atlas rail, go go go !!!

Atlas adamant it can link port, rail
February 12, 2014

Atlas Iron has given the clearest indication yet that access to a Pilbara rail network would be won by trading off its space at Port Hedland.

In a speech which puts him on a collision course with the State Government, managing director Ken Brinsden told an American Chamber of Commerce in Australia breakfast yesterday that Atlas' allocation at Port Hedland's inner harbour was the tool that would unlock plans to expand through a rail deal.

Winning a rail deal with one of the Pilbara's iron ore majors - either BHP Billiton, Fortescue Metals Group or Gina Rinehart's under-construction Roy Hill project - is the key to Atlas' ambition of growing exports past its existing goal of 12 million tonnes a year and opening up its far-flung Pilbara assets.

Atlas' port allocation, which includes 15mt at the Utah Point facility and 63 per cent of the still-to-be built 50mtpa South West Creek berths, has long been seen as a major asset.

But the Government's position has been that South West Creek would be set aside for the Pilbara's emerging miners and it would not countenance any deal that permanently handed over space to the region's major exporters.

Transport Minister Troy Buswell told _WestBusiness _last June that South West Creek was for the use of the region's juniors through North West Infrastructure and NWI's allocation did not belong to its individual members.

A spokeswoman for Mr Buswell said yesterday the Government had not changed its position.

But Mr Brinsden made it clear yesterday that Atlas viewed its Port Hedland allocation, including South West Creek, as its key bargaining chip. The company was increasingly confident a deal was close, he said.

"Our confidence comes from the idea that we have a valuable port position, and there is leverage in that valuable port position against rail services," he said.

"Is there a win-win benefit for everyone involved by thinking about aggregating port capacity and rail capacity?

"And our view is that absolutely there is an opportunity there . . . we are quite confident that could deliver a suitable rail solution for us."

Asked whether Atlas had won Government blessing for its plans to use its port space as leverage to gain rail access, Mr Brinsden said he could not comment on details because they were the subject of confidentiality agreements.

"However, it is clear that any infrastructure solution . . . would obviously require the support of the State Government and the Port Hedland Port Authority," he said.