SOUTHERN PORTS AUTHORITY
— MINISTERIAL DIRECTION
817. Hon PETER COLLIER to
the minister representing the Minister for Transport:
I refer to the ministerial direction
to the Southern Ports Authority tabled in Parliament on 23 August 2018.
(1) What is the
forecast cost of maintaining employment at the port during the transition
(2) What is the
difference in revenue between the full port charges and the discounted port
charges that Mineral Resources will be paying?
(3) What is the total cost of the
operating subsidy to the Esperance port over the term of the agreement?
(4) Who will
remain responsible for Cleveland–Cliffs' assets and associated
costs if the cause of any problems relates to major maintenance that had not
been previously undertaken by Cleveland–Cliffs?
On behalf of the minister
representing the Minister for Transport, I am advised the following.
(1) The estimated
transition costs to retain the workforce and place unused infrastructure under
care and maintenance for an assumed transition period of six months is $9 million.
(2) The full port
charge per tonne is $4.40, excluding GST. The discounted rates are $3.05 for
the first 10 million tonnes, $3.50 for the next 15 million tonnes, and $4.40 a tonne
thereafter—all excluding GST. The difference in revenue is, therefore, $1.35
and 90c a tonne, excluding GST, depending on the applicable tonnage volume to
(3) The total
cost of the operating subsidy is $62.9 million, including the estimated $9 million
referred to in part (1).
Resources Ltd will be responsible for major maintenance on assets it owns at
the port to the extent necessary to bring those assets back into the condition
they were in as at the date of their asset transfer—that is, August