System capacity the concern at Dalrymple Bay 07 June 2007 | 01:28PM
SIR
I write to make an important correction to the article “Dalrymple's $600m upgrade to see capacity to spare,” ( Lloyds List DCN , May 31).
The article's heading and introduction is misleading and plain wrong.
In my address to the Lloyd's List DCN Regional Ports in Focus conference in Mackay last week, I made it clear that despite the expansion to 68m tonnes at the port of Dalrymple Bay Coal Terminal, the problem is that there will be insufficient total system capacity to fully use that expanded capacity.
As I outlined in my address, BBI has spent a lot of money on capacity at the port, and we have the mine production capability and the market to be able to use that expanded port capacity.
Where the problem lies is in the constraints within the rest of the coal logistics chain.
Infrastructure development within the Australian coal industry is currently at a crossroads.
However, it presents us all with an important opportunity to:
• Extract the best performance possible out of existing and new infrastructure assets;
• Work together and integrate planning and execution across the value chain;
• Develop and implement new contracting frameworks and financial models;
• Plan for the long term; and
• Encourage a more active role for government policy makers.
Commercial frameworks that support infrastructure alignment can be achieved if we replicate the advantages of total infrastructure ownership and production chain thinking in our existing environment of multi-asset owners and numerous users.
Chris Tziolis
Manager, infrastructure,
Rio Tinto Coal Australia
