Overview
The Cape Hardy port is a staged project and has planning approval to evolve into a multi-commodity and multi-user facility and will support the region’s grain growers and open significant opportunities for a wide range of agricultural and resources producers.
Located approximately seven kilometres south of Port Neill, Cape Hardy will encompass a 900 metre jetty, wharf and landholding of 1,100 hectares. Upon opening, the port will be a grain focussed export terminal aiming to ship at least 1.3 million tonnes per annum of wheat, barley and pulses from the Eyre Peninsula to global markets.
The project will benefit Eyre Peninsula growers via reduced freight costs, member rebates and EPCBH distributions to members.
With Portalis, all EPCBH members will have the right to deliver their grain directly to Cape Hardy and will not be required to use an upcountry storage site.
For growers unable to deliver their grain directly to the port, EPCBH will:
- be developing dedicated up-country storage sites to facilitate grain deliveries closer to farm gate; and
- subject to demand, consider offering a dedicated freight service to its members to enable grain to be carted direct to port.
With Portalis, all EPCBH Members will have the right to deliver their gain directly to Cape Hardy and will not be required to use an u-country storage site. For growers unable to deliver their grain directly to the port, EPCBH will:
- be developing dedicated up-country storage sites to facilitate grain deliveries closer to farm gate; and
- subject to demand, consider offering a dedicated freight service to its members to enable grain to be carted direct to port.
Portalis is seeking EPCBH members to enter long-term agreements with EPCBH that would commit each member to provide a minimum proportion of their grain production to EPCBH for export via Cape Hardy. This commitment is subject to Portalis satisfying multiple conditions including operational readiness of the port.
EPCBH members may also provide an optional contribution of early-stage
capital to EPCBH to assist the co-operative in delivering on its overall commitment to provide approximately $550,000 in funding to Portalis,
which will enable the project to progress to final investment decision.
Benefits of committing grain to EPCBH for export from Portalis
The Project is expected to provide substantial benefitsto growers compared with existing grain export options by combining a significant freight advantage with EPCBH member rebates and distributions that will further reduce effective fobbing costs for growers.
Freight Advantage
The Cape Hardy location, on the boundary of the Lower and Eastern Districts will benefit from reduced transportation time and cost for the majority of Eyre Peninsula growers.
ECPBH Membership Rebates
EPCBH members who commit to the project will benefit from a long-term price agreement with Portalis, of up to 35 years, with an EPCBH member rebate
of up to $7.00/tonne (depending on total EPCBH export volumes) on storage and handling fees that will provide an enhanced cost structure for every tonne of a grower’s grain relative to today’s export options on the Eyre Peninsula.
EPCBH Distributions
As partners in the Cape Hardy Stage 1 project, EPCBH will receive distributions
from Portalis. This enables EPCBH and its members to either reinvest in Portalis or provideadistribution stream back to members.
Pathway to Control of Infrastructure
Despite only currently contemplating raising $550,000 from members, EPCBH members will have a pathway to increase the level of ownership in the Cape Hardy - Stage 1 project, over time, from an initial ownership at construction completion of approximately 15%, proposed to be funded by a loans to co-operative loan from PIRSA, to up to a 40% ownership interest in the port via re-investment in Portalis.
Estimated grower benefits relative to existing Viterra ports by region are summarised in the map below. The map does not include benefits relative to Lucky Bay.