Logistics

Funds secured for next SA grain port

Grain Central, May 4, 2022

An artist’s impression of the Port Spencer project. Photo: Peninsula Ports

PENINSULA Ports has secured funding for the $250-million Port Spencer development on South Australia’s Eyre Peninsula, with construction set to commence in June.

The Port Spencer grain export facility, 20 kilometres north-east of Tumby Bay, will have the capacity to store  800,000 tonnes of grain, and is planned to be operational in time for the 2023 harvest. 

Peninsula Ports chair John Crosby said Aria Commodities, a global commodity trading company  investing in infrastructure which operates in Western Australia, would be the principal funding partner going forward. 

“Aria Commodities is expanding in Australia and it sees Port Spencer as the ideal location to support Eyre Peninsula farmers as they export their high-quality grains to countries throughout the world,”  Mr Crosby said.  

“Once the deep-water port is built, there will be significant benefits for the region, and we hope it  will provide an economic boost to not just the Eyre Peninsula but to the state as a whole.” 

There have been serious safety concerns in the Port Lincoln community about the increasing number  of trucks carrying grain travelling through the city’s streets to access its port since the railway line  grain service ceased in 2019. 

Mr Crosby said once the Port Spencer facility was operational, it would significantly reduce truck movements, potentially removing thousands of truck movements from Port Lincoln’s roads, in providing an export alternative away from the city.  

Peninsula Ports chair John Crosby and CEO Greg Walters. Photo Peninsula Ports

Port could cut costs

Using the port could also save growers up to $20 a tonne in costs by eliminating double handling, with a streamlined process ensuring grain can be stored directly on site and then transported via conveyor belts onto ships.

The port’s ship loading capacity will be 2400t per hour. 

Port Spencer will also provide a closer export option for dozens of farmers, significantly cutting the  time taken to deliver grain, and transport and handling costs. 

The Aria Commodities funding agreement was approved at a board meeting held in Port Lincoln this week. 

Free Eyre, the former parent company and proponent of Peninsula Ports which consists of a consortium of 488 farmer shareholders, will remain a shareholder. 

“The directors of Free Eyre and Peninsula Ports are delighted to be able to take the final step  towards building a new port to aid the further development of the grain industry on Eyre Peninsula,  while maintaining the direct connection between farmers and their market,” Mr Crosby said.

Peninsula Ports has signed an Indigenous Land Use Agreement with the Barngarla community and is working with local residents to ensure there are community benefits, including the surfacing of roads. 

The current Port Spencer project will create up to 150 jobs during construction and a further 20  permanent local operational jobs including employment opportunities for Barngarla community  members.

Operational staff numbers are expected to further peak at 80 staff during grain harvest. 

Source: Peninsula Ports

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  1. Dan Monceaux, May 6, 2022

    This port is proposed for an environmentally unsuitable location- too close to the Lipson Island Conservation Park, which is the only stable Little penguin colony in Spencer Gulf. All others in the region are either in decline, extinct or status unknown. Regionally, the species is either Endangered or Critically Endangered, allowing for uncertainty in the available data. The SA government will shortly receive a paper which alerts them to this undeniable fact, after which, if good governance follows, this project should be rejected by the current government. I would never invest in such a project. Its “second life” after it was abandoned by Centrex Metals flies in the face of the government’s responsibility to protect the environment from harm and will attract opposition if not future legal challenges.

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