SEATRANSPORT will be joining forces with Free Eyre Limited to build a new bulk commodity terminal in Lucky Bay, Eyre Peninsula, South Australia. This venture is very exciting as it could result in local grain handling costs drop significantly by next year's harvest.
The grower-owned Free Eyre Limited and SEATRANSPORT are planning to joint develop the $80 million-dollar facility near Cowell, which could deliver substantial savings to local farmers. Such is the benefit to this local industry, funding arrangements are currently under negotiation for a second facility at Wallaroo.
Free Eyre Limited's CEO, Mark Rodda has commended the venture as being an extremely cost-effective model, which will undoubtedly benefit producers through the use of shallow-draft vessels to large cargo ships that are moored further at sea within the Spencer Gulf.
"The capital required to do the grain handling facilities, the export out loading, and the transhipping vessel itself, are a fraction of the cost of replicating a traditional deep-sea port...Now naturally that flows back to dollars per ton in storage and handling charges, so that is why we are extremely excited about this prospect."
Mark Rodda | CEO of Free Eyre Ltd
The joining of resources from both companies has also won praise from Free Eyre's chairman, John Crosby "Obviously our 475 growers account for three quarters of the grain on Eyre Peninsula, and it is bringing that grain through that facility, which will be cheaper for a significant number of growers that are close to the port."
Mr. Crosby went on to acknowledge the benefits that this deal would benefit many growers as it introduces a greater competition into the grain handling market. "We would also expect to be competitive on costs at the port, which will give growers an alternative to the current arrangements on Eyre Peninsula."