Western Tasmania Export Corridor Plan 2017 1 Copyright Notice and Disclaimer

Western Tasmania Export Corridor Plan 2017 1 Copyright notice and disclaimer

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Images courtesy of the Tasmanian Government, Rob Burnett, Tasrail

Western Tasmania Export Corridor Plan 2017 2 Table of contents

Introduction ...... 4 Background ...... 5 Mining and mineral exploration in Tasmania ...... 5 Policy linkages ...... 8 Western Tasmania supply chain characteristics ...... 9 Key findings ...... 9 Current infrastructure capacity and constraints ...... 10 Western Tasmania regional freight task ...... 10 Current infrastructure capacity ...... 10 Key findings ...... 11 Planning for the future ...... 12 Drivers of production and growth for the Western Tasmania mining industry ...... 12 Growth scenarios ...... 13 Capacity and demand ...... 14 Key findings ...... 14 Strategic objectives ...... 15 Identifying options for improved supply chain productivity and efficiency ...... 15 Actions ...... 17 Identifying options for enhanced infrastructure capacity ...... 17 Actions ...... 19

Western Tasmania Export Corridor Plan 2017 3 Introduction

The Tasmanian Government is committed to supporting Tasmania’s mining sector.

Mining contributes more than $800 million annually to Tasmania’s gross state product and directly employs over 3500 people. Together with the mineral processing sector, it employs more than 5000 people and it represents nearly 50 per cent of Tasmania’s total state exports.

The Tasmanian Government, through the Department of State Growth, has developed the Western Tasmania Export Corridor Plan (the plan), with the support of a grant from the Australian Government’s Regional Infrastructure Fund.

The plan aims to support Western Tasmanian mining industry development through improving the productivity and efficiency of export supply chains in the region.

The objectives of the plan are to support industry growth and development through:

 improved supply chain productivity and efficiency; and  enhanced infrastructure capacity where required.

The plan builds on a previous infrastructure audit, the Western Tasmania Industry Infrastructure Study (WTIIS), completed in 2012, which identified transport as the primary infrastructure priority for the region. The plan builds on the WTIIS by extending the geographical scope to include the northwest region, as well as Burnie Port and Port Latta.

The plan was informed by the 2011-12 Tasmanian Freight Survey and an extensive program of industry discussions, including representatives from mining, agriculture and forestry industries and comprehensive supply chain mapping. Infrastructure owners and managers including TasPorts, TasRail and State Growth Roads Division were also consulted. While the plan identifies that there is sufficient infrastructure capacity in place to meet current demand and a range of future growth scenarios, it highlights the importance of ongoing planning and monitoring of mining sector developments. It also identifies that there are opportunities to continue to enhance the efficiency of existing mining supply chains. A primary focus for government will be preparing detailed analysis of roads and bridges for both existing and possible future vehicle configurations, enabling targeted enhancements to public infrastructure such as bridges to improve supply chain productivity and efficiency. Regular, ongoing monitoring of mining sector growth and projected demand will also be key. Through implementing the actions outlined in this plan the Government will ensure that the development of the Western Tasmanian mining industry continues to be supported by productive and efficient transport infrastructure.

Western Tasmania Export Corridor Plan 2017 4 Background

Mining and mineral exploration in Tasmania

Tasmania is one of the most highly mineralised regions in the world and has an extensive range of high grade mineral deposits including:  Metallic minerals - copper, gold, silver, iron, tungsten, tin and zinc.  Industrial minerals - ultra-high purity silica flour, magnesite, limestone, dolomite, fluorite and coal.  Non-metallic construction materials - building stone, aggregate, gravel and sand. $2.85 billion worth of minerals were mined and processed in Tasmania in 2015-16. The majority of the state’s mining operations are located in Western Tasmania. This includes the Rosebery (zinc, lead, gold, copper and silver) and Savage River (iron one) mines. Queenstown’s Mount Lyell mine (copper, gold and silver) was also in operation until transitioning to care and maintenance in June 2014. Significant deposits of construction materials including road base and surfacing materials, gravel, sand and clay are also extracted from Western Tasmania. The major mineral commodities mined in Western Tasmania are exported into domestic and international markets with some processing undertaken within the state. $1.61 billion of minerals were exported in 2015-16. Construction materials extracted are processed for use in Tasmania. Generally the mineral deposits support longer-lasting operations producing small tonnages annually (between 20 000 and 200 000 tonnes), however, in combination, the operations across the region produce significant freight volumes. There are over 500 mining leases in Tasmania, with a range of operating statuses, including in active operation, under care and maintenance, new mines under development and exploration projects/prospects. The following figures provide maps of current statewide mines and mineral processors and proposed mining operations.

Western Tasmania Export Corridor Plan 2017 5 Major mining and mineral processing operations May 2017

Western Tasmania Export Corridor Plan 2017 6 Proposed projects May 2017

Western Tasmania Export Corridor Plan 2017 7 Policy linkages

The Western Tasmania Export Corridor Plan is linked to and builds on existing freight-related initiatives and processes at the state level. The plan also builds on work progressed in support of better understanding regional transport and economic issues, including the WTIIS.

The Tasmanian Integrated Freight Strategy identifies the development of a Western Tasmania Export Corridor Plan as a key action.

The Burnie Port Optimisation Project was completed in November 2015, through a partnership between the Australian and Tasmanian Governments, TasPorts, TasRail and Toll Transport. The works involved enhancing the existing rail intermodal terminal at its links with the Toll terminal, redeveloping the southern railyard and creating a high-productivity transport link within the port precinct. The project has improved efficiency within the port as well as enhancing community safety and access to the beach, removing the need for trains to shunt along the waterfront.

In June 2014, Copper Mines of Tasmania, Queenstown’s primary employer, entered care and maintenance arrangements. Given the dependency on mining for employment in Western Tasmania, and the susceptibility to the peaks and troughs of the global commodity market, the Tasmanian Government established the West Coast Economic Working Group. In the West Coast Economic Working Group Final Report, a range of local investment and job stimulus projects were recommended alongside the existing sectors of mining, mineral processing, aquaculture, tourism and hospitality to strengthen the region’s economy.

The Australian and Tasmanian Governments are co-investing in the Tasmanian Freight Rail Revitalisation Program that will see priority sections of the Tasmanian Rail Network upgraded over the four years to June 2019.

The plan also aligns with TasPorts’ long term development strategy, TasPorts 2043. TasPorts’ 30 year plan is to evolve the current port system to create a multi-port system with better defined roles. The benefits of this model include reducing infrastructure duplication, supporting gateway industries, and promoting flexibility in the freight system1.

1 www.TasPorts2043.com.au Western Tasmania Export Corridor Plan 2017 8 Western Tasmania supply chain characteristics

Cost effective supply chains are critical for mining operations competing in global markets. Each mining operation in Tasmania has supply chain arrangements that are designed to meet its needs and those of its customers at an acceptable level of quality, reliability and safety and at minimum cost. The key supply chains currently used by mining operators in Western Tasmania include:  Bulk product by rail to Burnie Port.  Bulk product by road to Burnie Port.  Containerised product by road to Burnie Port.  Bulk product by road to Burnie Port, then containerised at Burnie.  Product in slurry format to Port Latta (privately owned infrastructure).

Mining supply chains in Tasmania generally have the following key characteristics:  Transport: Shipments of a few hundred tonnes will generally be in bulk shipping containers, with 20 foot containers suiting the high density of most mineral commodities.  Larger shipments will generally be in bulk – involving road and rail movements to port, via open stockpiles and storage sheds, to bulk holds in purpose designed ships.  Storage: As mineral supply chains usually involve shipping larger quantities less often, storage is a significant issue. Storage at the mine site or port, if space is available will generally be more cost effective than other sites. Keeping product dry may be a key storage consideration, and most businesses aim to keep some product stored at port to minimise the chances of delaying ships.  Product shipped in containers can be stored in containers. Key considerations are where to fill containers (off site or port), where full containers are stored and the management of container supply. The key drivers for Western Tasmanian supply chains have been identified through supply chain mapping and analysis. These are: proximity to infrastructure, volume, haul length, customer requirements, environmental factors, and inward movements. Key findings

 The majority of bulk mining product moved on public infrastructure is transported by road to Burnie port.  The use of rail is dependent on a number of issues including proximity to rail infrastructure.  Containerised products tend to suit lower volumes and all containerised transport in Western Tasmania is by road.  Burnie Port has limited storage space for containers, which increases handling costs. Grange Resources has established a privately owned slurry pipeline to move iron ore from its Savage River mine to its processing plant at Port Latta, giving it complete control over its supply chain.

Western Tasmania Export Corridor Plan 2017 9 Current infrastructure capacity and constraints

Western Tasmania regional freight task

Overall, the Western Tasmania region produces around three million tonnes per annum (mtpa) of metal ores and concentrates. Grange Resources is the largest single mining operation, producing over two mtpa, which is transported via its own pipeline to Port Latta. Other operations produce annual outputs of between 20 000 and 200 000 tonnes per annum. The region’s transport infrastructure must also provide capacity for the efficient movement of freight from other economic sectors. In this regard the main industries are forestry, agriculture and aquaculture. There are significant forestry plantation resources within the region, with a major mill re-opening in 2015, and the forestry freight task is expected to increase as a result. An aquaculture hub has recently been set up at Strahan, with three major companies establishing operations in the area. There are also several dairy, vegetable and livestock processors in the north-west, with inputs sourced from Western and Northern Tasmania.

Current infrastructure capacity

The WTIIS identified infrastructure, including transport, telecommunications and energy, as a significant factor in production costs for mining companies. The WTIIS found that while telecommunications and energy infrastructure present challenges for industry they do not impact on the competitiveness of the Western Tasmania mining industry to the same extent as transport infrastructure. Western Tasmania has both road and rail networks which link to Burnie Port, providing access to both bulk and container export facilities. The main roads between Western Tasmania and Burnie port include: Lyell Highway, Zeehan Highway, Anthony Road, Murchison Highway, Ridgley Highway, Massy-Greene Drive, Bass Highway, Edwardes Street, Bollard Drive and Port Road. The Melba line is the route for rail. Burnie port is the key port, with Grange Resources operating a pipeline to its own port at Port Latta. A total of 3.4 million tonnes of freight was exported from Burnie Port in 2015-16. There are a number of challenges associated with land transport infrastructure in Western Tasmania, including mountainous terrain, constrained alignments, and roads which are subject to ice and snow. There is limited storage space for containers at Burnie Port, and both Burnie and Port Latta can be subject to extreme weather. In addition the small scale and dispersed location of mining operations which generally do not warrant significant investment in dedicated infrastructure. Analysis of the capacity of the land transport infrastructure and port facilities indicates that current utilisation is much lower than capacity across all modes. Rail is operating at less than 20 per cent, road at around 10 per cent, and Burnie port at around 25 per cent. Current capacity for rail is around one mtpa, for road around three mtpa, and Burnie port two mtpa. In general, the supply chains used by mining operations are appropriate to their needs and are efficient within the limitations imposed by terrain, road and rail infrastructure and port facilities.

Western Tasmania Export Corridor Plan 2017 10 Key findings

 Western Tasmania has extensive transport infrastructure, which is largely suited to the tasks it services.  Tasmania’s production of metal ores and concentrates is approximately three million tonnes each year, with the majority of this produced in Western Tasmania.  Other industries which share the infrastructure in Western Tasmania are forecast to experience growth.  Current utilisation of infrastructure is much lower than capacity across all modes.  The majority of current mineral supply chains operate efficiently.

Western Tasmania Export Corridor Plan 2017 11 Planning for the future

Drivers of production and growth for the Western Tasmania mining industry

The major factors affecting the growth of the Western Tasmania mining industry include: global and interstate demand for resources; commodity prices; the value of the Australian dollar; and the competitiveness of producers.  Lower exchange rates for the Australian dollar (AUD) generally benefit mining operators including those in Western Tasmania.  Global demand from the construction, automotive and manufacturing industries influence the market for commodities extracted from Western Tasmania. When significant changes to these commodity markets occur these can be felt by individual mining operators or those still in the planning and development stage. Renewed interest in mineral opportunities is likely as world commodity prices improve.  Operational efficiencies assist the viability of mining operations to withstand changing commodity prices and exchange rates. The production costs of mining operations in Western Tasmania are influenced by a range of factors – including infrastructure access and requirements, labour rates, location, scale of production and geological conditions.  Physical access to in ground resources, including the nature of the resource, depth, risk, handling and processing requirements, are considered a primary driver for investment decisions. Labour availability and cost, and access to export infrastructure, are also important considerations. These factors all influence growth in the mining sector, however it is difficult to quantify the degree to which they result in changes to production and freight volumes.

Mineral exploration supporting a pipeline of new projects High levels of exploration in Tasmania were recorded between 2011 and 2013 with a high of $40.7 million spent in 2012. Tasmania’s share of the total value of national exploration expenditure is on average around 1.4 percent. Tasmania has more than 80 per cent of Australia’s Economic Demonstrated Resources (EDR) of tin and 20 per cent of Australia’s EDR of tungsten. A new program of targeted geoscience projects focussed on Tasmania’s North-West and West coasts is focused on encouraging a renewed investment in mineral exploration and development. Funding of $1.4 million for the GeoScience Initiative Program commenced in 2016-17 and will run over four years. The program will ensure that current data can be updated and expanded, refining models to help reduce investment risk for mineral exploration companies. In February 2017, Columbus Metals Limited, a subsidiary of Stellar Resources, was granted a mining lease for an area of Crown land at Zeehan and plans to undertake a fast start underground development based on its Heemskirk Tin Project. Henty Gold mine celebrated its first pour in January 2017, having returned to production in 2016 after a change of ownership.

Western Tasmania Export Corridor Plan 2017 12 Exploration expenditure for Tasmania 45.0 40.0 35.0 30.0 25.0

$m 20.0 15.0 10.0 5.0

0.0

2002 2001 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Year

Source: ABS data (Mineral exploration by State and Territory)

Growth scenarios

Future mining development scenarios were projected to test infrastructure capacity and understand where tipping points are likely to occur. Possible future demand included any production in formats and quantities that places noticeable demand on supply chains. In the Western Tasmania region this includes:  higher volume, generally lower value ores such as iron ore; and  higher value, generally lower volume concentrates of base metals such as copper, lead, tin, zinc and silica. While Tasmania produces substantial quantities of silver and gold, the on-site refining to metal bars makes the transport task small, so the precious metals sector was not included in the scenarios. Three demand scenarios were developed to demonstrate possible demand by existing and potential mineral producers:  Scenario 1 - Current – existing operating mines with limited projected incremental growth.  Scenario 2 - Medium growth – operations included in scenario 1 with moderate growth, plus mines in care and maintenance that are likely to reopen and some small-medium new mines.  Scenario 3 - Step change – operations included in scenario 2 plus a large new mine. Scenarios were informed by proponents’ stated plans and expectations, overall global mineral outlooks and commodity-specific outlooks. Assumptions were made about supply chains of potential operations including location, size and life expectancy of mine, and proximity to road and rail infrastructure.

Western Tasmania Export Corridor Plan 2017 13 Capacity and demand

The scenario modelling indicates that based on forecast demand, existing operating mines will not cause infrastructure capacity issues, even with some growth. There are a number of prospects in the region that could come into operation in the short to medium term if commodity prices increase, and these can also be accommodated. For road, volumes can be accommodated across any scenario, although there may be issues with amenity and interaction with passenger vehicles if there is a large increase in volumes. For rail, capacity increases could likely be achieved to meet future demand across any scenario if necessary. If a large prospect comes online, there is likely to be a desire to use larger ships and the resulting increase in shipment parcel size will impact on storage and port facilities. Given the current world outlook for mineral prices, it seems unlikely that there will be a large step change in mineral exports within the analysis period (up to 2028). However, should all possible identified mining prospects eventuate, these volumes could not be handled by scaling up existing facilities, and substantial upgrades at Burnie Port would be required.

Key findings

 In aggregate, volumes are manageable utilising existing infrastructure and supply chains under current and medium growth scenarios.  Existing road and rail capacity will be adequate to meet anticipated demand until at least 2028 under all three growth scenarios, however if a large new mine uses rail infrastructure it will likely be close to capacity.  Burnie Port will be close to capacity by 2025 under the step change scenario, and impacts from any other issues such as breakdowns will be exacerbated.  The first capacity constraints are expected to be: o mineral storage facilities unable to meet increases in shipment parcel size o shiploader capacity inadequate to meet demand.

Western Tasmania Export Corridor Plan 2017 14 Strategic objectives

The objectives of the Western Tasmania Export Corridor Plan are to support industry growth and development through: 1. improved supply chain productivity and efficiency; and 2. enhanced infrastructure capacity when required.

Identifying options for improved supply chain productivity and efficiency

Given the likely demand outlook and current availability of infrastructure capacity, the key focus of the Western Tasmania mineral export supply chains in the short to medium term will be to achieve greater efficiency, rather than developing strategies to cope with greater volumes. Supply chain analysis showed that most supply chains operate efficiently within their current constraints, but that there may be targeted opportunities for improvements that may deliver benefits across supply chains.

Opportunities for supply chain aggregation and co-ordination in western Tasmania Supply chain aggregation involves one company making use of the facilities or services operated by another or more than one company jointly engaging service providers to manage both companies’ task with a common set of facilities equipment or processes. Supply chain coordination involves an independent organisation managing a complex set of supply chains on behalf of all users, and generally works best where there are very high volumes of product being handled and many producers are sharing capacity constrained facilities. Given the current volumes and location of mining operations, there are not many real opportunities for companies to change their supply chains, including through aggregation or coordination. While most supply chains operate efficiently, there are targeted opportunities for improvement that may deliver benefits across supply chains. Burnie Port presents opportunities for enhanced supply chain coordination in the future once volumes increase, with a focus on storage and shiploading arrangements. TasRail operates a “pit to port” model for customers, which can include coordinating road deliveries to rail storage and loading facilities, linehaul, unloading, bulk mineral storage, road receival and shiploading. TasRail has the potential to coordinate supply chain activities through this mechanism in the short term. The current level of demand and utilisation of Western Tasmania mineral supply chains is insufficient to justify the additional costs of enhanced coordination activity, meaning formalised supply chain coordination is only likely to be pursued if volumes increase significantly.

Western Tasmania Export Corridor Plan 2017 15 Short term productivity and efficiency improvements at Burnie Port Burnie Port’s existing arrangements provide more than adequate capacity for existing activities at current volumes and the current mix of ship sizes, based on current growth. Although there are no immediate capacity issues at Burnie Port, there are possible opportunities for achieving greater productivity and capacity at the port in the short term. These include:  Establishing dry bulk mineral container filling and storage areas at Burnie Port (to eliminate full container move costs from transport company yards).  Providing additional facilities at the mineral shed, including an undercover truck unloading bay and conveyor near the bulk mineral shed and conveyors from this to the existing mineral shed overhead inflow conveyor, to allow road and rail unloading at most times, reduce unloading delays due to congestion.  Installing conveyors from the truck load area to enable truck deliveries be unloaded directly to the shiploader inflow, bypassing the mineral storage shed. TasPorts is currently undertaking a master planning process for Burnie Port, which will inform consideration of these options, including appropriate business models.

Landside productivity and efficiency improvements Containerised goods attract higher transport costs than bulk goods, so increasing the productivity and efficiency of container movements will improve overall supply chain efficiency for those who utilise them. Truck operations are more efficient when the largest possible truck combination for the relevant road sector can be utilised. Continued enhancement of Higher Productivity Vehicle (HPV) routes between Burnie Port and container filling locations would lead to enhanced productivity, through allowing super B-doubles to carry two x 20 foot containers. Recent upgrades to several sections of the Murchison Highway, including from Tullah to Cradle Mountain Link Road, Rosebery to Sterling River over Mount Black, and South of Animal Creek, have been recently completed and will facilitate improved levels of heavy vehicle access. A key impediment to facilitating road access for over size over mass (OSOM) and special purpose vehicles (SPVs) in Western Tasmania is constrained bridge infrastructure and road geometry. The mining industry utilises large mobile cranes (SPVs) and OSOM combinations to transport large equipment and infrastructure components. The Tasmanian Government has undertaken significant work in the past two years to simplify access arrangements for OSOM and some SPVs through a notice and provision of web maps. Access for larger cranes and more complex OSOM combinations is currently provided by preparing a one-off assessment for individual permits. Pilots and escorts are often required, and there is often a considerable lead time for industry. Enabling bridge and road geometry data to be used for multiple assessments across different vehicle combinations would significantly streamline approval processes. The Australian and Tasmanian Governments are co-investing a total of $119.6 million in the Tasmanian Freight Rail Revitalisation Program that will see priority sections of the Tasmanian Rail Network upgraded over the four years to June 2019. The investment will enable TasRail to further improve the performance of the network. Through this program, TasRail have commenced re-sleepering and re-railing of track sections on the Melba and Western lines.

Western Tasmania Export Corridor Plan 2017 16 Actions  Any road upgrades will continue to be delivered to updated standards. Over time this will enable improved heavy vehicle access.  Western Tasmanian bridges and road geometry will be assessed to identify access conditions for SPV and OSOM vehicles, in a format that allows assessment of other vehicle configurations in the future. Information will feed into web maps allowing the provision of transparent information to industry on sections of the network which are open or require permits or access conditions.  Designs will be prepared for strengthening of bridges located on critical parts of the network, to inform future capital investment programs for both State and Local Governments.  Tasports’ Burnie Port master planning process will consider a range of options to enhance mineral export supply chain efficiency in both the short and longer term.  Tranche One of the Infrastructure Investment Program to be completed by June 2019, including rail network renewals on the Melba line.  The need for enhanced supply chain coordination will continue to be monitored.

Identifying options for enhanced infrastructure capacity

Continued monitoring of capacity and demand

Scenario modelling indicates that existing infrastructure capacity is adequate unless there is a significant (step change) increase in volumes from a large new prospect coming online. Current forecasting indicates that this is unlikely in the short term. However when demand for Tasmanian mineral products increases, it will be important to have key infrastructure in place, meaning continued monitoring and long term planning is essential. Long term investment in infrastructure in Western Tasmania will be tied to demand. Longer term planning will need to consider the need for additional capacity, including how and where this can be achieved. Additional volumes on road can be accommodated across all three growth scenarios, although there may be issues with amenity and interaction with passenger vehicles if there is a large increase in volumes. In relation to rail, future demand across any scenario is likely to be able to be accommodated through the addition of wagons from existing rolling stock. If a large prospect comes online, there is likely to be a desire to use larger ships and the resulting increase in shipment parcel size will impact on storage and port facilities. A large step-change in the mineral export task will require whole of supply chain planning and co-ordination. There are no immediate capacity issues at Burnie Port, however the first capacity constraints are likely to be at the mineral storage shed, and in relation to the shiploader.

Mineral shiploader The mineral shiploader, currently owned and operated by TasRail, performs a critical function in current mineral export supply chains and is nearing the end of its reliable economic working life. There are a number of options to consider in replacing the mineral shiploader, ranging from like-for-like replacement, to lower capacity or more mobile options. Key considerations in assessing the various options include cost, flexibility, mobility, speed, and scalabilty. Any investment decision will need to align with projected demand over time, the overall mining sector outlook, and the Burnie Port planning and development process.

Western Tasmania Export Corridor Plan 2017 17 Burnie Port Existing arrangements at Burnie Port are more than adequate for the current mineral trades and volumes and the port is currently operating at approximately 25 per cent capacity. There is limited potential to substantially increase capacity for minerals at Burnie Port without rearranging activities across berths and immediately adjacent land areas. Burnie Port is at the centre of any supply chain changes – other infrastructure will reflect changes at the port. Any changes to infrastructure at Burnie Port will be considered in the context of longer term planning at the port, including through master planning and the proposed private sector investment in the development of an international container terminal.

Enhanced supply chain management and co-ordination The need for enhanced coordination as demand increases has been highlighted as an issue. While most supply chains are operating efficiently at current levels, as larger mines come online, infrastructure utilisation levels increase, and efficiency becomes more critical. It is likely there will be a greater need for improved coordination of supply chain operations from rail and through bulk mineral and shiploader facilities if demand grows to the point where the port is exporting more than two thirds of its capacity.

Western Tasmania Export Corridor Plan 2017 18 Role of the private sector In other parts of Australia and overseas, mining companies have invested in their own supply chain capacity, often as a means of ensuring access or control over their supply chain or securing a competitive advantage. Grange Resources currently owns and operates a slurry pipeline at Savage River that connects to private port facilities at Port Latta. Port Latta can accommodate substantially larger ships than Burnie Port, however significant infrastructure upgrades would be required in order to handle another mine’s product, including additional storage and conveyor systems. Grange Resources’ private infrastructure at Port Latta could be utilised by other mining companies, given the right investment arrangements, and may be an option some mining operations would consider in the future. However, for the most part, mining companies use supply chain facilities and infrastructure owned and managed by others. Apart from Port Latta, rail and port infrastructure are open access facilities owned by state owned businesses TasPorts and TasRail. Given the nature of the mining industry in Western Tasmania, where there can potentially be a multiplicity of users of infrastructure, some of which are quite small, it is likely to be beneficial for critical infrastructure to be publicly owned and managed. Any future infrastructure investment arrangements, particularly those supporting specific ventures, should reflect appropriate risk sharing between the government and industry. Where governments are making an investment in infrastructure, users should pay an appropriate contribution to investment costs over the planned and expected life of the facilities. Actions  Mining industry developments, demand projections and infrastructure utilisation will continue to be monitored to ensure that there are adequate lead times for any necessary future capacity enhancements.  TasRail and TasPorts will continue to work together to plan the replacement of the shiploader in the context of broader master planning for Burnie Port.  TasPorts Burnie Port master planning process will consider a range of options to enhance mineral export supply chain capacity in the longer term.  The need for enhanced supply chain management and coordination will continue to be monitored.

Western Tasmania Export Corridor Plan 2017 19

Department of State Growth

10 Murray Street, Hobart, TAS 7000 Australia GPO Box 536, Hobart, TAS 7001 Australia Phone: 1300 135 513

Email: [email protected] Web: www.stategrowth.tas.gov.au/freight/planning/western_tasmania_export_corridor_plan

Western Tasmania Export Corridor Plan 2017 20