A Memorandum of Understanding (MoU) has been signed between the Gladstone Ports Corporation (GPC) and Sugar Terminals Limited (STL) which could see an increase in storage infrastructure and diverse trade at the Port of Bundaberg.
STL has confirmed it will investigate options to expand its current storage and handling operations at the port.
Transport and Main Roads Minister, Mark Bailey, said the MoU could increase trade and lead to more jobs.
“This agreement is another sign that exporters see the potential for growth in Bundaberg and are ready to back that with long-term agreements,” Bailey said.
“It also underpins the State Government’s commitment to keep Queensland’s ports in public hands and invest in them to support jobs and the state’s economy.
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“STL’s agreement with GPC is a further sign that companies see a positive long-term future in what Bundaberg’s port has to offer for their business.”
In addition to the MoU, a deal was recently signed to expand wood pellet exports through the Port of Bundaberg to Japan to be used as a green fuel to generate electricity.
Ilmenite exports are also planned to start in early 2020 through the port.
GPC’s Acting CEO, Craig Walker, said the partnership with STL would support a detailed business case for the design and construction of Common User Infrastructure at the port.
“The Common User Infrastructure would utilise STL’s existing Sir Thomas Hiley Wharf and ship loading facilities to diversify the current sugar industry resources,” Walker said.
“STL has extensive experience in both operating and maintaining bulk storage and handling facilities, and with GPC as Australia’s premier multi-commodity port, we see that this venture will stimulate industry growth for the region.
“We have been working with STL on this venture for some time in conjunction with our strategic planning work to promote the Port of Bundaberg and surrounding State Development Area.”
STL CEO, John Warda, said the organisation is pursuing opportunities to diversify its income base and better utilise existing assets to complement its sugar handling operations.
“We are excited to be working with GPC on this venture; as a major stakeholder in Bundaberg we see significant opportunities for Common User Infrastructure to attract new commodities to the Port,” Warda said.
“We are working on a staged approach with GPC, with the signing of this MOU today an important first step in investigating the options to add new linkages into existing infrastructure.”
GPC and STL will begin formal investigations in the coming months.