Lendlease wins $96m BHP contract

The engineering arm of property and infrastructure group Lendlease has won a $96 million contract to build BHP Billiton’s new tug harbour at Hunt Point in Port Hedland.

The engineering, procurement and construction contract also includes upgrades to BHP’s existing tug harbour at Nelson Point and landside non-process infrastructure at both sites.

Lendlease plans to employ about 180 personnel for construction, which is expected to begin in the December quarter.

The contract award comes just a day after BHP announced it planned to spend about $326 million on the new tug harbour, upgrades to the existing facilities, and the purchase of six additional tug boats.

The project will allow escort-capable tug boats to operate within the inner harbour and Port Hedland channel, reducing the risk of vessel grounding and the potential of channel blockage.

“The selection of Lendlease highlights our capacity and capability to deliver smart infrastructure solutions,” Lendlease managing director engineering Brian Gillon said.

“This is one of the first EPC contracts of this scale to be undertaken in the Pilbara and we look forward to delivering improvements to the operating port facilities.”

Meanwhile, the Pilbara Ports Authority is waiting on submissions from shortlisted respondents from an expressions of interest process, for the introduction of another tug boat operator in Port Hedland.

The Australian Competition and Consumer Commission had called on the authority for a process to facilitate the introduction of competition in the provision of towage services at the Port of Port Hedland, where BHP has been controlling a monopoly, in 2013.

The Pilbara Ports Authority has since been working towards issuing a new licence to operate tugs inside the port, and has issued a request for proposals document to shortlisted respondents.

A decision is expected to be made in the first quarter of next year.

Lendlease shares were 0.8 per cent lower to $15.81 at 11:50am.