Hay Point Coal Capacity May Almost Double in Australia

Australia’s Hay Point port, the world’s biggest export harbor for coal, may almost double its shipping capacity after the development of two terminals at the Dudgeon Point site, North Queensland Bulk Ports Corp. says.

The terminals may have a total capacity of 120 million metric tons a year, North Queensland Bulk Ports Chief Executive Officer Brad Fish said in an interview today. Construction may start as early as 2014, he said. Dudgeon Point is about 4 kilometers (2.5 miles) north of the existing facilities, which are 1,000 kilometers north of Queensland’s capital, Brisbane.

Xstrata Plc, Rio Tinto Group and Peabody Energy Corp. are among producers that export coal from Hay Point port, which has two terminals and the capacity to ship 129 million tons a year. Adani Group of India and DBCT Management in July won preferred status to develop the Dudgeon Point site.

“What we believe, and it’s still to be confirmed, is there will be something like 120 million tons of available capacity” at Dudgeon Point, Fish said from Brisbane. “There’s definitely demand out there. We’re trying to stay ahead of the game.”

The Hay Point port shipped 99.5 million tons and handled 1,121 vessels in the 12 months ended June 30, according to the North Queensland Bulk Ports website. BHP Billiton-Mitsubishi Alliance, or BMA as it’s known, operates one of the terminals and DBCT Management the other.

BMA Expansion

BMA is proposing a staged expansion of its terminal at Hay Point to 75 million tons from 44 million tons now, a notice on the website of Australia’s Department of Sustainability, Environment, Water, Population and Communities shows.

The DBCT Management operated Dalrymple Bay terminal, which ships 80 percent of its coal to steelmakers, has four berths and the capacity to export 85 million tons a year.

Adani plans to develop the A$6.9 billion ($6.8 billion) Carmichael coal project in Queensland’s Galilee Basin, which may produce as much as 60 million tons a year and export through the port’s of Hay Point and Abbot Point.

Initial output of 2 million tons per year from Carmichael is expected in 2014, with production projected to increase to 60 million tons by 2022.

Abbot Point, 25 kilometers north of the Queensland town of Bowen, has one terminal and is being expanded to 50 million tons in 2011 from 21 million tons now. Bowen is about 1,100 kilometers north of Brisbane.

To contact the reporter on this story: Ben Sharples in Melbourne at bsharples@bloomberg.net

To contact the editor responsible for this story: Clyde Russell in Singapore at crussell7@bloomberg.net

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