PORT HEDLAND PORT AUTHORITY · The Port of Port Hedland is predominantly a large volume bulk minerals export port, with 97% of the cargo handled through Port Hedland being iron ore

PORT HEDLAND

PORT AUTHORITY

Statement of Corporate Intent2013/2014

PORT HEDLAND

PORT AUTHORITY

Statement of Corporate Intent2013/2014

PHPA Statement of Corporate Intent (2013/14) Page 2

TABLE OF CONTENTS

INTRODUCTION ................................................................................................................................................3

SERVICES AND FACILITIES............................................................................................................................ 3

VISION, MISSION AND VALUES ..................................................................................................................... 4

BROAD OBJECTIVES .........................................................................................................................................4

SERVICE PROVISION .........................................................................................................................................4

PORT FACILITIES................................................................................................................................................4

PLANNING AND DEVELOPMENT .....................................................................................................................4

TRADE FACILITATION ........................................................................................................................................4

FINANCIAL ..........................................................................................................................................................4

GOVERNANCE ....................................................................................................................................................5

HUMAN RESOURCES .........................................................................................................................................5

ENVIRONMENT, COMMUNITY SAFETY AND HEALTH ..................................................................................5

COMMUNITY SUPPORT .....................................................................................................................................5

TRADE FORECAST FOR 2013/14.................................................................................................................. .5

MAJOR GOALS PLANNED FOR 2013-2014 ................................................................................................ .6

FINANCES........................................................................................................................................................12

OPERATING BUDGET FORECAST....................................................................................................................12

DIVIDENDS ........................................................................................................................................................12

RATE OF RETURN (ROR) .................................................................................................................................12

PORT CHARGES ................................................................................................................................................13

ACCOUNTING POLICIES ..................................................................................................................................13

CAPITAL WORKS PROGRAM ..........................................................................................................................13

COMMUNITY SERVICE OBLIGATIONS...........................................................................................................14

PERFORMANCE INDICATORS .........................................................................................................................14

INFORMATION TO BE REPORTED TO THE MINISTER FOR TRANSPORT ...............................................15

ANNUAL REPORT .............................................................................................................................................15

HALF YEAR REPORT .........................................................................................................................................15

OTHER INFORMATION TO BE SUPPLIED .....................................................................................................15


PORT HEDLAND PORT AUTHORITY STATEMENT

OF CORPORATE INTENT 2013/2014

INTRODUCTION

The Port Hedland Port Authority (PHPA) is a statutory authority established under the Port Authorities Act 1999 (the Act), and was proclaimed on 13 August 1999.

This Statement of Corporate Intent 2013/14 is the PHPA’s plan for its activities in the 2013/14 financial year, and has been prepared in accordance with the requirements of the Act.

This plan provides an outline of the port’s objectives for the 2013/14 financial year and is aligned with the PHPA’s Strategic Development Plan 2013-2018.

The Port of Port Hedland is predominantly a large volume bulk minerals export port, with 97% of the cargo handled through Port Hedland being iron ore. Over the past five years the PHPA has articulated a vision to become the world’s leading bulk commodities port, and by the end of 2011 had become the largest bulk export port in the world.

The economic success of the Pilbara region has been driven by the resources sector, in particular the iron ore, oil and gas industries. Growth at the Port of Port Hedland in the last five years has seen throughput more than double to 247mtpa, with a gross product value of AUD$29bn by financial year end 2012.

The growth in global demand for mineral commodities is expected to continue into the future, driving further expansion of port facilities and infrastructure, and increasing trade through the port. Depending on the timing of some proposed developments, throughput is expected to exceed 480mtpa by 2017/18.

SERVICES AND FACILITIES

The Port of Port Hedland is a mixture of services and facilities managed by both the PHPA and a number of private operators.

The PHPA provides and maintains the shipping channel, navigation aids, cargo berths at common user areas and leased terminals. It also provides road transport infrastructure within the port area and other port infrastructure such as storage sheds, water, power and public amenities.

Services provided directly by the PHPA include ship scheduling, berthing allocations, and port communications. For reasons of efficiency, the PHPA contracts out a number of key services in the port, such as pilotage, helicopter and pilot boat transfers, tug and line boat operations, stevedoring as well as security and cleaning services.

The PHPA also cooperates with Commonwealth Government agencies responsible for customs, quarantine, maritime safety and security.


VISION, MISSION AND VALUES

The PHPA’s vision is to “be the world’s leading port, helping to create a sustainable region”.

The PHPA’s Mission is to “Safely, profitably, sustainably, efficiently and innovatively operate the port to promote, facilitate and expand regional trade”.

The following Values define how the PHPA Board, Management and Staff will conduct their activities:

Respect - operate fairly and honestly in all dealings with all stakeholders.

Excellence - strive to be the best in all we do, and maintain strong focus on continuous improvement and innovation.

Courage - do the right thing every time, act with integrity in all we do, and always speak up.

BROAD OBJECTIVES

The PHPA aims to facilitate trade by being competitive, responding to the needs of port users, and building capability to service future demand.

The following is a list of broad objectives that will underpin and guide the PHPA’s activities and operations during the 2013/14 financial year, as it fulfills its obligations under the Act:

SERVICE PROVISION

To ensure the provision of reliable, competitive and efficient port and marine services that meet the needs of users.

PORT FACILITIES

To ensure the provision and maintenance of suitable, reliable and competitive port facilities to meet user needs.

PLANNING AND DEVELOPMENT

To ensure through considered planning that future development is not unnecessarily constrained by external restrictions, effectively meets the needs of expected trades, is coordinated, and efficiently uses the port area.

To ensure through liaison and co-operation, that the Port’s planning is coordinated with transport and environmental planning by State and Local authorities.

TRADE FACILITATION

To facilitate trade and business opportunities within and through the port.

FINANCIAL

To establish pricing for users of port services and facilities, commensurate with the achievement of the required return on Government investment, and consistent with the PHPA’s’ trade facilitation objective.


GOVERNANCE

To ensure that corporate governance frameworks align with government and national standards in achieving the PHPA’s business objectives.

HUMAN RESOURCES

To provide a safe, healthy and supportive environment that encourages employees to work with commitment and enthusiasm to achieve corporate objectives.

ENVIRONMENT, COMMUNITY SAFETY AND HEALTH

To protect the environment of the port area and minimise the impact of activities within the port on the environment and the community, by ensuring that environmental management is incorporated in PHPA’s operations and port development.

COMMUNITY SUPPORT

Establish and maintain a close relationship with the Town of Port Hedland and community in order to promote understanding of current PHPA operations and future developments, and ensure co- ordination with the Town’s planning, with a view to ensuring mutual support.

The PHPA aims to deliver these objectives through a range of specific strategies and actions as outlined in this plan.

TRADE FORECAST FOR 2013/14

The 2011/12 financial year saw the port’s trade reach record levels, with total throughput increasing by 23.9% to 246.7 million tonnes for the period.

Exports totalled 245 million tonnes for the 2011/12 financial year, a 23.9% increase over the previous year, with imports totalling 1.7 million for the period which was an increase of 30% over the previous year.

With significant growth in trade at the Port Hedland port in recent years, the PHPA employs a variety of methods so as to effectively plan for future port development and increased throughput. Internal forecasting and projections from proponents combined with international forecasting service subscriptions, industry project collaboration, monitoring of media reports and stakeholder consultation are all used to determine projected resource production and export and import levels.

Through these methods, the PHPA anticipates a period of future growth driven by continuing strong global demand for commodities. The following reflects the projected trade growth for the PHPA for 2013/14 and incorporates a comparison with prior periods.

Actual 2011/12 000’s

Estimate 2012/13

000’s

Budget 2013/14

000’s

Total Exports (tonnes) 245,016 286,520 303,053

Total Imports (tonnes)

1,656

2,921

2,526

Total Throughput (tonnes)

246,672

289,441

305,579 % Increase from Previous Financial Year 24% 17% 6%


Iron ore export tonnages through the Port Hedland port have grown (and will continue to grow) as current port users optimise their operations, and bring new infrastructure and facilities online in response to increased global demand for their product. Throughput growth will be further supplemented with the development of South West Creek by emerging miners planned to commence in 2013/14. The continued development of the PHPA’s Utah Point Multi-User Bulk Export Facility (Utah Point) has also contributed to increased export volumes at the port, and is a key driver of port profitability. The PHPA is currently exporting at an annualised rate of 11.8mtpa with the estimated capacity of Stockyard 1 expected to be reached within the 2012/13 financial year. Stockyard 2 is also expected to become operational during calendar year 2013, facilitating additional export capacity for the facility. General cargo handling across the PHPA’s three public berths has also increased commensurate with the development of iron ore mining and related industries. It is anticipated that the existing PHPA berths will reach their optimum operating capacity by 2014 as a result of increased general cargo trade. The PHPA has commenced planning to develop additional cargo handling at Lumsden Point, adjacent to the Department of Commerce’s proposed Pilbara Marine Services Facility. The PHPA will continue to liaise with the Department of Commerce to develop a whole-of-Lumsden master plan and explore opportunities for the staged development of Lumsden Point. The PHPA is also planning for trade growth beyond the capacity of the Inner Harbour through the development of a Multi-User Outer Harbour Port Master Plan (MUOH-PMP) off Finucane Island comprising three key components of infrastructure: an offshore iron ore/bulk product export facility; a nearshore harbour basin and landside stockyard and transport corridors. The objective of this MUOH-PMP is a staged port master plan that provides flexibility to allow for potential changes in future trade growth and user requirements.

MAJOR GOALS PLANNED FOR 2013-2014

Goals

Strategies/Actions

Ensure workforce capabilities, development and growth is considered for future growth of the Port

• Implement a formal HR Management System that is legislatively compliant, and provides quality support across the organisation’s multiple locations.

• Optimisation of the payroll system to increase efficiency, and capture all required industrial changes relating to payroll.

• Implement a training plan that fulfills all mandatory and developmental training requirements to ensure workforce capabilities are developed and maintained.

• Develop a strategic housing plan including the improvement and redevelopment of

existing port owned properties to ensure long term, value for money.

• Implement successful IR strategies including dispute resolution processes to ensure the smooth continuation of operations and fair work practices for all.

• Develop and implement procedures and practices that support the diversity of employees through the successful implementation of the PHPA Diversity Plan.

• Development and launch of a wellbeing strategy to encourage health and wellbeing for all employees.

• Develop an Indigenous employment obligation program.

• Annual workforce planning will identify skills required for the organisation to reach

its strategic goals whilst considering the effect of a new organisation structure.


Play an integral role as an Industry and Local Community Leader

• Participate in the Port Hedland Industries Council, Care for Port Hedland, Pilbara

Development Commission and other bodies with vested interests in the Pilbara. • Continue to support the local community in accordance with the PHPA’s

Community Support Initiative Policy.

• Participate in Ports WA and Ports Australia forums.

• Support the Seafarers Centre and its constituents.

Ensure Port assets sustain and support port operations

• Scope, price and redefine the proposed fit for purpose maintenance workshop/

store to suit PHPA budget and workforce requirements. • Submit and gain approval of a business case against port improvement rate

(PIR)* funding for the construction of an office block development and harbour control tower on port land, to cater for the exponential growth in port activities.

• Gain approval and commence replacement program of existing harbour aids to

navigation, to be compliant with PIANC, IALA Standards and Australian Standards. • Identify potential areas and facilitate the introduction of approved Department of

Agriculture, Fisheries and Forestry (DAFF) and customs cargo inspection facilities. • Upgrade of services and facilities including developing a single data source for

services, connecting east side sanitation to vacuum sewer, replace out-dated electrical services at tug pens and Intertek area, install additional security fencing, and to provide alternate water supply to Utah Point (desalination).

• Design, construct and install floating pontoon system at No. 1 Berth service jetty.

To secure a permanent mooring for two PHPA oil response vessels. • Progress with providing additional small boat mooring facilities - reposition BP’s

fuel bowser, reposition fresh water lines, investigate design and cost sheet pile wall on No. 3 Berth service jetty, and tender and construct extension to Main St jetty.

• Undertake a strategic traffic management review, including redevelopment of

Gilbert street and east side Ring road, and new entry gate additional lanes.

• Investigate options for extension of No. 1 Berth.

• Investigate/implement options for improved mooring line management (shore tension, procedural etc.).

• Design replacement deck for No. 3 Berth.

• Develop No. 1 laydown area by installing a fit for purpose, low maintenance

surface, e.g. paving blocks. • Continue to monitor, review and audit stevedore licence KPI’s and operating

procedures to identify opportunities to increase efficiencies. • Facilitate additional stevedore licence applications.


Ensure Port assets sustain and support port operations (cont.)

• Reduce clean down times in between vessels.

• Facilitate commencement of stockyard 2 operations.

• Modify chute design at Utah Point to improve performance of wear lines and

reduce downtime for change out. • Reinstate Utah Point shiploader capacity to 7500tph, and optimise out-load

performance. • Re-commission sample station.

• Commence implementation plan for building management system, site lighting

control and water monitoring. • Remove last identified areas of asbestos from PHPA site.

• Remove redundant buildings from operational areas.

• Implement maintenance strategies and contracts to ensure adequate provision of

labour, plant and services to meet maintenance deliverables and matrix indices.

Provide a workplace free of incidents and injuries by developing best practice for all Port Users

• Achieve the Key Performance Indicator for LTIFR, and maintain zero fatalities or

disabling injuries record. • Commence implementation of a behavioural based Safety Observation (SO)

program. • 100% of staff trained in OHS Compliance Training and Fatigue Management

modules. • Zero safety regulatory notices issued.

• Continue to improve the safety induction and awareness programs.

• Improve quality and timeliness of Safety Management data and reporting received

from port users. • Implement an Incident and Injury Management audit program specifically designed

to assess employees’ and Port Users’ performance and identify improvement opportunities.

• Increase frequency of port consultative forums that are directed at injury severity

/ reduction, including monthly and quarterly meetings and review sessions to be a requirement within all stevedore licence applications and renewals.

Develop overarching land strategy thus optimising the use of land vested in the Port

• Increase land based capacity through the vesting of new port land (PHPA Boodarie

Stockyards) (Area I) to support Inner Harbour and Outer Harbour port trade. • Facilitate land availability to support the development of the Multi User Outer

Harbour (OH) and associated transport corridors. • Develop a plan of land use areas for the East Side of the Port to ensure areas are

utilised to full potential.


Develop overarching land strategy thus optimising the use of land vested in the Port (cont.)

• Prepare remediation design for Area 1 (south west corner), and implement the

design. • Complete the design of main road access through Lumsden estate.

• Secure chartered dredger and support vessels to deliver dredging on critical path.

• Ensure all support vessels and crew are equipped accordingly to statutory

regulations.

• Develop road network to meet increased export/import demand moving forward

and to alleviate the pressures on the existing network. • Facilitate the development of the Great Northern Highway realignment to the north

of Wedgefield and within the port reclamation Area C.

• Continue to collaborate closely with the Pilbara Development Commission, Town

of Port Hedland, Main Roads WA, LandCorp, the Departments of Transport, State Development and Planning, as well as power and water providers, in local and regional Pilbara planning.

Achieve PHPA’s broader financial objectives including as a minimum the State Government’s required rate of return

• Monitor pricing policies and practices to ensure that port charges continue to raise

sufficient revenue to sustain the future operations and development of the Port. • Structure prices to encourage efficient use of Port facilities.

• Successfully implement the Port Improvement Rate (PIR).

Continue to develop and open up opportunities for additional trade capacity

• Coordinate the development of proponent infrastructure, including roads and rail,

from the Great Northern Highway to the PHPA Boodarie Stockyards (Area I) as well as conveyors and service roads to the South West Creek berths.

• Facilitate the development of South West Creek of the Inner Harbour, and

associated stockyards within the PHPA Boodarie Stockyard area by negotiating South West Creek agreements.

• Continue to plan and promote the growth of export capacity via the outer harbour,

both though a BHPBIO built facility and a Multi User Outer Harbour facility. • Facilitate Atlas stockyard 2 development to interim status.

• Support the development of the Hunt Point Tug Haven by BHP Billiton to house

an expanded tug fleet to manage the risk associated with the increasing number of vessel movements.


Continue to develop and open up opportunities

for additional trade capacity (cont.)

• Facilitate the development of Pilbara Fabrication Services Common User Facility

(PFSCUF) on port land. • Progress the Lumsden Point General Cargo berths via the approval of the

preferred funding and procurement option. Further develop the concept to refine the capital and operating cost of the preferred concept.

• Complete study into dedicated fuel berth in South West Creek.

• Complete concept costing for under harbour fuel pipeline.

Deliver on the PHPA’s strategy through sound corporate governance and enterprise risk management disciplines

• Track, monitor and report on non-compliance risks across the enterprise.

• Assess the benefits of a Business Excellence Framework (ABEF).

• Ensure annual internal audit recommendations are addressed.

• Retain certification of, and enhance, the PHPA’s Integrated Management System

(ISO 4801, 14001 & 9001).

• Track, monitor and report on enterprise risks at the strategic and operational level

in accordance with ISO 31000 principles.

Maintaining the PHPA’s licence to operate by delivering strong environmental performance against all requirements

• Audit and revise the Environmental Management Plan to more appropriately

support operational and statutory requirements and support the PHPA’s strategic objectives.

• Develop a Steady State Environment Plan to underpin delivery of environmental

performance. • Implement and enforce product quality criteria information as new products arise.

• Deliver environmental and heritage advice and approvals for all new major devel-

opments in an efficient manner. • Achieve heritage clearance of strategic port land.

• Develop and Implement the PHPA Sustainability Plan.

• Re-negotiate the PHPA Heritage Agreement and recruit internal heritage expertise.

• Continue site wide dust monitoring and policing. Monitor moisture control and

product handling. • Develop a future outcome dust footprint model.

• Continued monitoring and audit of stevedore procedures relating to dust

suppression. • Progress with sealing all open earth areas within the port.

• Include dust monitoring results as agenda items for discussion at proponent

operational meetings in order to implement strategies to address ongoing issues.


Maintaining the PHPA’s licence to operate by

delivering strong environmental performance against all requirements (cont.)

• Progress with the implementation of the Environmental Improvement Plans (EIP)

for the PHPA operations (East Side and Utah Point operations). • Complete any outstanding items from Utah Point Environmental Compliance

Assistance Program(ECAP), and review deferred items for application. • Complete No. 1 Berth EIP items (as determined during March 2013

DEC Inspection). • Continual refinements of ship loader clean down activities.

• Continue to invest in the PHPA’s Mangrove Nursery, propagate mangroves

and undertake rehabilitation projects. • Construct and trial the passive mangrove nursery project.

• Monitor and measure key outputs from the mangrove rehabilitation trial.

Maintain leading port status by promoting emerging technologies, continued improvement in current systems and industry best practice

• Maintain navigational depths to maximise DUKC by carrying out maintenance

dredging of channel, inner harbour including swing basins and berth pockets, and surveying the dredged areas by class 1A surveyor and declare depths via local marine notices.

• Continue investigations into acquisition of PHPA owned and managed dredger.

• Replace current, tidal and weather monitoring equipment in the Inner Harbour, and

shipping channel. • Upgrade the present PPU’s with the latest OMC software providing live tidal,

current, weather and electronic chart feeds to PPU’s. • Investigate a whole of port Dredge Material Management Area (DMMA) Strategy.

• Review the application of Lowest Astronomical Tide (LAT) along the channel.

• Continue to liase with trucking companies regarding improved trailer design.

• Monitor and audit a more targeted road sweeping and cleaning regime by

stevedores. • Monitor and audit continuous cleaning during loading by stevedores.

• Utilise Klein software to extract annual statistical data to encourage efficient

ship design/port efficiency and to support draft efficient vessels. • Implement latest OMC version 5 software. The Optimiser to provide data to

support advance scheduling tools. • All shipping tower staff to be Vessel Traffic Services Officer (VTSO) trained

and provide 24 hour traffic

• Facilitate all seasonal cruise ship visits in the port.

• Continue to improve gang way access and passenger comfort initiatives at the

berth. • Continue to facilitate ship husbandry requirements at the berth.

• Progress with implementation of an Enterprise Resource Planning (ERP) system

with an initial emphasis on replacing financial systems and improving management reporting capabilities.


FINANCES

OPERATING BUDGET FORECAST

Revenue for 2013/14 is budgeted to grow by $68.8m to $287.9m an increase of 31% over that estimated for 2012/13.

This is predominantly achieved by growth in throughput, as well as the introduction of a proposed new PIR.

Operating expenses are expected to rise by $19.8m (11%) to $203.2m. This is mainly attributed to higher costs consistent with increased throughput.

The following table compares the results of the budget year with estimates for 2012/13 and the actual results for the previous financial year.

Actual 2011/12

$000

Estimated

2012/13 $000

Budgeted 2013/14

$000 Total Revenue

170,798

219,121

287,922

Total Expenditure

124,614

183,406

203,171

Net Profit / (Loss) Before Tax

46,184

35,715

84,751

Income Tax Expense

13,870

10,715

25,425

Net Profit After Tax

32,314

25,000

59,326

Dividends Paid

2,026

21,004

16,250

Retained Earnings for Year

30,288

3,996

43,076

DIVIDENDS

Dividend payments reflect an amount of 65% of profit after tax, for the previous financial year, as per the dividend policy adopted for Port Authorities.

The PHPA will continue to pay a dividend to the Western Australian Government in line with Dividend Policy.

RATE OF RETURN (ROR)

With the inclusion of the PIR revenue, the PHPA’s 2013/14 budget shows a Rate of Return (ROR) of 17.7% for the budget year (excluding non-approved capital expenditure).Excluding the PIR revenue, the ROR is 12.8% for the budget year.

The ROR significantly exceeds the Government ROR policy requirements, however these estimates are dependent on the expansion of FMG and BHP Billiton operations and the development of berths in South West Creek.


Achievement of the rate of return on assets in the forecasts relies on a number of factors, including significant increases in shipping movements and assumed levels of capital expenditure. The pricing regime will be monitored to ensure that the rate of return is consistent with Government objectives on an ongoing basis. The basis of both asset valuation and the setting and calculation of a target rate of return is currently under review by Government. The rate of return disclosed above is likely to be reset during 2013/14.

PORT CHARGES

Most increases in Port prices have been kept at 5% which reflect the general increase in the cost of providing services, while ensuring commercial targets are achieved. Pilotage has been reviewed in light of significant increases in service charges to ensure adequate cost recovery, resulting in a higher than average increase in the budget year.

In addition to these increases the PHPA intends to introduce a new charge currently referred to as a port improvement rate (PIR) to fund capital improvements that are necessary to sustain the long term operation and development of the port for all users. A process of consultation with port customers is in progress and the pricing structure, supporting framework and the actual amount of the charge is in the process of being finalised.

These increases are necessary despite trade growth and reflect the vitally important increased investment in the asset base, so as to provide for the future operations of the port. The PHPA’s prices remain competitive in comparison to those of other ports.

ACCOUNTING POLICIES

The Accounting Policies of the PHPA are consistent with the provisions of the Act and Australian International Financial Reporting Standards.

CAPITAL WORKS PROGRAM

The PHPA’s approved capital works program for 2013/14 totals $15.5m. The capital works planned for the year are set out below.

Item

Budget 2013/14 $000’s

Main Street Jetty – Royalties for Regions 6,000

Minor Works 7,000

Utah Office Building 1,500

Utah Out Load Circuit 1,000

Total Capital Expenditure 15,500

The capital works program is limited in funds to $15.5m.

Major projects that are planned to be undertaken in 2013/14 outside of these funds will be submitted via the budget process as overseen by the Economic and Expenditure Reform Committee (EERC).


These projects include:

Project Description

Budget 2013/14 $000’s

Proponent/3rd Party Funded

Lumsden Hub 80,000 Wedgefield Expansion 10,000

Total 90,000

Common User Port Infrastructure - All Users

Navigational Aids 3,500 Total 3,500

Non Common User Port Infrastructure

Environmental Compliance 2,000 Minor Works 10,000 Ship/Shore Access (Gangways) 1,000 ERP System 1,500 Eastern Harbour Redevelopment 16,150

Staff Housing Strategy 2,000

East Side Utilities 500

Total 33,150

Total for Year 126,650

COMMUNITY SERVICE OBLIGATIONS

There are no community service obligations included for the budget period.

PERFORMANCE INDICATORS

The PHPA will continue to monitor its performance against its Mission and supporting objectives by maintaining and developing suitable performance indicators.


The following table sets out a selection of key indicators.

PORT HEDLAND PORT AUTHORITY – PERFORMANCE INDICATORS

Based on Approved Capital Actual 2011/12

Estimate 2012/13

Budget 2013/14

Financial Rate of Return on Assets (%) excl. PIR charge

Rate of Return on Assets (%) Incl. PIR charge*

Revenue on Cargo ($/tonne) excl. PIR charge

Revenue on Cargo ($/tonne) Incl. PIR charge*

Ship Revenue Earned Per Ship ($)

13.1%

13.1%

4.58

4.58

33,835

9.6%

9.6%

4.64

4.64

40,053

12.8%

17.7%

4.99

6.36

46,212

Non-Financial Total Port Trade (‘000 tonnes)

Number of Vessel Visits

Cargo Use of Berths (‘000 tonnes) Iron Ore Berths PHPA Berths - PHPA East Side Utah Berth

246,672

1,843

230,026 5,369 11,277

289,441

2,407

270,000 7,821 11,620

305,579

2,302

285,000 7,459 13,120

* No PIR Capital included in ROR% calculation

INFORMATION TO BE REPORTED TO THE MINISTER FOR TRANSPORT

The PHPA will produce an Annual Report and a Half Year Report for the Minister. These will comply with the requirements of the Port Authorities Act 1999 and will include the following information in sufficient detail to allow the Minister to assess the port’s performance:

ANNUAL REPORT

• A report on the major operations and activities of the PHPA during the year under review. • A review and assessment of performance against targets. • Financial Statements. • Any other information required by legislation to be included in the Annual Report.

HALF YEAR REPORT

• A review of the PHPA’s trade and financial performance for the Half Year. • Financial Statements. • Progress against major goals as outlined in relevant Statements of Corporate Intent.

OTHER INFORMATION TO BE SUPPLIED

The PHPA also provides information to other agencies. It will continue to provide that information that is required by statute or by proper policy direction.

Also, the PHPA will provide other information that might be requested that does not create additional costs to the PHPA and that is not commercially sensitive.

PORT HEDLAND PORT AUTHORITY APPROVED FINANCIAL PARAMETERS

2013/14

Income Statement $'000

Total Revenue 336,981

Total Expenses 181,494

Profit/(Loss) Before Tax 155,487

Notional Income Tax 46,646

Profit/(Loss) After Tax 108,841

Dividends 22,557

Asset Investment Program 15,500 To the extent that the financial parameters within the 2013/14 SCI contain unapproved capital expenditure, net debt and net flows to/from government, Government approval will be obtained prior to any commitments and/or actions being undertaken which will affect approved parameters. Government approval will also be sought prior to commencing new projects not included within the State Government's approved financial parameters.

Documents

PORT HEDLAND PORT AUTHORITY · The Port of Port Hedland is predominantly a large volume bulk minerals export port, with 97% of the cargo handled through Port Hedland being iron ore