Lucky Bay commenced operation in T-Ports, using the MV Lucky Eyre as the only transhipment vessel of its kind currently operating in Australian waters. Photo: T-Ports

A GRAIN-HANDLING asset unique to South Australia is looking for a new owner as T-Ports comes to the market for the first time.

It comprises two greenfield multi-commodity export sites, Lucky Bay on the western shore of Spencer Gulf, and Wallaroo on its eastern shore, and comes with the MV Lucky Eyre, which transships parcels of grain to ships at anchor in Spencer Gulf.

The T-Ports offering also includes up-country sites at Kimba and Lock, both on Eyre Peninsula.

T-Ports, is the owner and operator of the first new grain ports to be built in 60 years in SA, and since commissioning Lucky Bay in 2019, it has exported more than three million tonnes (Mt) of grain.

After completing its five-year development phase that included the commissioning of its second port at Wallaroo, the business is now capable of exporting 1.2-1.4Mt of grain per annum.

Across its two port facilities and Kimba and Lock sites, T-Ports has a total storage capacity of 1.1Mt, and is supported by a network of more than 500 growers across EP and Yorke Peninsula, both recognised as high-quality wheat, barley, and lentil-producing regions.

The business generates a through-the-cycle EBITDA of $18M-$20M, and other media has reported T-Ports could fetch $250M.

One of its many points of difference is its complete control over its shipping schedules, which significantly reduces demurrage risk and improves throughput efficiency and vessel turnaround times.

After receiving multiple unsolicited approaches over recent months, T-Ports will now run a structured bid process seeking proposals for investment.

“We think that what has been achieved to date is a credit both to the foundational investors and to growers who have responded so positively to the increased competition we have brought to the market,” T-Ports chief executive officer Nathan Kent said.

“Looking to the future, two key areas are emerging as central to our growth strategy: the first is additional infrastructure so we can warehouse more grain of all grades across our catchment; the second is about our potential to move from storage and handling to become a fully integrated service capable of offering highly competitive grain pricing year-round.”

T-Ports CEO Nathan Kent in the PT Bogasari Flour Mills test kitchen in Jakarta on a recent visit to Indonesia.

“This strategic investment process is a really exciting opportunity to further strengthen the T-Ports business in a way that is commercially invaluable to growers and to the wider South Australian grain industry.”

The board of T-Ports has engaged Nash Advisory to lead the reinvestment process, led by Tom Butler and Lachlan Posar and assisted by Harry Bahr and Jock Mitchell.

Mr Butler has a strong background in ports and logistics, having worked for global port and logistics operator DP World within the M&A and origination team, and an information memorandum covering the entire T-Ports portfolio will be shared with select parties in the coming days.

Mr Butler said T-Ports being a “core-plus infrastructure” asset is expected to see it generate significant interest from a diverse pool of investors including commodity/grain traders, private equity firms, sovereign wealth funds, and infrastructure or supply-chain specialists.

“This represents a unique opportunity, given T-Ports’ vertically integrated model, with end-to-end ownership of infrastructure from inland terminals to portside operations and maritime-export capability,” Mr Butler said.

“This level of vertical integration is exceptionally valuable and underpins the business’s operational efficiency and competitive positioning.”

Grain and lentil production on EP and YP has been mixed in recent years, with rain in the past week brightening yield prospects no end for its growers.

T-Ports is widely acknowledged as having brought beneficial competition to YP and EP growers, who could previously  only export from both peninsulas via Viterra terminals.

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