Port Spencer – The Growth Opportunity

Investment in Port Spencer represents a unique opportunity to tap into the world food market via a global gateway linking the plentiful supply of clean, green Eyre Peninsula-grown grain with growing demand from advancing Asian and Middle East consumers.

Grain gateway to the world

Port Spencer – located 70 kilometres north of Port Lincoln on South Australia’s Eyre Peninsula – is being developed as a ‘grain first’ port with the potential to serve the region’s fast-growing extractive industries, aquaculture, urea and increasingly important hydrogen energy sectors.

Eyre Peninsula produces an annual average of more than 2.6 million tonnes of grain – approximately 8 per cent of the Australian crop.  Of this, 85 per cent is exported – primarily to expanding Asian and Middle East markets. Port Spencer is proposed to provide Eyre Peninsula grain growers with greater convenience and improved returns in a highly competitive global market place. Grain production on Eyre Peninsula is increasing by 2.5 per cent per annum on a 20 year average.

Location, location

Port Spencer is located adjacent the most productive (highest yielding) grain growing region of Eyre Peninsula. One million tonnes of grain is grown within 100 kilometres of Port Spencer and there is ready access from most parts of the Peninsula. The port is just seven kilometres from the main Eyre Highway – ensuring easy road access for growers.

This translates to substantial ‘farm to port’ savings ($1-20/tonne) for about half of Eyre Peninsula’s grain producers. Savings of up to $8-10/tonne are also available for grain delivered direct as there is no requirement for double handling.

The port has a number of geographic advantages. It offers deep water (14 metres depth at 300 metres offshore) overcoming the need for barging; it is protected from the predominant west and south-west winds while onshore the land slopes gently to the location of site bunkers behind a protective hill.

Operational advantages

As a purpose-designed facility, Port Spencer enjoys a number of cost advantages and operational efficiencies. The bunker grain storage is located less than 300 metres from the port area – allowing the use of conveyers for grain transfer. Four 12,500 tonne silos allow the assembly of ship cargoes and on-site blending to meet customer requirements.

These factors contribute to Port Spencer’s low capital cost (AUD$250 million) and the lowest (world competitive) operating cost in Australia.

Grower support

Approximately 75 per cent of grain growers on Eyre Peninsula are shareholders of Free Eyre Ltd – the current significant shareholder in Peninsula Ports. More than 50 farmers have indicated that the port will be beneficial to them.

We believe this provides Port Spencer (and Aria) with a significant advantage in attracting grain to the port in its initial operating period.

Project delivery

It is anticipated the facility will be completed and commissioned ahead of the 2024 harvest.

The Port Spencer Project has Major Project Status with the South Australian Government.  Peninsula Ports enjoys a good relationship with the Barngarla people and an Indigenous Land Use Agreement (ILUA) is in place.

The project is “shovel ready” with all of the necessary environmental and planning approvals in place from the SA Minister for Planning.