Go-ahead given to development of $230m SA Port Spencer grain facility

Revised plans for the development of the $230 million Port Spencer Deep Water Port grain export facility in South Australia has been given the go-ahead by the State Government.

This project is expected to provide a significant boost in economic activity in the Eyre Peninsula through jobs creation as well as flow-on effects for local businesses.

“The Marshall Government is working hard to get these types of projects underway as soon as possible to ensure we navigate our way out of the current economic climate.

“Peninsula Ports’ modified proposal has been through the rigorous major development assessment process to amend and update the original Public Environmental Report (PER), and I’m pleased this is one of the first major developments I have been able to tick off as the new Minister,” Minister for Planning and Local Government Vickie Chapman said.

Minister Chapman added that the approval of this project is subject to a set of conditions that will ensure the construction and operation of the facility will be delivered “in an orderly fashion and in a manner which minimises impacts”.

“Before construction starts Peninsula Ports is required to provide final plans for all structures, along with the associated management and financial arrangements necessary to minimise impacts on the coastal and marine environment, and upgrade of the access road to the site from the Lincoln Highway,” Ms Chapman said.

The multi-million-dollar project is expected to create up to 150 jobs during its construction phase and a further 20-30 people will be employed once the facility is up and running.

Once completed, Port Spencer will be able to provide global traders with the following:

• Additional shipping slots in the peak demand period from December to March
• Wharf loading of Panamax-sized vessels (83,000DWT) and associated cost efficiencies
• Value-added blending capacity to meet buyers’ needs
• Flexibility to further expand ‘at port’ storage

“We’re committed to delivering a new export terminal for the Eyre Peninsula, which will aid in protecting the clean and green reputation of the region’s grain industry and significantly improving the competitiveness of the industry in reaching global markets.

“When complete, Port Spencer will be one of the two deep water ports in the region, enabling large Panamax vessels to be loaded efficiently, cost effectively and largely irrespective of weather conditions,” Peninsula Ports Chief Executive Officer Greg Walters said.

Artist impression of the Port Spencer development (source: Peninsula Ports)

This new facility will provide growers with benefits such as:

• Increased competition resulting in freight savings and supply chain savings for growers
• Advanced receival and storage technology
• The largest at-port storage facility in the region (with plans of approximately 800,000-tonne capacity)
• New access to affordable shipping capacity, particularly for small to medium traders, which will bring greater competition to global trade. This should contribute to higher prices paid for SA grain

In addition, Eyre Peninsula residents will benefit from:

• The diversion of significant truck movements away from Port Lincoln
• A reduction in road maintenance costs through fewer total vehicle movements and improved road safety

“The Port Spencer facility will provide the opportunity for grower ownership and control of critical grain supply infrastructure.

“It will also have potential to manage other commodities, but this remains a long-term consideration and would need to be compatible with the primary purpose of clean, green local grain export at the site,” Mr Walters said.

Peninsula Ports is expecting construction on the Port Spencer facility to commence next month, with the port anticipated to be ready to accept grain for the 2021 grain harvest season.

Source: Steven Marshall – Premier of South Australia; Growth State; Victor Harbor Times; Peninsula Ports (1, 2)