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F L I N D E R S L O G I S T I C S1
2019 SAFC Conference FREIGHT 2030
Channel Widening and Future Development Opportunities
Randall Bonner, GM Group Assets
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F L I N D E R S L O G I S T I C S2 F L I N D E R S L O G I S T I C S2
Agenda
1. Who is Flinders Port Holdings?
2. What do we do?
3. Channel Widening Project
What does this mean for
freight in SA?
4. Master Planning
5. Key takeaways
Investment &
Future Drivers / Opportunities
What does this mean for
freight in SA?
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F L I N D E R S L O G I S T I C S3
Our Mission
To provide port infrastructure,
stevedoring and logistics services
that exceeds the expectations of
our shareholders, customers,
people and communities.
V
Vision
Connecting
South Australia
to the World
Flinders Port Holdings – Our Vision / Mission
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F L I N D E R S P O R T H O L D I N G S4
Flinders Port Holdings Pty Ltd –Shareholding Structure
29%
19%21%
17%
14%
Infrastructure Capital EquipSuper
MTAA State Super NSW
StatewideSuper
• Australian-based boutique infrastructure
investment manager with over AUD1.2bn of
funds under management
• Shareholder since 2010
• National industry based superannuation fund
• Shareholder since 2001
• One of Australia’s oldest superannuation funds
with AUD5bn of investments
• Shareholder since 2001
• One of the largest superannuation funds in
Australia with over AUD37bn of funds under
management
• Shareholder since 2012
• South Australian industry fund with AUD5bn in
funds under management
• Shareholder since 2010
All Australian Ownership - superannuation or investment funds
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5 F L I N D E R S P O R T H O L D I N G S P T Y I M A R C H 2 0 1 8
2. What do we do?
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Group Positioning Statement
Marine Control
Pilotage Towage Ship Arrival Mooring EquipmentStorage &
warehousingIntermodal /
Land Transport
Marine ControlPilot
VesselsTugs Channels Berths Equipment
Warehouse
capabilityPeople
Road, Rail, inland
hubs
Land
Land
Handling & cargo management
Customer Service, Shared Partnerships, Successful Outcomes
F L I N D E R S P O R T H O L D I N G S6
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Where do we operate?
Thevenard
Port Pirie
Port Lincoln
Wallaroo
Port Giles
Adelaide
Klein Point
Whyalla
GFG Alliance
Bonython
Santos
Ardrossan
Viterra
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3. Channel Widening Project• Short Summary Video of the Project
• What does this mean for freight in SA?
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Outer Harbor Channel Widening - Site Location /
Scope of Work
Environment & Technical
▪ 170m (currently 130m)
▪ 14.2 metre depth remains
▪ Between 1.5-2M cubic metres of material removed
▪ Navigational Aids movement
Commencement
▪ Navigational Aids Dec 2018
▪ Dredging Mar 2019
▪ Completion Aug 2019New Location of existing of existing beacons
Existing Beacons
Dredge Material Placement area
Proposed Channel Widening Footprint
Existing Channel Footprint
Additional Width
LEGEND
F L I N D E R S P O R T H O L D I N G S9
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4. Master Planning
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Key Focus Areas
* Timeline / Horizon
* Who will we engage with?
* Will you get to see our Master Plan?
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Timeline & Planning Horizon
$24B → $38B TRADE - Rail, Road, Sea
25-50 years ahead – We are a long term business
Technology Disruptors
Global Trends – Environmental, Community, Safety, Defence etc.
Customer / Stakeholder Needs
Policy Drivers
Shareholder Interests
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Who will we engage with?
Industry Representation
Government
Other Ports Internationally
Internal teams / Board / Shareholders
Recognised Technical Experts
Financial / Macro Economics Experts
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Will you get to see our Master Plan?
Yes, it will not sit on a shelf!
We expect discussion / challenge
It will inform our long term strategic direction
Public release circa Nov 2020
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5. Key Takeaways
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F L I N D E R S P O R T H O L D I N G S16
Where have we invested?
Recent Investments
Channel Widening Outer Harbor $80M
Terminal Land Expansion Outer Harbor $5.5M
New Northern Rail into Container Terminal Outer Harbor $6M
Common User Berths 18-20 Inner Harbour $6M
Hardstand / Electrical Berths 18-20 Inner Harbour $4M
Port Giles Wharf Port Giles $3M
Thevenard Wharf Thevenard $8M
Port Lincoln Terminal/Wharf Port Lincoln $3M
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New Rail Spur + Warehousing Opportunities
Intermodal - 2 x 620m rail spurs
20,000m2 Warehouse
F L I N D E R S P O R T H O L D I N G S17
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F L I N D E R S P O R T H O L D I N G S18
Where are we investing?
Future Investments – 5 Year look ahead
Thevenard $13-15M
Port Lincoln & Kirton Point $12-16.5M
Port Pirie $6-12M
Wallaroo $3-6M
Klein Point $2-4M
Port Giles $1-2M
Inner Harbour and Outer Harbor (All Assets) $40-60M
Container Terminal – Efficiency Projects $6-8M
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Terminal Layout / Current & Future Development
Current Empty Park (4.5ha) Proposed Expansion (6ha+)
Flinders Warehousing & Distribution (3ha)
2 x 620m Spurs
FWD 20,000m2
Warehouse
F L I N D E R S P O R T H O L D I N G S19
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F L I N D E R S P O R T H O L D I N G S20
Terminal Container Movement - Regular Vs HPV’s
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
Q1 11
Q3 11
Q1 12
Q3 12
Q1 13
Q3 13
Q1 14
Q3 14
Q1 15
Q3 15
Q1 16
Q3 16
Q1 17
Q3 17
Q1 18
Q3 18
Q1 19
Q3 19
Regular Vehicles (TEU per Quarter)
HPV (TEU per Quarter)
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Liner Rationalisation 2014 - 2018
Regional Container Line (RCL) withdrew from Australian Trades in late 2014
Hapag to merge with UASC likely to take effect in Australia from 1st Qtr 2017.
Cosco and China Shipping merge.=+
Merger of the 3 Japanese Carriers to form a new Japanese liner entity effective April 2018.
Maersk announced takeover of Hamburg Sud in December 2016. Effective 4th Qtr 2017
Hyundai Merchant Marine withdrew from Australian Trades in Feb 2015.
NYK withdrawing from Australian Trades effective October 2015 / Complete by March 2016
Hanjin Shipping filed for bankruptcy in September 2016
APL buyout by CMA-CGM creating the 3rd largest carrier in the world. Ramifications in Australia.
Liner Consolidation + M&A Activity 2014 - 2018
Q4 2016
Q4 2014
Q1 2016
OOCL 90% acquired by Cosco. Completed mid 2018
Q2 2018
=
2019 →
F L I N D E R S P O R T H O L D I N G S21
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Future Drivers
Sustainability
Internal Efficiencies
Shipping line consolidation – MANAGING THE PEAKS
Infrastructure is SUPERSIZED
Bulk commodities remain key to this state
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Future Drivers
Containers volumes – flatter growth
Working more closely with our customers / stakeholders
Agility
Planning for the future