Monday,June06, 2011
By Jessica Burke, Mining Australia
The Western Australian government is considering higher shipping charges for Australia’s mining giants.
BHP Billiton and Fortescue Metals Group (FMG) would face increases in the cost of shipping their product through the Port Hedland port.
Western Australian Transport Minister Troy Buswell said he would support the miners paying more to use the world’s biggest export port, the West Australian reports.
A Parliamentary estimates committee questioned Buswell and officials of the Port Hedland Port Authority over the financial performance of the agency overseeing the port.
Iron ore companies own a large portion of the Port Hedland port infrastructure, while the rest is owned by the state.
The Port Hedland Port Authority owns the channel the giant ore carriers pass through.
Currently the authority levies 20 cents per tonne for Cape-size carriers.
WA Parliament was told the PHPA was on track to record a $1.4 million operating profit this financial year after posting an after-tax loss of $1.5 million last year and is expected to finish the year with about $29 million cash.
Labor backbencher Chris Tallentire is concerned taxpayers are not getting significant enough return on the port.
"Something is going wrong here," he said.
"Surely this should be a massive profit maker for the State given the amazing tonnages, the unprecedented wealth of activity that goes through the port.
"Why is it we are barely making it a profitable enterprise?"
Buswell said that while tonnage charges were ultimately a matter for PHPA's board, "I have indicated to the board that I would be very supportive of them reviewing the (tonnage) rates they charge."
The channel was originally built by BHP Billiton but was given to the state.
It has never been confirmed if the port was given to the state for free or if it was paid for by discounted port fees.
PHPA chairman Ian Williams told Parliament the channel was worth "a couple of billion dollars", on its balance sheet, but the Auditor General directed that PHPA could not include the channel.
"That's a matter we need to look at because I can't imagine the channel isn't the most important asset of the port," Buswell said.
By Jessica Burke, Mining Australia
The Western Australian government is considering higher shipping charges for Australia’s mining giants.
BHP Billiton and Fortescue Metals Group (FMG) would face increases in the cost of shipping their product through the Port Hedland port.
Western Australian Transport Minister Troy Buswell said he would support the miners paying more to use the world’s biggest export port, the West Australian reports.
A Parliamentary estimates committee questioned Buswell and officials of the Port Hedland Port Authority over the financial performance of the agency overseeing the port.
Iron ore companies own a large portion of the Port Hedland port infrastructure, while the rest is owned by the state.
The Port Hedland Port Authority owns the channel the giant ore carriers pass through.
Currently the authority levies 20 cents per tonne for Cape-size carriers.
WA Parliament was told the PHPA was on track to record a $1.4 million operating profit this financial year after posting an after-tax loss of $1.5 million last year and is expected to finish the year with about $29 million cash.
Labor backbencher Chris Tallentire is concerned taxpayers are not getting significant enough return on the port.
"Something is going wrong here," he said.
"Surely this should be a massive profit maker for the State given the amazing tonnages, the unprecedented wealth of activity that goes through the port.
"Why is it we are barely making it a profitable enterprise?"
Buswell said that while tonnage charges were ultimately a matter for PHPA's board, "I have indicated to the board that I would be very supportive of them reviewing the (tonnage) rates they charge."
The channel was originally built by BHP Billiton but was given to the state.
It has never been confirmed if the port was given to the state for free or if it was paid for by discounted port fees.
PHPA chairman Ian Williams told Parliament the channel was worth "a couple of billion dollars", on its balance sheet, but the Auditor General directed that PHPA could not include the channel.
"That's a matter we need to look at because I can't imagine the channel isn't the most important asset of the port," Buswell said.
Posts
No comments:
Post a Comment