour Development Plan During the 2022/23 year, MWPA delivered the FBH Development Plan, which was a key deliverable identified under the 2020 Port of Geraldton Master Plan. Initiation of the development plan started in July 2022, with the engagement of a multi-disciplinary team of consultants led by Taylor Burrell Barnett. The development of the plan required outlining guiding objectives, identifying issues, opportunities and constraints through consultation, a vision workshop with MWPA, production of a preliminary plan, initial review, FBH stakeholder consultation and then finalisation of the document. The final development plan was produced in November 2022 and outlined the strategic direction for the FBH over the next 15+ years. The overarching objective of the plan is to increase the operability of the harbour for existing and new businesses and industries, while also providing more hospitality, retail and tourism opportunities for the broader Geraldton community. The plan does this by identifying key projects for expansion through reclamation, upgrades to the movement network through road realignments and optimisation of the harbour through new marine and landside infrastructure. The plan also identifies 9 precincts to direct land use development into the future, including a designated boat building and repair precinct, a marine servicing and refuelling precinct, an administration precinct and a tourism precinct. In March 2023, the FBH Development Plan was endorsed by the Minister for Ports and published on MWPA’s website. In June, community information sessions were facilitated onsite at the FBH and in Geraldton’s CBD. Mid West Ports Authority Annual Report 2022/23 42
Mid West Ports Authority Annual Report 2022/23 43
Fishing Boat Harbour Dredging Campaign In late 2022, MWPA undertook maintenance dredging in the Geraldton Fishing Boat Harbour. A small Cutter Suction Dredge (CSD) was used to remove approximately 22,000m3, with 100% of dredged sediments beneficially re-used. Dredged material was placed in the existing land reclamation area north of Berth 7 with tailwater discharge returning to the north-western corner of the Commercial Harbour. Background In recent years, the area immediately west of the entrance to the FBH has shallowed with the formation of a small pocket beach known as Lives Beach, impacting the depth and width of the FBH entrance. This has resulted due to the easterly advancement of sand originating from Pages Beach. The build-up of sand at the FBH entrance poses a risk to the safe navigation of vessels accessing the harbour. The sediment also poses a threat to the Geraldton Fisheries Co-operative (Brolos) operations, which has water intakes in the vicinity of the FBH entrance to support live lobster holding tanks. MWPA maintains a Memorandum of Understanding with the City of Greater Geraldton, the Northern Beaches Stabilisation Programme, which requires the relocation of a minimum of 12,500m3 of sand annually from Pages and Lives Beaches to beaches northeast of the port. Despite the relocation of sand from these beaches and seabed levelling work in the FBH entrance channel, sand was continuing to build up, necessitating a dredging campaign to remove accumulated sediment. A balanced approach A comprehensive framework guides our decision-making around sustainable management of marine sediment at the Port of Geraldton. It starts with an understanding of our environment and the source of natural sediment accumulation and evaluating options, through a multiple-criteria assessment, in which sediment material can be suitably placed and beneficially reused. The assessment considers a range of social, environmental, and economic values relevant and important to the local area and Mid West region. The approach The main objectives were to return the FBH approach channel to design depths and width, to remove a significant amount of sediment from the Lives Beach area to create a sand trap, encouraging sediment to accumulate at the beach area as opposed to the FBH entrance, and to beneficially reuse 100% of the dredged material. Phase 1 comprised the definition of the project and the work required to obtain environmental approval. This was undertaken in parallel with Phase 2 which comprised the detailed definition of the dredging scope and procurement of the dredging contractor. Scope definition & environmental approvals The following steps were undertaken through the development of the project: ● FBH Sand Management Strategy: including review of dredging requirements, material characteristics and material placement options; ● Risk Management: Pre-planning risk assessment as part of project initiation and Construction Risk Assessment Workshop prior to commencement of works; ● Beneficial Use Assessment: a review of material placement options and evaluation through a multicriteria workshop; ● Hydrographic Survey: regular monitoring surveys utilised to confirm the extent of dredging requirements; ● Environmental Impact Assessment (EIA): assessment of potential impacts of the project in accordance with the Environmental Protection Act and Technical Guidance – Environmental Impact Assessment of Marine Dredging Projects; ● Dredge Environmental Management Plan: to define monitoring and management requirements during dredging; and ● Post Dredge Activities: Including post-dredge environmental and operational close-out reports and lessons learned workshop. Community engagement The project undertook a high degree of public and stakeholder consultation with an objective to maximise transparency. The level of engagement executed was greater than that typically undertaken for maintenance dredging projects of a similar nature. MWPA received relatively low community and stakeholder interest in the project, with stakeholders who were actively engaged generally supportive of the project with no negative feedback received. There was very good cooperation between MWPA, the dredging contractor and FBH stakeholders including fishers, to allow the dredging operations without major disruption to FBH activities. Mid West Ports Authority Annual Report 2022/23 44
Mid West Ports Authority Annual Report 2022/23 45
Mid West Ports Authority Annual Report 2022/23 46
Health, Safety & Environmental (HSE) performance The project achieved a high standard of HSE performance, recording no injuries or significant safety incidents. Environmental performance was reviewed against the management targets set out within the EIA. All management targets for the following environmental factors were achieved: ● Benthic community habitats; ● Marine environmental quality; ● Air quality; ● Marine fauna; ● Introduced marine pests; ● Waste management; and ● No environmental incidents occurred during the dredging campaign. Outlook and recommendations In addition to lessons learnt outlined in the dredging closeout report, the following recommendations are made: ● With the volume of material removed it is anticipated that no further dredging activities will be required in the FBH entrance area for 18-24 months; ● If minor accumulation in the entrance area occurs, ploughing/sweeping of the material should be considered as a temporary management option before further dredging; and ● Bypassing from Pages Beach should continue to reduce future dredging requirements. Objective Outcome Result Returning FBH entrance navigation channel to original depths. FBH entrance channel returned to design widths at a minimum depth of -3.2m LAT with most of the channel cleared to -3.3m LAT or deeper. Achieved Remove 28,000 to 34,000 m3 of sand from the FBH and Lives Beach area. Approx. 22,000 m3 of sand removed from the dredge area. Generally Achieved Beneficial reuse of dredged material to create new useable land. 8,500 m2 of useable land created in the Berth 7 Dredge Material Placement Area. Achieved Zero safety / environmental incidents throughout the dredging campaign Zero incidents reported, safety and environmental well managed. Achieved Impacts to other FBH users minimised or avoided. Very good cooperation between MWPA and FBH stakeholders including fishers, to allow the dredging operations without major disruption to FBH activities. Achieved Project outcomes A summary of key success factors and their ratings is provided in the following table. Four of the five factors were scored ‘green’ having been achieved while one factor (volume of material removed) was scored ‘amber’ having been generally achieved. Mid West Ports Authority Annual Report 2022/23 47
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