2023/24 Annual Report Mid West Ports Authority
1.0 Overview 1.1 Port Overview 1.2 2023/24 Highlights 1.3 Key Business Results 1.4 Combined Chair & CEO Report 2.0 Operational Structure 2.1 Organisational Chart 2.2 Board of Directors 2.3 Executive Team 3.0 Performance 3.1 Performance Against Targets 3.2 Major Achievements 3.3 2023/24 Key Projects 3.4 Sustainability 3.5 People 3.6 Planet 3.7 Prosperity 4.0 Governance 4.1 Legislative Framework 4.2 Governing Board 4.3 Mid West Ports Executive 4.4 Codes of Conduct 4.5 Conflicts of Interest 4.6 Financial Administration 4.7 Reporting 4.8 Freedom of Information 4.9 Public Interest Disclosure (PID) 4.10 Record Keeping 4.11 Feedback Handling Process 4.12 Enterprise Risk Management 4.13 Internal Audits 4.14 Corporate Delegations Framework 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 Contents 06 10 13 14 22 24 26 30 36 38 56 60 68 74 80 80 82 83 84 84 84 85 85 85 85 85 85 85 88 95 96 97 98 99 129 130 Mid West Ports Authority Annual Report 2023/24 2
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 Yamatji people of the Mid West region who hold the stories and hopes for the future leaders. Statement Of Compliance For the year ended 30 June 2024. To the Hon. David Michael MLA Minister for Mines and Petroleum; Ports; Road Safety; Minister Assisting the Minister for Transport. In accordance with the provisions of the Government Trading Enterprises Act 2023, Financial Management Act 2006 and other relevant legislation. I hereby submit for your information and presentation to the Parliament of Western Australia the Annual Report of Mid West Ports Authority for the year ended 30 June 2024. Noel Hart Chair of the Board of Directors Mid West Ports Authority Mid West Ports Authority Annual Report 2023/24 3
Overview 1.1 Port Overview 1.2 2023/24 Highlights 1.3 Key Business Results 1.4 Combined Chair & CEO Report 06 10 13 14 Mid West Ports Authority Annual Report 2023/24 4
Vision To be bold supply chain enablers for the sustainable longterm future of regional Western Australia. Purpose To provide a sustainable gateway for trade and tourism. Accountability Values Caring Courage Collaboration Integrity Mid West Ports Authority Annual Report 2023/24 5 1.0 Overview
Mid West Ports plays a key role in the local community, connecting regional Western Australia to the world. Located 420km north of Perth, in Geraldton, Western Australia, Mid West Ports operates as a Government Trading Enterprise (GTE). Its mission is to create a sustainable gateway for trade and tourism, supporting the Mid West region and the state’s economy. Mid West Ports provides vital port services that help local businesses reach national and international markets. Its focus is on safety, customer satisfaction and environmentally friendly operations. It handles a variety of cargo types, from iron ore and grain to industrial minerals and fuels. The Port Maximisation Project (PMaxP) is currently being implemented to keep up with growing demand, preparing for increased activity over the next decade, with the development of major infrastructure enabling projects including the development of a new berth and a truck unloader. The organisation manages seven commercial berths and various marine assets, which are essential for services such as vessel berthing, cargo handling operations, exports, imports, and cruise ship visits. Mid West Ports also operates a four-track Rail Terminal, one track is privately owned, with the Port maintaining the other three tracks, thereby providing a critical supply chain pathway. These services ensure the seamless and efficient movement of goods, supporting both local industries and the broader regional economy. Mid West Ports owns the environmental licence for the Port of Geraldton holding the organisation accountable for environmental influence resulting from its operations. The Cooperative Bulk Handling (CBH) grain terminal is excluded from this licence; however, the Port works collaboratively with CBH in monitoring its operations. Uniquely, Mid West Ports also manages Geraldton’s Fishing Boat Harbour (FBH), a hub for the region’s largest fishing industry, particularly the western rock lobster. The harbour provides mooring facilities, waste disposal, utilities and security services, supporting local fishermen, tourism operations and the boatbuilding and mining support industries. Mid West Ports’ responsibility extends over 83 hectares within the Port of Geraldton and an Port Overview 1.1 Mid West Ports Authority Annual Report 2023/24 6
additional 6.9 hectares of leased land, overseeing land use planning and lease areas to private sectors. In addition, 200 hectares of land is reserved for a future deep-water port at Oakajee. In recent years, Mid West Ports has seen a rise in customer confidence, particularly in green energy and minerals. This projected growth will increase trade throughput and bring economic benefits to the region. The organisation is committed to boosting regional development by focusing on local procurement opportunities and strategic supplier relationships. Mid West Ports continues to support cruise tourism in the region by providing port transit services, benefiting the local community. Dedicated to giving back to the community, Mid West Ports supports local initiatives through grants and sponsorships, partnerships and events. In 2023/24, it continued its Reconciliation Action Plan journey, demonstrating its commitment to community cohesion. Maintaining a secure port is crucial for safety and uninterrupted trade. Mid West Ports ensures the safe and efficient operation of the port through a combination of rigorous safety protocols, advanced technology and continuous staff training. The implementation of strict safety measures and regular review of procedures, minimises risks associated with port activities. Ongoing employee training programs and simulated emergency response exercises ensure that the organisation adheres to all safety standards and maintains its ability to respond to any potential incidents. These comprehensive efforts enable the port to operate smoothly, safeguarding both people and assets while maintaining high productivity levels. Mid West Ports is more than just a port operator; it is a vital part of the local fabric, contributing to the local economy and supporting regional development. Looking forward with optimism, it aims to strengthen connections between the Mid West region and the world. Mid West Ports Authority Annual Report 2023/24 7 1.0 Overview
Legislative Framework Mid West Ports operates as a GTE and is governed under the Port Authorities Act 1999 (WA) (PA Act), and the Government Trading Enterprises Act 2023 (WA) (GTE Act), ensuring it meets high standards and regulations. The GTE Act is to be read with the PA Act as if they formed a single Act. They define a clear role for all GTEs and establish lines of accountability and reporting to the State Government. Functions outlined in the Port Authorities Act: 1. Primary Functions of a Port Authority: ● Trade Facilitation: Facilitate trade within and through the port, and plan for its future growth and development; ● Economic Development: Undertake or arrange activities that will encourage and facilitate the development of trade and commerce, benefiting the State economically through the use of the port and its facilities; ● Operational Control: Control business and other activities in the port or related to its operations; ● Safety and Efficiency: Ensure the safe and efficient operation of the port; ● Maintenance: Maintain port property; ● Security: Ensure port security; and ● Environmental Protection: Protect the port environment and minimise the impact of port operations on it. 2. Additional Functions: ● Conducive Activities: Undertake activities deemed by the board to be conducive or incidental to the performance of its primary functions; ● Asset Utilisation: Use or exploit its fixed assets for profit, provided this does not affect the proper performance of its primary functions; and ● Legal Compliance: Undertake activities authorised by other written laws. 3. Scope of Functions: ● A port authority may perform its functions both within the State and elsewhere. Mid West Ports Authority Annual Report 2023/24 8
Mid West Ports Authority Annual Report 2023/24 9 1.0 Overview
2023/24 Highlights 1.2 17,286Total Trade Throughput (tonnes‘000) Total Trade Exports tonnes‘000 16,438 Total Trade Imports tonnes‘000 848 Mineral Sands tonnes‘000 340 New Bulk Imports tonnes‘000 115 Bulk Liquid tonnes‘000 232 Iron Ore tonnes‘000 12,513 Grain tonnes‘000 2,485 Mineral Sands tonnes‘000 1,024 Concentrates tonnes‘000 394 Crude Oil tonnes‘000 22 Fertilisers tonnes‘000 161 Mid West Ports Authority Annual Report 2023/24 10
GRESB Score 79% 0.0 Total Recordable Injury Frequency Rate (TRIFR) Total Community Funding $276k Organisation average: Satisfaction 70% 67% Organisation average: Reputation Organisation average: Advocacy 53% Invested in Dust Improvement Projects $700k 44% Waste Diverted From Landfill Reduction in Dust 44% Total Trade Value $6.8B $107.7M Total Revenue and Income Profit After Tax $27.7M Mid West Ports Authority Annual Report 2023/24 11 1.0 Overview
Mid West Ports Authority Annual Report 2023/24 12
Key Business Results 1.3 14.0 12.0 10.0 8.0 6.0 4.0 0 2.0 16.0 18.0 Total Port Trade 2019/20 FY 2020/21 FY 2021/22 FY 2022/23 FY Mass Tonnes (Millions) 14.9 15.1 16.4 17.4 Total Iron Ore Trade 14.0 12.0 10.0 8.0 6.0 4.0 0 2.0 10.8 10.1 10.3 11.3 Mass Tonnes (Millions) 16.0 18.0 Total Ship Visits 420 400 380 360 340 320 300 Visits 379 351 389 400 2023/24 FY 16 10 8 6 4 2 0 Percent 7.3 14.4 4.1 5.3 14 12 Economic Rate of Return 40 35 30 25 20 15 0 10 5 Profit ($ Million) 17.06 23.32 35.60 35.77 Operating Profit Before Income Tax Equivalent 25.0 20.0 15.0 10.0 5.0 0.0 Includes NTER & Dividends Paid 10.0 17.5 8.9 12.7 Contributions($ Million) Mid West Ports’ Contributions to State Government 17.3 397 39.57 12.5 4.1 12.8 2019/20 FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY Mid West Ports Authority Annual Report 2023/24 13 1.0 Overview
Combined Chair & CEO Report 1.4 2023/24 was a period of significant achievement for Mid West Ports, marked by various measures reflecting the team’s hard work and dedication to delivering operations safely, efficiently and reliably. We are very proud of our team’s efforts and likewise, we are proud of how they contribute to the greater community, particularly in Geraldton. As an organisation, we strive to emulate this and this has been a focal point over the past twelve months. Our community Engaging with the community is key to informing many of the strategic and operational decisions made at the Port. Mid West Ports’ Community Consultation Committee, comprising of community members and representatives from significant organisations in the region, facilitate discussions on matters relating to the Port and our community interactions. This year, we transitioned the Chairperson duties from Mid West Ports to our inaugural community appointed Chairperson, Mr Ron Hayward. A lifelong Mid West resident, Mr Hayward was elected by his peers and has extensive local business and community group experience. Ron will play a crucial role in facilitating dialogue between Mid West Ports and the local community. Ensuring that the interests and concerns of residents are effectively addressed in port development initiatives. Through our Community Grants Program, we awarded 18 grants totalling over $115,000, supporting various initiatives from sports and environmental projects, to cultural events. We were honoured to have the Minister for Ports, David Michael MLA, with us to announce the successful recipients. Additionally, we were also pleased to announce Theatre 8 Inc., as our third recipient of our threeyear Not-For-Profit Partnership Program. We find this program particularly rewarding, as we collaborate and assist smaller organisations with support in a wide range of services that we have at our fingertips, whether it be plumbing, fabrication, maintenance or business services. Earlier this year, we were joined by the Member for Geraldton, Lara Dalton MLA and other business and community leaders during NAIDOC Week to launch our Reflect Reconciliation Action Plan, marking a formal step in our reconciliation journey to further our awareness and relations with First Nations people. This commitment involves listening, learning and gaining a greater understanding of Aboriginal and Torres Strait Island peoples, particularly those that are local to the Mid West. There are many other ways Mid West Ports interacts with the community throughout the year, including with the business community through the Mid West Chamber of Commerce and Industry’s, Mid West Economic Summit or co-hosting the ever-popular Business After Hours networking event, through to sponsoring the Beach Price Markets at the not to be missed Shore Leave Festival. This year, for the first time we facilitated the READY! Expo, a family event aimed at enhancing community preparedness for various adverse events, with key participants including Geraldton Volunteer Fire and Rescue Brigade, Geraldton Marine Rescue, Geraldton Greenough Wildlife Rescue, Desert Blue Connect and many more. Mid West Ports Authority Annual Report 2023/24 14
This year we also continued to work collaboratively with the City of Greater Geraldton to help maintain the stabilisation of beaches north of the port, from Town Beach to Chapman River. With sediment naturally migrating from south to north along the shoreline in Geraldton, this program exists to ensure sediment is given the opportunity to continue to migrate north and assist beach stabilisation. To further understand this and other coastal processes better, Mid West Ports commissioned a peerreviewed, multi-year study which was released to the public this year and is available on our website. For a more in-depth explanation, you can read more on page 47 of this document. Reducing the impact of port-generated dust remains a priority. During the year we have made several successful inroads through the commissioning of a range of modifications designed to prevent dust migrating from its source. These have included a fogger for the Berth 5 iron ore shiploader, foggers throughout the Berth 5 iron ore conveyor network and dust hoods for the Berth 4 mineral sands truck unloader. We have also received our first full year of data demonstrating that the wind dispersion fence adjacent to the talc stockpile has been effective at reducing the dust carried from that area by at least 50 percent. We continue to work internally and with our customers on programs to improve our dust management. Our operations On the waterfront, Mid West Ports maintained a comparable level of trade to the previous year, with a throughput of 17.3M tonnes, down 0.1M tonnes from the previous year. Largely influenced by a poor harvest, grain throughput reduced from 3.6M tonnes to 2.5M tonnes. Pleasingly, to counteract this reduction, Mid West Ports experienced a similar increase in iron ore exports. The prospects for iron ore through the Port was bolstered by two significant events during the year. Firstly, Fenix Resources merged assets with longstanding Port customer Mt Gibson Iron, which meant that previously dormant portside storage facilities were activated. Secondly, we welcomed a new customer, Terra Mining, who commenced exporting magnetite products from the Extension Hill mine. 2023/24 was a period of significant achievement for Mid West Ports, marked by various measures reflecting the team’s hard work and dedication to delivering operations safely, efficiently and reliably. Mid West Ports Authority Annual Report 2023/24 15 1.0 Overview
Mid West Ports Authority Annual Report 2023/24 16
Trade in other commodities has remained strong over the last year. This year we saw 29 Metals move their export operations from a Berth 4 connected shed to Berth 6, via crane lifted rotatable containers. This was a move welcomed by Mid West Ports as this method of loading metal concentrates results in reduced dust creation. It also provided an opportunity for Liontown Resources to lease a facility on port to export their lithium spodumene product early next year. This year we also saw a number of wind turbine imports over Berth 6 and it is likely these will continue over the coming years as part of the wider energy transformation effort in the Mid West. Two key infrastructure projects were delivered over the last year. The Marine Terrace Roundabout Project was completed in December 2023, which helps facilitate a safer interaction between port-related traffic, general road users and pedestrians on Marine Terrace. With the new configuration, road trains can exit the Port’s Mineral Storage Area and enter CBH’s site more safely and efficiently. Despite some delays as a result of utilities, the project was professionally delivered by a local civil company, Red Dust Holdings. Secondly, in January we had the pleasure of the Premier, Roger Cook MLA and the Minister for Ports, David Michael MLA, opening the new Eastern Breakwater Jetty. The project, which was delivered by Mid West Ports, is designed to accommodate larger commercial vessels to assist in unlocking tourism opportunities at the Abrolhos Islands off Geraldton. This jetty, along with our ongoing management of cruise ship visits, demonstrates how Mid West Ports is working to support the evolving tourism sector in the Mid West. Despite the high tempo, all of our operations and projects around the port, we are exceptionally proud to report we’ve had no significant injuries to our staff over the last year. The commitment of our team to ensuring we have a safe workplace coupled with the support from the Safety Team and Safety Committee is evidence of this. We continue to seek safer solutions for our operations with one such example being the completion of the Berth 5 and 6 Crossed Lines Project. This project saw the reconfiguration and installation of new bollards and a capstan, to reduce the risk of injury to our team by reducing manual handling of ships’ mooring lines and creating a safer mooring layout. Our future Our future remains bright with many opportunities in front of us. Our financial performance over the last year was Mid West Ports’ best to date, with a revenue of $107M up from $100M in the previous year, a profit before tax of $37M which will deliver a dividend to the State. This bodes well for our future and provides confidence in the investment of future capital. The $350M Port Maximisation Project, funded by the State Government, is progressing well. Design work is nearing completion, with over 100,000 hours being dedicated to the project. As the design and costings have solidified, Mid West Ports has worked Mid West Ports Authority Annual Report 2023/24 17 1.0 Overview
with the State Government to prioritise the various elements of the project. The first element to be delivered in the coming year will be a new Berth 4 Truck Unloader, which will facilitate triple road trains in an enclosed system. This new infrastructure will replace aging facilities and incorporates both safety and environmental measures. In the next six months, Mid West Ports will also submit our application for environmental approvals for the remainder of the project. Once approved, construction will begin on a northern breakwater and a new berth that will run north/south along the inside of the eastern breakwater. While modelling is still being finalised, the new northern breakwater is expected to lead to a significant reduction in the impact of long period waves on the inner harbour and thereby reduce the number of days the port is closed. In addition, the road network within the port will be realigned and upgraded to better facilitate current and future port traffic. Outside of Geraldton, Mid West Ports continues to work closely with other State Government departments and agencies to progress the activation of the Oakajee Strategic Industrial Area, as a hub for export of hydrogen derivatives using our world-class wind and solar resources as a fuel. Acknowledgements We would like to thank our Minister, David Michael MLA, Minister for Mines and Petroleum; Ports; Road Safety; Minister assisting the Minister for Transport, for his and his staff’s ongoing support and for the level of interest he has in our organisation and operations. We would also like to acknowledge the support of the many government departments and agencies that assist in our success, particularly the Department of Transport, the Department of Treasury, the Department of Jobs, Tourism, Science and Innovation (JTSI), the Mid West Development Commission, and Development WA. Additionally, we would like to acknowledge and thank the other four Port Authorities within Western Australia. The collaborative nature of our Western Australian Ports ensures best practices and lessons learnt are shared for the greater benefit of the State. We were very saddened at the passing of a great colleague and friend, Michael Parker, Fremantle Ports CEO, who championed this collaboration. Finally, we would like to thank the Mid West Ports team for their hard work and commitment over the last 12 months. Our achievements would not have been possible, without their commitment. From the CEO and Chair, we thank you all. Noel Hart Chair Damian Tully CEO Mid West Ports Authority Annual Report 2023/24 18
We would like to thank the Mid West Ports team for their hard work and commitment over the last 12 months. Our achievements would not have been possible, without their commitment. Mid West Ports Authority Annual Report 2023/24 19 1.0 Overview
22 24 26 Operational Structure 2.1 Organisational Chart 2.2 Board of Directors 2.3 Executive Team Mid West Ports Authority Annual Report 2023/24 20
Mid West Ports Authority Annual Report 2023/24 21 2.0 Operational Structure
Organisation Chart 2.1 Mid West Ports Authority is governed by the Board of Directors appointed by the Minister for Ports. The organisation controls operations at ports throughout the Mid West to facilitate growth and trade for the economic benefit of the State. Mid West Ports is responsible for the safe, secure, efficient and environmentally friendly operation of the ports. This year, our operations required us to comply with key State and Federal statutes (refer to section ‘4.1 Legislative Framework’ on page 78, for further details). Chief Executive Officer Damian Tully Board Of Directors Noel Hart (Chair) | Robert Willes (Deputy Chair) | Peter Creek | Gail McGowan | Belinda Moharich | Kate Watson Minister for Ports Hon. David Michael MLA Chief Environmental, Social & Governance Officer Vickie Williams Chief Financial Officer Sandra Pigdon Chief Operating Officer Courtney Ackland Mid West Ports Authority Annual Report 2023/24 22
Executive Officer/ Corporate Secretary Tracy Fitzpatrick Executive Manager Projects Amir Miri Mid West Ports Authority Annual Report 2023/24 23 2.0 Operational Structure
Board of Directors 2.2 Noel Hart Chair MBA, MAICD, Master Mariner Class 1 Belinda Moharich Non-Executive Director BA LLB PIA (Fellow) Robert Willes Deputy Chair GAICD, BA (Hons) Peter Creek Non-Executive Director CA Gail McGowan Non-Executive Director PSM, GAICD, FIPAA, Grad Diploma Kate Watson Non-Executive Director GAICD, Term ended December 31 2023 Mid West Ports Authority Annual Report 2023/24 24
Mid West Ports Authority Annual Report 2023/24 25 2.0 Operational Structure
Executive Team 2.3 Damian Tully Chief Executive Officer MBA, GradDipDS, BA, AdvDipWHS Courtney Ackland Chief Operating Officer BS, PostGradDipSC Tracy Fitzpatrick Executive Officer / Corporate Secretary Vickie Williams Chief Environmental, Social & Governance Officer MBA, BA Sandra Pigdon Chief Financial Officer BBus, MBA, FCPA, GAICD Amir Miri Executive Manager Projects BEng (Civil&Construction) Mid West Ports Authority Annual Report 2023/24 26
Mid West Ports Authority Annual Report 2023/24 27 2.0 Operational Structure
Performance 3.1 Performance Against Targets 3.2 Major Achievements 3.3 2023/24 Key Projects 3.4 Sustainability 3.5 People 3.6 Planet 3.7 Prosperity 30 36 38 56 60 68 74 Mid West Ports Authority Annual Report 2023/24 28
Mid West Ports Authority Annual Report 2023/24 29 3.0 Performance
Performance Against Targets 3.1 Metric 2023/24 Target 2023/24 Actual Outcome Return on assets 20.37% 14.24% Projected increases in trade and revenue were not realised as expected in 2023/24 due to proponent’s projects not coming online as forecasted. The 2023/24 result remains consistent with 2022/23’s result of 14.5%. Earning Before Interest, Tax, Depreciation & Amortisation ($’000) $76,389 $49,629 Projected increases in trade and revenue were not realised as expected in 2023/24 due to proponent’s projects not coming online as forecasted. The 2023/24 result represents a good increase from the 2022/23 result of $43,775. No product >50% of throughput (Diversity) <70% 72% A stronger-than-expected performance by iron ore exporters and a below-average grain harvest led to a slightly higher result than the target. Total port trade (Mt) 21.3 17.3 Projected increases in trade were not realised due to proponent’s projects not coming online in 2023/24 FY. The 2023/24 result is slightly below the 2022/23 result of 17.4. Total number of vessel visits 535 397 Vessel visits numbers in 2023/24 remain consistent with the 2022/23 results of 400 which corresponds with the steady total port trade. Ports WA Metrics Objective 1 Facilitate, Protect and Grow Efficient Trade & Tourism State Goal Enhancing global competitiveness through continued economic diversification. Improve Revenue Diversification and Growth Mid West Ports is key to the region’s economic growth and as an organisation is determined to grow and diversify. By growing, it can provide more opportunities and pathways for regional businesses and by diversifying, it ensures the organisation is resilient to changes in the supply and demand of individual products or commodities. Mid West Ports Authority Annual Report 2023/24 30
Improve Underlying Profit Improving Mid West Ports’ profitability is key to ensuring that it is running a lean organisation that delivers value to its shareholders, the people of WA. Metric 2023/24 Target 2023/24 Actual Outcome Economic rate of return 9.01% 4.07% A less than forecasted profit has led to a lower economic rate of return. The 2023/24 result has remained steady with 2022/23’s result of 4.10%. Debt to equity ratio including dividends 0.18 0.03 Debt to equity ratios have remained low, however, it is anticipated to increase as the Port Maximisation Project (PMaxP) construction commences. Debt to equity ratio excluding dividends 0.16 0.03 Debt to equity ratios have remained low, however, it is anticipated to increase as the PMaxP construction commences. Improve Long-Term Business Value Delivering better value to Mid West Ports’ customers is key to securing business now and into the future. This is achieved by ensuring that the Ports infrastructure is fit for purpose and its services are efficient as they can be. Metric 2023/24 Target 2023/24 Actual Outcome Concept design and business case preparation Berth 1 and Berth 8 construction Design Achieved Berth 1 has been fully designed and incorporated into the PMaxP and will proceed to construction. Berth 8 Concept Design is complete and Mid West Ports are working with Oakajee proponents to progress to construction. Implement improvements identified in the Continuous Improvement Plan Implement Achieved Several dust management improvement projects were completed in 2023/24, along with the design of a wastewater improvement project. Ports WA Metrics Mid West Ports Authority Annual Report 2023/24 31 3.0 Performance
State Goal Achieving efficiencies and synergy through infrastructure planning and coordination in pursuit of economic growth. Objective 2 Provide Infrastructure that Enables Customers’ Supply Chains State Goal Building strong & resilient regions through economic expansion and inter-regional collaboration. Provide Long-Term Marine Infrastructure Marine infrastructure is key to port operations and the ability to grow throughput. Mid West Ports has a Port Master Plan that sets out the key marine infrastructure that will be required over the next thirty years to facilitate long-term growth. Provide Long-Term Land Management The key to enabling marine infrastructure is the use of land and facilities adjacent to the berths to allow for the accumulation of cargo. To maximise efficiency, the land must be available to create linked storage facilities so vessels can be loaded as quickly as possible. Provide Long-Term Digital Infrastructure Increasingly, digital infrastructure is key to the operations of an efficient business and port. Investing in digital infrastructure contributes to future growth in much the same fashion as civil infrastructure. Metric 2023/24 Target 2023/24 Actual Outcome Implementation solution and business case for reduction in the effect of Long Period Wave impact and secure funding Implement Achieved The Long Period Wave Mitigation Project has now been incorporated into the PMaxP and is now fully funded and is proceeding to construction. Metric 2023/24 Target 2023/24 Actual Outcome Implementation of a Land Assembly and Land Use Strategy (including the Commercial Harbour & the FBH) Implement Achieved Mid West Ports has established several land use principles and strategies to guide future development, acquisitions and reclamations. Revision of 2011 Port of Oakajee Master Plan (port concept layout) Revise Achieved As part of the Trilateral Hydrogen Hub Project, a new Port Concept Plan has been developed for Oakajee which facilitates the region’s longer-term prospects of iron ore export, along with emerging industries such as hydrogen. Metric 2023/24 Target 2023/24 Actual Outcome Develop a business case for digital investment Develop Achieved A business case has been developed for digital investment and implementation has commenced with the addition of new resources, new systems and the optimisation of several existing systems. Ports WA Metrics Mid West Ports Authority Annual Report 2023/24 32
Objective 3 Operate as an Exemplary Corporate Citizen 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. To Be an Environmentally Sustainable Port Mid West Ports strives to be an environmentally sustainable Port. The Port employs initiatives to minimise environmental impact, reduce emissions and improve resource efficiency. The goal is to grow while upholding high standards of environmental stewardship. Metric 2023/24 Target 2023/24 Actual Outcome Develop a Net Zero Plan Develop Achieved Mid West Ports’ Net Zero Plan was developed over the last 12 months, with net zero goals adopted. Annual Global Real Estate Sustainability Benchmark (GRESB) assessment 2 Stars 2 Stars Mid West Ports achieved a 79% score (2 stars) from GRESB, a worldwide sustainability benchmarking program. This was an increase from the 2022/23 assessment of 56% (1 star). Develop a business case for a wastewater treatment solution Develop Achieved A Wastewater Treatment Plant has been designed and will now be funded and delivered through the PMaxP. Develop a concept design and business case for the protection of the FBH from climate change-induced coastal inundation Develop Achieved A concept design and business case have been developed for the Coastal Inundation Protection Solution at the FBH and will be submitted for Government approval in the future. Environmental licence amendment to encompass PMaxP Submit Partially Achieved Mid West Ports is continuing with preparatory work and environmental studies for a Part IV submission in 2024/25. A Part V Approval has been granted by DWER for the construction of the new Berth 4 Truck Unloader. Number of reportable incidents <10 7 Mid West Ports takes proactive steps in the reporting of environmental and safety incidents and works closely with regulatory authorities to develop ongoing improvements. Provide a Safe Workplace Ensuring that Mid West Ports’ staff and port users are operating in a safe environment is paramount to the way in which the Port operates. Metric 2023/24 Target 2023/24 Actual Outcome Lost Time Injury Frequency Rate (LTIFR) 0 0 No Lost Time Injuries occurred in 2023/24. Total Recordable Injury Frequency Rate (TRIFR) 0 0 No Recordable Injuries occurred in 2023/24. Ports WA Metrics Mid West Ports Authority Annual Report 2023/24 33 3.0 Performance
Objective 3 continued Operate as an Exemplary Corporate Citizen 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. Operate in Harmony with our Stakeholders Mid West Ports operations take place in the heart of a regional community. Maintaining a social licence to operate is key to ensuring a prosperous future for both the organisation and the community. Operate in Good Governance Operating in good governance is key to ensuring that the organisations shareholders and the people of WA, remain confident in the stewardship of Mid West Ports. Metric 2023/24 Target 2023/24 Actual Outcome Delivery of annual report, Statement of Expectations (SOE), Statement of Corporate Intent (SCI) and Strategic Asset Plan (SAP) Deliver Achieved All documents required under the Port Authorities Act and GTE Act were submitted to the Government. Metric 2023/24 Target 2023/24 Actual Outcome Suppliers satisfaction score >80% 89% A good result with an improvement from the 2021/22 result of 84%. Employee satisfaction score >80% 67% Results continue to improve with an increase from the 2021/22 result of 64%. Community satisfaction score >80% 68% This is a new metric measured for the first time in 2023/24. Customer satisfaction score – Commercial Harbour >80% 69% A slight decrease from the 2021/22 result of 73%. Customer satisfaction score - FBH >80% 55% A good improvement from the 2021/22 result of 34% but a large amount of improvement is still required to demonstrate satisfaction from the FBH stakeholders. Ports WA Metrics Mid West Ports Authority Annual Report 2023/24 34
Mid West Ports Authority Annual Report 2023/24 35 3.0 Performance
Major Achievements 3.2 Road widening Road widening works completed to facilitate 82m wind turbine blades Dry fog system implemented Vessel hold dry fog system implemented for dust control on Berth 6 metal concentrate loading Tipper upgrade Newcam Lease 88 truck unloader end tipper upgrade approved and installed 50% reduction in dust Monitoring results from Dust Fence showing a 50% reduction in dust downwind of the fence Boom gates installed New Security Gate 1 boom gates installed Dry Fog Dust Suppression System commissioned Shiploader 05 Dry Fog Dust Suppression System commissioned as part of ongoing efforts to reduce dust Mid West Ports Authority Annual Report 2023/24 36
Record broken Record broken for heaviest vessel to depart the port, MV Kagura loaded 87,265 tonnes of iron ore Annual Community Grants Program Annual Community Grants Program recipients announced - $117,419 funding allocated to 18 recipients Eastern Breakwater Jetty (EBJ) EBJ constructed accommodating larger commercial vessels to assist in unlocking tourism opportunities to the Abrolhos Islands Staff fundraising Mid West Ports staff fundraising contributed $15,000 to team ‘Rise and Shine’ to support their entry to 2023’s BulldustNBack event, raising money for local children’s cancer and youth mental health charities Mid West Ports Authority Annual Report 2023/24 37 3.0 Performance
2023/24 Key Projects 3.3 Port Maximisation Project Scope and objectives The Port Maximisation Project (PMaxP) at Mid West Ports is a significant infrastructure initiative aimed at expanding the Port’s capacity to meet the growing demand for port services in the region. Approved in December 2021, the original PMaxP business case outlined a $350 million budget to enhance berth facilities and create additional multi-user facilities for new commodities not currently exported through Geraldton Port. However, the detailed design processes determined the inclusion of Long Period Wave Mitigation (see below) as a critical component for sustainable development at the Port of Geraldton. In late 2023, the PMaxP budget was reformulated and funds were redirected to address the impacts of the Long Period Wave (LPW) with the relocation and extension of the Tug Harbour. By June 2024, PMaxP achieved 80% detailed design. By the end of 2024, the project will achieve 85% detailed design at which time more specific cost projections will be able to be determined, providing further clarity to the project. Addressing Long Period Wave conditions in the Commercial Harbour Mid West Ports frequently faces operational disruptions due to LPW conditions in the Commercial Harbour, affecting both safety and efficiency. The harbour dimensions act as a funnel, causing the LPW to reflect inside the harbour and channel its energy into specific frequency bands that align with the natural frequency of moored vessels. Berth 4 Fishing Boat Harbour Mid West Ports Authority Annual Report 2023/24 38
Berth 3 Berths 1 & 2 Berth 5 Berth 7 Berth 6 Tugs Mid West Ports Authority Annual Report 2023/24 39 3.0 Performance
Construction approach: The PMaxP is essential for regional economic growth, trade diversification and resilience to commodity price fluctuations. By expanding infrastructure, Mid West Ports can efficiently handle the anticipated increase in trade volume and new customer products. PMaxP will proceed under the current approved budget, addressing immediate needs and critical components of the project: ● Engineering, Procurement and Construction Management (EPCM) and Owners Team Costs; ● Completion of design works; ● Construction of New Berth 1; ● Dredging works at Berth 1 and 6; ● Construction of a truck unloader at Lease 11; ● Construct a new Tug Harbour / Long Period Wave Mitigation; ● Construction of a new pilot boat facility at the Fishing Boat Harbour; ● Port road works to accommodate increased truck movements; and ● Acquisition of an additional Pilot Boat, Lines Boat and specialised mooring equipment. Mid West Ports Authority Annual Report 2023/24 40
This causes wave-induced agitation of moored vessels, leading to increased loads on mooring lines, resulting in parted lines. These parted lines present significant safety risks for personnel and can cause damage to both vessels and Harbour infrastructure. The LPW conditions affect the Port throughout most of the year, particularly during the winter months where for approximately 30 days the Port cannot safely accommodate any vessels within the Harbour. To mitigate and reduce the risks of wave-induced agitation, the primary method is to eliminate the risk altogether. This is achieved by closing berths when thresholds are forecasted to be breached. Vessels in the Commercial Harbour are evacuated and moved to anchorage. Once the LPW conditions have subsided, the vessels are bought back into the Commercial Harbour and operations recommence. This has significant impacts on the operations of the port, as well as customers, who need to plan for the continuation of their operations and logistical processes. The logistics of planning port closures based on LPW forecasting results in greater impacts on berth availability than just the physical number of days the Port is closed to shipping. It also impacts operations not occurring in the lead up to or immediately after the interruption. To mitigate these effects, the port plans to extend the Western Breakwater as part of the new Tug Harbour design, aiming to reduce wave-induced agitation of moored vessels. The LPW mitigation structure design is expected to be completed by Q3 of 2024, subject to validation modelling. Lease 11 Truck Unloader The Lease 11 Truck Unloader will be located in the Mineral Storage Area with access via Marine Terrace. The facility will be linked to sheds servicing Berth 4, improving efficiencies and throughput for customers. Construction has been issued to the market for pricing, with construction anticipated to commence in late 2024, pending tender award. Environmental Approvals As design works near completion, Mid West Ports has actively engaged with regulatory authorities to secure the necessary environmental approvals for dredging activities and construction of berths. A Part V works approval for the Truck Unloader construction has been obtained, and submission for the Part IV environmental approval (marine dredging works scope) is scheduled for Q3 2024. Berth 5, 6 and Lease 11 fuel lines To accommodate expanding trade requirements, the Port has awarded contracts for the construction/ modification of fuel lines at Berths 5 and 6, and the relocation of an existing fuel line at Lease 11 to facilitate the construction of its new truck unloader. The fuel bunkering point at Berth 6 will be relocated further north in advance of the Berth 6 upgrade. Berth 5 (which was the Ports original fuel bunkering berth) will have fuel bunkering infrastructure reinstated to expand overall bunkering capacity within the Port, with completion expected in late 2024. Project timeline PMaxP has significantly progressed, targeted for completion by 2028, subject to timely receipt of environmental approvals. Rendered image of construction of Berth 1 for the PMaxP Berth 1 Mid West Ports Authority Annual Report 2023/24 41 3.0 Performance
Dust management projects In 2022/23, Mid West Ports focused on improving air quality in both the Commercial and Fishing Boat Harbours. This work continued into 2023/24, with the ongoing implementation of the 2022 Dust Action Plan projects and new initiatives. Key initiatives The 2022 Dust Action Plan identified several key initiatives aimed at enhancing air quality within the Port precinct. For the 2023/24 financial year (FY), Mid West Ports spent just over $700,000 on key initiatives and have completed the following improvements: ● Cascade chute: Implemented on Berth 4 Shiploader for dry products; ● Dry fog dust suppression system: Installed on Berth 5 Shiploader for iron ore; and ● Partial enclosure and dust extraction upgrades: Completed for the Mid West Ports truck unloader. Additional dust mitigation works (2023/24 FY): ● Port wide dust collector servicing and balancing: Servicing and balancing of nine Mid West Ports dust collectors and additional customer collectors on sheds, conveyors and unloaders to ensure effective dust collection; Dry fog system on Berth 6 metal concentrate loading Dust Fence 2021/22 FY 2022/23 FY 2023/24 FY 72 55 31 Total Port influenced PM10 (dust) exceedance days Mid West Ports Authority Annual Report 2023/24 42
Timeline of dust improvement actions and reducing dust exceedance days 0 JUN-22 JUL-22 AUG-22 SEP-22 OCT-22 NOV-22 DEC-22 JAN-23 FEB-23 MAR-23 APR-23 MAY-23 JUN-23 JUL-23 AUG-23 SEP-23 OCT-23 NOV-23 DEC-23 JAN-24 FEB-24 MAR-24 APR-24 MAY-24 JUN-24 2 4 6 8 10 Exceedance Days per Month Grain Loading Dust Procedure Developed CV500 Chute Dry Fog System Installed Third Party Dust Extraction System Review Completed Cascade Chute Commissioned DustTamer Fence Constructed Truck Unloader Dust Upgrades Completed Vessel Hold Dry Fog Unit Commissioned Rail Corridor Product Recovery Dry Fog Unit Commissioned on Berth 5 Shiploader Trendline Mid West Ports Authority Annual Report 2023/24 43 3.0 Performance
● Enclosure of Berth 4 Shiploader boom conveyor CV06: Enclosures and shroud covers were extended at dust release points and wind flow was reduced with curtains at the head end where the product enters the chute; ● Improved spray bars and extended enclosure: Implemented on the Iron Ore Loadout Circuit at Tower TT500; ● Hydroscan system installation: Installed for product moisture monitoring on the Iron Ore Loadout Circuit; and ● Modified dust hoods: Adjusted in the Mid West Ports truck unloader to accommodate more types of trailer combinations including both belly dump and end-tipping trailers. Several improvements were still in progress at the end of the 2023/24 FY: ● Modification of Berth 4 Shiploader cascade chute: Adjustments to suit larger vessels, allowing chute changes in the washdown bay with longer vessels alongside; and ● Installation of Dry Fog Systems: Implementation in the remaining transfer towers of the Iron Ore Loadout Circuit. Completed projects: ● Dust reduction fence: Completed on Marine Terrace in April 2023, significantly improving air quality, as evidenced by the graph above. The graph above shows the improvement in air quality in the year since; and ● The Berth 5 Shiploader Dry Fog System: Commissioned in March 2024, this system creates ultra fine water droplets (<10um) that agglomerate with dust particles, causing the dust to settle back into the product. Additional fog sprays were installed along the shiploader conveyor and at the loading chute. These comprehensive dust management efforts demonstrate Mid West Ports’ commitment to maintaining air quality and ensuring environmentally responsible operations. DustTamer fence - downwind dust concentration Wind Direction o 145 155 165 175 185 195 205 400 350 300 250 200 150 100 50 0 Dust as PM10 μg/m3 Mid West Ports Authority Annual Report 2023/24 44
The Berth 5 Shiploader Dry Fog System Mid West Ports Authority Annual Report 2023/24 45 3.0 Performance
Mid West Ports Authority Annual Report 2023/24 46
Coastal Processes Study In 2019, Mid West Ports engaged Royal Haskoning DHV (RHDHV) to conduct a comprehensive study aimed at understanding the coastal processes affecting the beaches to the north and south of the Port of Geraldton, as well as at the Geraldton and Oakajee Port sites. This study sought to identify the factors causing erosion and accretion of sand at various locations along the coastline, the role of natural climatic variations, and the impacts of previous construction activities and beach replenishment efforts may have had along the coastline and within the shipping and FBH channels. Review and publication The findings from the reports underwent a rigorous review process, which included the engagement of external subject matter experts. In 2023, the final revision of the reports were completed and subsequently circulated for comments to the Department of Transport, Western Australian Marine Science Institution and the City of Greater Geraldton. The reports were published on Mid West Ports’ website in April 2024. Impact and future applications The findings of the coastal processes study have provided crucial insights into the coastal dynamics in and around the Geraldton Port. RHDHV’s recommendations for sediment management are being taken into consideration by Mid West Ports in the development of the Sustainable Sediment Management Plan (SSMP) and the Long Term Dredge Management Plan (LTDMP), both of which will be integral to asset management at Mid West Ports. The Asset Management Plan outlines how and when assets are maintained. Under this, the SSMP focuses on monitoring and managing sedimentation around the port, triggering necessary actions based on sediment build-up. The LTDMP, a component of the SSMP, details the requirements for dredging activities. The Coastal Processes Study, along with hydrographic surveys and beach data, informs criteria and triggers for sediment management, helping to proactively plan and budget for dredging operations. For detailed information, the full reports are available on Mid West Ports’ website. Study stages and findings Data and literature review Late-2020 RHDHV’s initial report focused on a data and literature review of previous coastal engineering studies and reports, historical metocean data, coastal monitoring, sand bypassing, hydrographic surveys and photogrammetry. This stage provided a comprehensive context to inform subsequent stages of the study. Hydrodynamic and wave models Mid-2021 The second stage involved analysing and simulating past deepwater swells and locally generated seas, as well as preparing hydrodynamic and wave models. The work aimed to provide an understanding of how the waves and water movements in the area changed over time and in different locations. Sediment transport analysis Mid-2021 The final stage focussed on analysing sediment transport processes along the coast, the potential movement of sediment adjacent to the channel, and the variation of the transportation of sediment along a coast between the frontages and its potential variability due to climatic factors. Stage1 Stage 2 Stage 3 Scan the QR code to access the Coastal Processes Study Mid West Ports Authority Annual Report 2023/24 47 3.0 Performance
Eastern Breakwater Jetty In August 2020, the Minister for Transport appointed Mid West Ports as the lead agency for the delivery of a Geraldton Tourism Jetty to benefit commercial tourism in the region, particularly in support of increased visitation to the Abrolhos Islands. The project was funded as part of the State Government WA COVID-19 Recovery Plan. The Houtman Abrolhos Islands was gazetted as a National Park in July 2019, with the State Government committed to investing in tourism and management infrastructure. The Abrolhos Islands are a unique and pristine location offering an unparalleled marine experience to visitors. Providing quality infrastructure improves visitors’ experience and subsequently boosts tourism to the State. The Eastern Breakwater Jetty leverages the government’s investment in the Abrolhos Islands by supporting increased visitation to the islands directly from Geraldton. The Jetty is a key component in assisting commercial tourism ventures by providing a facility specifically designed for easy boarding and disembarking of passengers from commercial vessels. In addition to Abrolhos Islands tourism, there are a range of other marine-based recreational and commercial tourism opportunities that can benefit from the development of centrally located jetty infrastructure including fishing, diving and snorkelling charters, glass bottom boat tours, cray pot pulls, whale watching, aquaculture farm tours, maritime history tours and the like. An Environmental Impact Assessment was undertaken before project commencement with no significant impacts to the marine environment identified. Further information can be obtained on the Mid West Ports website or via the QR code below. Situated on The Esplanade, the location is touristfriendly with easy access to the city centre and services on the foreshore. Constructed in precast plank and beam, the pile jetty was designed to accommodate vessels greater than 25m in length, too large to safely access the Batavia Marina. In January 2024, the Premier and Minister for Ports officially opened the new Eastern Breakwater Jetty. Scan the QR code for more information on the Environmental Impact Assessment Mid West Ports Authority Annual Report 2023/24 48
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