REGIONAL PORTS 2013 Presentation by COO Paul Toussaint-Jackson

DFD and FDTS Concepts Designer and Developer 1

FLOATING DECK SOLUTIONS: A NEW WAY FOR THE PILBARA AND BEYOND

• The DFD (Dampier Floating Deck) and FDTS (Floating Deck Trans-shipment System)

are two projects that I have designed and developed on behalf of the Port of Dampier to

improve critical supply chain constraints affecting both the Port and the Pilbara region in

general.

• These projects are intended have the maximum trade facilitation impact at a fraction of

the cost of conventional infrastructure and with much shorter development times.

• The DFD I conceived as a forward floating supply base function to directly assist the

logistics of supplying offshore oil and gas platforms out of Dampier.

• The FDTS I designed as a land-backed facility with a moving floating deck that will allow

genuine international liner cargo shipping services to call at Dampier for the first time.

• Both the FDTS and DFD are designed as logistics systems rather than simple

infrastructure solutions;

• These projects are game changers for logistics into the Northwest and are expected to

do much to fundamentally address some of the core logistics productivity issues we

have in that very important region for the Australian economy.

Floating Deck Systems: New Projects for Dampier

• Easily and rapidly scalar to suit developing trade;

• Uses shallow bathymetry (for the FDTS) as an asset rather than an obstacle: no

dredging is required. These facilities have minimal environmental impact;

• Rapidly constructed in a far shorter timeframe than conventional infrastructure;

• Far lower capital cost than conventional infrastructure of equivalent capability;

• Highly robust, safe and flexible and be highly suitable for use in cyclone prone areas;

• Readily handled by existing port services and operations;

• Completely privately funded but provide good revenue returns to the State, legacy

assets for the State and retain key controls for the State over the land or seabed

through lease/license instruments;

• Open access for general custom and have Customs and AQIS approved facilities.

• All types of project cargo handled including multi-thousand tonne pre-assembled

modules;

Floating Deck System Design Elements

Current logistics constraints • The Port of Dampier is one of the world’s largest bulk export ports and has excellent

private facilities for the export of LNG, condensate, iron ore and salt. These facilities are

profit-driven and fit for purpose.

• The principal import facility however, the Dampier Cargo Wharf (DCW), requires

expanded capacity to cope with the growth in trade. Congestion causes delays and

demurrage costs for project vessels, additional costs to projects and reinforces the use

of inefficient long-distance road-haul services to our region for large oversize and out of

gauge project cargo.

• In 2011 I undertook a study to find a solution to not only the constraints of the DCW

facility but also the wider logistics productivity issue for the Pilbara.

• From this study I identified two critical supply chains that conflict at Dampier:

- Critical Supply Chain 1 – The high cycle marine services supply to offshore oil and

gas installations; and,

- Critical Supply Chain 2 – The inwards industrial and re-export supply chain.

• Both of these supply chains rely heavily on access to the DCW.

• Finally I recognised the advantages of enabling direct call international liner services.

GENERAL CARGO

VESSELS CAN BE

ALONGSIDE FOR A

WEEK TO SUIT CRANE

TO TRUCK

OPERATIONS

OFFSHORE SUPPLY

VESSELS NEED

RAPID CYCLE ACCESS

TO THE DCW.

THE DCW : DUE TO

WIDTH AND SWL LIMITS

CARGO CANNOT BE

STACKED ON THE WHARF

BUT MUST BE WORKED

TO TRUCK

• Critical Supply Chain 1 (high cycle offshore support) is constrained because its

vessels need frequent and ready access to the DCW. The development of trade

requires further berths: a general cargo vessel can occupy the existing western berths

for up to a week.

• Critical Supply Chain 2 (Inwards industrial supply) is constrained because the

development of trade requires further berths: project or general cargo exchange

requires extra time due to the need to work crane to truck.

• Both supply chains do not have stacking and handling areas available within the port

gates and must rely on private sites located elsewhere. Available land for private use in

the general port environs for cargo facilitation is in limited supply and in high demand.

The DCW cargo operations are therefore impacted by varying truck cartage cycle times,

the number of available trucks and the additional time required to stevedore oversize

and out of gauge cargo.

• By removing the constraints to both critical supply chains I realised that regular

internationally networked cargo liner shipping services to the Pilbara could be facilitated.

This would allow re-work of current supply networks through Eastern and Southern main

ports and reduce an over reliance on long-distance road-haul. To get genuine liner

services to call at the port would however require a complete re-think on infrastructure.

Legend

Current rail haul

Current road haul

East Coast liner route

Optional road haul

New West Coast liner options

5

4

4

12

3

4

5

2

3

Currently China to Pilbara

supply chain takes 31 days

(red route)

5

6

4

FDTS supports China to

Pilbara supply chain of just

9 days 2

FDTS provides a general cargo

terminal function at Dampier

supporting the development of

new liner services.

DFD 3500 m2

25 tonnes/m2

2 x 100m berths

Drilling mud

Fuel

Fresh water

All hydraulic

Lateral movement <100mm

Demobilisation < 1 hour

OFFSHORE PLATFORMS MUST HAVE ACCESS TO A

SUPPLY BASE FUNCTION THAT IS CLOSE BY TO

OPTIMISE THE SUPPLY CHAIN AND REDUCE CHARTER

COSTS. DAMPIIER IS IN PROXIMITY TO THE

OFFSHORE DEVELOPMENTS AND ITS DFD PROJECT IS

IDEALLY SITUATED TO FACILITATE PLATFORM SERVICES.

• Directly addresses berth constraints for both OSV and general freight

tonnage into the Pilbara;

• Creates forward ‘supply base’ function to facilitate the service supply

chain for the oil and gas industry and to enable its re-design reducing

pressure on land close to the Port;

• Reduces cost to the oil and gas industry by improving cycle times for

OSVs and reducing overall charter requirements.

DFD: solution for critical supply chain 1

FDTS 3500 m2 floating decks

15000 tonne cargo dwt

Land-backed terminal

AQIS wash-down

Customs licensed

FDTS: the ‘shock absorber’ Trans-shipment in sheltered port anchorage

RORO or LOLO exchange

Deep water allows port access by large cargo liners

At Dampier floating deck will take 1.5 hours to shore

13

DFD and FDTS for Dampier 2014

FDTS Floating Deck Cargo Area Capacity

Sample cargo area capacity (theoretical tight stow only) based on 110m x 38m floating

deck (4180 m2 of useable area).

CAT 797 Mining Haul Trucks Largest

mechanical haul trucks in the world

(400 tonne payload)

CAT D9 Tractors

48.8 tonnes

TEU Sea Containers double stacked

or 280 single stacked Hammersley Iron Ore Rail Wagons

OR

OR

28 114

144 560+

15

Floating decks de-mobilised to sheltered cyclone moorings

FDTS – The Logistics Game Changer

Enables for the first time a pure cargo liner service to operate to the Pilbara by acting as

a logistics ‘shock absorber’ thereby removing all current constraints to liner services.

Is ideally suited to a global RORO break-bulk service enabling realignment of major

industrial supply chains;

Has national supply chain ramifications including reducing supply chain times from

China by up to 70%;

Facilitates LOLO operations and relieves spot-chartered general cargo vessel

congestion;

Facilitates cold supply chain into the Pilbara;

Reduces oversize vehicle movements on the North West Coastal Highway;

Improves the economics and prospects for coastal shipping services.

Floating Deck Systems – further applications

It is clear from the projects at Dampier that this type of infrastructure could have ready

application elsewhere. I believe it is infrastructure for the future.

Coastal topography, meteorological and environmental conditions need to be carefully

assessed for each new development;

The real solution for each site is not as infrastructure alone but as a logistics system if

the full value of the installation is to be realised.

The many attributes of these systems including lower capital cost make them attractive

to the private sector.

The systems are designed to be complementary to traditional infrastructure and can be

applied to developed ports or greenfield sites.

Low environmental impact makes the systems ideal for environmentally sensitive sites.

FDTS under construction – Dampier, WA