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2019–20 Annual Report Cover Image: Port of Port Hedland This Page: Port of Ashburton Tug Pen 2019–20 Annual Report Cover image: Port of Port Hedland This page: Port of Ashburton tug pen Our vision: Our values: To be the global leader in EXCELLENCE port planning, operations be the best in all we do and marine services. RESPECT in all our dealings INTEGRITY operate honestly, fairly and impartially CARE for our environment, our staff and our community COURAGE do the right thing Contents Overview 2 Significant Issues 75 Statement of Compliance 2 Current and Emerging Issues 76 Pilbara Ports Authority 2019/20 Highlights 4 Disclosures and Legal Compliance 77 Chair’s Report 6 Directors’ Report 78 CEO’s Report 8 Financial Statements 86 Organisation Profile 10 Directors’ Declaration 144 Organisation Structure 13 Independent Auditor’s Report 145 Board of Directors 14 Key Financial Performance Indicators 147 Executive Team 16 Governance Disclosures 149 Key Business Results 19 Glossary 153 Performance Highlights 20 Performance Against Government Goals 22 Performance Against Our Objectives 32 Performance 61 PILBARA PORTS AUTHORITY ANNUAL REPORT 2020 1 DISCLOSURES AND OVERVIEW PERFORMANCE SIGNIFICANT ISSUES LEGAL COMPLIANCE Statement of Compliance To the Hon. Alannah MacTiernan MLC Minister for Regional Development; Agriculture and Food; Ports In accordance with Section 68 and clauses 34 and 35 of Schedule 5 of the Port Authorities Act 1999 (WA), I hereby submit for your information and presentation to Parliament, the Annual Report of Pilbara Ports Authority for the financial year ended 30 June 2020. Brad Geatches Chair, Pilbara Ports Authority Board of Directors PILBARA PORTS AUTHORITY ANNUAL REPORT 2020 2 DISCLOSURES AND OVERVIEW PERFORMANCE SIGNIFICANT ISSUES LEGAL COMPLIANCE Image: Port of Dampier PILBARA PORTS AUTHORITY ANNUAL REPORT 2020 3 DISCLOSURES AND OVERVIEW PERFORMANCE SIGNIFICANT ISSUES LEGAL COMPLIANCE Pilbara Ports Authority 2019/20 Highlights Revenue excluding Port Total annual Number of safe vessel Improvement Rate (PIR) throughput movements $ 458.7 million 717.2 Mt 17,061 Record monthly throughput at Port of Port Hedland Total annual throughput Total annual throughput at Port of Port Hedland at Port of Dampier 52.4Mt (June 2020; exceeding 50Mt for the first time) 538.2Mt 168.0Mt $ compliance achieved for the ports $ First Point of Entry The million Channel 321,300 112.7 support for local of Dampier and Port Hedland. Risk and Optimisation Project community groups, successfully completed at the More than 100 containers imported through the sporting and not-for- Port of Port Hedland, discharged and inspected under Port of Port Hedland, allowing port users to optimise tonnage profit organisations in new biosecurity arrangements. on their vessels the Dampier/Karratha, Onslow and Port Hedland communities Australia’s first ship-to-ship Stakeholder Satisfaction Survey score increased to LNG bunkering service licences issued to Woodside Energy at the ports of Dampier and Port Hedland. 85 PILBARA PORTS AUTHORITY ANNUAL REPORT 2020 4 DISCLOSURES AND OVERVIEW PERFORMANCE SIGNIFICANT ISSUES LEGAL COMPLIANCE Pilbara Ports Authority 2019/20 Highlights ACIL Allen report The Economic Significance of the Port of Port Hedland finds that thePort of Port Hedland supply chain: $ contributed 54.7 billion into WA’s supported one in every 12 jobs supported 10,178 direct and indirect FTE economy and accounted for 20 per cent in Western Australia Pilbara jobs (approximately 29 per cent of total of WA’s Gross State Product in 2018/19 Pilbara employment) $ Image: Hedland Tower at the Port of Port Hedland 55.6 million Hedland Tower officially opened $ Successful 32.8 million deck replacement at Port of Port Hedland Berth 3 PILBARA PORTS AUTHORITY ANNUAL REPORT 2020 5 DISCLOSURES AND OVERVIEW PERFORMANCE SIGNIFICANT ISSUES LEGAL COMPLIANCE Chair’s Report In what has been a challenging and We continue to work closely with the State Another key initiative that Pilbara Ports Authority uncertain time across the globe since the Government to support its vision for sustainable is supporting is the planned Port Hedland PHVBS, development in the Pilbara, including job-creating which seeks to provide an opportunity for outbreak of the COVID-19 pandemic, I am economic expansion while at the same time residential property owners, whose properties pleased to report strong financial and improving amenity for communities and managing will be subject to rezoning, to sell their properties outstanding operational performance by environmental impact. We continued to work on reasonable terms. As part of the PHVBS there Pilbara Ports Authority, which has seen closely with the Pilbara Development Commission are plans to develop a master plan for the precinct (PDC) on a number of initiatives, including the and progressively deliver an exciting maritime and the level of trade passing through our planned Port Hedland Spoilbank Marina, the Port commercial hub for the Port Hedland community, ports continue to grow, underpinning Hedland Voluntary Buy-Back Scheme (PHVBS) and with land uses more compatible with the proximate the critical role of the Pilbara region to initiatives that seek to substantially increase direct port operations. freight into and from the Pilbara. the State and national economies. A new general cargo facility at Lumsden Point We were pleased to be appointed lead agency for remains a strategic project for Port Hedland to The year saw a record throughput of 717.2 million the construction phase of the Spoilbank Marina, meet demand for trade growth through the Pilbara. tonnes through the ports of Ashburton, Dampier which will not only deliver high quality facilities While Pilbara Ports Authority’s existing berths can and Port Hedland, a three per cent increase on the for recreational boaters but also an exciting new cater for general cargo demand in the short-term, previous year. Pilbara Ports Authority also achieved amenity for the whole community to enjoy. the new Lumsden Point facility will be necessary to support the expected significant increase in cargo a profit before income tax of $188.1 million and Pilbara Ports Authority is well-positioned to lead as direct freight services into the Pilbara gather generated a dividend of $111.9 million which will the delivery of the marina, due to our experience momentum and scale. be returned to the State in December 2020 once undertaking complex capital works in the local declared and approved by Government. marine and environmental conditions. During Also critical will be our continuing consultation Through close and effective engagement with delivery, Pilbara Ports Authority will be working with iron ore exporting companies as we finalise government authorities, port users and service closely with the PDC, Town of Port Hedland and plans for further investment in export capacity at providers, port operations have continued during the Department of Transport (DoT). More than 200 jobs Port Hedland and assess the feasibility of iron ore pandemic with no impacts on safety or reliability. are expected to be created during the construction exports from other ports in the Pilbara. There has been a tightening of already strict of the project, with Stage 1 works expected to start biosecurity measures across our ports, reducing in November 2020. the risk of the COVID-19 virus entering through our ports. I thank all port users, service providers and visitors who continue to work with us to manage these risks. PILBARA PORTS AUTHORITY ANNUAL REPORT 2020 6 DISCLOSURES AND OVERVIEW PERFORMANCE SIGNIFICANT ISSUES LEGAL COMPLIANCE Chair’s Report At the Port of Dampier, geotechnical investigations I would like to express my gratitude to fellow Board are underway for the extension of the Dampier members, the Chief Executive Officer, Executive Cargo Wharf. The proposed new wharf will offer team and PPA staff for their hard work and a multi-user, multi-product facility capable of commitment that has delivered another outstanding accommodating bulk carriers and roll-on, roll-off year. I would also like to thank the Minister for cargo vessels, as well as heavy-load handling. The Ports and Regional Development, Hon. Alannah proposed wharf extension is designed to support MacTiernan MLC, for her support and guidance, projects identified in the State Government’s and the Executive teams at the Department Burrup Strategic Industrial Area. of Transport, the Department of Jobs, Tourism, Science and Innovation (JTSI) and the Department As one contribution to greenhouse gas emissions of Treasury for their significant contribution to the reduction, Pilbara Ports Authority was very pleased success of Pilbara Ports Authority. to support the State Government’s push for an LNG fuelling hub in the Pilbara. The State Government Brad Geatches announced a 50 per cent discount in port dues from Chair 1 July 2020 for bulk vessels bunkering with LNG at Pilbara Ports Authority Board of Directors Dampier and Port Hedland ports. This discount will offer significant savings to bulk vessels bunkering with LNG. For the foreseeable future, managing the impact of the pandemic remains a significant challenge for Pilbara Ports Authority and all port users and suppliers. Despite the pandemic, we are looking forward to continuing to play our role in the prosperity of Pilbara communities and the economic development of regional WA. PILBARA PORTS AUTHORITY ANNUAL REPORT 2020 7 DISCLOSURES AND OVERVIEW PERFORMANCE SIGNIFICANT ISSUES LEGAL COMPLIANCE CEO's Report Pilbara Ports Authority continues The Berth 3 deck replacement also reached practical Pilbara
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