Australia’s Dalrymple Bay Coal Terminal is located at the Port of Hay Point, some 38 kilometres south of the North Queensland city of Mackay. The terminal, which was opened in 1982 with a capacity of 12 Mtpa, stretches over a distance of six kilometres. It has expanded several times after the current owner, DBCT Management, took over in June 2003. A further expansion was completed in June 2009 which took the capacity up to 85 million tons.
To get some insight into the terminal and its operations, we talk to Greg Smith, General Manager Operations at DBCT Management.
“The terminal can accommodate any ship from a 20,000 dwt Handymax to a 220,000 dwt Capesize. The terminal processes three types of coal being: PCI coal, coking coal, and steam coal. Depending on the requirements of the coal buyer, the terminal can blend different types of coal from the stockyard in one ship. This is a big competitive advantage to our customer,” says Smith.
When it comes to loading, the larger is the better with the ideal bulk carrier being a capesize ship loading up to 3–4 coal parcels. However, 6–7 parcels per ship is not unusual, meaning almost one product in each hold. This is a logistical exercise as the loading wharves are four km offshore. The efficiencies of loading multiple products are not as high as loading single products, as the loading belts need to be cleared for each product change. As an example, Greg Smith mentiones that the terminal’s best loading record was 346,000 tons in one day with two large capes and a Handymax/Panamax combination. However, it takes approximately 30–50% extra time to load multi parcel vessels, record daily loads are not as easy. Currently big vessels are normally loaded in 46 hours.
Demand for coking coal is currently very strong. “For the time being there is a waiting time of about 26–27 days with approximately 70 vessels waiting at the port,” says Smith. This is expected to be only temporary with extensions of the rail system completing in September this year and delivery of new train sets continuing. Accordingly, Smith expects the supply chain to be in balance in approximately six months.
The main discharge ports for DBCT coal are Japan, which is the largest with 35% of the import, next is currently China, which can fluctuate between 20–30%, and then we have Korea, India and Europe,” continues Smith.
The mines connected to DBCT vary considerably in both output and type of coal. 18 mines extract different types of coal which is railed to DBCT for processing and shipment. The mines are owned by eight mining houses competing internally. The mines are wide-spread with the closest 160 km from the terminal and the furthest approximately 360 km away. Coal arrives at the terminal by rail and is unloaded “on the move” as trains pass through one of three rail receival stations. An extensive conveyor network then transports the coal to the stockyard for storage before being loaded on to the waiting vessels.
When asking Greg Smith about further demand and developments, he explains that the terminal has extensive capability for expansion although timing is determined by demand.
“With respect to the importance of coal for steel production in the years to come, I think demand will continue to be strong. With 80% of the metallurgical coal sold to steel makers and the rest some 20% comprising thermal coal, the terminal is well positioned for the future,” concludes Greg Smith.
At the time of its original construction, the terminal serviced four mining companies and was owned by the Queensland government. While ownership still resides with the government, DBCT Management won the operating lease in 2001. The lease is for 49 years with a 50-year extension option in DBCT Management’s favour.