21st Jul 2015 13:09
LONDON (Alliance News) - BHP Billiton PLC Tuesday said it will invest USD240 million to purchase six new tugs at Port Hedland and to construct a new eight-tug pen at Hunt Point, both in Australia
The investment also will include the upgrade of workshop facilities, operational and service berths and two small boat moorings at the existing Nelson Point Tug Harbour.
The new Tug Harbour improves upon previous designs, with the facility requiring minimal dredging and marine-based infrastructure and having less environmental and visual impact, said the company in a statement.
Earthworks are scheduled to commence toward the end of 2015, with construction expected to be complete in the last quarter of 2016. The project is expected to create up to 200 jobs in Port Hedland during construction.
"The project will mitigate the risk of a channel blockage by ensuring the continued safe escort of vessels in and out of the Port Hedland Inner Harbour," said Jimmy Wilson, president of BHP's iron ore division.
"This project will enable BHP Billiton to safely meet projected demand for tug services and effectively manage shipping risk for all users of the Port Hedland Port," Wilson added.
BHP shares were trading down 0.1% to 1,241.0 pence per share on Tuesday afternoon.
By Joshua Warner; [email protected]; @JoshAlliance
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