By harvest time next year, grain could be flowing into a new $250 million facility at Port Spencer, 20 kilometres north-east of Tumby Bay on the Eyre Peninsula.
Key points:
- $250 million in funding has been secured for a new grain export facility at Port Spencer on the Eyre Peninsula
- Peninsula Ports hopes to see the port functioning by harvest time next year
- Some locals are not happy as they are not convinced the region needs a new port
This week Peninsula Ports was given the go-ahead after securing funding, with works to begin as early as next month.
The seed to get a new port was planted back in 2012 and now Peninsula Ports has 18 months to get wharf structures, silos and bunkers, and an upgraded road transport route constructed.
Peninsula Ports chair John Crosby said the new port would mean more competition on the market for growers.
“Obviously, those people that get started first get a major advantage in the whole process — firstly an advantage in being funded, and being on deck faster.”
Mr Crosby said the port’s location would also see fewer trucks on Port Lincoln roads.
“The total amount of distance on roads will be less than what it currently is because we’re 70km north of Port Lincoln,” he said.
“There is a need for what is called an east-west road. We’re certainly working with government to see if that can get achieved.”
Not everyone’s convinced
Tumby Bay farmer Dion LeBrun said Peninsula Ports did not properly consult with the farming community.
The grain grower said the announcement came as a surprise after multiple empty promises already posed by the company.
He said he was unsure about the need for the port in its new location.
“There are already three successful, operating grain export ports on the Eyre Peninsula that handle around 2.5 million tonnes of grain,” he said.
“They have their AGMs and shareholders’ meetings, but they really haven’t engaged properly with the wider farming community to find out what the farming community actually needs.”
Mr LeBrun said he was concerned that there was not good enough access for the trucks that would be diverted towards Tumby Bay.
“There is no safe east-west-running, road-train freight route on the Eyre Peninsula,” he said.
Penguin colony calls port home
There are concerns for the animals who live in both the sea and on land close to where the port will be built.
Mr Crosby said the public environmental report was approved about 18 months ago.
“We believe and we were able to convince the experts that they won’t be affected by us,” he said.
However, Lipson Cove resident Rochelle Berryman said the port was approved without a “full” Environmental Impact Study (EIS), unlike Cape Hardy.
“Port Spencer is very close to Lipson Island Conservation Park,” Ms Berryman said.
Ms Berryman said it also concerned her that the heritage-listed Three Sisters shipwreck could be affected due to its close vicinity.
“Approximately 650 local people signed a petition in six days against Port Spencer due to the location, but supporting Cape Hardy,” she said.
“We remain totally opposed to a port [Port Spencer] at Lipson Cove. Cape Hardy is a better location.”
Complex supply chain
Meanwhile, grain market analyst Chris Heinjus, from Pinion Advisory, said the market would ultimately determine whether the project was successful or not.
When T-Ports opened at Lucky Bay in 2020 competition increased significantly, and when that increased so did complexities in the supply chain.
He said it will be a challenge for the port to be up and running by next year.
“No matter where we turn at the moment there are considerable headwinds around the supply of labour and the supply of materials,” he said.
“Globally, supply chains are somewhat fragmented due to the [war in] Ukraine.”