Wednesday 20th Feb, 2019

MoU signed to develop woodchip and timber port

A timber company has signed a Memorandum of Understanding (MOU) with Flinders Ports to exclusively develop a port operating model for a proposed seaport on Kangaroo Island.

A timber company has signed a Memorandum of Understanding (MOU) with Flinders Ports to exclusively develop a port operating model for a proposed seaport on Kangaroo Island, South Australia.

Kangaroo Island Plantation Timbers (KIPT) has proposed a deep-water wharf suitable for international timber and cargo chips to transport bulk amounts of woodchips and logs, with room for containerised cargo such as grain and fertiliser as well.

The operating model for the facility aims to produce an optimal solution for the port owner, operator and users, regarding the outcomes achieved by Flinders Ports at other South Australian ports it owns, operates or provides port management services for.

Flinders Ports is the state’s largest port operator, owning seven ports throughout SA and providing services at other third-party ports as well. KIPT owns 86 per cent of the plantation forestry on Kangaroo Island.

Related stories:

The MOU commits both parties to work together for a mutually beneficial outcome and sets out a process for progressing towards a full port operating agreement, Milestones have been locked in as a condition for maintaining exclusivity and the parties will share and protect each other’s intellectual property in relation to the marine operations at the Kangaroo Island Seaport (KI Seaport).

The company will pay to build the wharf, which will also be able to be used by a variety of industries.

The KPIT Board believes that Flinders Port’s ability to manage and deliver services to the new KI Seaport, by using existing efficiencies from other ports in the region, makes it an ideal partner for KPIT.