HR ForumHR Forum

Port of Darwin UpdatePort of Darwin Update

ByBy

Robert Ritchie, Chief Executive OfficerRobert Ritchie, Chief Executive OfficerMerrynMerryn Coleman, Human Resource ManagerColeman, Human Resource Manager

Darwin Port CorporationDarwin Port Corporation

2727thth February 2008February 2008

Port & ChannelPort & Channel

Assets and recent Assets and recent expansionexpansion

Why call Darwin for bulkWhy call Darwin for bulk

StaffStaff

•Darwin Port Corporation is a Government Business Division of the Northern Territory Government.

•Responsible for some 1000 sq Km.

Major cargo segmentsMajor cargo segments

Livestock tradeLivestock trade

Offshore oil and gas supportOffshore oil and gas support

Container & General cargoContainer & General cargo

Dry bulk imports and exportsDry bulk imports and exports

Petroleum & other bulk liquidPetroleum & other bulk liquid

Cruise & Naval vesselsCruise & Naval vessels

Assets we manageAssets we manage

Stokes Hill WharfStokes Hill Wharfharbour tour operatorsharbour tour operatorssmall food outletssmall food outletsrestaurantrestaurantfunction centrefunction centre

Fort HillFort Hilldefence and cruisedefence and cruisetug berthstug berths

Francis Bay MarinaFrancis Bay Marina

Fishermans WharfFishermans Wharf

East Arm facilitiesEast Arm facilities

ChannelChannel

PilotagePilotage Outer Outer 1.5 hours Charles Point Patches1.5 hours Charles Point PatchesInnerInner 45min45min

Tidal variations of up to 8.0mTidal variations of up to 8.0m

ChannelChannel DepthDepth Turning basin 12mTurning basin 12mCharles Point Patches 10.8mCharles Point Patches 10.8m

UKC UKC ChannelChannel 1.1 m 1.1 m East Arm East Arm 0.5 m while alongside0.5 m while alongside

Maximum size of vessel to call at East ArmMaximum size of vessel to call at East Arm

Panamax Panamax Length: 294.1Length: 294.1 metres metres Beam (width): 32.3Beam (width): 32.3 metres metres Draft: 12.0Draft: 12.0 metres in tropical fresh water metres in tropical fresh water Deadweight 60,000dwt Deadweight 60,000dwt –– 80,000dwt80,000dwt

Port & ChannelPort & Channel

Assets and recent Assets and recent expansionexpansion

Why call Darwin for bulk.Why call Darwin for bulk.

StaffStaff

Rail dumpRail dump

1300 tonnes per hour1300 tonnes per hour

Iron ore Iron ore 7 trains per week7 trains per weekManganeseManganese 4 trains per week4 trains per week

StockpileStockpile

Rail dump to stockpile conveyor (A$4.3m) designed for new clientsPotential for additional clients

Storage stockpile areaStorage stockpile area

56 hectares available56 hectares availablefor stockpile developmentfor stockpile development

Road dumpRoad dump

1500 tonnes per hourTriple side tippers from stockpileTruck every 3 minutes

East Arm East Arm –– New Bulk Handling SystemNew Bulk Handling System

Ship loader designed for Panamax vesselsShip loader designed for Panamax vessels

New Bulk Handling FacilityNew Bulk Handling FacilityNew Bulk Handling Facility

Capacity 3.5 - 4Mtpa

Commitments 1.9 Mta

6 shipments per month

Possible 4- 4.5 Mtpa

Liquids Berth 210mGeneral / Container Berth 145mBulk Loader Berth 280mRig Tender Berth 140m

East Arm BerthsEast Arm BerthsEast Arm Berths

12.2m

11.8m

12.5m

11.8m

East Arm has 775m of continuous quay line which is available to Port users on a common user basis. Development approvals in place allow for future extension of the quay line to 1500m

A$200 million spent on stages 1 & 2

Oxiana Stage 2

Shed 5

Shed 2Shed 4

- Relocate vehicle storage

- Relocate project hardstand

- Relocate common user container hardstand

- Relocate O&G hardstand

- Future hardstand reclamation and creation

required

Shed 6

Future possible developmentsFuture possible developmentsFuture possible developments

Overland conveyors from stockpile to ship loader

Reclamation of 2.8ha area behind ship loader

Upgrade to ship loader drive and belts

Reclamation of Pond F

Construction of 4000sqm cargo shed

Berth pocket dredging

Charles Point patches dredging

Reviews Under wayReviews Under wayReviews Under way

Review of Harbour Management and Pilotage

Development of Port Land Use Strategy - East Arm

Development of Scope for Port of Darwin Dredging Programme

Bulk Loader East Arm - Environmental Review

Port & ChannelPort & Channel

Assets and recent Assets and recent expansionexpansion

Why call Darwin for bulk.Why call Darwin for bulk.

StaffStaff

-

Prominent HillCopper / Gold

Olympic DamCopper / Gold /

Uranium

Leigh CreekCoal Beverley

Uranium

ChallengerGold

Ambrosia Mineral Sands

JacinthMineral Sands

RelianceZinc

Goulds DamUranium Portia

Gold

Middleback RangeIron Ore

AngasZinc

ADELAIDE

ALICE SPRINGS

TENNANTCREEK

KATHERINE

DARWINRanger / Jabiluka

UraniumUnion Reefs

Gold

GoveBauxite/Alumina

Northern LimeLime

MerlinDiamonds

McArthur RiverLead/Zinc/Silver

Edna BerylGold

Bootu CreekManganese

GroundrushGold

TanamiOperations

Gold

Peko Project Gold

Harts RangeMineral Sands

Melville Island

Bathurst Island

BatchelorManganese

Browns OxideCobalt/Nickel

Mud TankVarriculite

Palm ValleyGas

MereenieGas and Oil

Railw

ay

WonarahPhosphate

Rai

lway

TunkilliaGold Kalkaroo

Copper / gold

HoneymoonUranium

White DamGold

MindarieMineral

Sands

KanmantooCopper / Gold

0 200 km

Operating mine

Mineral project

Legend

Frances CreekIron Ore

PhillipsonCoal

ArckinragaCoal

BigrlyiUranium

Nolans BorePhosphate

MolyhilTungsten

Rai

lway

TARCOOLA

Mt Porter Gold

RustlersRoostGold

Maud Creek Gold

Redbank Copper

Century Zinc

MT ISAChariotGold

WerregoGold

Juno Gold

Lucy Creek Uranium

YalyirimbaUranium

White Range Gold

Claude Hills Coal

WingellinaCoal

Peculiar KnobIron Ore

Mt Fitton

Hatches CreekTungsten, Gold

and Copper

Oberon Gold

Supply ChainSupply Chain

2200km28hrs

1) Direct rail link from Adelaide to Darwin Port

2) Catchment cargo either side of rail.

2) Current clients

Territory Resources Frances CreekOM Manganese Bootu CreekOxiana Prominent Hill

3) Infrastructure is built and operating

800km11 hrs

190km3hrs

??

Discharge Discharge PortPort

Load PortLoad Port DistanceDistancenautical milesnautical miles

Time round Time round voyage invoyage indays days

(1)(1)

Additional Additional days from days from DarwinDarwin

Additional charter hire @ US$ Additional charter hire @ US$ 96,000 per day96,000 per day

Shanghai Darwin 5530 18

Townsville 7444 24 6 US$576,000

Adelaide 10664 34 14 US$1,344,000

Vessel voyage charter cost comparisonVessel voyage charter cost comparisonVessel voyage charter cost comparison

Supply ChainSupply Chain

Assumptions•Round voyage Shanghai / Australia load port•Voyage at 13 knots•Vessel charter hire at US$96,000•Load 67,000 tonne

Port & ChannelPort & Channel

Assets and recent Assets and recent expansionexpansion

Why call Darwin for bulk.Why call Darwin for bulk.

Staff Staff …… over to over to MerrynMerryn

Identified HR IssuesIdentified HR IssuesIdentified HR Issues

Leadership•Industry Growth will require a different leader

Ageing Workforce•52% age 55 (and Over) in 5 years

Low turnover• average length of service is 11.1 years

Hard to recruit roles•Electricians, Marine Pilots, Attraction and retention issues

Future Labour Market•Future generations will not be attracted to the traditional roles at the Port

Recruitment Recruitment Recruitment

Security RolesCapture market as they receive their licence

ElectriciansNon traditional methods – word of mouth

Marine Pilots e457 Visas

Ageing Workforce vs Low Turnover

Future Generations and Port Roles

People ProgramsPeople ProgramsPeople Programs

Workforce Plan•Ageing Workforce•New infrastructure•24/7 operation•Future Labour Market

Succession Planning Program•Critical Roles •Career Management•Knowledge Management

Performance Management Program•Doing the right things, right

Leadership Program•Develop leaders and change agents

Industrial Relations Reform•Terms and conditions of employment

Reward and Recognition Program•Develop Reward Programs to support the desired culture

Thank you.