Photo by: Bloomberg
PERTH (miningweekly.com) – Two of Western Australia’s port handling facilities have been targeted in the state government’s first round of asset sales to reduce its debt levels and regain its AAA credit rating.
State Premier Colin Barnett said on Thursday that port handling facilities in Port Hedland and Kwinana would go on the chopping block, along with marketer and distributor Market City, in Canning Vale.
Barnett said that the assets were expected to generate between A$1-billion and A$2-billion.
“These are the first assets we will open up to the market. They have been identified as priority assets for sale,” Barnett said.
He pointed out that the sale process would balance risk and return and would assess how the assets could be managed, while providing benefits to stakeholders and the Western Australian community.
“These assets are better placed in the private sector. They are likely to be better run by the private sector,” he said.
Port Hedland’s Utah Point bulk handling facility is one of four berths owned by the Pilbara Ports Authority. It includes a shiploader, two stockyard product storage facilities and supporting infrastructure. In 2012/13, it earned A$86.5-million in revenue, with A$44.1-million in expenditure.
Owned and operated by the Fremantle Port Authority, the Kwinana Bulk Terminal exports and imports bulk products including coal, iron-ore, liquefied petroleum gas, cement clinker, gypsum, nut coke and slag.
With a total throughput of 5.2-million tonnes, 2012/13 total revenue was A$61.6-million, with total operating costs of A$36-million.
“The port assets are likely to be sold as a long-term lease,” Barnett said.