MILESTONE ACHIEVEMENTS

2014 ANNUAL REPORT

AUSTRALIAS
NORTHERN GATEWAY
OF CHOICE
 DARWIN PORT CORPORATION 2013/14 Annual Report

Our Report

The Darwin Port Corporation Annual

Report is designed to give its readers
an insight into the key achievements,
challenges, lessons learned and
operating environment during the
2013/14 financial year.
The report shows results in both qualitative and quantitative
performance and outlines actions taken in meeting the corporate
objectives of the Corporate Directions Strategy 2012-17:
Grow Trade
Develop Workforce Capability
Maintain Profitability
Provide a Safe Working Environment
Be Environmentally Responsive
Be Innovative

The report demonstrates our performance against operational,

environmental, financial and community-based expectations and
communicates the Corporations growth strategy, setting a forward
plan for future challenges and opportunities.

As the Northern Territorys leading port authority, the Darwin Port

Corporation has prepared this annual report in accordance with
Section 28 of the Public Sector Employment and Management Act
and Sections 26B and 28E of the Darwin Port Corporation Act.

Our Audience
The Darwin Port Corporation Annual Report aims to inform our
Government, customers and Territorians of our strategic objectives,
performance and future direction.

Our stakeholders include but are not limited to:

Importers and exporters
Port operators
Freight forwarders
Mining sector
Oil & gas companies
Shipping lines and agents operators
Pearling companies
Commercial fishing and seafood operators
Recreational boat users
Recreational fishermen
Transport companies
Rail operators and users
Conservationists
Gas vessel in Darwin Harbour
Defence
Unions
 DARWIN PORT CORPORATION 2013/14 Annual Report

The Hon Adam Giles MLA

Minister Economic Development and Major Projects
Parliament House
State Square
DARWIN NT 0800

Dear Minister

I have pleasure in presenting to you the Darwin Port Corporations Annual Report for 2013/14.

The report details the activities and operations of the Corporation for the year ended 30 June 2014 in accordance with Section 28 of the Public
Sector Employment and Management Act.

In presenting this report I advise that, to the best of my knowledge and belief, the Corporations systems of internal control provide reasonable
assurance that:

a) proper records of all transactions affecting the Corporation are kept and that employees under my control observe
the provisions of the Financial Management Act, the Financial Management Regulations and Treasurers Directions;

b) procedures within the Corporation are such that they afford appropriate internal control and current description of such procedures is
recorded in the accounting and property manual which has been prepared in accordance with the requirements of the Financial
Management Act;

c) there is no indication of fraud, malpractice, major breach of legislation or delegation, major error in or omission from the
accounts and records;

d) in accordance with the requirements of Section 15 of the Financial Management Act, the internal audit capacity available to the
Corporation is adequate and the results of internal audits have been reported to me;

e) the financial statements included in the report have been prepared from proper accounts and records and are in accordance with
Treasurers Directions where appropriate; and

f) all Employment Instructions issued by the Commissioner for Public Employment have been satisfied.

I advise that the Auditor-General has audited the Corporations financial statements for the year ending 30 June 2014 and his comments are
contained in this report.

Yours sincerely

TERRY OCONNOR
Chief Executive Officer
30 September 2014
DARWIN PORT CORPORATION 2013/14 Annual Report

Our Highlights Our Leaders Our Organisation

Our Vision The Year in Review Our Structure &

CEOs Report Stakeholders
Our Mission Our People
Harbourmasters Report
Our Values Training & Development
Chairmans Perspective
Work Health & Safety
Achieving our Corporate Corporate Social
Objectives Responsibility
Case Study: Investing
in Pilotage

Stena Clyde rig in the Port of Darwin with city in the background

2
 DARWIN PORT CORPORATION 2013/14 Annual Report

Go to page number for full section contents

Our Growth Our Operating Our Corporate Our Operational

Strategy Environment Governance Performance
Outlook Our Location & Surrounds Overview & Highlights Highlights & Trade
Corporate Directions Port of Darwin & Assets Milestone Achievements Analysis
Strategy Environmental Risk Management Business Output Groups
Business planning Management & Plans Performance Reports
Strategy Maritime Security Advisory Board Pilotage Activities
Growing Trade Case Study: Darwin
Responsibility, Capability, Committees and Groups Procurement Overview
Marine Supply Base
Profitability & Innovation Case Study: Harbour Compliance & Audits
Case Study: Channel Cranes Case Study: Harbour
Dredging Control Centre

Our Financial Index Feedback Form

Performance Abbreviations
& Acronyms
Financial Highlights
Five Year Comparison
Auditor-Generals Report
Financial Statements
Overview
Index & Notes to
Financial Statements

3
DARWIN PORT CORPORATION 2013/14 Annual Report

Our Vision Our Mission

To strategically develop the Port of Darwin and facilitate trade for the
benefit of the Northern Territory, our stakeholders and customers, by:

Port of Darwin:

Growing trade
Developing workforce capability

Australias Northern

Maintaining Profitability
Providing a safe and secure port environment
Being environmentally responsible
Gateway of Choice Being innovative.

Achieving our Corporate Objectives

1 Growing Trade
The Corporation is committed to attracting
ongoing investments in infrastructure
and services as part of its long-term
strategic planning to capitalise on the
Ports compelling advantages as a major
oil & gas hub and Australias northern
gateway of choice.
Key Achievements:
Record highest total cargo trade across
East Arm Wharf at 4.589 MT, a 7%
increase on the previous year
2 Developing Workforce
Capacity
The Corporation is achieving the priorities
of the Port People Plan to build capabilities
and develop a skilled and efficient
workforce to meet the growing demands
of Port users and major projects.
Key Achievements:
Increase in training expenditure from
$1,700 to approximately $2,200 per FTE
170 specific training courses undertaken
3 - Maintaining Profitability
The Corporation revised its corporate
objective under its Corporate Directions
Strategy 2012-17 from Achieving
Financial Viability to Maintaining
Profitability in recognition of three
consecutive years of healthy profit.
The Corporation is a major contributor
to the growth of the NT economy and
continues to deliver a profit result through
improved cost recovery, new business
systems and process efficiencies.

Record container and general cargo
trade, a 53% increase on last year
Dry bulk exports increased by 10% on
the previous year and accounted for 66%
of total exports
Australian record set for livestock
exports with total of 406,055 head, a
47% increase on last year with an
additional 22 livestock vessel visits
Record vessel visits of 3,178, a 15%
increase on last year
$13M invested in Port upgrades
including $3.5M for dredging of main
channel.
40% female Harbour Control Staff gender
ratio. Nationally only 3% of the maritime
workforce is female.
Oil spill management capability increased
through focused training for all relevant
staff
Substantial investment in pilot
recruitment with four pilots in training
Maintaining a skilled workforce with 43%
of staff having over five years of service.
Key Achievements:
Record $17M in profit before tax
(2012/13: $11M)
5.35% return on net assets
(2012/13: 5.2%)
14% growth in revenue on previous year
Total revenue $58M exceeding the years
target by 11%
Record $9M in berthage revenue, up
29% on previous year.

Overall Performance Overall Performance Overall Performance

2010/2011 6 2010/2011 7 2010/2011 4

2011/2012 5 2011/2012 4 2011/2012 6

2012/2013 7 2012/2013 6 2012/2013 6

2013/2014 6 2013/2014 6 2013/2014 5

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 DARWIN PORT CORPORATION 2013/14 Annual Report

Our Values
We are committed to high-quality outcomes and embracing
continuous improvement, as reflected in our:
ETHICAL & TRANSPARENT CONDUCT
We will conduct our business across all sectors and with all
stakeholders to the highest commercial standards of ethical
behaviour and transparency.
RESPECT FOR EMPLOYEES
We will at all times engage with all our employees with a high
degree of respect and will appreciate the efforts and needs of
individuals to achieve a work/life balance.
RESPONSIBLE SAFETY, SECURITY & ENVIRONMENTAL PRACTICES
The safety of our employees and stakeholders is a major priority
in everything we do. Rigorous security standards are applied at
all of the Ports locations along with a strong commitment to
minimise any impacts from our activities.
RELATIONSHIPS WITH STAKEHOLDERS
We will deliver a world-class service to all internal and external
stakeholders and communicate in a professional and commercial
manner at all times to achieve effective outcomes.
MOTIVATING WORK ENVIRONMENTS
We will operate on the basis of valuing teamwork and mutual
trust while maximising training opportunities for professional and
personal growth and development.

4 Providing a Safe Working 5 Being Environmentally 6 Being Innovative

Environment
Underpinned by its Work Safe. Live Safe.
philosophy and a strong commitment
to a positive safety culture, the
Corporation continued to develop its
safety management system and engage
with staff through training, safety
meetings and exercises.
Key Achievements:
All Safe Work Procedures finalised and
tools developed to assist implementation
and formalise response processes
Online hazard reporting tool introduced
to facilitate improved reporting by
stakeholders and harbour users
Annual Port Safety Day held to coincide
with National Safe Work Australia Week
Online Induction upgrades with improved
registration page and new no cost one
month Port Pass option for short-term
visitors and contractors.
Responsive
The Corporations focus on positive
environmental outcomes remains a key
driver in the review of existing processes
and in the introduction of new operations.
Partnering with key agencies, providing
constructive feedback and participating in
programs delivered by the NT EPA has
delivered positive relationships.
Key Achievements:
Port Environmental Protection Plan
implemented for MSB and expansion
works
All Corporation facilities now have
Environmental Management Plans
Ponds constructed and major storm
water upgrades completed at all key
Corporation facilities
Larrakia Indigenous Sea Ranger patrols
introduced as part of Marine Supply Base
operation agreement with ASCO
Significant reduction in reported
environmental incidents due to improved
monitoring and increased awareness.
Innovation is not only a corporate
objective, its a characteristic imperative
to a small, dynamic agency of Government
in a competitive environment. Continuous
improvement, coupled with a strong focus
on change management and consultation,
drives the Corporation in achieving
innovative solutions, whilst attaining
compliance within regulatory boundaries.
Key Achievements:
Implementation of worlds first fully
integrated Vessel Traffic System and Port
Management and Information System
Improved harbour crane services with
shift to privately operated mobile
services
Positioning armour rock stockpiling to
fast track reclamation surcharging to
open up new hardstand at East Arm
Wharf
Achieving cost and time savings by
leveraging off port users operations,
e.g. mobilised dredging plan.

Overall Performance Overall Performance Overall Performance

2010/2011 7 2010/2011 9 2010/2011 8

2011/2012 6 2011/2012 4 2011/2012 5

2012/2013 5 2012/2013 7 2012/2013 4

2013/2014 4 2013/2014 5 2013/2014 4

5
 DARWIN PORT CORPORATION 2013/14 Annual Report

Vopak fuel terminal with East Arm Wharf in background

6

CEOs Report
I am pleased to be able to report that 2013/14 has been a year of
achievement and prosperity during which a number of significant capital
projects were completed, delivering greater capacity and capability within
the Port of Darwin.
After last years record profit, it is encouraging to report that the
financial results for 2013/14 exceeded our forecast with a $17M
profit before tax. This validates the commercial viability of our
organisation and delivers on our corporate objective of maintaining
profitability.
This latest record profit is in part the result of a 53% increase over
last year in general and container cargo trade, however the main
driver of revenue has been the spin offs from vessels supporting the
$34B INPEX Ichthys Project. The combined impact has seen a 15%
increase in vessel calls over the last 12 months and a 107% increase
over the last two years.
Dry bulk continues to be the main trade commodity totalling 66% of
all exports, over 2.5M tonnes of iron ore and manganese shipped to
China represented the vast majority of bulk ore. The year also saw a
reinvigoration of the livestock trade and an Australian record set for
livestock with 406,055 head exported, representing a 47% increase
from last year including considerable growth in new markets such
as Vietnam.
These positive results capped off a year of significant achievements
including the completion of a number of important projects which
are central to growing the Port of Darwins capacity and capabilities
into the future.
A Year of Achievements
Key achievements included the deepening of the channel adjacent to
Charles Point Patches from 10.1m to 14m which has increased tidal
access to almost 100% for post Panamax vessels and delivered
turnaround efficiencies and cost savings for our customers.
The implementation of a new $8.2M Vessel Traffic Management
System also marks a major milestone for the Corporation which
now operates the worlds first fully integrated Vessel Traffic and Port
Management Information Systems. This places the Port of Darwin at
the forefront of the technology required to support the development
of northern Australia.
With Darwin rapidly becoming a major service and supply hub for
the regions oil and gas industries, the commencement of operations
at the new $110M Marine Supply Base at East Arm Wharf in June
has been widely welcomed as it also delivers an additional 265m of
quay line.
DARWIN PORT CORPORATION 2013/14 Annual Report
Crane services were also significantly improved at East Arm Wharf
during the year with the decommissioning of the Corporations old
container crane and the move to two privately operated mobile
cranes that have doubled container handling capabilities on East
Arm Wharf.
Other achievements include the completion of a three year project to
repair tie rods on the original stage one of East Arm Wharf and the
Corporation took the opportunity to also renew fuel and water lines
and improve stormwater drainage.
Strategic Planning
Our strategic planning has been given a sharper focus with the
development of a five year Port Development Strategy 2014 2019
following a Port Review undertaken last year. The Strategy provides
a framework for achieving better business outcomes and assisting
the Corporation to more effectively anticipate and respond to
changes in domestic and international markets.
The Corporation had the pleasure of showcasing the Port of Darwin
in February during a visit by Prime Minister Tony Abbott, NT federal
member for Solomon Natasha Griggs and Chief Minister Adam Giles
as part of the release of the Terms of Reference for the Northern
Australia White Paper. The Corporation provided valuable input into
the NT governments submission in this document.
As Australias Northern Gateway for trade to important nearby Asian
markets, the Port of Darwin is well placed to have a central role in
the Northern Territory and federal governments plans for the
development of northern Australia.
Increasing capacity and expanding trade
East Arm Wharf is currently operating at around 43% capacity
with room to grow to meet the needs of new and existing Port
users.
Future projects include ongoing reclamation works at East Arm and
extending the quay line at Fort Hill Wharf.
Current reclamation works across a number of ponds at East Arm
Wharf are progressing well and the Corporation anticipates Pond F
will be ready to use in 2015.
7
DARWIN PORT CORPORATION 2013/14 Annual Report

CEOs Overview cont.

There are also opportunities for the Corporation to attract further private
investment for additional infrastructure to service future trade needs.
This will see the creation of 2.5 additional hectares of valuable hard The year ahead brings some uncertainty particularly with
stand area including reefer points, adjacent to the wharf face, to fluctuations in global iron ore prices and the Corporation is mindful
support new trade customers including frozen beef exports from the of the impact this could have on trade figures. To mitigate these
new AACo abattoir at Livingston 50km south of Darwin. risks the Port Management Group continues to implement strategies
to maximise opportunities to diversify our revenue base and to
Recent dredging works for the access channels to the new Marine support our existing customers to ensure mutually beneficial
Supply Base have also provided valuable spoil that has been used to longer term outcomes.
progress reclamation works at other East Arm Ponds including Pond
K. Others such as Pond C are providing temporary storage for the I want to acknowledge the valuable contribution of our staff in
rock load out for the subsea pipeline for the INPEX project. supporting the Corporation in achieving important milestones which
position the Port of Darwin to meet the future trade needs of the
Darwin is one of Australias strategic defence ports and the Northern Territory and Australia.
Corporation continues to build ongoing strong relationships with
defence stakeholders and provide access and services at Fort Hill
Wharf for increasing numbers of visiting Australian and foreign
flagged naval vessels.
Terry OConnor
Darwin remains a popular inclusion in cruise ship itineraries with Chief Executive Officer
the QE2 now a regular visitor. The Corporation issued a contract 30 September 2014
this year for a concept study for extensions to Fort Hill Wharf
which will assist to build the capacity of the Port to accommodate
this important sector in preparation of future visits by the next
generation of mega liners more than 350m in length.

Further capital expenditure projects planned at East Arm Wharf in

the next year include the dredging of a dedicated tug pen facility
and additional hardstand areas to provide greater capacity for
storage of cargo.

$$$$ 17 MILLION Record before tax profit achieved $$$$

8
 DARWIN PORT CORPORATION 2013/14 Annual Report

With the growth and

expansion of traffic and
user requirements within
the Port, effective and
ongoingcommunications
and forward planning
with our stakeholders
is vital.

MOF transition pontoon HydroDeck in harbour for INPEX subsea pipe laying

9
DARWIN PORT CORPORATION 2013/14 Annual Report
Harbourmasters Report
It has been a particularly busy year for the Port with major projects such as
INPEX and the Marine Supply Base both actively operating in Darwin harbours
regulatory sphere.
This year saw an increase in harbour activity including dredging and
diving, workboats and inbound cargo vessels, all operating in an
environment of major change in the harbour. Recreational boating
and fishing remain an important part of the Territory lifestyle and
balancing a solid regulatory approach against recreation and safety
for all Port users is critical to a well-managed harbour.
Communication has been key to achieving harmony and, with the
assistance and cooperation of representative bodies like AFANT, the
NT Seafood Council, sailing clubs and others, the messages are
getting out and the public interest is being protected.
Supporting major projects
Major construction activities associated with the INPEX Ichthys LNG
Project and the Marine Supply Base have advanced significantly
over the year. The new channel from the East Arm Wharf area to the
Bladin Point product loading jetty has been completed, including
the removal of Walker Shoal. The channel is currently marked with
temporary navigation aids but permanent aids will be installed in the
coming months. The INPEX Module Offload Facility and associated
channel was commissioned and received its first ship in June along
with work commencing on the gas subsea pipeline.
The Marine Supply Base also commenced operations in June
with the arrival of the first vessel. Pilotage through the newly
commissioned channel is proceeding steadily and availability of
the channel in various tidal conditions is expanding as pilots gain
experience specific to the new facilities.
Dredging works to deepen the existing shipping channel into Darwin
Harbour, remove navigation hazards and enhance shipping access
to the Port was completed in May. An area of sand ridges that
crossed the channel in Middle Pass near Charles Point Patches
was removed to enable large ships to safely access the harbour.
The channel depth in this area has now been increased from 10.1
to 14.0 metres. This section has previously hampered access for
deeper draft ships and the improved access is particularly important
for dry bulk, petroleum, liquid bulk and LNG vessels. It increases
efficiency and reduces turnaround times for the growing number
of larger vessels trading in Darwin Harbour.
Darwin Port Corporations recently commissioned Vessel Traffic
System has delivered significantly enhanced traffic management on
the harbour. With the latest generation of software, radars, CCTV and
Automatic Identification Systems, we now have a more complete
picture of vessel traffic movements at all times and are leading the
way in vessel traffic capabilities in Australian ports. The enhanced
10
capability provides additional controls against the risk of ship
accidents that might damage the environment or adversely impact
trade. The increase in traffic was met with careful planning,
monitoring and information sharing that kept adverse interactions
to a bare minimum and delivered positive outcomes for all.
Policy development
I was appointed as an authorised officer under the Marine Pollution
Act and have consequently drafted a Non-Cargo Liquid Transfers
Policy. Consultation with the NT EPA, which administers the Act, is
underway. This policy will provide clear guidance for transfers and
will be implemented in 2014/15.
Living and working in the tropics, particularly in cyclone season,
means that knowledge of the current readiness for sea for ships in
harbour is essential for cyclone preparedness. To that end I have
consulted and promulgated an Engine Immobilisation Policy to
clearly articulate the notification and approval process for ships
to immobilise their engines.
As an environmental approval condition for the construction of the
Marine Supply Base, measures to manage the risk of vessel strike
to marine fauna are now in place. These include prescribed speed
limits for commercial vessels implemented through a
Harbourmasters Direction.
Process activities
The slight decrease in the issuing of Notices to Mariners based on
last year is not significant and could be attributed to progress in
harbour construction. The significant increase in Dangerous Goods
notifications and Hot Work Permits is indicative of an improvement
process and an increased awareness and compliance with the
regulations. The issuing of new Pilotage Exemption Certificates
(PECs) decreased compared with the previous year which relates
to the stage of ongoing construction activities. The deactivation of a
large number of PECs in 2013 was a result of changes in limits, the
publication of the Pilotage Standards and the inclusion of currency
requirements for PEC holders. Immobilisation Requests did not
change during the reporting period. Performance reporting is
provided in the graph on the next page.
Engagement with stakeholders
With the ongoing growth and expansion of traffic and user
requirements within the Port, effective communications and forward
planning with stakeholders is vital. The Corporation participates at
senior management level, including the CEO, General Managers and
Harbourmaster, on a number of key stakeholder committees and

17
taskforces, including the Port and Harbours subcommittee of the
NTG Oil and Gas Task Force, the Marine Transport Committee and
the Marine Meeting for the Ichthys project. As Harbourmaster I am
actively engaged with major contractors and subcontractors during
the construction phases of projects that impact the harbour. This
facilitates a proactive approach to planning and managing day-to-
day operations, with safety as the main driver. The Harbour
Operations Group, which I chair, continues to reap benefits. It brings
together key construction stakeholders and provides an important
forum for information sharing so all stakeholders operating on the
harbour are aware of what is going on and what is being planned.
The complicated and dynamic navigation environment has been a
challenge for all stakeholders. Comprehensive Notices to Mariners
are published on the Corporations website to keep mariners
informed. This information source has been widely advertised and
reinforced by public information campaigns including signposting
at boat ramps, the Northern Territory News, AFANT circulars,
INPEX community bulletins and television campaigns. This level
of community engagement is important because there has been,
and will continue to be, some significant changes to the channels,
facilities and navigation aids. The Australian Hydrographer has
made some changes to the Darwin Harbour navigation charts and
a completely new suite of charts will be produced once all the
construction is complete.
Traffic at Fishermans Wharf, the hub of Darwins fishing and
pearling industry, has increased significantly during the last year and
as a result, a number of craft were being delayed. To ensure better
utilisation of the facility and greater certainty for users, we are now
formally scheduling the berth space. Subsequent feedback from the
Sadgroves User Group meetings has been very positive.
Emergency Management
Darwin was spared from significant cyclone activity during the last
wet season. On two occasions cyclones threatened Darwin and the
Port assumed high degrees of readiness. In both cases the cyclones
passed clear but preparations for early stage activation of the Ports
Cyclone Plan were advantageous.
The Australian Maritime Safety Authoritys National Plan for
Maritime Environmental Emergencies is exercised on an annual
basis. These exercises involve a range of stakeholders including
government and industry representation from around Australia and
overseas. The exercise is of national importance in ensuring
strategic and operational preparedness for marine pollution
incidents. In June 2014 Darwin hosted Exercise Northerly in two
This report has been prepared in accordance with section 26B of the Darwin Port Corporation Act.
DARWIN PORT CORPORATION 2013/14 Annual Report
phases over five days; a hypothetical style panel discussion exercise
and National Response Team incident management training plus a
functional exercise in which an Incident Management Team (IMT)
developed a strategy to respond to a marine pollution event in
Darwin. The exercise involved more than 60 participants in the IMT,
an exercise control team of about 20 and observers from industry.
While a full analysis of the exercise is still being conducted by the
Australian Maritime Safety Authority, initial feedback was very
positive and confirmed that the Ports incident control mechanisms
for a major oil spill are in place and practiced.
The year ahead
The Non-Cargo Liquid Transfers Policy is in final draft and
formalises arrangements to conduct transfers in a safe,
environmentally responsible and legal manner. It is intended to
be implemented by September 2014.
A new Vessel Hot Work Policy is in draft to describe the regulatory
requirements for hot work and provide an easy to follow guide for
harbour users will be implemented in August 2014.
The Technical and Safety Standards for Pilotage and the Provision
of Pilotage Services for the Port of Darwin were introduced in mid
2012. While the standards have been important in establishing a
clearly articulated framework for pilotage, a number of minor
enhancements are needed throughout the document to remove
ambiguity and uncertainty following an open consultation process.
Additionally, a review of the pilot licensing and training scheme is
being considered to remove inefficiencies and create flexibility while
maintaining competence assurance.
The formulation of clear, easy to understand policy tailored to the
Port of Darwin, which concentrates on streamlining processes and
minimising red tape, remains a focus of attention for Port Regulation
as does increasing usability of the Corporations website for both
Port personnel and customers.
Captain Tony OMalley
Harbourmaster
25 September 2014
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DARWIN PORT CORPORATION 2013/14 Annual Report
Chairmans Perspective
The Advisory Board is pleased with the Darwin Port Corporations successful
performance in what has been a year of major achievements, ultimately
contributing to the ongoing economic benefits for the Northern Territory and
setting the scene for future development
Major achievements
As part of the Corporations strategic direction, a number of large,
long-term projects were completed this year delivering superior
operability and greatly improved access which are assisting to drive
down the cost of doing business at the Port.
Major projects continue to play a central role in the growth of
revenue for the Corporation, in particular the $34B INPEX Ichthys
project which is now 50% completed and includes the Port of
Darwins second LNG plant at Bladin Point.
Capitalising on external factors
The CommSec State of the States report for the 2nd quarter of 2014
ranked the Northern Territory the best performing jurisdiction in the
country, with activity almost 36% above the average levels for the
last 10 years. The Port of Darwin is one of the key drivers
contributing to this rise in performance.
The Northern Territory is leading the way on economic growth,
business investment, construction work and low unemployment.
These positive indicators mean the Corporation is well placed to
facilitate the ongoing development and diversification of trade and
we look forward to working closely with the government to support
the new Northern Australia Development Office in shaping the
future of the North.
The Territory is also gaining increased international attention from
investors which was reflected in the 2013 Fraser Institutes Survey
of Mining Companies. On the Current Practices Mineral Potential
Index the NT is ranked sixth globally out of 112 provinces and, in
the Investment Attractiveness Index, the NT rose to become second
in Australia.
Strategic advice for future planning
The Advisory Board provided significant input into a scoping study
and report considering the development of foreshore infrastructure
around Darwin Harbour to signal governments intention to invite
private investment in Port infrastructure.
Advice was given on the delivery of large expansion projects,
including additional dredging and the reclamation of more ponds at
East Arm Wharf, as well as advice around strategic planning for the
Ports future crane requirements following the demobilisation of the
old crane at East Arm Wharf.
12
A review of the Darwin Port Corporation Act and the Marine
Act was also undertaken to assist the Corporation with making
representations to government about reviewing relevant legislation
to improve the way the Port does business. The Advisory Board
provided considerable advice over the course of this review.
Whilst not a governing board, the Advisory Board takes a
commercial approach in line with the governments strategic
objectives. The Board provides support and meets regularly with the
Port Management Group to discuss matters relating to the strategic
direction of the Port and provides advice on forward planning.
The Advisory Board meets every two months, in line with meetings
of the Ports Board of Management, and is confident that the
Corporation is well positioned and has the capability and resilience
to manage the Ports sustainable development.
As Chairman I am ably assisted by my fellow board members,
Alan Grummitt an international authority on marine and port
engineering matters, Terry OConnor Port of Darwin Chief
Executive Officer, Melissa Reiter the Advisory Board Secretary and
Karen Green a respected tax and business services advisor from
Deloittes. Karen also sits as independent chairperson of the Ports
Audit and Risk Management Committee.
I consider it an honour to lead a board with such a diverse range
of talent and ability, all committed to growing the Port of Darwin
for the ongoing benefit of the people of the Northern Territory.
On behalf of the members of the Advisory Board I take this
opportunity to thank the Corporations Chief Executive, management
team and employees for their ongoing commitment, support and
energy during the last year. The Advisory Board also wishes to
pass on its appreciation to the Chief Minister and NT Government
Departments for their valuable support and promotion of the
Port of Darwin.
Captain John Watkinson
Chairman
30 September 2014
 DARWIN PORT CORPORATION 2013/14 Annual Report

Our Organisation

Darwin Port Corporation 14 Personnel Profile Mark Kershaw 28

Port Management Group 15 Work Health and Safety 30
Our Stakeholders 18 Safety Management System & Plans 30
Organisational Structure 21 Port Safety Days 32
Our People 22 Corporate Social Responsibility 35
Industrial Relations 23 Symphony on the Sea 37
Personnel Reporting 23 Case Study: Investing in Pilotage 38
Training and Development 26

Dredger and tug moored in Darwin harbour

13
DARWIN PORT CORPORATION 2013/14 Annual Report

Darwin Port Corporation

Left to right: Peter Raines, Anne Coulter, Peter Dummett, Melissa Reiter,
Terry OConnor, Tony OMalley, Ian Niblock, Alastair Black.
The Darwin Port Corporation is established by the Darwin Port
Corporation Act. A Government Business Division of the Northern
Territory, the Corporation is responsible for the management and

operation of the Port of Darwin in accordance with powers and

functions defined in the Act and By-Laws.
Our leadership group The Darwin Port Corporation facilities serve the following shipping
is responsible for and cargo markets:

driving performance

Cruise and naval vessels
Livestock exports
and growth through

Dry bulk ore imports and exports
Offshore oil and gas rig services
informed strategic

Petroleum/avgas & other bulk liquids
Container and general cargo
policy and sustainable Car carriers

business planning and The Corporation operates facilities for community as well as non-
trading vessels. This market segment includes customs,
implementation conservation, research, fishing and pearling vessels.

The Corporations strategies continue to be aligned with the

Governments Framing the Future Blueprint and its key focus of
Building a Prosperous Economy, by ensuring it maintains its vision
to be Australias Northern Gateway of Choice.

14

Port Management Group
OUR ORGANISATION
The Darwin Port Corporation is responsible to the Minister for Economic
Development and Major Projects, the Hon Adam Giles MLA, and is led by Chief
Executive, Mr Terry OConnor.
The Chief Executive Officer and the Executive Management team
constitute the Port Management Group. This leadership group is
responsible for driving the Ports performance and future growth
through informed strategic policy and sustainable business planning
and implementation.
The Port Management Group meets weekly but also convenes
bi-monthly as the Port Board of Management. In this latter role, it
includes members of the Advisory Board in an observatory capacity
and provides strategic governance to ensure a comprehensive and
collective understanding of day-to-day issues and operational
interfaces. This unique governance arrangement allows members
of the Advisory Board to provide strategic advice having already
gained an insight into management reporting and considerations.
In 2013/14, the Port Management Group held 40 meetings and
convened as the Port Board of Management five times.
The Port Management Group is made up of:
Terry O'Connor
Chief Executive Officer
Terry joined the Darwin Port Corporation in June 2008 as the
General Manager Landside Operations and was promoted to Chief
Executive Officer in August 2011. Prior to joining the Corporation,
Terry held roles within Logistics and Facilities Management and with
the Australian Governments Department of Transport and Regional
Services. He has an extensive maritime background following a long
career with Royal Australia Navy.
Terry has a strong understanding of the Port of Darwins operating
environment, its global opportunities and the challenges ahead. This
is particularly important as he leads the Port Management Group to
expand and develop facilities to meet future demands from the
mining sector and maximise the significant advantages of Darwins
close proximity to South East Asia.
Terry is committed to the Corporation being a profitable, safe and
environmentally friendly operation within the Port of Darwin and is
supported by the confidence of the NT Government, commercial
stakeholders and the general public.
DARWIN PORT CORPORATION 2013/14 Annual Report
Peter Dummett
General Manager Port Development
Peter joined the Corporation as General Manager Port Development
in December 2011. Prior to taking up his role Peter held various
positions with international and coastal shipping companies in
Darwin. He has a thorough understanding of the commercial drivers
of shipping industry stakeholders and uses this experience when
working with existing and potential customers of the Port.
Peters primary role is to ensure that the Corporation is well
positioned, with the necessary infrastructure, systems and
processes, to service the anticipated growth in imports and exports.
He plans to achieve this by balancing the needs of all Port users with
the Corporations longer term strategic planning.
He also has the responsibility for managing the contractual interface
between the Corporation and the Ports stakeholders.
Peter is focussed on the Corporation remaining a profitable
organisation while ensuring that industries are provided with the
necessary tools to contribute to growing the Northern Territorys
economy.
Melissa Reiter
General Manager Corporate Services
Melissa has many years experience in various roles with the
Northern Territory Government in paralegal, policy and legislation,
communication and corporate management. She is a company
director and a graduate of the Institute of Company Directors and
a Certified Project Practitioner. She provides strategic advice and
corporate expertise to the Chief Executive Officer and, as part of the
Port Management Group, works to meet the business objectives of
the Corporation. Melissa is the executive officer to the Corporations
Advisory Board.
As General Manager Corporate Services, Melissa leads a
specialised and qualified team responsible for corporate
governance, ministerial liaison, human resource management,
industrial relations, records and information management, legal
services, information communications technology and strategy,
occupational health and safety and environmental management.
15
DARWIN PORT CORPORATION 2013/14 Annual Report

Port Management Group cont.

OUR ORGANISATION

Following a year of milestones with the completion of a number of
long term capital projects, the focus for Melissa and her team in the
upcoming year will be the continual implementation and review of
the safety, security and environmental management systems that
underpin the Corporations strategic objective to ensure that the
Corporation can respond to the demands of stakeholders and major
projects through the coordination of key planning.
Captain Ian Niblock
positions ashore including the Fleet Navigation Officer and Officer in
Charge of the Royal Australian Navys Navigation School.
Tony was the Commanding Officer of HMAS Adelaide in 2005/06 and
has held senior management positions within the Department of
Defence. Most recently he has been the Chief of Staff, Headquarters
Northern Command and Deputy Commander Northern Command.
Tony has served in operations in Fiji, Kuwait, Somalia, Bougainville,
the Solomon Islands, Timor Leste and Iraq.

General Manager Operations He has a Masters degree in Management and Defence Studies from
the University of Canberra and Graduate Diplomas from the
Captain Ian Niblock joined the Corporation in October 2010 as University of New South Wales and University of Wollongong.
Harbourmaster, realising its strategic objective to regulate the water
side of Port activities in order to improve efficiency and safety to
meet the demands of ongoing growth. Alastair Black
Engineering Manager
The opportunity to move to a commercial role with the Corporation
arose in June 2012 when Ian was appointed as General Manager
Alastair has been with the Corporation since 2000 and brings to
Marine Services and subsequently the newly formed Operations
the role over 30 years of global experience in construction and port
Management role in February 2013. His primary responsibilities are
engineering. Alastair is responsible for the implementation of repair
for the efficient and safe provision of pilotage services for visiting
and maintenance projects and the capital works program.
vessels and cargo operations at East Arm Wharf.
Under his leadership a number of key capital projects have come
A master mariner with in excess of 40 years industry experience,
to fruition including land reclamation at East Arm Wharf which
Ian brings a strong seagoing, pilotage and port operations
will result in improved handling and storage of cargo. He is also
background from previous positions. He has also worked in various
overseeing the completion of several maintenance and rehabilitation
regulatory roles in New Zealand. Ian has considerable experience in
projects on the assets at the Corporations City Wharves, which are
marine emergency response management having been incident
now being used by an ever increasing number of vessels associated
controller during a number of incidents in Australia and overseas.
with works currently underway in the Harbour.
Ian obtained a Graduate Diploma in Business (Port and Terminal
Management) through the Australian Maritime College during his Anne Coulter
time as a Marine Pilot at the Port of Tauranga in New Zealand. Chief Financial Officer
He is also the Corporations primary point of contact for the Ichthys
Anne joined the Corporation in March 2008. She is a Chartered
Project, working closely with INPEX and its contractors to facilitate
Accountant with over 20 years of experience in financial
effective operations during the current construction phase and to
management and corporation taxation in both the private and
move towards the operational phase.
public sectors. Anne is responsible for commercial pricing
strategies, revenue and expenditure management for the
Captain Tony OMalley Corporation to ensure adequate funding and financing structure
Harbourmaster for investments and Port expansion.

Anne and her team deliver high-quality services to a wide range

Captain Tony OMalley was appointed as Harbourmaster in February
of Port stakeholders including the provision of financial and other
2013, following a lengthy career in the Royal Australian Navy. After
business services such as budget development, setting performance
joining the Royal Australian Navy he completed a Bachelor of Arts
indicators, financial reporting, taxation and insurance.
degree in Philosophy from the University of New South Wales.
He undertook training as a Seaman Officer and gained his initial
Anne continues to play a key role in refining business models for
qualification in 1985. He then undertook training as a specialist
the Corporations new partnerships and upcoming major projects to
Navigation Officer and served in several positions on various Royal
ensure that the Port of Darwin meets its forecasts for profit growth.
Australian Navy vessels. He also held various specialist navigation

16
 DARWIN PORT CORPORATION 2013/14 Annual Report

Peter Raines
General Manager Facilities
Peter joined the Darwin Port Corporation in September 2010. Prior
to that he was a founding Managing Director of one of the largest
privately owned commercial property maintenance companies in
Darwin and has extensive contract management experience and

14%
knowledge of the business environment in the NT.

As General Manager Facilities, Peter is focused on ensuring the

infrastructure throughout the Port of Darwin is well maintained
and serviceable at all times to meet the demands of clients and
the public alike.

Peters leads a team that is focused on maintaining Port facilities Total revenue
and ensuring a customer focused approach to doing business. growth achieved
He is committed to the Corporation meeting the current and future
requirements of its stakeholder in an efficient, compliant and on previous year
commercially viable manner.

Priorities include the continual upgrade of services and facilities

available at the Frances Bay Mooring Basin and Fishermans Wharf,
and managing stakeholder needs to maximise efficiencies and keep
trade moving at East Arm Wharf with minimum turnaround times.

Fishing fleet at Frances Bay Mooring Basin

17
DARWIN PORT CORPORATION 2013/14 Annual Report

Our Stakeholders
OUR ORGANISATION

The success of the Darwin Port Corporation and its corporate objectives is
linked intrinsically to the professional relationship with its stakeholders. We
work closely with our stakeholders to drive business growth, ensure safety and
prioritise environmental sustainability.
An increasingly important part of stakeholder relationships is
the growing focus on implementing safe and environmentally
sustainable practices across the organisation. The Corporation
works with local authorities, stakeholders and other interested
groups to monitor the environmental status of Darwin Harbour.

The Corporation reviewed its corporate communications and

customer engagement strategy during the reporting period.
This strategy underpins the Corporations successful stakeholder
engagement activities, including the Port User Group, which enjoys
ever-increasing attendance at its six monthly gatherings.

Our values articulate our commitment to high-quality outcomes

and embracing continuous improvement for all stakeholders. Our
stakeholders cover a range of sectors and are detailed in the table
on the following page.

Rig tender berthed at Marine Supply Base

Invested in

$$$13 MILLION Port Upgrades

in 2013/14

18
 DARWIN PORT CORPORATION 2013/14 Annual Report

Ownership Business Customers Government Stakeholders Community Stakeholders

Northern Territory Government Importers Federal: Environmental groups

containers and general cargo
chemicals
petroleum
bulk liquids
dry bulks
car carriers

Exporters: Department of Infrastructure, Community groups

oil and gas Transport, Regional Development
containers and general cargo & Local Government
livestock
dry bulk
bulk liquids

Freight forwarders Department of Defence Education groups

Customs brokers Australian Maritime Safety Local recreational users of the

Authority Port

Road transport companies Department of Agriculture, Tourist visitors to the Port

Fisheries & Forestry Biodiversity

Rail transport companies Port Authorities Media

Search and Rescue Operations Unions

Port operators Northern Territory: Maritime Union of Australia;
Australian Maritime Officers
Shipping agents Department of Treasury & Finance Union

Cruise shipping lines Department of the Chief Minister

Commercial fishing and pearling Tourism NT

vessels

Suppliers Department of Lands, Planning &

the Environment

Stevedores Department of Land Resource

Management

Major project contractors and Department of the Attorney

sub-contractors General and Justice

Department of Infrastructure

Local:
City of Darwin Council

Palmerston City Council

19
DARWIN PORT CORPORATION 2013/14 Annual Report

Performance Feedback
OUR ORGANISATION

The Corporation has initiated a number of mechanisms to facilitate direct

feedback from stakeholders and Port users in order to improve
communications and service delivery. These include regular Port User
Satisfaction Surveys and twice yearly Port User Group meetings.
The next Port User Satisfaction Survey will take place in the fourth
Defence vessels at Fort Hill Wharf quarter of 2014 and will provide the opportunity to monitor the
Corporations ability to meet the needs of its customers,
stakeholders and the expectations of the wider community.

Results from the last survey were very positive, showing improved
client satisfaction. One area identified in the last survey was the
need for improved cargo services at East Arm Wharf. This was
followed up as a priority and, after the decommissioning of the old
Corporation-owned crane in January 2014, two privately operated
mobile harbour cranes were introduced that are already delivering
substantial efficiencies, doubled capability and cost savings.

Communication was considered critical by Port users and the twice

yearly Port User Group meetings remain highly valued as a means
of engaging with users of our facilities. The meetings are widely
acknowledged as a useful mechanism for intelligence updates,
information exchanges and relationship building, with clients
reporting strong improvements in their relationship with
Corporation staff and confidence in the management team.

107%
Increase in vessel
calls over last two
years

20
 DARWIN PORT CORPORATION 2013/14 Annual Report

Organisational Structure
OUR ORGANISATION

Minister

Advisory Board Chief Executive Officer Port Regulation

Harbourmaster

- Dangerous Goods
- Legislation Review
- Harbour Control
- Marine Safety
- Pilotage Policy

Business Services Corporate Services Port Development Operations Facilities

Chief Financial Officer GM Corporate Services GM Port Development GM Operations GM Facilities

- Accounts Payable - Administration - Trade Development - Pilotage Services - Marina Operations

- Accounts Receivable - Work Health & Safety
- Financial Systems - Procurement
- Insurance - Advisory Board Secretariat
- Audit - Corporate Governance
- Taxation - Security
- Ministerial Liaison
- Records Management
- Human Resources
- Environmental
Management
- Corporate Communications
- IT Strategy & Systems
- Port Promotion - Cargo Operations - EAW and City Wharf Facilities
- Defence Strategy - Navigation - Port Services
- Cruise Strategy - Pilot Training - Repairs and Maintenance
- Retail Management - Quarantine Compliance - AMSA Maintenance
- Strategic Projects
- Marine Supply Base Engineering Projects
Engineering Project Manager
- Port Infrastructure Project
Management
- Engineering

Our restructure was supported

by staff, stakeholders and
unions and resulted in a more
efficient frontline service
delivery focus

21
DARWIN PORT CORPORATION 2013/14 Annual Report

Our People
OUR ORGANISATION

Developing workforce capability is a key corporate objective of the

Corporations Corporate Directions Strategy 2012-17. The Corporation
continues to monitor market factors and has been successful in attracting
quality applicants despite high market demand, especially in the
maritime sector.

Human Resources, a part of the Corporate Services division, is

responsible for:

Advice on conditions of service and human resources processes

Coordination of recruitment and selection activities
Coordination of training and performance management
Case management and coordination of workers compensation
Coordination of the joint consultative committee
Coordination of probation processes
Enterprise agreement negotiations
Development and implementation of human resources policies
and strategy
Payroll functions in conjunction with the Department of
Corporate and Information Services
Consultation on implementation of organisational change
specific to human resources
Reporting requirements in accordance with Public Sector
Elfrida Kalich processing accounts Employment and Management Act.

Ensuring the Corporation has a workforce that demonstrates There were some significant human resource activities during the
required qualifications, experience and professionalism is a reporting period relating to restructure, organisational change
fundamental objective of the Port People Plan, the Corporations management and consultation, unrelated to the negotiation of
workforce plan. the two enterprise agreements. Average age of
male employees is 47 years
There are two instruments that set the terms and conditions of
employment for Darwin Port Corporation staff, the Darwin Port
Corporation (Northern Territory Public Sector) 2014-2018
Enterprise Agreement and Darwin Port Corporation Marine Pilots 2013/14 Employee Snapshot
2011-2014 Enterprise Agreement. Both agreements were the subject
of re-negotiation during the reporting period, involving staff
102 people were employed by Darwin Port Corporation
delegates and representatives from Port Management and the
Office of the Commissioner for Public Employment. At 30 June 2014 the average Full Time Equivalent (FTE)
was 94.19
Approved FTE was 105
10% of staff are Executive or Advisory Board Members
Average age of Corporation workforce is 46 years
Average age of female employees is 42 years
Average age of male employees is 47 years
6% of staff are aged 30 years or under
48% of staff are aged 46 years or over
27% of Corporation workforce is female
$208,564 was spent on learning and development.

22
 DARWIN PORT CORPORATION 2013/14 Annual Report

Personnel Reporting
OUR ORGANISATION

Industrial Relations Equal Employment Opportunity

The Corporation operates in a relatively stable industrial relations
environment and maintains regular contact with organisers from the: (EEO) - Flexibility and Diversity
- Maritime Union of Australia (MUA)
Darwin Port Corporation is committed to supporting its employees to
- Australian Maritime Officers Union (AMOU)
achieve and find an appropriate work-life balance. We foster flexible
- Australian Manufacturing Workers Union (AMWU)
working arrangements which are negotiated directly with employees
and reviewed annually to ensure the arrangements meet both the
The Corporations enterprise agreements expired on 30 June 2014.
needs of the employee and Corporations business requirements.
In-principle agreement was reached with the unions to implement
Such agreements have been used to provide assistance to employees
a new 4 year general Darwin Port Corporation (NTPS) Agreement
with family care responsibilities, in transitioning to retirement or to
before the nominal expiry date.
assist employees to gain skills and training not provided by the
Corporation.
The negotiations were positive and productive and as a result, staff
covered by the EBA will receive 3% pay increases each year for the
A variety of flexible arrangements were negotiated this year
next 4 years.
including:
One employee accessing leave without pay for family reasons
At the time of reporting, Marine Pilots, the AMOU and the
A number of employees from across a range of designations
Corporation continue to negotiate the terms of a Marine Pilots
accessed flexible working hours for various reasons including
Agreement.
the provision of care arrangements for young children.

The Corporations ability to provide some flexible arrangement

opportunities can be limited where shift work rosters enshrined in
the Agreement place restrictions on employment and backfilling.

The Corporation encourages employees from all EEO groups to apply

for new positions within the organisation. The number of employees
identifying as Aboriginal or Torres Strait Islander is below the
Northern Territory Government 2013/14 average of 8.7%. Although
the level of the Corporations Indigenous employment is at 2% of the
workforce, this is on par with the national maritime industry average
of 2%.

Whilst the Corporation encourages employees to provide diversity

information such as identifying as Aboriginal or Torres Strait Islander,
being from a non-English speaking background, or having a
disability, this is a discretionary disclosure. The Corporation is
proactively looking at a number of new initiatives to support and
encourage Indigenous Territorians to apply for careers, particularly
in the maritime industry.

23
DARWIN PORT CORPORATION 2013/14 Annual Report

Personnel Reporting cont.

OUR ORGANISATION

23

37

21

11

24
 DARWIN PORT CORPORATION 2013/14 Annual Report

BM Board Members
CTO Control Tower Officers
ECO Executive Contract Officers
MPL Marine Pilots
MSG Maritime Security Guards
MSO Marine Service Officers
PAO Port Administrative Officers
PPO Port Professional Officers
PSW Port Service Workers
SPAO Senior Port Admin Officers
SPPO Senior Port Professional Officers
SPSW Shift Port Service Workers

BM CTO ECO MPL MSG MSO PAO PPO PSW SPAO SPPO SPSW

25
DARWIN PORT CORPORATION 2013/14 Annual Report

Training and Development

OUR ORGANISATION

The Corporations training and development program continued to achieve the

priorities set in the 2013-2014 Port People Plan by:
Aligning training needs to meet current and future capability
Promoting and integrating performance management across
the workforce
Continuing to increase skills and knowledge of safe working
practices
Building adaptable and appropriate organisational structures
Developing leadership
Alignment with whole-of-government employment strategies.

The Corporation continues to focus on training and developing a

skilled and competent workforce capable of meeting the expanding
resourcing requirements of supporting major projects, including
the Marine Supply Base at East Arm Wharf and the Ichthys LNG
plant at Bladin Point.

Corporate training priorities include:

Workplace Health and Safety
Oil Spill Management
Project Management
New technology and management systems
Audit and Risk Management.

Expenditure on Training and Development

The Corporations commitment to the professional development
of staff saw expenditure increase from $1,700 in 2012/13 to
approximately $2,200 per average full time equivalent employee.

The increase in training expenditure reflects a concentration of pilot

training and simulation exercises which were programmed during the
reporting period to meet the considerable demands anticipated in the
future. At the end of the reporting period there were nine licensed
pilots, five of whom are fully qualified, and four at various stages of
the training program.
In addition to this expenditure the Corporation has made a financial
Significant funding was required for the increased number of and resourcing commitment to continue to support an Indigenous
pilots in specific training such as Bridge Resource Management, apprentice gaining a Heavy Metal Fabrication Trade Certificate. Luke
Simulation Training, Manned Model Training and Advanced Marine Neave was successful in being a finalist for the 2012 GTNT Second
Pilot Training. The pilot training was conducted interstate over a Year Apprentice Awards.
number of days as there are no providers of this level of training in
the Northern Territory. Additional simulation training has also been The Corporation has committed to substantial investment in
completed across the pilot group to facilitate pilotage to the newly recruiting and training additional pilots over the next few years to
opened Darwin Marine Supply Base and the Module Offload Facility meet the demands of major projects and other Port users.
for the INPEX construction project.

26
 DARWIN PORT CORPORATION 2013/14 Annual Report

170 specific training courses

were undertaken during the
year, approximately $2,200
per average FTE

27
DARWIN PORT CORPORATION 2013/14 Annual Report
Training and Development cont.
OUR ORGANISATION
Valuing Local Knowledge
As Shipping Scheduler, Mark Kershaw plays a key role in the
efficient management of berthing and turnaround of the Port of
Darwins commercial ships. Duties include receiving berth bookings
and liaison with ship agents, stevedores and shore based crews,
allocation of berths and anchorages as well as assigning duty pilots
and managing their fatigue.
Mark joined the Darwin Port Corporation in 2012 as Shipping
Scheduler and is responsible to the Harbour Control Manager.
He brings a wealth of practical shipping experience, including
over 20 years with the Royal Australian Navy serving in Darwin in
1988 and also on several warships prior to finishing his career as
a Chief Petty Officer Naval Police Coxswain in 1996.
Ship Scheduler Mark Kershaw
3,178
OVER
Record vessel visits, and 15% increase on last year
28
Mark was first introduced to the Port when he became manager of
Sealanes Provedore Services in Darwin, starting a 16 year career as
a Darwin-based shipping agent for companies such as Burns Philp
Shipping, Adsteam, OMS, Inchcape and Gulf Agency, prior to his
current role with the Corporation.
This local knowledge means Mark understands the particular issues
and needs of key Darwin Port users such as livestock exporters and
project cargo carriers and is familiar with the Ports infrastructure.
Throughout Marks time as an agent he was in close daily contact
with the Corporation and developed a strong working foundation
with its pilots and key operational staff and other Port users.
As a Corporation employee with previous experience as a Port user,
Mark was made a member of the implementation team for its new
KLEINPort Information Management System. Mark travelled to
Flinders Port in Adelaide to observe how this was used by another
port, gaining valuable insight in the potential of the system for the
Port of Darwin. Information is the most important part of the
position. When I first started the schedulers job we used the old
PortCam System which was good for its day but not really up to
the standard and requirements of where the Port was heading.
Mark said.
The implementation of this fully integrated technology has
significantly increased information access for Port users by the
quick on-line availability of important shipping data and has greatly
improved the efficiency of how the Corporation manages the berths
and vessels. Mark said.
Marks knowledge has contributed to some significant
improvements from new electronic Notice of Arrivals forms for
agents and port users to improving turnaround times and
maximising effective use of quay line space. These have a direct
impact on increasing revenue for the Corporation and also reducing
costs for Port users.
With a substantial increase in vessel calls recorded for Darwin
Harbour and the forecast of ongoing growth, the role of the Ship
Scheduler is critical to the efficient and safe management of vessel
traffic in the Port of Darwin and Mark Kershaw is a highly valued and
experienced member of the Corporations front line team.
DARWIN PORT CORPORATION 2013/14 Annual Report

Pilot transfer in Darwin Harbour

29
 DARWIN PORT CORPORATION 2013/14 Annual Report
Work Health and Safety
OUR ORGANISATION
Providing a safe working environment is a corporate objective and the
Corporation is committed to providing and maintaining a safe workplace for
workers, contractors and the general public.
Online Induction Improvements
The Darwin Port Induction System (DPIS) is a valuable frontline
safety management tool which assists Port workers, contractors,
leaseholders, stakeholders and visitors to recognise specific
workplace conditions and circumstances which can be encountered
at the Port facilities.
In line with the Corporations desire for continuous improvement,
two major changes to the Online Induction System were introduced
in January 2014. These included the development of a new user-
friendly online registration page which allows applicants to register
for access, receive approval and complete the induction 24 hours a
day 7 days a week all with only the click of a few buttons.
In addition to the 12 month Port Entry Pass, a new no cost one
month Port Entry Pass option was introduced for short term work,
allowing for the transient nature of the workforce in the Port
Industry and resulting in a notable reduction in administrative and
labour costs for Port stakeholders as well as the Corporation.
The DPIS improvements have created efficiencies including a
reduction in processing time required for the 12 month access pass
application to be approved.
Safety Management System
The SMS is essentially an evolving and methodical approach
to managing safety by continuously looking for improvement
opportunities. It incorporates the WH&S Policies and WH&S
Standards that set the direction, Safe Work Procedures (SWPs)
which manage it and Operational Processes that control and
support it.
Significant progress was achieved during the reporting period with
the implementation of all SWPs and the development of various
tools to assist in carrying these out. The SWPs now provide the
workforce with clear direction and the allowances and limitations of
their authority and responsibilities. This is an improvement to the
informal manner in which some processes previously took place.
The Health Safety Environment and Security Committee along with
the Port Management Group will review the SWPs annually with the
objective of improving overall performance.
30
Safety Management Plan
The implementation of the Safety Management Plan (SMP) and its
subsidiary safety management procedures, which is a subordinate
document to the Safety Management System, further reinforced the
shared responsibility for achieving the Corporation's WH&S aims.
The SMP assists employees to understand the benchmark of the
Corporations safety practices and to support the PMG in exercising
due diligence to meet safety obligations.
Traffic Management Plan
A comprehensive Traffic Management Plan (TMP) which was
introduced to the Ports operational areas in June 2013 was put to
the test with a significant increase in traffic at East Arm Wharf over
the last 12 months, providing an opportunity to monitor and review
the TMP. This increase in activity was primarily related to the
construction phase of the new Marine Supply Base, project cargo
for INPEX, general cargo offloads utilising the new mobile cranes
and increases in cattle exports.
The plan provides Port stakeholders with a further understanding of
their - and the Corporations - obligations to manage and work with
a varied array of traffic in a relatively limited area.
The Corporations record of traffic incidents at the Port has
historically been minimal as a result of its strong traffic
management. This has been maintained, even with the growth
in traffic movement, through forward planning, effective
communication and consultation with stakeholders on the TMPs
objectives before and during traffic management modifications.
The TMP is a valuable tool across all Port facilities and continues to
assist the Corporation in meeting its obligations under its Work Safe.
Live Safe. philosophy.
 DARWIN PORT CORPORATION 2013/14 Annual Report

Hazardous Chemical Action Plan progress report
Following legislative changes regarding hazardous chemicals, the
Corporation developed a Hazardous Chemicals Action Plan that is
being rolled out in four stages as part of the Safety Management
System.
Stage one was completed in late 2012 and as part of stage two,
the analysis and evaluation of chemicals was undertaken over the
past 12 months. Hazardous chemicals no longer used have been
appropriately disposed of and a procedure for hazardous chemical
management is underway. This procedure will be utilised by
employees to assist in tasks such as; procuring, understand
labelling, incompatibility storage, entering onto the ChemGold
hazardous chemical database, compiling of Safety Data Sheets and
correct disposal processes. It will also provide steps on how to
determine less hazardous chemicals when purchasing.
Online Hazard Report
Since the introduction of this Online Hazard Report (OHR) in 2013
an increase in awareness to hazards has been reported and queries
being lodged by Port users and the general public. The Corporation
views this as a positive result as hazards that otherwise were not
being reported are now being identified early and acted on before
they cause serious safety concerns.
This open forum provides each Port user the opportunity to discuss
identified hazards and allows for future operations to be examined
less formally, before a hazard operational risk assessment takes
place. A typical agenda will cover incident monitoring and reporting,
hazard identification reports actioned, risk assessment progress,
legislation, policy, procedures updates, training and traffic
management.
Job Safety Environmental Analysis
Since the introduction of the Job Safety Environmental Analysis
(JSEA) form in June 2013, employees have continued to embrace
this process. It ensures that before work is carried out they have
completed a JSEA or reviewed a historical one to ensure that the
current controls are still applicable to the safety of their work.
The regular training sessions are also proving a success as they
enable employees to gain a much better understanding of task
planning, hazard identification, risk assessing and different types of
control measures.

This online reporting tool provides a more accessible way for all
stakeholders, including the general public, to report all types of
potential hazards. With increased vessel traffic and activity
throughout the harbour the OHR, which is readily available on the
Corporations website, provides a more effective way of managing
and responding to reports of potential hazards. These queries can
range from questions in regard to Port facilities or harbour boating
activities to reporting the navigation light being out on a buoy.
Although some people may think that reporting items like this is not
important, it must be recognised that it helps to provide a safe work
and recreational environment for all to enjoy.

The ability to register hazard information online on the Corporations

website removes the need for stakeholders to try to find the right
person to contact. This form is a positive and proactive approach
that the Corporation intends to continue to promote through Port Stewart Proctor participating in Fire Awareness Training
User Group meetings, newsletters and annual reports.

Port User Safety Meetings

Attendance at Port User Safety Meetings has continued to grow
since being introduced by the Corporation in August 2012 with at
least eight standing members from key industry sectors including
stevedores, Defence, oil & gas, fuelling and agents meeting every
two months.

31
DARWIN PORT CORPORATION 2013/14 Annual Report

Work Health and Safety cont.

OUR ORGANISATION

Port Safety Days

Since 2009, the Corporation has conducted Port Safety Days twice
per year and these remain an important communication and training
tool to promote a positive safety culture, with guest speakers
providing updates and awareness on specific issues. Staff are invited
to attend information and practical sessions on specific safety and
health topics. During the 2013/14 reporting period Port Safety Days
were held on 29 and 31 October, concurrently with National Safe
Work Australia Week.

The first day included Fire Awareness to reinforce how a fire can
quickly engulf an area if it has the three essential elements, fuel, air
and heat. All participants had an opportunity to extinguish a real fire.
On both days the buddy system was put to the test with employees
in this instance having to step up and assist to extinguish each
others fires.

The General Manager Operations then presented a case study of a

fire incident that occurred at another port. The relevance for Darwin
is that we have similar ships transiting the Port with project cargo
and early notice of a potentially dangerous situation could prevent
a serious incident. The sharing of lessons learnt assists in realising
and identifying the very real risks of working at a port.
Craig OConnor and Daniel Christophersen operating a defibrillator

Heat Stress and Dehydration Awareness was a new topic for

this years Port Safety Day with an informative presentation from

Thermal Hyperformance to identify and reinforce the dos and

donts of living and working in the tropics. A key point was to
All Safe Work better understand and determine dehydration.

Procedures On the second day a session was presented by Vitality Works,

formerly known as Onsite Health Solutions and included a
finalised and discussion on fighting the fuzz and the impact of being static for
long periods. Staying active and stretching throughout the day will
tools developed assist in keeping your muscles working efficiently and effectively.

to formalise The day finished with a refresher in CPR and how to use a
defibrillator. St Johns provided a reminder to every one of the
response importance of quick actions if you suspect someone is having a
heart attack. Participants were able to practice using a defibrillator
process on dummies.

In recognition of the positive changes to the safety culture at all Port

facilities and awareness of shared obligations, the Corporation will
continue to hold Port Safety Days once a year.

32
 DARWIN PORT CORPORATION 2013/14 Annual Report

The Corporation has a proactive approach to safety management which is

embedded through all aspects of planning, design, execution and evaluation
of works.
Creating Value Whole of Port hazard and risk continues to be measured through
A key component of the Corporate Directions Strategy is the common area risk assessments. The Port has undergone some
Corporations ability to add value when providing a safe working major changes in operations since the previous reporting period,
environment and consequently it strives to achieve compliance and which has identified the need to reassess and prioritise the higher
best practice by developing a safety management system based on risk areas.
the AS/NZS4804:2001 principles;
The Corporation will also be moving to stages three and four of the
Planning and Policy Hazardous Chemical Action Plan which will include such elements
Implementation as; addressing equipment and signage, completion of any corrective
Measuring and Evaluating actions, legislative compliance audit and receiving assurance from
Review and Continual Improvement. Port users in relation to their management of hazardous chemicals.

This paves the way for a holistic and systematic methodology

to safety.

The Year Ahead

100%
The Safety Management System (SMS) is essentially a live
approach that strives for continual improvement. Although each
SWP has been implemented, the continual development of
operational processes to assist with controlling the work and
supporting the SMS will be the focus moving forward into next year.

An Internal Induction Program will also be reviewed as an option

to ensure that new Corporation employees are provided with Safety Management
the necessary knowledge and skills in key areas such as safety, System Standards
environment, procurement and HR and that current employees are
reacquainted with areas that they have under utilised throughout
completed
the year.

The development of the Hazard, Near Miss and Incident reporting

tool is progressing. Software programs have been reviewed and
trialed and factors are being considered to decide which package
best suits the Corporations needs, to ensure it is user-friendly and
not overly complicated.

33
DARWIN PORT CORPORATION 2013/14 Annual Report

Work Health and Safety cont.

OUR ORGANISATION

Workers Compensation
The number of claims this year decreased substantially from nine to
only three compared with the previous reporting period. The claims
were mostly minor in nature and this has resulted in a significant
reduction in cost and lost days.

The Corporation places significant emphasis on safety related

training, with employees undertaking either job-specific Job Safety
Environment Analysis (JSEA) training or generic WH&S training at
Port Safety Days and through other registered training authorities.
Following a review of the Corporations Industrial Uniform Policy last
year, all employees are also provided with sun safe and appropriate
protective clothing relevant to their needs and work environment.

Port of Darwin pilot vessel Lamaroo

34
 DARWIN PORT CORPORATION 2013/14 Annual Report

Corporate Social Responsibility

OUR ORGANISATION

We are proud community partners and endeavour, where possible, to

contribute to community development through sponsorship, participation,
promotion and collaboration in a variety of activities.
This year the Corporation became a proud sponsor of Northern
Territory Thunder for 2014 and 2015, officially signing up in
February to be part of this iconic AFL Territory team. The
Corporations alliance with Thunder as a corporate supporter is part
of its commitment to invest in the local community, support
Territory talent and promote sporting and career opportunities in
remote Indigenous communities.
As a proud partner of the annual Darwin Harbour Clean-up Day, the
Corporation contributes staff, boats, cranes, skips and removalists
to collect tonnes of rubbish from along the harbour foreshore and
coastline. This years Clean-Up Day was held on 12th July 2013 and
the Corporation is pleased to report that amongst the very positive
feedback from participants was the observation that there appeared
to be less rubbish. This can be attributed to greater awareness by
harbour users of the need to be more environmentally responsible
and that ongoing campaigns are resonating with key stakeholders.
Another very successful annual initiative is the Darwin Port
Corporation Charity Golf Day which this year raised over $9,000
for the Mission to Seamen. Twenty four teams of Port customers
participated in this important fund-raising activity and had an
opportunity to engage socially and build positive relationships
with stakeholders and Port management and staff.
The Corporations Community Engagement Charter guides our
endeavours to create opportunities to engage with our community.
The Community Engagement Charter is governed by the following
principles:
Adopt a responsible and pro-active approach to safety and
environmental management in relation to all company matters
Operate in a responsible, ethical and honest manner in all
dealings and negotiations
Create an open, encouraging, motivating environment that gives
stakeholders the opportunity to develop and participate in the
planning of Port operations
Meet customer and stakeholder expectations by adopting a high
commitment to quality
Maintain two-way communication between the Corporation and
Port users
Provide communication channels that may be accessed by the
community
Make decisions to benefit the Northern Territory.

The Corporations recycling initiatives are paying off for the

community as well as for the environment, with funds in excess
of $11,000 raised this year from the collection of empty drink
containers and traders cooking oils at Stokes Hill Wharf. The funds
were donated to the Variety Club of Darwin and will be used to

$9,000
support a range of services and programs for children including
Sunshine Coaches and the purchase of walking apparatus and iPads.

Community Engagement
Darwin Port Corporation respects the interest and ownership that
the community has in its harbour and the Port of Darwins
sustainable growth and development. donated to the Mission to
Seamen from funds raised
at the Corporations Charity
Golf Day.

35
DARWIN PORT CORPORATION 2013/14 Annual Report

Corporate Social Responsibility cont.

OUR ORGANISATION

Corporate Social Responsibility Stokes Hill Wharf

The Corporation is committed to making a positive social One of the Corporations public access wharves, Stokes Hill Wharf
contribution and provides various forms of support in accordance is an iconic and popular gathering place which offers alfresco
with its Sponsorship Policy. dining, spectacular sunsets and panoramic harbour views, just
minutes from the CBD.

Community Sponsorships The Wharf is a recognised WWII war memorial and a site of national
historic significance with commemorative artworks and murals
Darwin Port Welfare Committee Corporate Golf Day commissioned by the Corporation and dedicated to waterside
workers and seafarers who lost their lives during the Japanese
NT Seafood Council Darwin Harbour Clean Up bombing raids on Darwin on 19 February 1942.
Day and NT Seafood
Industry Awards As part of the Corporations community service obligations, major
refurbishment works were completed at the Wharf to ensure the
Cruising Yacht Association Darwin to Dili Rally significance of this historic landmark will be acknowledged and
enjoyed for many years to come by locals and visitors alike.
Expo Australia NT Major Projects
Conference

Informa Australia Lloyds List DCN Shipping

& Transport Awards

NT Chamber of Commerce

Dinah Beach Yacht Club

Chief Ministers NT Export
and Industry Awards
2013 Chamber of
Commerce Golf Day

Darwin to Ambon Race

Wet Season Series Race
$11,000 raised
from collected drink
containers and
NT Football Club NT Thunder Corporate
traders cooking
Sponsorship
oils for recycling,
Aventedge Developing the Territory
Conference
donated to Variety
Ports Australia Ports Australia 44th Club of Darwin
Biennial Conference

Darwin Symphony Orchestra Symphony on the Sea/ADF

thank you

AUSMEPA Mangroves in Australian

Waters 2014 Calendar

ICHCA ICHCA/SAFC 2013

Conference

Darwin Digital Television Reel Territory Segment

36
 DARWIN PORT CORPORATION 2013/14 Annual Report

This unique under the stars waterside event attracted over 5,000 spectators
including a large contingent of Darwin based Defence families, as well as
around 50 vessels that anchored in the vicinity to enjoy the performance.
Symphony on the Sea We say thank you Planning for the event began in late 2012, and involved liaising
Australian Defence Force personnel were honoured with a with numerous stakeholders. This included a full risk management
special Symphony on the Sea concert and fireworks display on assessment, moorings and barrier fences, building a stage inside the
7 September 2013. The free family performance by the Darwin barge for the orchestra, provision of appropriate access and traffic
Symphony Orchestra (DSO) was held on the Jane Vargo, a management on the night and coordinating water safety issues with
Shorelands cargo barge, approximately 25 metres off Darwins the NT Water Police and Life Saving NT.
historic Stokes Hill Wharf.
To cater for the anticipated audience numbers, the Corporation
The Darwin Port Corporation was proud to coordinate this first of its maintained ongoing liaison with the food traders operating at the
kind community event at the wharf with the DOS, as a public tribute wharf, and arranged for nearby venues to provide free parking on
to the Australian Defence Force members who have been engaged in the night. The event was an overwhelming success, receiving very
operations overseas. positive feedback and appreciation from the general public and the
Defence community.
The orchestra included around 75 musicians and support staff under
the baton of the new DSO conductor Matthew Wood.

Along with providing extensive logistical support for the staging

of this major community engagement opportunity, the Corporation
also assisted with sourcing additional in-kind sponsors and donated
over $28,000.

Symphony on the Sea at Stokes Hill Wharf

37
DARWIN PORT CORPORATION 2013/14 Annual Report
Case Study
OUR ORGANISATION
Pilot transfer operation in Port of Darwin
INVESTING IN PILOTAGE
Maximising safety and delivering efficiencies
Pilotage is arguably the most effective method of mitigating many of
the risks to a ship when it is navigating in confined waters such as a
commercial port and ensuring the safety of other port users.
In Darwin Harbour, pilotage is compulsory for ships of 35 metres
or greater overall length. When a ship navigates between one port
and another in the open seas, its captain and other personnel are
responsible for its passage. However, when it enters confined
waters there are a range of additional factors to deal with unique to
that area, for example vessel traffic, differing wharf facilities, varying
depth and area restrictions.
Placing a ship handling expert with local knowledge on board a ship
to guide its navigation team enables safer passage and berthing.
This is the role of a marine pilot.
Unique Challenges
Every harbour is unique and while most major ports primarily handle
one or two main commodities, the trade and traffic through the Port
of Darwin is very diverse which makes it a challenging and exciting
pilotage experience.
Darwin Harbour experiences maximum tidal height variations of
eight metres with associated strong tidal current flows. It also lies
in a tropical cyclone zone and has a high number of recreational and
small boat users including fishing, sailing and tourism vessels and
a fleet of small coastal trading barges.
38
Marine pilots need to have the training and flexibility to deal with a
developing multi-user Port like Darwin, with a wide range of vessels
and berthing facilities, dredging and a newly commissioned channel,
plus unique weather and tidal conditions. In any one week vessels
requiring pilotage can range from cruise liners such as Queen Mary
2, LNG carriers, bulk commodity and container vessels to live cattle
ships, car carriers and fuel tankers.
The INPEX Ichthys project will see an additional 190 vessels per
year using Darwin Harbour as tankers begin to export LNG, LPG
and condensate from the Bladin Point facility.
Pilot Training
The Corporations current pilot training regime is based on
international best practice. Pilots are recruited from within Australia
and overseas and the pilotage experience they bring will determine
how their training is structured. The training package that the
Corporation delivers is customised to the individual needs of
each trainee pilot.
Because pilotage is location specific, an experienced pilot will
require a minimum of 18 months on the job training in Darwin.
However, a number of key training elements are conducted
externally and the Corporation sends all its pilots for training on
simulators located in Fremantle and Cairns for various courses of
different lengths. As pilots progress through their training regime
they complete a one week advanced marine training course. Once
they obtain their first pilot licence, they work through a training
program which allows them to pilot larger vessels.
Benefits
Through extensive and effective stakeholder engagement and
strategic forward planning processes, the Corporation is well
resourced to provide efficient professional pilotage services,
essential for the safety of Port of Darwin users.
A substantial investment in recruitment and training commenced last
reporting period. At the end of June 2014 the Corporation employs
nine licensed pilots, comprising five unrestricted pilots and four
pilots in training.
The purpose-built pilot boat Lamaroo was commissioned last year
and a second pilot boat, the John Grice, provides a permanent back
up which enables the rapid and cost effective deployment of pilots
to ships. The Corporation has invested in state-of-the-art technology
including its Vessel Traffic System which significantly increases its
capability to effectively manage vessel movements and allows real
time access to updates and information during operations.
The Corporation is well positioned to meet the pilotage requirements
of current and future major projects within the harbour as part of
northern Australias development.
 DARWIN PORT CORPORATION 2013/14 Annual Report

Our Growth Strategy

Outlook 40 Port People Plan 51

Charter of Operations 41 Maintaining Profitability 52
Corporate Directions Strategy 42 Providing a Safe Working Environment 53
Business Planning Strategy 43 Port Security Plan 54
Growing Trade 45 Being Environmentally Responsive 55
Marketing Our Port 47 Being Innovative 56
Developing Workforce Capability 51 Case Study: Channel Dredging 57

Tugs at Fort Hill Wharf

39
DARWIN PORT CORPORATION 2013/14 Annual Report
Outlook
OUR GROWTH STRATEGY
Darwin Port Corporation is continuing to realise a range of positive outcomes
and benefits from its growth strategies and planning undertaken over the past
10 years. This year, a number of major milestones and achievements led to
another record profit of $17M before tax.
The driver of this revenue growth remains the spin offs from vessels
supporting the $34B INPEX Ichthys project which is scheduled to
commence LNG exports in late 2016. Benefits from the construction
phase of this project are predicted to continue for the next two
years.
The Corporation is well prepared and competitively positioned to
provide ongoing support for a range of additional major projects and
mining ventures which will continue to contribute to the growth and
sustainability of the Territory economy and the development of
northern Australia.
Our role in Developing the North
The Corporation provided significant content into the NT
Governments submission into the Terms of Reference for the
Federal Governments Northern Australia White Paper, which was
publically released in February during an official visit to Darwin by
Prime Minister Tony Abbott.
Chief Minister Adam Giles, Prime Minister Tony Abbott, Natasha Griggs MP in Darwin
40
The Corporation is strategically positioned to play a key role in plans
by the federal and NT governments to focus on developing northern
Australia and to increase trade through the Port of Darwin in key
areas such as primary industries and resources. The Port continues
to prove itself as Australias northern gateway of choice for trade to
Asia and has the capacity to meet future demands from new and
expanding export markets.
Compelling advantages
The Port of Darwin has many compelling advantages that are
attractive for building new business and growing trade. It is
strategically located as Australias nearest port to important Asian
markets, is in close proximity to the regions offshore oil & gas
fields, has recently invested in world class port technology systems
and has dedicated facilities with full access to multi-modal transport
services and plenty of room to grow.
The Ports East Arm Wharf, within the nearby East Arm Logistics
Precinct, is the freight terminus of the AustralAsia Railway
connecting Adelaide to Darwin and offers a cost effective transport
solution for the export of ore and other cargo from Central Australia
via the Port of Darwin.
With its multi-purpose infrastructure, including a bulk mineral
loading facility and over 775 metres of quay line, East Arm Wharf
has the flexibility to accommodate diverse trades and industry-
specific needs. A further 265m of quay line, with an additional 8.55
hectares of lay down area, is also now available at the $110M Marine
Supply Base which opened for business in June 2014.
This new purpose-built, dedicated oil & gas industry facility has the
capabilities to service in excess of 1,000 vessels a year and support
the operations of a growing number of drilling rigs and platform
vessels, many of which are already based at the Port of Darwin.
The reclamation of Pond F on East Arm Wharf is nearing completion
and will provide a further 2.8 hectares of hardstand. The area will
include reefer storage for the export of chilled and frozen goods
such as beef and agricultural produce.
 DARWIN PORT CORPORATION 2013/14 Annual Report

Container handling services at East Arm Wharf have expanded and

are now provided by two privately operated mobile harbour cranes
following the decommissioning of the Corporations container crane. Charter of
Operations
The move provides improved choice for port users and increased
productivity and flexibility.

New Opportunities
The $3.8M dredging project undertaken this year will continue to The Corporation maintains a Charter of Operations in accordance
open up new opportunities for the Corporation as it has significantly with the Northern Territory Treasurys Principles of Operation for
improved Port access and delivered greater efficiencies along with Government Business Divisions. The charter defines the
considerable cost savings for Port users. Corporations scope of operations, including all activities and
services provided through the Corporations lines of business.
With almost 100% all tides access, the Port of Darwin will be able
to welcome the next generation of over 350m mega liners and post
Panamax-sized vessels. These can now enter and leave the harbour
every day of the year, whereas previously the number of available
sailing days was around 220 per year.

The Corporation is proactively marketing the Ports capabilities to

expand the diversity of its customer base to mitigate some of the
risks associated with fluctuations in global ore prices and demand.

This year the Corporation signed a Heads of Agreement with Rum

Jungle Resources to use the Ports export facilities for two potential
fertiliser mineral projects under development in central Australia.
Other prospective customers include AARDS Metals who are looking
at exporting magnetite from the Warrego Mine near Tennant Creek
and Tellus Holdings who have plans to develop a salt mine in Central
Australia.

New export opportunities are also being realised with the

construction of the Australian Agricultural Company (AACo) abattoir
at Livingston 50km south of Darwin. The first shipments of frozen
beef from the Port of Darwin are expected to commence in late
2014. New livestock markets are also being negotiated including
buffalo to Vietnam and cattle exports to Cambodia, Korea and China.

Exploration of the regions rich oil & gas reserves continues to

expand both offshore and onshore as global energy demands
increase. With two LNG plants already located in Darwin harbour,
and dedicated support facilities such as the Marine Supply Base,
Darwin is becoming increasing attractive as the preferred location Container crane at East Arm Wharf
for future onshore LNG processing facilities for major players such
as GDF Suez and Santos as they develop the Petrel, Tern and Frigate
natural gas fields.

The Port of Darwin is well placed to meet future demands for

growth and the diversification of trade that will come with the
development of Northern Australia and the regions vast natural
resources. With its strategic location close to key Asian markets
and the Corporations ongoing focus on forward planning and a
pro-active approach to securing new customers, the Port will also
attract increasing interest from private investors, a strategy being
pursued by the Territory Government.

41
DARWIN PORT CORPORATION 2013/14 Annual Report

Corporate Directions Strategy

OUR GROWTH STRATEGY

Our Corporate Directions Strategy 2012 - 17(CDS) was reviewed

during the reporting period and a change was made to our corporate
objective from Achieving Financial Viability to Maintaining
Profitability to properly reflect the Corporations performance
achievements and its future goal. A central part of our Corporate
Governance Framework, the CDS is the foundation for the
Corporations corporate and business planning.

Forming the focus for strategic business planning, the Corporations

six Corporate Objectives and their associated strategies are:

1. Grow Trade
Infrastructure is appropriate for the future
Channel access is suitable for future vessel requirements
Marketing strategy

2. Develop Workforce Capability

Workforce profile is aligned to business needs
Organisational culture is values based

3. Maintain Profitability
Achieve a return to government
Establish a competitive advantage
Organisational structure supports core business

4. Provide a Safe Working Environment

Commitment to safety Work Safe. Live Safe.

5. Be Environmentally Responsive
Port operations have minimal environmental impact

6. Be Innovative
Implement leading edge systems
Continuous improvement through focusing on doing the
right things, the right way to achieve the right outcomes.

42
 DARWIN PORT CORPORATION 2013/14 Annual Report

Business Planning Strategy

OUR GROWTH STRATEGY

The Port Board of Management undertakes business planning throughout

the year. The Business Planning Strategy is the subsidiary of our Corporate
Plan and the vehicle for performance management across the Corporations
business groups.
Responsible for its implementation and ongoing performance
monitoring, the Port Board of Management undertakes business
planning to ensure that clear direction on strategies are coupled
with actions, targets, budget and corporate objectives.

Business initiatives are monitored for success factors, including

budget. There were 33 business initiatives in total set for the period
with only seven activities not rated as on track or complete. The
projects that are complete or remain on track for progression in the
forthcoming period are considered as success factors in realising
the corporate objectives of the Darwin Port Corporations Corporate
Directions Strategy 2012-2017.

Key success outcomes are:

A critical infrastructure plan

Operational commencement of the Marine Supply Base

A Channel Enhancement Strategy that provides all tides access

and defined fairways

A Communications and Customer Engagement Strategy as a

platform for communication and engagement with stakeholders

A Social Media Plan to complement strategic communications

and promote a positive corporate profile in the social media
space

Revised Executive Responsibilities that better align to corporate

direction

A Port Development Strategy providing a five year outlook on

port development

Achieved mini budget targets and outcomes

A restructure of operational resources to achieve focus on

frontline service delivery

A comprehensive Safety Management System

Risk assessments for strategic, operational and financial risks

Implementation of controls and ongoing monitoring and

management program

A dredging plan for the Frances Bay Mooring Basin.

43
DARWIN PORT CORPORATION 2013/14 Annual Report

Business Planning Strategy cont.

OUR GROWTH STRATEGY

Our performance in achieving the 33 business initiatives we set is

reported in Our Operational Performance section of this report, on
pages 107 to 111. Out of the 33 initiatives, five did not progress and
were deemed as either not addressed or as major issues
outstanding, and three were partially progressed. These were:

Initiative No. 6 Determine the cost benefits of a DUKC: This

initiative was placed on hold due to the implementation of the
Vessel Traffic System and the desire to better understand the
feasibility of a DUKC system. At this time, further information
needs to be collected on baseline tidal movements which had
not been historically collected.

Initiative No. 11 Develop and implement an organisation-wide

Fit for Work Program: The development of an organisational
alcohol and other drug random testing regime was not
progressed and budget was not allocated.

Initiative No. 14 Develop a 50 Year Port Plan: This initiative

47%
was placed on hold following the appointment of Flagstaff
Partners and the desire to conduct a feasibility study to look at
options for privatising the Port in future.

Initiative No. 15 Review the East Arm Wharf Facilities

Masterplan 2030: This review was not progressed due to the
delayed finalisation and implementation of the Port Development
Plan. A review of the Masterplan will be scheduled in 2014/15. increase in livestock
exports on 2012/13
Initiative No. 18 Implement the Recommendations of the with record 406,055
Review of the Darwin Port Corporation Act and Associated
Legislation: This project was partially progressed, however it head exported
will be re-scheduled for consideration in 2015/16 in a joint
initiative with the Department of Transport to look at the
Territorys Ports Legislation in general.

Initiative No. 22 Develop and implement a Marine Safety

Management System: This initiative was not progressed but
will need to be fast tracked in 2014/15 to ensure it meets the
target date.

Initiative No. 29 Scope the requirement for a domestic wash

down bay at East Arm Wharf: This initiative was scoped, but
remained undecided as to location at East Arm due to traffic
flows and the construction of the Marine Supply Base. This
initiative will be progressed in 2014/15.

Initiative No. 33 Develop an Emergency Management System

for the Corporation: This initiative was marginally progressed,
however the scope was revised on advice that the Corporation
should revisit its Emergency Response Plan to match an All
Hazards Plan approach. This initiative will be progressed as a
matter of urgency to ensure emergency response is effectively
planned and that capability exists.

44

Growing Trade
OUR GROWTH STRATEGY
The Corporation continues to exceed revenue targets, whilst experiencing
strong cargo growth, with a record total trade throughput in 2013/14 of
4.5 million tonnes across East Arm Wharf.
This is the sixth consecutive year that total trade has exceeded 3.5
million tonnes and reflects the Corporations proactive approach to
maximising the Ports competitive advantages and strategic location
close to Asia and the regions oil & gas fields.
With both the federal and NT governments committed to developing
Australias north, the Port of Darwin is well positioned as the
nations northern gateway of choice to take a leading role as a
major driver of economic development.
Major Investments to Grow Trade
One of the Corporations major achievements this year was
improving access to the Port for larger vessels with a $3.8M
dredging project. This involved the deepening of the channel
adjacent to Charles Point Patches from 10.1 metres to 14 metres,
which has increased tidal access to almost 100% for post-Panamax
vessels. Positive outcomes include increased efficiencies, reduced
vessel turnaround times and cost savings for Port users.
Investing in the ongoing development of Port infrastructure and
leading edge technology remained a priority for the Corporation
which reached a major milestone this year with the implementation
of the worlds first fully integrated Vessel Traffic and Port
Management Systems.
Marine Supply Base and East Arm Wharf
DARWIN PORT CORPORATION 2013/14 Annual Report
Last year the Corporation implemented a new KleinPort Management
Information System (PMIS) which has significantly improved
business management processes and operations as well as the
delivery of services for stakeholders. Following its integration with
the Ports new Vessel Traffic System, the Corporation is now able to
more effectively manage growth and future demand.
Supporting Growth
The Port of Darwins East Arm Wharf averaged 43% utilisation
during 2013/14 and has the capacity to expand and to handle
additional traffic and new commodities. The completion of
reclamation works at Pond F will soon provide an extra 2.8 hectares
of valuable hardstand area to accommodate ongoing growth in
export trade and project cargo to support major projects.
With the installation of paving, reefer points and other services, this
premium storage area will enhance the Corporations capacity and
attract new exporters of frozen and chilled products. One of its first
customers will be a new abattoir 50km south of Darwin which is due
to commence operations in late 2014. AACo will export frozen beef,
hides and rendered products to markets including the USA, Asia and
Europe.
East Arm Wharf offers 775m of flexible multi-use deep water berths
and, with the commencement of operations at the new $110M oil &
gas Marine Supply Base (MSB), a further 300m has been added
along with an additional 8.55 hectares of lay down area. With the
capacity to handle 1000 vessels per year, the MSB will substantially
increase Darwins ability to service the regions growing offshore
developments.
The commencement of operations at the facility has also freed up
140 metres of quay line at East Arm Wharf for other trades and Port
users that had previously been taken up by oil & gas customers.
The AustralAsia rail terminus and the bulk materials loading facility
at the Ports East Arm Wharf have positioned Darwin as the northern
gateway for mineral exports and continue to attract new and diverse
dry bulk exports. Planning is underway to investigate funding
options for additional facilities to service the future needs of the
10 to 20 mines with access to the Adelaide to Darwin rail corridor.
45
DARWIN PORT CORPORATION 2013/14 Annual Report
This year the Corporation recorded its highest total trade cargo throughput
since operations commenced at East Arm Wharf, with a total of 4,597,933
tonnes which is 298,924 tonnes more than last year.
A Record Year for Trade
The increase in total cargo trade is due in part to increases in iron
ore exports and a large increase in general and container cargo
generated by major projects.
Total exports increased by 13% to 3,157,898 tonnes with dry bulk
exports remaining the Corporations largest trade, contributing 66%
of the total cargo trade.
Trade partners in 2013/14 totalled 36 countries, with the highest
number this year coming from Europe with nine countries which
reflects the specialist cargo imported for the INPEX Ichthys gas
project. Asia, our traditional major trading region, was second with
62% of total cargo being traded with China due mainly to bulk
mineral exports.
Revenue from Marine Services increased by 20% this year, a clear
indicator of a peak in growth in Port traffic which generated a high
demand for the Corporations navigation and pilot services. The
number of piloted movements for the year reached over 2,513 and
the Corporation expects demand will remain high next year due to
ongoing movements of vessels supporting the INPEX pipe laying
work in the first half of 2014/15.
Attracting New Port Users
This year the Corporation signed a Heads of Agreement with Rum
Jungle Resources to use the Ports export facilities for two potential
fertiliser mineral projects under development in Central Australia.
Other prospective mining customers include Tellus Holdings
Chandler salt mine near Alice Springs, and AARD Metals who are
looking at supply chain options with the Corporation for the
appropriate storage and export of magnetite from the Warrego
Mine near Tennant Creek.
The Port of Darwin remains Australias leading Port for live cattle
exports and this year an Australian record was set with a total of
406,055 head. Over 3.6 million head of cattle have been exported
from East Arm Wharf since 2000. Cattle exports for 2013/14 went
to five countries with 81% going to Indonesia. The Corporation
continues to work closely with stakeholders and potential new
customers to ensure that it is well positioned to handle future
increases in livestock exports to existing markets and emerging
markets such as Cambodia, Korea and China.
46
Darwin remains a popular cruise ship destination with the Ports
dedicated deep water berth and cruise ship terminal at Fort Hill
Wharf just minutes from the CBD and one of the few in Australia
able to receive mega liners. Plans are underway to extend Fort Hill
Wharf to accommodate the next generation of vessels over 350
metres. The majestic Queen Mary 2 returned to Darwin in February
2014, following her maiden voyage stopover in February 2012, and
is due to visit again in March 2015.
Stena Clyde in Port
The drilling rig Stena Clyde arrived in Darwin Harbour in
September 2013 for a month long visit for maintenance
work. This impressively large rig is 108.2m long and 67.4m
wide and a special 250m safety zone was established
around the rig for the duration of its visit.
The Ports ability to receive and service the Stena Clyde is
evidence of the Corporations ongoing strategy to establish
the Port of Darwin as a major service and supply base for
the regions oil & gas industry by investing in additional
infrastructure and capabilities to support this growing
business sector.
Stena Clyde is a self-propelled, semi-submersible, twin
pontoon, column stabilised drilling unit which can
accommodate 100 workers and has an onboard hospital,
two recreation rooms with a cinema and a gym.
The vessel will be operating in the Timor Sea and has been
modified with an additional six stability columns to provide
adequate operating deck load for operations in 500m
(1640ft) water depths.
 DARWIN PORT CORPORATION 2013/14 Annual Report

Growing Trade cont.

OUR GROWTH STRATEGY

Planning for Future Growth
Planning is underway for the construction of tug pens at East Arm
Wharf to accommodate the additional requirements of the INPEX
Bladin Point plant which is due to begin operations in late 2016 with
an anticipated 80 vessels carrying export cargo in the first year of
operation.
Further increases in vessel traffic associated with the INPEX project
will include about 60 module shipments. The modules, some
weighing more than 6,000 tonnes, will arrive from China, the
Philippines and Thailand on oversized custom-made vessels and
will be offloaded at the projects new module offloading facility
(MOF) at Bladin Point.
The Corporation continues to capitalise on opportunities to attract
diverse trades and to ensure it is positioned to deliver on current
and future needs of Port users as well as having the capacity and
capabilities to support new major projects.
Darwin Port Corporation is a key player in the NT Governments
Framing the Future Strategy, Prosperous Economy programme,
recognising its contribution to the Territorys economy. The
Corporation works closely with government and engages proactively
with its stakeholders to maximise trade growth in all sectors.
Marketing Our Port
The Corporation continues to be pro-active and innovative in
developing the Port of Darwin as a recognised brand and ensuring
a positive marketing strategy aimed at promoting its position as
Australias northern gateway of choice and growing its reputation as
a significant supply and service hub for the regions growing oil &
gas industries is fulfilled.
The Corporation regularly initiates and takes advantage of
opportunities to promote the Ports services, facilities and strategic
advantages with national and local trade and business media.
It also makes specially targeted presentations and prepares detailed
business cases for potential clients. Participation in trade-specific
events, forums and local, national and international expos, such as
NT Resources Week and the ASEAN Ports and Shipping Conference
in Jakarta, enable the Corporation to present its credentials and learn
more about plans for growth at other ports.
The Corporation is focused on maximising the effectiveness of its
online presence by using its website to direct stakeholders to a
wealth of important information ranging from Port news and Notices
to Mariners, to shipping movements.
The Corporation works in collaboration with other government
departments and agencies, particularly the Department of the Chief
Minister, and contributed to the NT governments submission for the
Federal Governments White Paper on the development of northern
Australia.
During 2013/14, other marketing activities included working
with the Department of Mines and Energy, Land Development
Corporation and Tourism NT on a range of promotional initiatives to
assist in attracting new Port customers such as mineral exporters,
cruise ships and additional markets in Asia for NT livestock.

In 2013/14, the Corporation was proud to showcase the Port to a

wide range of VIP visitors including the Prime Minister of Australia,
the Japanese Ambassador and international delegations from the
US, China, Vietnam and Thailand.

These engagements along with community and stakeholder activities

provide important opportunities to create awareness and confidence
in the Ports capabilities and operations. As well as targeted
sponsorships, the Corporation hosted numerous networking
opportunities and facilitated information sharing meetings with key
stakeholders and industry groups. A report of these activities is
provided on the following page.

Marketing activities have included collaborative advertising Stena Clyde rig in Darwin Harbour
campaigns with key stakeholders such as INPEX to promote
messages about harbour safety on a regular TV fishing program.

Other marketing activities include the Darwin Port Tides Diary, which
is very popular with Port users and assists to maintain year round
awareness of harbour information, and the Annual Report which
includes business and trade forecasts and is available on the
Corporations website.

47
DARWIN PORT CORPORATION 2013/14 Annual Report

2013/14 Promotional Activities

VIPs

Administrator of the NT The Honourable Sally Thomas AC Jul-13

Deputy Secretary of Defence Dennis Richardson AO Aug-13
US Congressional Delegation Rep. Robert Wittman (R-VA) House Armed Services Committee (HASC) Aug-13
Rep. Madeleine Bordallo (D-GU) HASC
Rep. Kay Granger (R-TX) House Appropriations Committee (HAC)
Rep. John Carter (R-TX) HAC
Rep. William Flores (R-TX) Budget Committee
Ms Michele Pearce, Professional Staff Member HASC
Mr Brian Garrett, Professional Staff Member HASC
Royal Thailand Embassy Delegation Mr Takama President of Chyoda U-Tech Nov-13
Mr Toyokawa
Mr Kimoho Sakurai General Manager for Business Development Oceania, Chiyoda Corporation
Mr Andrew Tan Oceania Operations Director, Chiyoda Oceania Pty Ltd
Ambassador for Japan Delegation His Excellency Mr Yoshitaka Akimoto Feb-14
Chief Minister of the NT The Honourable Adam Giles MLA Feb-14
Prime Minister of Australia The Honourable Tony Abbott MP Feb-14
NT Federal Member for Solomon Natasha Griggs MP Feb-14

Community

INPEX Delegation Jul-13

Austrade Delegation Aug-13
NT Department of Transport Delegation Aug-13
Matesim Hai Pong Company Vietnam Delegation Oct-13
Australian Customs and Border Protection Service Delegation Oct-13
Metals X Delegation Oct-13
AACo Abattoir Delegation Oct-13
Minemakers Delegation Nov-13
Taminmin High School Dec-13
CSL Transhipment Delegation Dec-13
Tellus Holdings Delegation Dec-13
Royal Australian Navy Jan-14
NTG Major Projects Group Jan-14
WA Department of State Development Delegation Jan-14
AARD Metals Feb-14
VABIS Group Vietnam Delegation Feb-14
Gladstone Port Corporation Delegation Feb-14
CDU Cert II Transport, Logistics & Warehousing Pilot Class Feb-14
Kimberly Gathering Delegation Feb-14
Yu Xiang Yuan Company Chinese Livestock Delegation Feb-14
Raytheon Australia Delegation Mar-14
U3A NT Senior Citizens Group Mar-14
Singapore Delegation Mar-14
TNG Delegation May-14
Palmerston Senior College May-14
Linfox Delegation May-14
Australian Ilmenite Resources Delegation May-14

48
 DARWIN PORT CORPORATION 2013/14 Annual Report

Growing Trade cont.

OUR GROWTH STRATEGY

2013/14 Promotional Activities cont.

Speaker/Presentations

AMSA Salvage Workshop Darwin Jul-13

AMSA Seafarers Welfare Forum Sydney Aug-13
Mining the Territory Conference Darwin Sep-13
NT Major Projects Conference Darwin Oct-13
NSW Transport Chemical Response Seminar Sydney Oct-13
18th Australian Shipping & Maritime Industry Awards Melbourne (Sponsor of Project Cargo Award) Nov-13
12th ASEAN Ports & Shipping Conference Jakarta Jun-14
Developing the Territory Conference Darwin Jun-14

Trade Events

APPEA Conference Perth Apr-14

Bulk Material Handling Perth Apr-14

AustralAsia railway 10 year milestone

The Port of Darwins East Arm Wharf is the terminus of the AustralAsia railway and 2014 marks the 10th anniversary of the
completion of the Alice Springs to Darwin link, to create one of Australias most important transcontinental rail lines.

At the time of its construction, the rail line was the largest railway infrastructure project in Australia for over 100 years. Costing
$1.2B, the project involved the laying of 1,420 kilometres of railway from outback semi-arid environments in Alice Springs to sub-
tropical areas south of Katherine then onto to Darwin.

The first freight train arrived in Darwin in January 2004 and over the last 10 years the railway has attracted increasing volumes of
freight and bulk minerals. A total of over 3.6 million tonnes was carried last year with freight traffic averaging 12 trains per week
operating between Adelaide and Darwin, capturing more than 90% of all intermodal freight and totaling over 854,000 tonnes.

Over the last 6 years nearly 16 million tonnes of bulk minerals have arrived at East Arm Wharf by rail for export, with an average of
24 trains currently arriving at the port each week. Sidings along the rail corridor benefit a number of mining operations and this is
proving a positive selling point for the Corporation in attracting new Port users. Along with facilitating the expansion of trade to Asia
the rail line is also being increasingly utilised by the Australian Defence Forces for the movement of equipment to bases in the north
and for deployment overseas via the Port.

Over the last ten years the rail line has also proved an extremely popular tourist attraction following the commencement in February
2004 of the Ghan Rail passenger service from Adelaide to Darwin by Great Southern Rail.

Despite many logistical challenges, including the need to construct 95 bridges, the rail line was completed seven months ahead of
schedule and the project won the Australian Construction Achievement Award for Development and Construction.

For the Port of Darwin, the Australasian Railway facilitated the realisation of East Arm Wharf as a bulk export port, allowing small
mining projects throughout central and northern Australia to plug into a cost effective logistics rail option.

49
DARWIN PORT CORPORATION 2013/14 Annual Report

Queen Mary 2 berthed at Fort Hill Wharf

Queen Mary 2 returns

The Corporation welcomed a return visit by one of the

worlds largest cruise liners, the Queen Mary 2 (QM2) in
February, her second visit to the Port of Darwin.

The QM2 is one of a number of new cruise liners that

have chosen to add Darwin to their cruise itinerary. The
Corporations cruise ship facility at Fort Hill Wharf is in close
proximity to the CBD and is one of the few in Australia able
to readily accommodate these large passenger vessels.

The Corporation continues to enhance its range of services

and facilities for cruise ships including plans to extend the
length of Fort Hill Wharf to support this growing industry
sector which contributes significantly to the local economy.

The QM2 carries around 2,500 passengers and 1,200 crew,

is 345 metres in length and is as high as a 23 story building
and weighs 75,000 tonnes. Her next scheduled visit to
Darwin will be on 3 March 2015.

The cruise ship

sector contributed
an estimated $54M
to the NT economy
this financial year.

50

Developing Workforce Capability
OUR GROWTH STRATEGY
The Corporation takes a pro-active approach to building its workforce
capabilities by regularly reviewing its organisational structure to meet changing
resourcing requirements to support major projects and new methods of
service delivery.
The Corporation continued to focus on developing employees skills
and competencies through specific and targeted training.
Key Achievements this year included:
Training focus for middle management in Audit and Risk
Management was delivered to ensure this skill was strengthened
and to allow cross jurisdictional audits of the Corporations
activities in different work groups
Employees were provided with training with emphasis on Job
Safety Environmental Analysis, Safe Work Procedures and
through Port Safety Days
Oil spill management capability increased through focused
training for relevant staff
Merit selection skills increased through targeted training across
a diverse range of employees
Significant investment in training for new technology was
implemented to increase both efficiency of operations and
access to Port information for all employees
An increase in average training expenditure to approximately
$2,200 per full time employee with 170 training courses
undertaken.
The Corporation values the importance of growing our own,
retaining corporate knowledge and developing specialised skills
required to deliver contemporary port services, with a focus on
increased efficiencies and commercial outcomes.
During the reporting period, the Corporation undertook a Technical
Maintenance Review. The review was commenced following the
decision to decommission the East Arm Wharf Container Crane
because ongoing maintenance was uneconomical for this aged piece
of infrastructure. The review looked at maintenance requirements
into the future following an extensive analysis of operating records
and future resource requirements and the concentration of
maintenance that was dedicated to the ongoing operation of the
container crane.
At the time, the Corporation had received a recommendation that a
replacement container crane was not economically viable and this,
in turn, meant that the Corporation was able to engage with two
stevedoring companies operating at the wharf and allow a
competitive arrangement for the provision of harbour crane
services to be established. From a workforce perspective, the
DARWIN PORT CORPORATION 2013/14 Annual Report
review determined that maintenance work for both mechanical
and electrical trades would significantly decline and in mechanical
field diminish. The Corporation commenced a reverential process
of change management and consultation with affected workers
and unions.
Of the nine affected employees, six accepted voluntary
redundancies, one employee accepted a redeployment opportunity
within the public service and two employees subsequently resigned
to take up alternative employment.
Change that adversely affects the workforce is difficult for all
concerned and, whilst the Corporation determined the ongoing
requirement for electrical and mechanical roles needed to be
reduced, this decision was made knowing the market demand for
these skills meant that all displaced employees could be quickly
transitioned into new roles in other organisations.
Port People Plan
The Corporations Port People Plan is the foundation of workforce
planning for the Corporation and the conduit to workforce planning
strategies for the NT Government. Refer page 26.
Our Port People Plan sets our priorities, identifies challenges and
articulates corresponding organisational strategies to ensure the
Corporations workforce is trained, prepared and focused on
delivering services that meet the changing needs of stakeholders
and the objectives of the NT public sector as a whole.
43%
of Darwin Port
Corporation staff
have more than
5 years of service
51
DARWIN PORT CORPORATION 2013/14 Annual Report

Maintaining Profitability
OUR GROWTH STRATEGY

As a commercially focused agency of Government, the Corporation has both

a legislative mandate and a strategic commitment to achieve commercial
outcomes in its business.
The revision of the previous corporate objective from Achieving
Financial Viability to Maintaining Profitability is testimony to the
consistent improvements in profitability, but also recognition that
profit growth may not be sustained into the future, particularly as
major projects move from construction to operation, removing
the current demand of imported project cargo.
The Corporation continues to focus on its goal to maintain
profitability and deliver a return to the people of the Northern
Territory, establishing a competitive advantage and creating an
organisational structure that supports core business in line with
economically sustainable targets.
The 2013/14 financial year earnings before tax were a record $17M
compared with $11M in the previous year, which is a 14% increase
in revenue. The increase of berth utilisation and pilot services
resulted from a peak in harbour activity directly connected to the
INPEX project. The Corporation also achieved a 5.35% return on
net assets in the reporting period compared with 5.2% last year.
In 2013/14, the Corporation received $2.9M in government
subsidies for the management of the city wharves Community
Service Obligations and $0.5 million in connection with the cost of
MSB coordination and project management.
The Corporation is budgeted to trade in surplus in 2014/15, however
there is a level of uncertainty with predicted ongoing fluctuations in
global iron ore prices expected to impact bulk customers and the
Corporations revenue. Budgetary constraints on public sector
expenditure are set to remain over the coming years in line with the
Northern Territory Governments fiscal strategy.
The Darwin Port Corporation will continue to invest in its people,
systems and infrastructure and further strengthen its partnerships,
customer service and commercial performance through improved
business processes to deliver a desirable sustainable outcome.

The Corporations total revenue of $58M as at 30 June 2014

exceeded the years target by 11%. This was achieved with the
Corporations operating costs remaining within 1% of budget at
$40M which was consistent with the previous year. With two further
years still to go on the construction phase for the INPEX projects
onshore processing plant, vessel traffic and the demand for berthing
and on-water services is expected to remain strong.

The Corporation also made a capital investment of $13M into Port

infrastructure and business systems in 2013/14, with spending on
a number of major items including $3.5M on dredging of Charles
Point Patches, $5M on contribution towards the Marine Supply
Base (MSB) construction costs and $1.3M on the Fort Hill refueling
facilities.

Total revenue,
$$$58 MILLION exceeding 2013/14
target by 11%

52

Providing a Safe Working
Environment
OUR GROWTH STRATEGY
As a responsible employer, the Corporation is committed to providing and
maintaining a safe work place which it believes is fundamental to achieving
sustainable and effective business outcomes and is a priority corporate
objective.
With increasing marine traffic and construction activities within the
Port of Darwin, associated with a number of major projects, the
Corporation has continued to develop further workplace health and
safety plans and procedures to enhance its Safety Management
System (SMS) and better manage and improve workplace health and
safety for workers, stakeholders, contractors and the general public.
The Corporations online Darwin Port Induction System (DPIS)
registration process underwent some changes at the beginning of
2014 with the introduction of a new no cost short term access pass
and improved efficiency in registering for access. DPIS remains an
essential and valuable working tool which assists all Port workers,
contractors, public authorities, visitors, stakeholders and
leaseholders to recognise the type of working conditions and
circumstances encountered at Darwin Port Corporation workplaces.
The Corporations Safety Management Plan (SMP) continues to
assist employees and stakeholders to understand the benchmark
of the Corporations safety practices and to support the Port
Management Group in exercising due diligence to meet safety
obligations.
Port Safety Day exercise
DARWIN PORT CORPORATION 2013/14 Annual Report
The Traffic Management Plan (TMP) incorporating all Corporation
workplaces was introduced in June 2013. The significant increase
of vehicle movements experienced since the implementation has
provided the Corporation with opportunity to review and continue
to apply its strong traffic management commitment. The TMP
commits to safe work practices for the safety of all Port users,
maintaining clear road rules, planning for road changes and
ensuring traffic management operational plans are developed in
accordance with workplace demands to minimise traffic congestion.
The Corporations Port Management Group has endorsed the
introduction of Positive Performance Indicators (PPI). Along with
the current lag indicators, the lead indicators provide the statistical
progress to assist in decision making for the development of further
safety strategies.
Stage two of the Corporations Hazardous Chemicals Action Plan
involved analysis and evaluation of chemicals. Other actions taken
involved the development of procedures covering procurement,
storage and disposal, along with compiling Safety Data Sheets and
updates to the online database.
The Corporations Port Safety Day remains an important part of
its commitment to creating a workplace culture that fosters
pro-active and preventative health and safety strategies as well
as training and preparedness should a safety issue arise in the
workplace. These days provide valuable additional mechanisms
for helping to contribute to meeting the Ports Work Safe.
Live Safe. philosophy.
53
DARWIN PORT CORPORATION 2013/14 Annual Report

Port Security Plans

As the Port Operator, the Darwin Port Corporation is responsible for Rig Tender at Marine Supply Base
security at East Arm, Fort Hill and Stokes Hill Wharves and waterside
security within regulated Port areas extending from Charles Point
Patches and Lee Point harbour limits through to West Arm, Middle
Arm, East Arm and Hudson Creek.

The Corporation provides the overarching Maritime Security Plan for

the Port of Darwin while individual wharf operators such as Conoco
Phillips Darwin LNG and Toll Marine Logistics are responsible for
security within their own facilities and operate independent Port
Facility Security Plans.

The Corporation has worked closely with key stakeholders involved

in new major projects such as the INPEX Ichthys LNG facility and the
Marine Supply Base to ensure that appropriate security plans are in
place. This has resulted in two additional Port Facility Security Plans,
for JKC Australia and ASCO Australia, in this reporting period.

Major projects create new waterside security zones and changes in

the Ports operational environment and a number of new operators,
responsible for dredging and construction works, have also been
added under the authority of the Corporations Maritime Security
Plan.

The Corporations Maritime Security Plan is due to be renewed in

March 2015 which will involve a Port wide risk assessment.

The Corporation applies external expertise and considers global

issues in order to ensure the integrity and effectiveness of the Port
Security Plan. To do this the Port Management Group coordinates
a Port Security Committee which is made up of law enforcement
agencies, border protection agencies, federal and NT government
representatives in addition to Port users and stakeholders. The
Corporation is also represented as part of the Ports Australia
Working Group on Port Security.

The Port has security plans and measures in place to meet national
and international requirements under the International Ship and Port
Facility Security (ISPS) Code guidelines and the Maritime Transport
and Offshore Facilities Security Act, and regulations to allow the
facilitation of security-regulated vessels. Refer Maritime Security
page 69.

The Corporation works closely with all new and existing

stakeholders on the ongoing development of security practices,
shared responsibility and the creation of a cooperative intelligence
culture among staff and stakeholders.

54

Being Environmentally Responsive
OUR GROWTH STRATEGY
Darwin Port Corporation recognises the social and economic importance of
operating in an environmentally sustainable and responsible manner.
The Corporation has further developed its Environmental
Management System (EMS) in accordance with the requirements
of ISO 14001:2004 (the International Standard for Environmental
Systems) which provides a framework for the achievement of
continual environmental improvement across the Ports facilities.
The East Arm Environmental Management System sets out the high-
level framework, objectives and targets for sound and responsible
environmental management of East Arm Wharf, the Ports
primary wharf. It sets the structure for issues and aspect-specific
management plans, standard operating procedures, and procedures
covering training and manuals, monitoring and auditing.
Specific EMPs which reflect the environment of each location
have been implemented at East Arm, Fort Hill and Stokes Hill
Wharves including Fishermans Wharf and the Frances Bay Mooring
Basin. Phase 3 which is now complete includes EMS Procedures,
an Issues Register and Risk Assessment.
Stakeholder feedback indicates that positive improvements are
already being realised with a decrease in major incidents following
the implementation of improvements to management practices and
upgrades to infrastructure, particularly with regard to dust reduction
from bulk minerals handling.
Map of East Arm Wharf Ponds
DARWIN PORT CORPORATION 2013/14 Annual Report
The Corporation has made significant improvements to stormwater
drain management at all key locations around the Port including East
Arm Wharf, Frances Bay Mooring Basin and Hornibrooks Wharf.
Permanent stormwater collection drains have been installed at East
Arm Wharf, around the wharf face and bulk loader. A portion of
the reclaimed Pond F has been retained for drainage and a new
stormwater Pond E has been constructed to collect overflow from
the purpose-built stormwater retention Pond L. Excess water is
transferred by pump to the greater mud ponds to avoid discharge
into the harbour.
The Corporation convenes a Health, Safety, Environmental &
Security (HSES) committee which is a component of its Governance
Framework. The objective of the HSES committee is to oversee the
health, safety and environmental performance and to provide advice
and guidance to assist the Port Management Group to ensure
continual improvement in these areas.
In line with the Corporations corporate objective to be
environmentally responsive, the EMS and its procedures are crucial
to the Ports future sustainable growth. The Corporation is focused
on ensuring appropriate resourcing and expertise to provide best
practice and sustainable solutions to minimise its environmental
footprint.
55
DARWIN PORT CORPORATION 2013/14 Annual Report

Being Innovative
OUR GROWTH STRATEGY

The implementation of leading-edge technologies remains central to the

Corporations growth strategies as it works to foster future trade with key
Asian markets and in its role as a key contributor to the development of the
Northern Territory.
The Port of Darwin continues to respond to a dynamic and
changing environment and to adapt to the diverse requirements of
stakeholders and Port users. Continuous improvement is a priority
across all areas of the Corporation, from corporate to operational,
to ensure that its strategic objectives are met.
Investing in Technology
Over the last two years the Corporation has invested in important
technology systems including the KleinPort Management
Information System (PMIS) and a Vessel Traffic System (VTS).
These are essential to meet the growing demands of major projects
and Port stakeholders and to accommodate future forecasts.
The implementation of the new $8.2M VTS this year, with its
capacity to link with other systems, marks a major milestone for
the Corporation which now operates the worlds first fully integrated
Vessel Traffic and Port Management Information System.
The adoption of these two leading-edge integrated technologies
has resulted from a desire for the Corporation to benchmark itself
nationally and internationally with world best practice systems to
maximise service and cost efficiencies.
Upgrades include a new one month no-charge Port Entry Pass
option for short term work, allowing for the transient nature of the
workforce in the port industry and resulting in a notable reduction in
administrative and labour costs for Port stakeholders as well as for
the Corporation. A new more user friendly online registration page
has also been uploaded onto the Corporations website which allows
24 hours a day 7 days a week access.
The Corporation continues to invest in and embrace innovation
across all areas of its operations in order to deliver on its corporate
objectives and to maintain the Port of Darwins position as
Australias northern gateway of choice. With the capacity and
capabilities to play a key role in government initiatives to develop
northern Australia, the Corporation continues to bring ongoing
benefits to the Northern Territory community and Australias
economy.

As part of the installation of the VTS system, the Corporation also

relocated its Harbour Control staff to a new purpose-built centre at
the East Arm Administration Office which delivers increased
efficiencies including improved security and communications.

Delivering Benefits for Port Users

Further innovations include the introduction of two privately-owned
15%
and operated mobile harbour cranes at East Arm Wharf following increase in vessel
the decommissioning of the Corporations old container crane. The calls, from 2766
new arrangements have more than doubled capacity for container
handling efficiencies and provide greater flexibility for Port users. last year to 3178
this year
Additional improvements have also been made to the Corporations
online induction system which assists Port workers, contractors,
leaseholders and visitors to recognise specific workplace conditions
and circumstances which can be encountered at the Port facilities.

56

Case Study
OUR GROWTH STRATEGY
Athena dredger in Darwin Harbour
CHANNEL DREDGING
Investing in continual improvement
Darwin Port Corporation identified the need to significantly improve
shipping access to accommodate larger and more numerous
vessels. This was part of its strategic planning to support major
projects and diverse Port users, including fully loaded LNG tankers,
dry bulk carriers and new cruise liners such as the Queen Mary 2,
which is now a regular visitor to Darwin.
A $3.8M dredging project was approved to remove approximately
105,000m3 of sand and sediments from a 450m wide and
approximately 2km long section of the channel at Middle Pass,
adjacent to Charles Point Patches. Dredge spoils were deposited
approximately 200m away from the channel to minimise
environmental impact.
Until now, this section had restricted access for larger ships at low
tide, and improved shipping access delivers greater efficiencies by
reducing turnaround times which results in considerable cost
savings for Port users.
The increased access means that heavier post-Panamax sized
vessels can enter and leave the harbour every day of the year,
whereas in the past the number of available sailing days was around
220 per year.
Previously these vessels remained alongside longer, awaiting a
suitable tidal sailing window and this sometimes required the vessel
to take up to five days to load. It is expected that most loads will
now be accomplished within three days.
DARWIN PORT CORPORATION 2013/14 Annual Report
Capitalising on available resources
The Corporation was able to move quickly on the project by
contracting existing dredging vessel Eastern Aurora which was
already working within the harbour to create the access channels for
the new Marine Supply Base. Extending the stay of a dredger already
in Darwin harbour negated the need and cost of a separate
mobilisation.
These factors created significant efficiencies as well as time savings
and the dredging contractor, Hall Contracting Pty Ltd, was able to
commence the work in late March and completed the majority of
dredging works on 17 May.
The whole project was achieved in a remarkably short period of time
commencing with community consultations, including engagement
with the Environment Centre and the Amateur Fishermens
Association, followed by environmental approvals prior to dredging
work and final surveys.
The channel remained open to larger vessels during dredging,
with arrangements in place to ensure that the contractor cleared the
channel, resulting in minimal disruption to Port users and no delays
to shipping.
The dredging project proceeded very smoothly without any
environmental incidents and turbidity levels were generally very low
and well within the limits set by environment regulators.
Levelling of remaining high spots has since taken place and the post
dredging hydrographical surveys indicate that the target of 14m has
been achieved.
57
 DARWIN PORT CORPORATION 2013/14 Annual Report

CHANNEL DREDGING cont.

Improved access to Port of Darwin
Larger vessels which regularly call on the Port now have extended
tidal access to Darwin Harbour following a successful dredging
operation by the Darwin Port Corporation which has increased the
depth of the main shipping approach from 10.1 to 14.0 metres
below the lowest astronomical tide.

This allows for 98% all tide access which is a 30% improvement for
12m+ deeper draft vessels including mega cruise ships and carriers

of LNG, dry bulk, petroleum and liquid bulk, which were previously
restricted to a smaller tidal window.

Darwin Port Corporation CEO, Terry OConnor says the Corporations

The Port has achieved an
dredging program has produced significant productivity gains for
commercial shipping.
ongoing annual growth
Wider transit tidal windows improve overall flexibility for Port
of 11% in cargo and 17%
operations and reduce vessel turnaround times. In turn, this
delivers increased cargo loading capacity and cost benefits for
in trade vessels and is
shipping operators and the Corporation Terry OConnor said. setting new records for
Supporting the development of northern Australia
There have been many significant access improvements within
container handling
Darwin harbour including new channels to the Marine Supply Base
and from East Arm Wharf to the INPEX Bladin Point loading jetty
efficiencies and cattle
and the Module Offload Facility. The success of these projects was
dependent on effective community and stakeholder engagement
exports.
and extensive forward planning.

The Northern Territorys economic activity is leading the nation with

the Ports second LNG plant under construction at Bladin Point, the
newly opened world class Marine Supply Base at East Arm Wharf
dedicated to servicing the regions expanding oil & gas industry,
and planning already underway for a future dry bulk facility.

With improved channel access and ongoing investments in

infrastructure, the Port of Darwin has the capacity to safely
accommodate the volume and scale of shipping needed to
support the development of northern Australia

58
 DARWIN PORT CORPORATION 2013/14 Annual Report

Our Operating Environment

Our Location and Surrounds 60 Environmental Management 66

Proximity Map to South East Asia 60 Environmental Management System 67
Port Boundaries Map 61 Environmental Improvements 68
Natural Environment 62 Maritime Security 69
Our Community Neighbours 63 Security Initiatives 70
Port of Darwin 64 Case Study: Marine Supply Base 72
Assets and Access 65

Aerial of East Arm Wharf

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DARWIN PORT CORPORATION 2013/14 Annual Report

Location and Surrounds

OUR OPERATING ENVIRONMENT

The Port of Darwin is a deep sea port located in Australias

Northern Territory at latitude 12 28S, longitude 130 50E
on the southern shore of the Beagle Gulf in the Timor Sea,
and encompasses an area of approximately 1,000 square
kilometers.

The Port of Darwins

geographical location
as Australias Northern
Gateway to Asia and its
proximity to oil and gas
fields in the Timor
and Arafura seas are
fundamental to the
nations growth.

KATHERINE

KUNUNURRA

CAIRNS
BROOME
TENNANT
CREEK TOWNSVILLE
PORT HEADLAND
CLONCURRY

MACKAY

ALICE
NEWMAN SPRINGS LONGREACH ROCKHAMPTON

TOOWOOMBA

TARCOOLA
GLEN INNES
COOLGARDIE
PORT TAMWORTH
AUGUSTA
FREMANTLE
NORSEMAN DUBBO
NEWCASTLE

MILDURA

BALLARAT

NATIONAL HIGHWAYS
NATIONAL RAIL
BURNIE

REGIONAL MARKETS

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 DARWIN PORT CORPORATION 2013/14 Annual Report

Port Boundaries
OUR OPERATING ENVIRONMENT

The Port of Darwin boundaries are the high tide mark as indicated in the map
below. The northern boundary is defined by a line from Charles Point to Lee
Point via a point at 12 18' 11" S, 130 41' 3.5" E (WGS 84).
The Australian Territorial Sea Baseline is located on the northern side
of the Tiwi Islands (Melville and Bathurst) some 150 km north of
Darwin. This boundary is subject to the ratification of the Australia
and Indonesia Treaty signed on 14 March 1997. The closest part of
the territorial baseline to the Port of Darwin boundaries is some 50
km to the west.

Coastal waters therefore extend three nautical miles beyond this line.
This area is within the jurisdiction of the Northern Territory. The
Australian Territorial Sea then extends to 12 nautical miles from the
Territorial Sea Baseline.

12 18' 11" S Boundary

of the Po
130 41' 3.5" E rt of Darw Lee Point
Shoal Bay
(WGS 84) in Tree Point
Casuarina
Coastal
Reserve

Beagle Gulf
Charles Point

Aerial Complex
STUART HWY
West Point
Picnic Point
Tapa Bay
MANDORAH
DARWIN
Frances
Bay
Talc Head
CITY
WHARVES EAST ARM
PORT WHARF
Ida Bay East Arm
COX PENINSULA
DARWIN MARINE
SUPPLY BASE
PALMERSTON

Swires Bluff Wickham Point Bladin Point

DARWIN
LNG PLANT INPEX
PLANT
West Arm

Channel
Island
ALIC

Middle Arm
E SP

Colvin
Turnbull
R IN

Point Storm
Point GS
-D
Bay
AR
WI N
R AIL
WA
Y

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DARWIN PORT CORPORATION 2013/14 Annual Report

Natural Environment
OUR OPERATING ENVIRONMENT

The wetlands and coast are home to over 36 species of birds and the
estuaries, rivers and ocean are brimming with fish and reptiles including the
iconic NT barramundi and crocodiles.
Mangroves lining the tidal boundaries and growing in fine sediments
Looking from Wickham Point towards East Arm
characterise much of Darwin Harbour.

The East Arm Wharf is located on the estuary of the Elizabeth River
which experiences significant seasonal fluctuations in salinity and
temperature. Run off containing suspended particulate matter,
inorganic and organic nutrients and a wide range of other
constituents enters the estuary from developed and underdeveloped
sections of the catchment.

Within Darwin Harbour there are designated National Park areas,

the most significant being Charles Darwin National Park, located
between Darwin City and East Arm Wharf, which has World War II
infrastructure and a shoreline of pristine mangroves.

The Port of Darwin is also recognised for its abundance of wildlife.

The Corporation is proud of its ongoing partnership with the
reputable environmental group Conservation Volunteers Australia
and its specialised members who undertake bird counts at EAW in
accordance with national guidelines. Details of the Migratory Bird
Management Plan including information on counts and species can
be found on the Corporations website. This monitoring contributes
to baseline data for shore birds in the region and assists in raising
awareness of the unique coastal ecosystem of Darwin Harbour.

Territorians love their harbour and the Darwin Port Corporation

recognises the importance of this natural asset and is committed
to the effective management of its environment. The Corporations
Environmental Management Plans aim to develop and implement
best practice strategies to minimise the impacts of our operation
and develop our Port in a sustainable manner.

The Corporation understands the importance of informing and

engaging with our clients and the Northern Territory community in
order to ensure the sustainable future of Darwin Harbour.

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 DARWIN PORT CORPORATION 2013/14 Annual Report

Our Community Neighbours

OUR OPERATING ENVIRONMENT

The Port of Darwin encompasses all of Darwin Harbour and, with increased industrial, commercial and residential waterfront developments,
incorporates a diverse range of local neighbours which are listed below. The Port also has influence over other communities due to its close
proximity to South East Asia.

The neighbouring community can be summarised as follows:

Port Community Business Community Residential Community Recreational Stakeholders

Ports of Northern Australia Darwin CBD Darwin City, Bayview, Tipperary Recreational boating facilities:
(NT, QLD, WA) Waters Dinah Beach, Fannie Bay,
Nightcliff

Palmerston Recreational boating facilities:

East Arm Boat Ramp, Elizabeth
River Boat Ramp, Channel Island
Boat Ramp

Ports of South Australia Darwin Waterfront Precinct Mandorah and Wagait Beach Coastal Reserves: Casuarina,
including Darwin Convention Lee Point
Centre

Ports of Timor Leste, Stokes Hill Wharf commercial Larrakeyah Naval Base
Singapore, Jakarta, China operators

Commercial fishing: Duck Pond,

Fishermans Wharf

Industrial suburbs: Winnellie,

Berrimah, East Arm

Darwin International Airport

AustralAsia Rail

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DARWIN PORT CORPORATION 2013/14 Annual Report

Port of Darwin
OUR OPERATING ENVIRONMENT

The Port of Darwin is strategically positioned as Australias nearest port to the

fast growing economies of Asia and is the northern terminus of the AustralAsia
Railway which connects East Arm Wharf to the national rail network.
East Arm Wharf, as the Port of Darwins primary cargo wharf,
handles containerised general export/import cargo and break-bulk,
bulk ore exports, livestock, vehicle imports and bulk liquids and
heavy lift project cargo.

Fort Hill Wharf is primarily used by cruise ships and naval

operations and small non-cargo vessels. Tug boats operating in
the Port are also berthed at Fort Hill. The secure facility includes a
modern passenger terminal just minutes from the CBD, to cater for
the ever expanding number of passenger ship calls to the Port.

The historic Stokes Hill Wharf is a WWII site of national significance.

It includes a function centre as well as alfresco dining facilities and
is a popular destination for locals and tourists. Situated within the
Darwin Waterfront Precinct, the wharf has undergone a major
refurbishment to improve the visitor experience.

Located on an 11 hectare site at Frances Bay, the Darwin Fishing

Harbour Mooring Basin provides tide-free, secure and sheltered

moorings for the northern fishing fleet with a full range of supply,
maintenance and repair facilities close by.
In addition to East Arm
Newly refurbished Hornibrooks Wharf, and Fishermans Wharf
are both used by local commercial operators including the inshore
Wharf, the Corporation
barramundi fishery. A pontoon berth is provided to undertake
maintenance on boats and to load and unload vessels. Both have
manages a number of
undergone substantial upgrades to support the NT seafood industry.
facilities which cater for
naval vessels, fishing
and pearling fleets,
recreational vessels,
cruise ships and
tourism.

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 DARWIN PORT CORPORATION 2013/14 Annual Report

ASSETS (AND ACCESS)

East Arm Wharf - Restricted Access
Bulk ores
Bulk liquids
Live cattle
Cement clinker
Rig tenders
Vehicle Imports
General cargo
Containers

Stokes Hill Wharf - Public Access

Function Centre
Tourism
Dining facilities
Recreational and
fishing vessels

Fort Hill Wharf - Restricted Access.

Customs berth
Cruise ships
Naval vessels
Tug boats
Pilot vessels

Frances Bay Mooring Basin - Public Access

Access via Lock

Prawn vessels
Fishing vessels
Pearling vessels
Private/recreational
vessels

Fishermans Wharf and Hornibrooks Wharf - Public Access

Commercial fishing
Small vessel refueling
Fishing vessel loading
and unloading

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DARWIN PORT CORPORATION 2013/14 Annual Report

Environmental Management
OUR OPERATING ENVIRONMENT

The Darwin Port Corporations corporate objective to Be

Dolphins share Darwin harbour Environmentally Responsive underpins our approach to
environmental management and the way in which consideration
is given to Port operations to ensure minimal impact.

The Corporations Environmental Management System (EMS)

encompasses a framework of plans and procedures for the ongoing
management and continuous improvement in environmental
practices. It is available to all stakeholders on the Corporations
website.

The Corporations Environmental Management System, which

was implemented in accordance with the requirements of ISO
14001:2004 (International Standard for Environmental Management
Systems) includes individual Environmental Management Plans for
each of the main wharves at East Arm, Stokes Hill and Fort Hill.

The Corporations Environmental Management System is

underpinned by the following which can be found on the Corporation
and NT government websites:
Environmental Legislation
Environmental Approvals and Licences
Environmental Policy
Environmental Management Plan (general)
Environmental Management Plans (specific operations)
Environmental Monitoring and Measurement Program.

The objectives of the Environmental Management System and the

processes and procedures which exist within this system are crucial
to the Ports future sustainable growth. The Corporations
management team is focused on ensuring the system is dynamic
and has appropriate resourcing and expertise in order to:
Continually improve our knowledge and understanding of Port
operations and the environment
Measure and report on any change or impact
Provide transparent compliance with all legislative and guideline
requirements
Minimise the environmental footprint of operations
Work in partnership with stakeholders to provide innovative
solutions for a sustainable future.

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 DARWIN PORT CORPORATION 2013/14 Annual Report

The Corporations Environmental Management System (EMS) consists of the five main ISO elements: policy, plan, do, check and review.
These are key elements of the individual Environmental Management Plans. The EMS has been established with an Issues Register to rank
environmental issues according to a risk matrix which dictates the setting of objectives, targets and programs in a focused manner.

Environmental Policy

EMS Procedures

Training Non
Legal and Objectives Emergency Monitoring conformance
Issues other and awareness Communication Document preparedness and corrective and Records Management Management
requirements targets and and reporting control and response measurement preventative System audit review
competence action

EMPs

East Arm Stokes Hill Fort Hill Fishermans

Wharf Wharf Wharf Wharf Other

Issues Objectives Targets

SOPs Training Audit

and MPs Monitoring

Review

KEY: EMP - Environmental Management Plan, EMS - Environmental Management System,

MP - Management Plan (issue or aspect specific), SOP - Standard Operating Procedure

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 DARWIN PORT CORPORATION 2013/14 Annual Report

Environmental Management cont.

OUR OPERATING ENVIRONMENT

The Corporation recognises the environmental, social and economic

importance of operating in an environmentally responsible manner and is
committed to achieving sustainable growth and continuing to serve the diverse
needs of all its stakeholders.

Environmental Improvements
To Be Environmentally Responsive is a corporate objective of the
Corporate Directions Strategy 2012-17.
The Corporation is committed to meeting its environmental
responsibilities and, to assist in achieving this objective, the services
of independent specialist consultants were utilised to undertake an
extensive environmental monitoring program which covers all Port
of Darwin facilities. This includes taking samples of marine water,
stormwater, treated sewerage, marine sediment, soil, air (dust),
drinking water and environmental noise.
This year, as well as improvements to the Ports storm water
management, there has seen a substantial reduction in reported
incidents due to improved systems, management and the increased
awareness created by the Corporations induction system.
As demonstrated in the EMP Progress Report on pages 117 to 121,
the East Arm Wharf stormwater system now has medium-term
actions substantially completed and some long-term actions fully
completed. Permanent stormwater collection drains along the wharf
face and around the Ship Loader have been installed which drain
stormwater and any contaminants to Pond F.
The portion of Pond F retained for stormwater collection has been
completed with an additional pond (Pond L) constructed to collect
any overflow. A large pump is now situated in Pond L to transfer
any excess water into the greater mud pond area. This now results
in all stormwater from around the bulk loader being transferred to
ponds and avoids direct discharge to the harbour.
A new bulk mineral exporter shipping samples of product from the
Port encountered very dry conditions on the first shipment, followed
by extremely wet conditions on the next shipment. The Corporation
was able to work with the company to address these extremes
and vastly improve the export operation. To reduce potential
contamination, a truck wheel wash facility was introduced to
prevent the spread of ore from the stockpiles.
One environmental challenge identified by the Corporation is a
legacy of historic metal contamination in sediments within the
Frances Bay Mooring Basin. This enclosed basin is accessed by a
lock and is home to the commercial fishing fleet, although in the
past it has been used by a wide range of commercial and private
vessels. The facility also provides a safe mooring for appropriate
vessels when a cyclone threat is imminent.
A specialist company has completed a study for a targeted treatment
process of the Mooring Basin as an option to actively manage the
site. Consideration has also been given to dredging these
sediments, with preliminary studies continuing for this purpose.
The refurbishment of Hornibrooks Wharf was completed in January
2014 and contaminants were removed. The much improved facility
has reopened with a paved hardstand surface and a stormwater
treatment system to prevent future contamination prior to discharge.

The Port Environmental Protection Plan for the expansion works
and Marine Supply Base (MSB) at East Arm Wharf has become
active with the commencement of operations at the MSB in June
2014. The Plan includes additional protection measures for Darwin
Harbour, including commercial vessel speed limits and a reporting
system for strikes of marine fauna such as dugongs and turtles. The
plan also sets out a mechanism for the Corporation to work more Storm water
closely with the Marine Wildlife Watch organisation. upgrades completed
Regular monitoring and spraying of noxious weeds for quarantine at all Corporation
purposes continued, although development works have significantly facilities
reduced the potential for weeds.

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 DARWIN PORT CORPORATION 2013/14 Annual Report

Maritime Security
OUR OPERATING ENVIRONMENT

The corporate objective to Provide a Safe Working Environment is the

foundation for the conduct of operations to ensure the security of port facilities,
employees and Port users. Sharing their waters

122816.28S
PORT DARWIN 1305050.17E
OF CBD
m DARWIN KITCHENER
100 BAY KES
STOHILL F
m AR
100 WH

50m
ger 50m
sen l 50m
Pasermina
122916.30S T
1305248.95E F
HAR
LL W
T HI
FOR
122915.03S
1305233.18E 85m
100

m
100
m

Western
Dolphin 122817.33S
1305050.64E

122925.16S
1305245.44E

122821.29S
1305041.41E
EAST PORT
ARM OF
DARWIN
m
122935.90S 100
1305300.02E

EAST ARM WHARF SECURITY ZONE FORT HILL WHARF SECURITY ZONE

One or more port security zones may be established within a security regulated port. Port security zones may be requested through individual
port, port facility operator and port service provider maritime security plans. The Regulations detail three different types of port security
zones that may be established, landside restricted zones, waterside restricted zones and cleared zones, and are defined as follows:

Waterside Zone: Waterside Restricted Zones (WRZ) is an area of water within the port where a ship may berth, anchor or moor, and
access to the area is controlled. It extends below the water level to the seabed and under any wharf adjacent to the zone.

Landside Zone: Landside Restriction Zones (LRZ) is an area of land, to which access is controlled, within the boundaries of a port
facility or of land under the control of a port service provider.

Cleared Zone: (CZ) is an area of land, to which access is controlled and security screening is required within the boundaries of a port
facility or of land under the control of a port service provider.

69
DARWIN PORT CORPORATION 2013/14 Annual Report

Maritime Security cont.

OUR OPERATING ENVIRONMENT

The Corporation develops and establishes the overarching Maritime The Port Security Manager works closely with new and existing
Security Plan (MSP) for the Port of Darwin, while individual wharf stakeholders on the ongoing development of security practices,
operators such as Conoco Phillips Darwin LNG and Toll Marine shared responsibilities and the creation of a cooperative intelligence
Logistics are responsible for their own landside security and operate culture among staff and stakeholders.
independent Port Facility Security Plans.
As part of ongoing risk assessment activities at Port of Darwin
The Corporation has worked closely with key stakeholders of new locations, the Corporation continues to develop and provide security
major projects to ensure that appropriate access and security plans information material such as If you see something say something
are in place during construction and when facilities are operational. and Public Transport and Visitors - Safety and Security Procedures
Two significant additions in this reporting period are JKC Australia to instill proactive security behaviour in all users. This information is
for the INPEX Ichthys LNG facility at Bladin Point and ASCO Australia also available on the Corporations website.
for the Marine Supply Base at East Arm, which now have their own
Port Facility Security Plans. Regular combined security training exercises are undertaken every
18-24 months for all members and agencies represented on the Port
Including the Corporations MSP, there are now five separate security Security Committee along with an annual desktop exercise in order
plans in operation within the Port of Darwin. The Corporation works to test the preparedness, processes and procedures of each agency.
jointly with private operators by controlling the waterside and During the reporting period a desktop exercise was held in April 2014.
activating different security zones as required for bulk liquid
vessels and cruise ships. With increases in harbour activity and the numbers of Port users, the
Corporation has stepped up ongoing training for security personnel to
The Corporations Maritime Security Plan is regularly reviewed include improved usage of the new security systems along with the
and revised as required to meet changes to federal government introduction of regular questionnaires and check lists.
legislation and Port Security Committee meetings are attended by
law enforcement agencies as well as those who operate under the Further security developments include the introduction of a one
Maritime Security Plan. month no-charge option to the Corporations security and safety
induction system, which previously only allowed a 12 months
The Port of Darwin is identified as a strategic Defence port in the renewal and validation option for a security access pass. This new
National Port Strategy and, as such, the Corporation attends Defence option has resulted in efficiencies and less paperwork for the
exercise briefings, like Kakadu, and works closely with Territory Corporations short-term contractors and service providers.
and federal government agencies to ensure appropriate security
arrangements are in place for visiting Australian, allied or foreign
flagged naval vessels.

Security measures are in place to ensure that the Port also meets

29%
national and international requirements under the International Ship
and Port Facility Security (ISPS) Code guidelines and the Maritime
Transport and Offshore Facilities Security Act and Regulations to
allow facilitation of security-regulated vessels. These include an
increasing number of cruise ships for which the Corporation
provides security personnel and secure facilities such as at Fort Hill
Wharf during their Darwin stopovers.
increase in berthage
Security Initiatives revenue, record $9M
The Port Security Officer is the Corporations dedicated security
manager. He is supported by a deputy and a team of 11 maritime achieved in 2013/14
security guards. The Port Security Officer is also chair of the
Port Security Committee which meets six monthly and includes
representatives from 20 port facilities operators and port service
providers as well as state and federal law enforcement agencies.

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 DARWIN PORT CORPORATION 2013/14 Annual Report

The induction system can be accessed remotely by Port security

and verified from many of the Corporations workplaces. In order to
ensure Port users remain familiar with any changes and upgrades,
the induction system is also available on the Corporations website.

The Corporation has recently switched to a new dedicated Licensed

Wireless Network for its communications, utilising some of the new
Vessel Traffic System infrastructure to house additional CCTV
cameras for better and wider coverage. The security links upgrade
was completed in June 2014, providing improved transmission and
quality of images, superior network uptime and increased data
storage capacity.

The Corporations Security control room at East Arm Wharf provides

Maritime Security Guard Matthew Baird
real time viewing with over 60 CCTV cameras located strategically
at different sites including wharves, mooring basins and the
Corporations Administration building and Harbour Control Centre.
These can be monitored from various Port locations, freeing up
Maritime Security Officers for patrols on the ground at night and
weekends, which further strengthens the Port of Darwins 24/7
security initiatives.

A three year contract for the service and maintenance of the Ports
security system was awarded to STS Security & Technology Services
in December 2013 and is delivering continuity of service and cost
benefits.

Planned improvements include upgrades to the East Arm front gate

access to provide an additional fast track lane for authorised security
pass holders which will reduce delays for Port users. Planning will
also soon commence to conduct a Port wide risk assessment for the
Corporations Maritime Security Plan which is due to be renewed in

March 2015.

Despite increased The Corporation continues to be active in the national arena to

ensure that the application of government security regulations is
activity within the complementary to business and development. Participation in
national security working groups also provides the Corporation with
areas under the Ports a valuable forum through which it can contribute to the development
of national standards and policy.
security plans, there
were no security
incidents during
2013/14.

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 DARWIN PORT CORPORATION 2013/14 Annual Report
Case Study
OUR OPERATING ENVIRONMENT
MARINE SUPPLY BASE
The development of the Darwin Marine Supply Base (DMSB),
adjoining the Port of Darwins main commercial wharf at East Arm
and dedicated to support the regions offshore industry, has been
part of the strategic forward planning of the NT Government and the
Corporation for over 10 years. A key driver has been to capitalise on
Darwins strategic location and the growing opportunities to service
the expanding oil and gas industry.
Darwins rise as a centre for oil & gas
Conoco Phillips built the first Liquefied Natural Gas (LNG) plant in
Darwin harbour in January 2006, bringing gas to shore at Wickham
Point via a 502 kilometre subsea pipeline from the Bayu-Undan field
in the Timor Sea. An average of one vessel per week has been safely
exporting LNG to Tokyo Electric and Tokyo Gas in Japan in the last
eight years.
Construction commenced in 2012 on a second LNG plant at Bladin
Point on the Middle Arm Peninsula in Darwin Harbour. The INPEX
Ichthys $34B project is Australias second largest infrastructure
project and will bring gas to shore from the Ichthys Field in the
Browse Basin off West Australia via a subsea pipeline.
Shell has already established an onshore support base at the East
Arm Logistics Precinct to support the worlds first floating LNG
facility for its Prelude project in the Browse Basin and INPEX is in
the process of building its onshore base nearby.
72
GDF Suez and Santos are also considering Darwin as the location for
an onshore LNG
Darwins new processing
Marine facility
Supply Base at Eastfor
Armthe Petrel, Tern and Frigate
Wharf
gas fields in the Bonaparte Basin, following a decision in June 2014
not to proceed with a floating LNG plant.
Making the vision a reality
Preliminary planning to develop the business case for a new Darwin
Marine Supply Base was extensive and included a study tour in 2008
to Aberdeen in Scotland, Sweden and Texas in the USA, to assess
existing facility models and to formulate a draft proposal that would
best suit Darwin and its potential users.
Final concept plans for a Marine Supply Base were put together by
the Department of the Chief Ministers Major Projects team with the
decision to proceed to tender with a Build/Own/Operate/Transfer
(BOOT) arrangement in 2009. Three companies were shortlisted,
however they were unable to put a business case together for a
viable BOOT arrangement so the NT Government invested an initial
$110M to finance the building phase and make its vision a reality.
The joint venture consortium of Shore ASCO (now called ASCO) was
appointed as the management company for the facility over the next
15 years, on a fee for service arrangement. ASCO is an international
oil & gas company that has over 40 years of experience and 20
bases around the world.
The newly constructed Marine Supply Base at East Arm Wharf
 DARWIN PORT CORPORATION 2013/14 Annual Report

Chief Minister Adam Giles opening the Marine Supply Base at East Arm Wharf

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DARWIN PORT CORPORATION 2013/14 Annual Report

Case Study cont.

OUR OPERATING ENVIRONMENT

MARINE SUPPLY BASE cont. Creating facilities to support growth

In December 2013, the NT Government transferred responsibility for
the Marine Supply Base to the Darwin Port Corporation, establishing
it as the lead NTG agency to oversee the construction of this NT
Government-funded and privately operated facility. The move
provides valuable inter-relationship benefits to the Corporation,
future users and the Marine Supply Base operator ASCO, with flow
on opportunities for the local industry.
Open for business
This vision for north Australias first purpose-built facility was
realised in June 2014 with the first rig tender berthing at the new
Marine Supply Base. INPEX is also soon to commence its rock load
out shipments from the new facility for its 889km subsea pipeline
from the Ichthys Field to its Bladin Point plant. INPEX will be a
significant user of the MSB, having already reached their 50%
construction milestone.
The NT Government and the Corporation have capitalised on the
opportunities provided by Darwins location as Australias nearest
port to Asia and its proximity to a highly prospective petroleum and
gas region with world scale fields and developments.
Darwin is also the only capital city located in northern Australia that
has a large natural deep water harbour with multi modal transport
services. It is also the terminus of the Australasia railway.
Infrastructure investments such as the ASCO managed Marine
Supply Base at East Arm Wharf improve efficiencies, minimise
congestion and maximise economic benefits for the Ports
customers and the industries it supports, whilst attracting
new clients.

The Darwin Marine Supply Base delivers an additional 265m of quay

line to the 775m available at East Arm Wharf. With three additional
berths and 3000 square metres of laydown area alongside each
berth, this means that cargo can be prepositioned at the MSB rather
than waiting for trucks, which provides a faster loading turnaround.

The Darwin Marine Supply Base is designed to provide an eight hour
vessel turnaround instead of the usual around 24 hours, and has the
capacity to service in excess of 1000 vessels per annum, improving
The Darwin Marine
time efficiencies and reducing operating costs.
Supply Base is of
The 140m of quay line previously used for the oil & gas industry at
East Arm Wharfs multi user facility has been returned to service
strategic importance in
other trades, but is available to assist the Marine Supply Base with
overflow requirements during the busy next 12 months rock load
the NT Governments plan
out, to ensure industry needs are met. for developing northern
Australia and to continue
to grow Darwins capacity
as a major supply and
service hub to support
the regions oil & gas
industry.

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 DARWIN PORT CORPORATION 2013/14 Annual Report

Our Corporate Governance

Governance Overview 76 Committees and Groups 86

Governance Highlights 77 Audit and Risk Management Committee 87
Legislation 80 Health, Safety, Environment and Security
Policies and Standards 80 Committee 87
Records Management 80 Joint Consultative Committee 89
Risk Management 81 Safety Committee 89
Risk Assessment & Management Framework 81 Port Security Committee 90
Insurance Arrangements 81 Project Reference Group 90
Emergency Response Plan 82 Case Study: Harbour Cranes 91
Advisory Board 83

The Queen Mary 2 berthed at Fort Hill Wharf

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DARWIN PORT CORPORATION 2013/14 Annual Report

Governance Overview
OUR CORPORATE GOVERNANCE

The Darwin Port Corporations Port Management Group is responsible for the
exchange of corporate knowledge and dissemination of decisions and other
information, as well as implementing, reviewing and monitoring the corporate
governance initiatives which form part of its established Corporate Governance
Framework.
The Darwin Port Corporation Corporate Governance Framework Governance Model
provides for a fair and transparent structure for decision making. To reinforce its commitment to good governance principles, the
Governance leadership by the Port Management Group builds Corporation draws on a governance model which incorporates
confidence in stakeholders that the organisation is driving growth the following key elements:
whilst still meeting necessary risk management and internal control
requirements. CEO and Port management commitment
Corporate structure
The Corporation takes a structured approach to corporate Legislative compliance
governance as set out in its Corporate Governance Policy. Human resource management
Elements to this are: Culture and ethics
Financial management
Performance Knowledge management
To ensure the governance actions contribute to overall performance OHS and environment management
and the delivery of business objectives, services, goods and Risk management and audit.
programs.

Conformance
To ensure governance actions guide compliance of legal obligations,
regulations, policies and standards and satisfy expectations of
probity, accountability and transparency for all stakeholders.

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 DARWIN PORT CORPORATION 2013/14 Annual Report

Governance Highlights
OUR CORPORATE GOVERNANCE

The Corporation works to achieve the goals set out in its corporate plan -
Corporate Directions Strategy 2012-2017 (CDS) which outlines its vision,
mission, values and corporate objectives. Aerial shot of EAW
Port Development Strategy 2014 2019 Marine Supply Base
The Corporation finalised its Port Development Strategy 2014-2019 The Corporation is responsible for the management of the
to provide a sharper focus for forward planning in alignment with NT Governments contract with ASCO, the operator of the Marine
whole-of-government initiatives, including the Ports central role in Supply Base (MSB) at East Arm Wharf, which commenced
the development of the Northern Territory. operations in June 2014.

This five-year Strategy was launched in December 2013. It provides
a foundation for the Ports growth to meet the immediate and future
needs of customers and stakeholders. Backed by longer term
planning and flexibity, the Strategy is directly aligned with
governments plan to develop the north and the Corporations vision
of becoming Australias Northern Gateway of Choice.
The $110M Marine Supply Base is of strategic importance in the
NT Governments plan to grow Darwin as a major supply and service
hub for the regions oil & gas industries. The purpose-built facility
has increased capacity at East Arm Wharf by an extra 265 metres
of quay line and has been widely welcomed by oil & gas industry
stakeholders.

The Strategy is aligned with the Northern Territory Governments

priorities and vision Framing the Future Strategy and complements
the existing Port strategies, the East Arm Wharf Facilities Masterplan
2030 and its Corporate Directions Strategy 2012 2017.

Planning for Growth

The Corporation has made positive contributions to longerterm
planning to ensure it is strategically positioned to support the
Northern Territorys ongoing sustainable growth of trade and
economic development. It also seeks new relationships with Asian
trading partners to attract investment for significant infrastructure
development.

The Corporation continually reviews and develops its Port People

Plan which provides a platform for workforce planning initiatives that
assist the organisation to grow capacity and capabilities to meet the
future needs of Port customers.

As part of this strategic planning, the Corporation has been

consulting with existing and potential Port users to finalise a Critical
Infrastructure Plan to identify future infrastructure requirements. The
NT government has appointed financial consultants Flagstaff in early
2014 to create a strategy to identify prospective private investors to
CEO Terry OConnor presenting the Project Cargo Award to
fund new Port facilities and the redevelopment of Darwins Harbour
Mark Guscott. The Port of Darwin also received runner up for
foreshore. the Port of the Year Australian Shipping & Maritime Award.

A specialist consultant Austral has also been engaged to develop a

Port-wide programmed maintenance schedule for Corporation
assets and facilities. When completed, and following further
upgrades to the MEX system, maintenance staff will have mobile
remote access.

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DARWIN PORT CORPORATION 2013/14 Annual Report

Governance Highlights cont.

OUR CORPORATE GOVERNANCE

Major Milestones
A world first was achieved this year with the implementation and
integration of the Ports new Vessel Traffic Management System
with the Port Management Information System which was
introduced last year.

Another key achievement was the undertaking of a major dredging

project to deepen the harbours main channel which has increased
tidal access to almost 100% for post-Panamax vessels and delivered
turnaround efficiencies and cost savings for customers.

Crane services were also significantly improved at East Arm Wharf

with the introduction of two privately operated mobile cranes that
are setting records for container handling efficiencies and offering
greater flexibility.

Recommendations arising from an extensive review of the Darwin

Port Corporation Act and associated legislation by the Consultancy
Bureau were completed and presented to Government. The review
was initiated by the Corporation, with input from the Advisory Board,
to ensure that the relevant legislative framework aligns with the
expectations of Government and the community.

Tariff Restructure
The Corporation implemented several key changes to its Port tariffs
on 1 July 2013, following a review of its pricing in the previous
financial year. The aim of the tariff restructure was to adopt the
user pay principle and to reduce unequitable cross subsidisation
between users. The main area of the restructure was pilotage with
the introduction of a higher fixed charge for vessels between 2,500
and 4,500 gross registered tonnes.

Policies and Systems

The review of the Corporations Governance Policies continued
this year to ensure ongoing improvements and the achievement of
corporate objectives. An organisational wide Safety Management
System was developed and implemented this year, along with
a range of related plans including Work Safe Procedures. The
Corporations Environmental Management System has also been
completed to ISO 14001 standards and a Port-wide Environmental
Protection Plan has been implemented with Environmental
Management Plans completed for all Corporation facilities.

QM2 in Darwin Harbour

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 DARWIN PORT CORPORATION 2013/14 Annual Report

Advisory Board
The restructuring of the Darwin Port Corporation Advisory Board
last year has ensured the Corporation remains focused on relevant
and contemporary aspects affecting its performance and has access
to the necessary expertise to advise the Corporation in key areas
such as:

Infrastructure, risk management and governance

Financial and commercial management
Port engineering and environmental development.

Risk Management and Business Continuity

During the reporting period, the Corporation undertook a
comprehensive risk assessment of its strategic, operational and
financial capacities, resulting in the introduction of controls and
review and monitoring programs as part of a new risk management
framework. Risk controls and the Corporations exposure to risk
continue to be monitored by the Port Board of Management on a
quarterly basis. The program under the new framework will operate
for the next three years, with a scheduled reassessment in 2017.

With the establishment of a risk management framework, business

continuity planning commenced for key risk areas across Port
facilities. These plans are scheduled to be completed and
implemented by December 2014.

Awards and Best Practice

The Corporations Annual Report 2012/13 was awarded best overall Melissa Reiter and Natalie Toms accepting a silver award
for the Corporation at the Australasian Reporting Awards
Annual Report in the Northern Territory Public Sector from the
Institute of Public Administration Australia and, for the second
consecutive year, received a Silver Award from the Australasian
Reporting Awards (ARA) during a ceremony in Sydney in June 2014.

The Corporation also received national recognition at the 2013

Australian Shipping & Maritime Industry Awards when it received
a high commendation as runner up in the Port or Terminal of the
Year category. The prestigious Port or Terminal of the Year Award
is keenly contested by operators around Australia as it recognises
excellence in specific port development projects, technical
innovation, overall management achievements and commercial
success.

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DARWIN PORT CORPORATION 2013/14 Annual Report

Legislation
OUR CORPORATE GOVERNANCE

As a government business division, the Corporation acts in

accordance with its Charter of Operations that has been developed
in recognition of the Principles of Operations for Government
Business Divisions published by the Department of Treasury and
Finance. The governance environment is further enhanced by the
following legislation:
Marine Act
Public Sector Employment and Management Act, its regulations,
by-laws, Commissioners determinations, employment
instructions, public instruments and public sector management
regulations
Darwin Port Corporation (Northern Territory Public Sector)
2011-2014 Enterprise Agreement
Darwin Port Corporation Marine Pilots 2011-2014 Enterprise
Agreement
Financial Management Act
Procurement Act
Audit Act
Information Act
Maritime Transport and Offshore Facilities Security Act
(Commonwealth)
International Ship and Port Security (ISPS) Code.
The Corporation is responsible for administering the Darwin Port
Corporation Act and subordinate legislation.
Records
Management
Records Management, a part of the Corporate Services division,
implements records management systems and processes, and
provides services and support to Corporation personnel.
The Corporation utilises the NT Governments HP TRIM records
management system which has been upgraded to a superior whole-
of-government electronic document records management system
(EDRMS).
Since implementing the new system, the Corporation has continued
to improve its capture, storage and access of information across all
business areas including Port Regulation, Operations and the Port
Development & Finance which was relocated to new premises.
During the 2013/14 financial period, the Corporation created 837
files and 14,608 documents. Document and file creation has
stabilised over the last year with more personnel being trained in the
system and users capturing more specific and relevant information.
Since the introduction of the EDRMS in 2011, the Corporation has
created a total of 5,539 files and 54,074 documents.

Policies and The relocation of the Harbour Control Centre to the Corporations
Administration building at East Arm has enabled additional legacy
reference material and files to be either destroyed or archived and

Standards digitised.

Information Act compliance

The Corporation operates in accordance with key policies, standards The Corporation did not receive any requests under the Information
and guidelines under its governance model, which include: Act in 2012/13. The Corporation did received two Third Party
Consultations from other Government Agencies regarding personal
Corporate governance Gifts and benefits information.
Risk management Procurement
Compliance Project management Pursuant to Section 5 of the Information Act, the Corporation
Internal Audit Information management (as a Government Business Division) is a public sector organisation
Strategic planning Motor vehicle use for personal information only, and is not subject to the full scope of
Work health and safety Fit for duty the FOI legislation. However information from which a persons
Environmental management Alcohol and other drugs identity is apparent or can be reasonably ascertained may be
Fraud and corruption Fatigue management. requested.
Conflict of interest
The Corporation is committed to adhere to the Information Privacy
Principles and to protect the privacy of those individuals whose
personal information it holds, ensuring only necessary information
for specific functions and services is collected.

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 DARWIN PORT CORPORATION 2013/14 Annual Report

Risk Management
OUR CORPORATE GOVERNANCE

The Corporation manages its strategic risks through a process
of strategic risk analysis, undertaken bi-annually as part of its
corporate planning process. Similarly, each of the Corporations
business units conduct operational risk assessments based on the
business objectives and risk analysis undertaken by independent
assessors. The Corporations strategic risks include:
Following the implementation of the risk management framework,
business continuity planning was undertaken in various business
groups, over many and varied scenarios for Port assets and
facilities. The Business Continuity Plans are scheduled to be
completed and implemented by December 2014.

Capacity to expand to meet growing trade demands

Fluctuations in the mining and resources sectors
Regulatory compliance
Insurance

Competition from other ports

The ability to manage the recruitment and retention of key staff. Arrangements
Strategic and operational risks are managed through a regime of The Darwin Port Corporation under Treasurer's Direction R2.1
monthly reviews of the mitigation actions and a review of the is excluded from self-insurance provisions. Accordingly, the
residual risks for those in the medium to high-risk categories. Corporation purchases commercial insurance for protection
against potential liabilities.
Risk Assessment and Management Framework
During the reporting period, the Corporation undertook a wholesale The Corporation's commercial insurance arrangements are as
risk assessment from both strategic and operational perspectives, follows:
known as the organisation-wide Risk Assessment.
Industrial Special Risk $1,167,448.00
The purpose of the organisation-wide Risk Assessment was to Public Liability $211,750.00
identify and analyse the Corporations Strategic and Operational Motor Vehicle $19,626.00
Risks. The Risk Assessment covered operational risks resulting from Marine Hull $26,689.00
business process activities within the following business functions: Travel $851.00
Workers Compensation $489,864.00
Operational business processes (within business units)
these can be described as risks that would adversely impact Total $1,916,228.00
the operations of the Port

Strategic risks these can be described as risks that would

adversely impact the Corporations ability to meet its corporate
objectives.

The resulting assessments have since been allocated across the

organisation for ongoing monitoring, management and mitigation.

The Port Board of Management is responsible for the

implementation of mitigating controls along with monitoring,
reviewing and setting the organisations risk exposure.

The Corporations Audit and Risk Management Committee is

responsible for ensuring that risks are reviewed by Port
management and that an appropriate process is in place to
manage risk.

The risk management program under the new framework will

operate for the next three years, with a scheduled reassessment in
2017. The establishment of the risk management program included
a full review of the Corporations Risk Management Policy,
Standards and associated templates.

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DARWIN PORT CORPORATION 2013/14 Annual Report

Emergency Response Plan

OUR CORPORATE GOVERNANCE

Issues of safety and security, and the ability to effectively respond to all types
of emergencies, are key priorities for the Corporation.

Training and exercise activities this year focussed on marine oil spill
response. Whilst not a component of the Emergency Response Plan
(ERP), the response systems and procedures for oil pollution events
are similar and therefore preparedness activities are complementary
to the Corporations continual improvement of its emergency
response capabilities.

Tabletop Exercise Vernons was directed by the Corporation and

brought together numerous Northern Territory Government Incident
Management Team (IMT) members to an Incident Control Centre to
simulate the response to a fictitious oil spill into the Beagle Gulf.
The IMT evaluated the incident information against known response
techniques in order to develop a plan to combat marine pollution.
This was a precursor to the Exercise Northerly.

The Northern Territory had some time previously volunteered to be

the host of the Australian Maritime Safety Authoritys National Plan
for Maritime Environmental Emergencies annual exercise. Exercise
Northerly was held in Darwin in early June and saw in excess of 100
respondents from government and industry converge on Darwin to
respond to a fictitious marine oil spill from a collision between two
vessels. The formal evaluation of the exercise is yet to be finalised
however, feedback at the conclusion of the weeklong activities was
positive.

During the reporting period components of the ERP were activated

on several occasions in response to minor incidents on the harbour.
These incidents involved both commercial and recreational vessels.

A review of the ERP was deferred to allow the development of crisis

and business continuity planning. A revised ERP will be developed
to complement the Corporations Emergency Management Approach
into the future.

Rig Tender at East Arm Wharf

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 DARWIN PORT CORPORATION 2013/14 Annual Report

Advisory Board
OUR CORPORATE GOVERNANCE

The Advisory Boards role is to provide advice to the Corporation on

strategic matters referred to it by the Chief Executive Officer, and to
support the Port Management Group which is responsible for the
governance, stewardship and management of the Corporation.
Whilst not a governing board, the Advisory Board must take a
generally commercial approach when considering its advice, and
must also have regard for the governments strategic objectives
including trade development.

The Darwin Port Corporation Act provides for the establishment of

an Advisory Board, constituted by the Chief Executive Officer, who
is also a member of the board. The Advisory Board chairman and
members are appointed by the Minister for a period of up to three
years.

Manganese stockpile at East Arm Wharf

83
DARWIN PORT CORPORATION 2013/14 Annual Report
Advisory Board cont.
OUR CORPORATE GOVERNANCE
Captain John Watkinson
Chairman
John was appointed to the Corporations
Board in September 2011. He is currently
the Director of Meridian Maritime Services
specialising in providing advice on marine
operations and pilotage services to Port
operators.
John retired in 2010 as the General
Manager of Maritime Safety Queensland
after an extensive career in the maritime
industry and particularly in executive
management, undertaking the delivery
of maritime services, regulation and
standards in both the state and federal
arena.
He is a Master Mariner and Fellow of the
Nautical Institute and serves on a number
of national marine committees and
advisory boards. John was responsible
for the delivery of a world class marine
simulator and training facility in Brisbane
for the Queensland Government and
continues as an adviser to the facility.
84
Terry O'Connor
CEO/Ex-Officio Member
Terry is an ex-officio member of the
Advisory Board having been appointed
Acting CEO in April 2011 and subsequently
as CEO in August 2011. He has broad
board experience and is currently a
member of the Board of Ports Australia,
the national peak body representing the
interests of government-owned and
privately-owned ports and marine
regulatory authorities in Australia. As a
Chief Executive Officer of the Northern
Territory Government, Terry sits across
several working groups and high level
advisory bodies involved in major projects,
defence, economic development and
investment.
Terry is a member of the Coordination
Committee, a group of agency chief
executives, chaired by the Chief Executive
of the Department of the Chief Minister.
Along with the Deputy General Manager
of INPEX, Terry is co-chair of the Marine
Safety and Operations Committee which
provides guidance on the construction
interface for the Ichthys LNG Project
at Bladin Point between industry
stakeholders, construction partners, the
Northern Territory Government and INPEX.
Terry holds a Bachelor of Business in
Maritime and Logistics Management from
the Australian Maritime College, has post
graduate certificates in IT Management and
is a Member of the Australian Institute of
Company Directors.
Alan Grummitt
Member
Alan was appointed to the Darwin Port
Corporation Advisory Board in September
2011. He is the Chairman of the Cullen
Grummitt & Roe Group of Port Specialist
Consulting Engineers and has more than
45 years experience in harbour
engineering and port planning.
Alan has travelled widely throughout the
world and brings extensive experience to
the Corporation. He has been involved in
port master planning, dredging studies,
detailed designs, project management and
site supervision overview for projects in
Australia, Europe, Africa, North and South
America, Asia and the Middle East.
Alan was appointed a Director of North
Queensland Bulk Ports in December 2012.
In addition, he was Chairman of the
Riverside Group, a company owning and
operating tugs, barges and ferries around
Australia for over 20 years. In that role, he
was also Chairman of Fantasea Cruises, a
company owning and operating high-speed
passenger ferries in the Whitsunday Island
group as well as in Townsville and Sydney.
He is also Chairman and Director of the
Riverwijs Group which owns and operates
major port tugs in Bunbury, Dampier and
the Timor Sea.

Karen Green
Member
Karen was appointed to the Darwin Port
Corporation Advisory Board in September
2011. She has 27 years experience in
chartered accountancy, predominantly in
taxation and business advisory services.
Karen has been a partner of Deloitte since
1999 and was the seventh female ever to
enter the Deloitte Australian Partnership.
Karen leads Deloittes Tax and Business
Services division in the NT whilst also
being the HR partner for the Northern
Territory.
Karen is a Chartered Accountant with
the Institute of Chartered Accountants in
Australia as well as being a member of the
Australian Society of Certified Practicing
Accountants.
She is a member of the Taxation Institute
of Australia, a Graduate Member of the
Australian Institute of Company Directors
and a member of the Territory Taxation
Administration Liaison Committee. She
holds a Bachelor of Business (Accounting)
from Curtin University and is licensed
under the Financial Services Reform Act
as well as being a Registered Tax Agent.
DARWIN PORT CORPORATION 2013/14 Annual Report
Melissa Reiter
Executive Officer
Melissa is the Executive Officer to the
Advisory Board and coordinates the
provision of advice and matters of
Advisory Board business on behalf of the
Corporation. She chairs the Corporations
Safety Committee and its Project Reference
Group, responsible for overseeing
governance of the Corporations
significant capital projects.
She works across a variety of Northern
Territory Government working groups and
is a member and past chair of working
groups for Ports Australia in human
resource management, safety, governance,
environmental management and IT.
Melissa is one of only two adjudicators in
the Northern Territory for the Australasian
Reporting Awards.
Melissa a Certified Practicing Project
Practitioner and an Associate of the
Institute of Project Management. She is
also a graduate of the Institute of Company
Directors with an Advanced Diploma of
Project Management and a Graduate
Certificate in Professional
Management from the University
of Adelaide.
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DARWIN PORT CORPORATION 2013/14 Annual Report

Advisory Board cont.

OUR CORPORATE GOVERNANCE

Committees
Advisory Board Meetings
The Advisory Board is required to meet as is necessary to perform
its statutory function and its meetings continue to coincide with the
Port Board of Management meetings which take place every two
months.

The Advisory Board met six times in 2013/14.

and Group
The Corporation convenes the following Governance Committees:
Advisory Board Performance
In accordance with its Terms of Reference, the Advisory Boards Audit and Risk Management Committee
focus for the year was concentrated on providing strategic advice Health, Safety, Environmental and Security Committee
and monitoring the Corporations performance insofar as: Joint Consultative Committee
Safety Committee
Performance observations Port Security Committee
Meeting government and stakeholder expectations Project Reference Group.
Complying with the Darwin Port Corporation Act and the
Marine Act
Monitoring the Corporations adherence to the Work Health and
Safety (National Uniform Legislation) Act
Improving management reporting
Input into the Northern Territory Governments strategic plan and
economic development strategy
Successfully delivering major projects and the management of
change in restructures
Monitoring financial performance and risk management.

Strategic advice
Port development and delivery of large expansion projects,
including reclamation ponds and a significant dredging project
Marine pilotage and associated standards
Capital investment
Community Service Obligation-funded activities and
viability issues
Crane demobilisation and future requirements
Regulatory environment
Private investment options.

86 Containers at East Arm Wharf


Audit and Risk Management
Committee
OUR CORPORATE GOVERNANCE
OBJECTIVE
The Darwin Port Corporations Audit and Risk Management
Committee is a component of the Corporations Governance
Framework. The Committee is established in accordance with the
Financial Management Act (Sections 13 and 15) and the Treasurers
Directions (Part 3, Sections 2 and 3). The objectives of the
committee are to assist the Accountable Officer (Chief Executive)
and the Port Management Group to:
Meet the strategic objectives of the Corporation
Fulfill their responsibilities in relation to corporate governance
activities within the Corporation, including risk management,
internal control structures as required by the Financial
Management Act, the performance of internal and external audit
functions and other internally commissioned risk-based
strategic and operational reviews
Foster a risk management culture throughout the Corporation.
MEMBERSHIP
Karen Green Chairperson, Advisory Board Member
Hitesh Khanna Member, Department of Treasury
and Finance
Melissa Reiter Member
Anne Coulter Observer
Tony OMalley Member
Sue Cooper Member, Office of the Auditor-General
Terry OConnor Observer
ACHIEVEMENTS
The Committee met four times during the period in accordance with
its Terms of Reference and considered initiatives within its terms of
reference in an out of session format.
The Committee is chaired by Karen Green, who is a current member
of the Corporations Advisory Board, holding a financial management
portfolio expertise.
The Committee presided over and monitored:
The Corporations financial reporting and processes
The review of key governance policies
Major projects progress and associated risk and financial
implications
The Corporations Governance Framework
The management of risk and associated treatments
The Corporations internal and external audit activities.
DARWIN PORT CORPORATION 2013/14 Annual Report
Health, Safety,
Environment and
Security
Committee
Darwin Port Corporations Health, Safety, Environmental and
Security (HSES) Committee is a key component of the Corporations
Governance Framework. The corporate objectives to provide a safe
and healthy working environment and be environmentally responsive
are fundamental priorities of the Corporation.
The purpose of the HSES Committee is to oversee the Corporations
performance in the areas of health and safety, environmental
stewardship and security and to provide advice and guidance to
assist the Port Management Group regarding the continual
improvement of its performance in these areas.
In seeking to meet its objectives, the HSES Committee can
investigate any matter brought to its attention in accordance with
its terms of reference, with full access to the records, facilities and
personnel of the Corporation.
OBJECTIVE
The functions and responsibilities of the HSES Committee are to
review and provide advice and guidance on:
Meeting targets set as part of the Corporations EMS, SMS and
the proposed health and wellbeing framework
Activities undertaken by the Corporation to meet the objectives
and targets established as part of the management systems
Health, Safety, Environmental and Security audit investigation
findings and the Corporations responses to these
Significant HSES incidents and the Corporations responses
to these
Processes used by the Corporation to comply with relevant
legislation
Community and stakeholder feedback on HSES performance
and the Corporations responses to this
Trends in Health, Safety, Environmental and Security incidents
and report on these to the PMG.
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DARWIN PORT CORPORATION 2013/14 Annual Report

Health, Safety, Environment and

Security Committee cont.
OUR CORPORATE GOVERNANCE

The HSES Committee will also gather information and initiatives
from international bodies such as IMO, national working groups and
industry groups and report on these to the PMG.
HSES committee members are responsible for being familiar with
the following:
The Corporations Environmental Policy
The Corporations Health and Safety Policy
The targets and objectives of the EMS and Health and
Safety System
HSES legislative requirements
The Corporations Security requirements.
MEMBERSHIP
Incident trend analysis highlighted four particular areas of the
Corporations business where improvements could be made:
1. Livestock escapes during loading operations at East Arm Wharf
posed an increased risk to personnel, property and potentially
the health of the cattle being exported. Consultation with the
cattle exporters and stevedores saw the implementation of
revised cattle loading procedures which has resulted in a
significant reduction in cattle escape incidents.
2. A number of incidents at the bulk minerals export truck dump
prompted a review of procedures which in turn identified a
range of engineering solutions to improve this facility. The
recommended engineering solutions have been accepted and
are progressively being implemented.

Members of the HSES Committee consist of:
General Manager Operations (Chair)
Engineering Manager (Member)
Chief Financial Officer (Member)
Environmental Manager (Advisor)
WHS Manager (Advisor)
Security Manager (Advisor)
Assistant to GM Operations and Harbourmaster (Secretariat)
Nominated HSR (Observer from Safety Committee).
HSES Committee members attend the appropriate Ports Australia
working groups and gather contemporary management information
from national and international bodies to assist with the continual
improvement of the Corporations systems and capabilities.
3. A number of truck collisions with the East Arm Wharf main
gatehouse prompted a review of potential improvements in the
gatehouse design. Improvements have now been identified for
future implementation.
4. New bulk mineral exporters need advice on the legal
requirements imposed on their export venture. In response to
difficulties experienced with new customers, a set of Bulk
Mineral Exporter Safety, Environment and Security Guidelines
were designed by the Corporation to assist exporters to
understand their operational and legal obligations when
operating out of the Port. The purpose of these guidelines is to
minimise the risk to exporters and the Corporation and to ensure
a smooth and uninterrupted commencement of operations.

ACHIEVEMENTS

Health and Safety are key priorities for the Corporation across all
workplaces and significant investment into these areas continued
during 2013/14.

The former HSE Committee was restructured to add security to the

committees scope. This has provided enhanced communication
and consistency with the operational management of health, safety,
$23M
environmental and security across the Corporations business income from wharfage
divisions.
revenue achieved in
2013/14
The HSES Committee provided support and advice for numerous
Corporation health, safety, environmental and security initiatives
during the year including the development of new Safe Work
Procedures.

88

Joint Consultative Committee
OUR CORPORATE GOVERNANCE
OBJECTIVE
The Joint Consultative Committee (JCC) is a requirement of the
Darwin Port Corporation (Northern Territory Public Sector)
Enterprise Agreement 2014-2018. The Committees objective is
to monitor the implementation of agreed work and management
practices and make appropriate recommendations to the
Corporation. During the life of the Enterprise Agreement, the
JCC considers policies including, but not limited to, Health and
Wellbeing of employees, Equity and Diversity and Flexible Working
Arrangements and makes recommendations to Port Management.
MEMBERSHIP
Maritime Union of Australia staff representatives
Australian Manufacturing Workers Union staff representatives
Corporation Management representatives
ACHIEVEMENTS
Meetings are held quarterly, or as and when required.
With the commencement of enterprise agreement negotiations in
November 2013, the JCC did not meet in lieu of the formation of
union bargaining committees.
The JCC will reconvene following the implementation of the new
enterprise agreements, once approved by the Fair Work
Commission, which is expected in or around August 2014.
DARWIN PORT CORPORATION 2013/14 Annual Report
Safety Committee
The Corporations Safety Committee is established in accordance
with Section 75 of the Work Health and Safety (National Uniform
Legislation) Act. The Safety Committee is chaired by the General
Manager Corporate Services and is made up of Employer Appointed
Representatives (EARs) and Health and Safety Representatives
(HSRs) elected in accordance with the provisions of the Act, who
represent their respective designated work groups.
The Safety Committee meets quarterly and has been successful
in achieving a broad and improved consultation and engagement
approach to safety policies and procedures, successfully monitored
incident and reported matters and made recommendations to Port
Management.
OBJECTIVE
The Safety Committee provides an open forum where member are
consulted on safety matters that impact directly on an individual
employee or might have an effect on all workers employed at a
particular Corporation workplace. It is a very positive step in meeting
the Corporation's objective of providing a safe working environment.
MEMBERSHIP
Members of both the Health and Safety Representative group and
the Employer Appointed Representative group actively participate in
meetings, chaired by the General Manager Corporate Services.
ACHIEVEMENTS
The committee's achievements contribute to meeting the overall
efficiency and success of the Corporations Safety Management
System and achieving our corporate objective to 'Provide a Safe
Working Environment'.
The Committee meets quarterly and considers the following:
Monitoring of updates to the WH&S legislation
Reviewing the Corporation's Safety Management System
implementation
Monitoring Incident and Hazard Registers
Discussing Port Safety Day initiatives
Consulting and disseminating information on policy and process.
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DARWIN PORT CORPORATION 2013/14 Annual Report

Port Security Committee

OUR CORPORATE GOVERNANCE

OBJECTIVE This committee is chaired by the General Manager Corporate

Services and is made up of members who bring key senior expertise
The Port Security Officer, with support from the Port Security to the group, as well as a secretariat service.
Committee, is responsible for the coordination of responses to
events that require the implementation of the Port Security Plan. MEMBERSHIP
The Port Security Plan is approved by the Federal Governments Name Authority Discipline
Office of Transport Security under the Maritime Transport and
Offshore Facilities Security Act 2003. Melissa Reiter Chair HSEQ; Governance;
General Manager Project Management
MEMBERSHIP Corporate Services

The committee is chaired by Darwin Port Corporations Port Security Phil Vivian Member Project coordination
Officer. External Consultant

The committee comprises representatives from the Australian Peter Dummett Member Customer interface;
Federal Police, NT Police, Australian Customs and Border Protection General Manager Port Development
Service, DAFF Biosecurity, Office of Transport Security, Attorney Port Development
Generals Department and Immigration. Other maritime industry
participants who operate in the Port of Darwin are also members. Alastair Black Member Engineering; Head
These include Conoco Phillips, Kleetheat Gas, Baker Hughes, NT Engineering Manager works
Maritime, Broadsword Marine, Bhagwan Marine, Boskalis, Qube,
Vopak, Coastal Tug and Barge, Darwin Tug and Line Services, Natalie Toms Project Project
Workboats Northern Australia, Patrick Stevedores, Svitzer, Teras Procurement and Secretariat Management;
Australia, Van Oord, JKC Australia and Asco Australia. Contracts Manager Procurement;
Contracts
ACHIEVEMENTS

The committee meets every six months. Some meetings involve
desktop exercises on various security scenarios providing
opportunities for training and exchanges between stakeholders of
information relevant to security within the Port. This ensures that
responses to security issues are in accordance with the protocols
and assets available across the various organisations.
The PRG operates in accordance with a Terms of Reference and a
governance framework, which provides guidance on internal
communications, stakeholder engagement and across
government consultation.
ACHIEVEMENTS

The Project Reference Group met 28 times during the reporting

Project Reference period. It continued to monitor key strategic projects, including:

Continued construction of the Marine Supply Base at

Group
East Arm Wharf
Proposed construction of a common-user Tug Basin at
East Arm Wharf
Dredging of the Charles Point Patches to provide 24/7 all tides
The Project Reference Group (PRG) was established in May 2013
access to Darwin Harbour.
as a governance sub-committee of the Port Board of Management
to ensure robust project governance processes support the
The success of the committee has been evident in ongoing
Corporations major capital projects.
management reporting and the strong basis for governance and
project management it has provided to the Port Board of
The PRG continued regular meetings during the period to ensure
Management.
that a robust governance framework supports the Corporations
major projects and that project schedules, key milestones, high
level reporting, stakeholder engagement and communications are
managed to meet the expectations of the Chief Executive and the
Minister for Economic Development and Major Projects.

90

Case Study
OUR CORPORATE GOVERNANCE
HARBOUR CRANES
Crane services to meet changing needs
Owned and operated by the Darwin Port Corporation, the Ports first
and only container crane was commissioned and installed at Fort Hill
Wharf in 1984 at a cost of around $4M. The ongoing viability of this
single 35 tonne ship to shore gantry crane has been under review
for some time as part of the Corporations strategic forward
planning.
Now over 30 years old, the container crane has played an important
role in the early development of the Port by supporting the growing
trade with Asian markets. In 2002, as part of the Corporations Port
Development Strategy to transfer commercial shipping activities to
the Port s new East Arm Wharf, the crane was modified to suit the
locations rail gauges and relocated at a cost of $3.4M. The purpose
built multi-modal wharf facility was developed to include the
northern freight terminus of the Adelaide to Darwin rail link and
to be the Ports primary commercial wharf for Australasian trade.
Fatigue and age takes its toll
The crane continued to be a valuable Port asset but with age was
starting to be prone to more regular breakdowns and costly repairs
and was deemed unlikely to continue to meet the additional
demands of the Port of Darwins growing trade needs.
In 2008 the whole electronic drive system had to be upgraded at
a cost of over $1M following ongoing breakdowns and problems
sourcing spare parts due to its age. The crane was then taken out
of service again in 2011 for four months when it was blown along
its rails and damaged during strong gusty wet season conditions.
Repairs and an extensive overhaul were carried out and the
Corporation took the opportunity to also upgrade operational
processes and training.
The crane remained in operation until October 2013 when a failure
in the boom hoist device allowed the boom to free fall instead of
making a controlled decent, eventually resting at a 30 degree angle.
Corporation personnel activated the emergency brake and quick
action averted any injuries but there was major damage to the boom
hoist mechanism.
This final incident, the cause of which would not have been picked
up during routine inspections and maintenance, basically ended the
productive life of the crane. It raised clear ongoing safety and risk
management issues, as well as the viability of spending any more
money on repairs or upgrades.
DARWIN PORT CORPORATION 2013/14 Annual Report
Repair or replace?
The Corporation immediately launched an internal investigation
which recommended an independent external review to analyse the
root cause of this latest failure and to recommend ways forward to
provide ongoing crane services for Port clients.
The external review by World Crane Services of Dubai pinpointed a
fatigue failure in one of the gearbox shafts which had snapped, as
the main cause of the incident. Based on the review findings, the
decision was taken to decommission and dispose of the container
crane.
The crane was officially decommissioned in December 2013 and a
contract awarded on 27 May 2014 to INVER Engineering, a specialist
Melbourne based company, for its dismantling and removal which is
expected to be completed by the end of August 2014.
From both an operational perspective and to meet the need of Port
users, the Corporation needed to secure suitable short term, as well
as long term, alternative crane services for EAW and this process
began by communicating with the Port of Darwins two main
stevedoring providers Patricks and QUBE. A business case was
prepared for government with a cost benefit analysis which included
an option for the Corporation to source and purchase a new crane.
Replacement costs and the time to source, ship, install and
commission a new ship to shore crane was assessed and proved
unviable.
Collaborating with stakeholders for best solution
Both stevedoring companies confirmed that the ship to shore crane
had limited usage due to the high percentage of mixed cargo in
comparison to containers over the Port, and that many ships had
their own ship cranes. Mobile harbour cranes would provide greater
flexibility and efficiency.
Whilst in the past there was insufficient trade for both stevedores
to have their own cranes, this was no longer the case and this
raised the consideration that it is not common practice for Port
management agencies to own and hire out crane equipment. At
other ports around Australia the relevant stevedoring companies
own and operate their own cranes and service and charge clients
directly.
Fortunately, both Darwin stevedoring companies were able to
provide immediate interim alternatives.
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DARWIN PORT CORPORATION 2013/14 Annual Report

Case Study cont.

OUR CORPORATE GOVERNANCE

Patricks was able to access and ship north a mobile harbour crane
The Patricks Gotwald crane arriving at East Arm Wharf. from Melbourne that was surplus to their requirements and which
arrived in Darwin on January 2014.

As QUBE handle the majority of the container traffic in the Port of

Darwin, they were also able to provide an interim service until a new
crane, which was already on order from Ireland, arrived in Australia.
The impending delivery was redirected to Darwin and their crane
entered service in May 2014.

Providing efficiencies and record productivity

Now fully operational, the two privately owned mobile harbour
cranes at East Arm Wharf are delivering flexibility and immediate
additional benefits by more than quadrupling the Ports handling
capacity. One of the cranes is reaching rates of up to 32 containers
per hour compared to the previous rate of 10 per hour using the
Corporations old crane.

As a consequence of moving to privately owned and operated assets

such as the crane services, the Corporation also undertook a review
and restructure of its maintenance trade workforce which had been
primarily involved in repairs and maintenance of the Corporations
container crane.

The realisation of positive long term outcomes for crane services at

the Port of Darwin was achieved through capitalising on the strong
stakeholder relations the Corporation has built up over the years.
As well as growing the Ports capacity to handle increasing cargo
demands, it demonstrates the strong commitment and willingness
of the private sector to invest in the Port of Darwin and be part of its
growing future as a major gateway for trade and Northern Australias
development.

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 DARWIN PORT CORPORATION 2013/14 Annual Report

Our Operational Performance

Operational Highlights 94 Community Service Obligations 106

Trading Analysis 95 Business Planning Report 107
Total Cargo Trade 95 HR Performance Report 112
Export Cargo 96 Work Health and Safety Performance 116
Dry Bulk 98 Environmental Performance 117
Livestock 99 Pilotage Activities 122
Import Cargo 100 Procurement Overview 124
Petroleum and Liquid Bulk 101 Contractor Disclosure 126
Trade by Vessel Type 102 Compliance and Audit Reports 127
Business Output Groups 104 Case Study: Harbour Control Centre 128
Landside Operations 104
Marine Services 105

LNG Tanker in Darwin Harbour

93
DARWIN PORT CORPORATION 2013/14 Annual Report

Operational Highlights
OUR OPERATIONAL PERFORMANCE

View of dredger from East Arm wharf

This has been a year of major
milestone achievements for the
Corporation, with the completion
of a number of significant long
term projects.

The Corporations growth strategy, flexibility and hard work have

exceeded targets and returned a record net profit of $17M in
2013/14, with a record 53% increase in container and general cargo
trade on last year.

These results are a sound demonstration of the Corporations

ongoing focus on continuous improvement, investment in leading
edge technology and new infrastructure to accommodate major
projects.

Darwin Port Corporation achieved record total cargo trade

throughput across East Arm Wharf in 2013/14 totalling 4.5
million tonnes.

This is the sixth consecutive year that total trade at East Arm
Wharf has exceeded 3.5 million tonnes. Prior to 2007/08 total
trade had averaged 1.3 million tonnes per annum since East Arm
Wharf commenced operations in 2000.

Exported cargo increased by 357,000 tonnes or 13% from the

previous year to 3.1 million tonnes, achieving the Corporations
second highest export trade total.

The highest general and container cargo trade was achieved with
463,692 tonnes, a 53% increase or 161,000 tonnes on the
previous year.

Dry bulk exports remain the Corporations largest trade,

contributing 66% of the total cargo trade in 2013/14.

A record number of 3,178 trading vessels operated in Darwin

Harbour in 2013/14. There were 413 extra vessels than in the
previous year, an increase of 15%. Total trading vessel calls have
now increased by 107% in the past two years, illustrating the
scale of the INPEX projects impact on traffic in Darwin Harbour
including barges, dredging, general and container cargo.

An additional 127,000 head of livestock were exported in the

year to surpass 400,000 head, a record for Darwin Port
Corporation.

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 DARWIN PORT CORPORATION 2013/14 Annual Report

Trading Analysis
OUR OPERATIONAL PERFORMANCE

Total Cargo Trade Annual Comparison (tonnes)

1,461,164

2,729,896

3,774,638

4,577,532

3,835,354

3,511,007

4,299,009

4,597,933

Total Trade Cargo Analysis
4,597,933 total tonnes of cargo for 2013/14 is 298,924 tonnes
more than last years total throughput and is the Ports highest
total since operations commenced at East Arm Wharf.
The increase in total cargo trade is due to increases in dry bulk
exports (iron ore) and a large increase in general and container
cargo. Iron ore exports increased an extra 213,341 tonnes and
general and container cargo increased by 161,173 tonnes more
than the previous year.
Total exports increased 13% to 3,157,898 tonnes whereas total
imports decreased 5% to 1,440,037 tonnes in 2013/14.
62% of total cargo was traded with China due mainly to bulk
mineral exports. The next highest trading partner was Singapore
with 21% reflecting petroleum and general cargo imports.
Trade partners in 2013/14 totalled 36 countries, with the highest
number this year coming from Europe with nine countries. This
reflects the specialist cargo required for the INPEX Ichthys gas
project. Traditional major trading region South East Asia was
second with eight countries while East Asia included six
countries and had the largest portion of total cargo trade with
3.1million tonnes.
The Port of Darwin's commercial wharf, East Arm Wharf,
averaged 43% utilisation for 2013/14.

2013/14 Trade by Commodity Group

Commodity Group Tonnes In Tonnes Out Total

Building Materials 7,410 - 7,410

Chemicals 52,320 3,856 56,176
Drilling Muds - Rig Tenders - 2,565 2,565
Dry Bulk 226,566 2,816,967 3,043,533
Livestock - 135,479 135,479
Livestock Feed - 22,687 22,687
Machinery 11,454 101 11,555
Metals 66,195 25 66,220
Motor Vehicles 10,090 - 10,090
Other 212,267 55,266 267,533
Other - Rig Tenders only 31,538 40,700 72,238
Paper 213 - 213
Petroleum Products 818,301 58,571 876,873
Polymers and Plastics 3,683 - 3,683
Waste Metal - 21,682 21,682

Grand Total 1,440,037 3,157,898 4,597,935

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DARWIN PORT CORPORATION 2013/14 Annual Report

Regions 2013/14 Regions 2012/13

Europe 9 Europe 3
South East Asia 8 South East Asia 8
East Asia 6 East Asia 4
Pacific/New Zealand 4 Pacific/New Zealand 3
South Asia 4 South Asia 3
Middle East 2 Middle East 3
Africa 1 America 2
America 1 Australia 1
Australia 1 Total 27
Total 36

2013/14 Trading Analysis Export Cargo

Aust/NZ
Commodity Group Africa Asia /Pacific Europe Middle East Total

Chemicals - 3,856 - - 3,856

Drilling Muds - Rig Tenders - 2,565 - - 2,565
Dry Bulk 2,736,627 80,339 - - 2,816,967
Livestock 134,396 1,083 - - 135,479
Livestock Feed 22,387 300 - - 22,687
Machinery 62 39 - - 101
Metals - 25 - - 25
Other 89 40,496 14,322 311 48 55,266
Other - Rig Tenders only - 40,700 - - 40,700
Petroleum Products 2,907 55,664 - - 58,571
Waste Metal 21,682 - - - 21,682

Grand Total 89 2,958,558 198,892 311 48 3,157,898

96
 DARWIN PORT CORPORATION 2013/14 Annual Report

Trading Analysis cont.

OUR OPERATIONAL PERFORMANCE

Export Cargo 2012/13 Export Cargo 2013/14

3 1
4

92%

4%

3%

1%

92

Exports Cargo Analysis

3,157,898 tonnes of cargo was exported from East Arm Wharf in
2013/14 which is 357,485 tonnes or 13% greater than last year's
total exports.

This is the 2nd highest cargo exports total for Darwin Port
Corporation, and is the third year of growth following a decline in
exports in 2010/11 relating to the rail wash out and heavy wet
season that year.

Record livestock exports of 406,055 head followed a mean

average of 270,000 head per annum for the previous three
financial years and a 127,000 increase on last years exports.

In 2013/14 cattle were exported to five countries; 81%

Indonesia, 11% Vietnam, 4% Malaysia, 2% Philippines and 1%
Brunei.

Dry bulk exports increased by 259,768 tonnes or 10% more than

the previous year. Iron ore exports increased an extra 213,341
tonnes or 13% more than the previous year. Vessels berthed at East Arm Wharf

Cargo exports went to 20 countries in 2013/14, 16 of which were

in Asia.

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DARWIN PORT CORPORATION 2013/14 Annual Report

Trading Analysis cont.

OUR OPERATIONAL PERFORMANCE

Dry Bulk Exports Annual Comparison (tonnes)

Dry Bulk Exports

2,816,967 tonnes of dry bulk exports was higher than the
previous years total by 10% or 259,768 tonnes and is the
Corporations record dry bulk export total since 2009/10.
All dry bulk mineral exports went to China.

In 2013/14, iron ore exports of 1,881,773 tonnes were larger

than the previous year by approximately 213,000 tonnes. There
were 22 shipments on Panamax vessels with an average load of
72,700 tonnes.

DRY
Part of the increase in iron ore exports includes four trial
shipments totalling 272,000 tonnes by Sherwin Iron, a new
prospective iron ore mining company from the Roper River
region.
66% BULK
Iron ore continues to be Corporations largest single trading
commodity. Dry bulk exports accounted for
66% of total exports for the
Manganese exports in 2013/14 totalled 924,946 tonnes which Port of Darwin in 2013/14.
represents an increase of 36,000 tonnes or 4%, over the
previous year and a new record for the Corporation. There were
19 shipments of manganese averaging 46,000 tonnes each.

One shipment of 3,417 tonnes of Ilmenite was exported to China

in 2013/14.

The largest dry bulk load out in 2013/14 was 78,029 tonnes of
iron ore on the vessel Hanjin Rosario' destined for China in
September 2013.

Since 2000, more than 17 million tonnes of dry bulk cargo has
been exported from East Arm Wharf.

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 DARWIN PORT CORPORATION 2013/14 Annual Report

Livestock Exports
In 2013/14, an Australian record was set with 406,055 head of
cattle exported from the Port of Darwin for markets in South
East Asia. This represents a 47% increase or 129,564 more than
last years exports of 276,491 head.

Livestock exports to Indonesia rose by 121,320 or 59% in

2013/14, having remained constant at 277,000 head since the
federal livestock export ban to Indonesia in 2011.

Indonesia is the Corporations largest market for livestock

exports receiving 80% of total exports.

The new market of Vietnam continues to grow from 945 head

two years ago to 13,498 last year to 45,054 this year. This is an
increase of 212% on last years exports to Vietnam and now
makes it the Ports second largest market for livestock exports
surpassing the Philippines and receiving 11% of livestock
exports from Port of Darwin.

Malaysia received 17,608 head of cattle, an increase of 4,102 or Cattle being loaded onto vessel at East Arm Wharf
30% on the previous year.

However, the Philippines had a 76% decrease of 28,736 head

from the previous year importing only 9,220 head of cattle.

The largest single load out of cattle over the year was 16,406
head of cattle being exported on the vessel Ghena in December
2013 to Jakarta, Indonesia.

Over 3.6 million head of cattle have been exported from East
Arm Wharf since 2000.

99
DARWIN PORT CORPORATION 2013/14 Annual Report

Trading Analysis cont.

OUR OPERATIONAL PERFORMANCE

Import Cargo 2012/13 Import Cargo 2013/14

9
1
8

9%

16
8%

66

Import Cargo Analysis

1,440,037 tonnes of cargo was imported in 2013/14,
approximately 58,000 tonnes or 4% less than last years total
imports.
The decrease follows last years record cargo imports for the
Corporation of 1,498,000 tonnes but remains the second largest
import on record.
2013/14 did however see a 53% increase in general and
container cargo imports from 256,804 to 341,179 tonnes. The
majority of this increase can be attributed to the construction of
the INPEXs Ichthys LNG project and other large construction
projects in the NT.

Petroleum imports increased by 65,913 tonnes or 8% to

818,301 tonnes, however chemical and liquid bulk imports
decreased 64% or 113,326 tonnes.

2013/14 Trading Analysis Import Cargo

Aust/NZ
Commodity Group Africa Asia /Pacific Europe Middle East Total

Building Materials - 7,388 22 - - 7,410

Chemicals - 52,194 126 - - 52,320
Dry Bulk - 226,422 144 - - 226,566
Machinery 571 3,715 2,559 4,609 - 11,454
Metals - 66,195 - - - 66,195
Motor Vehicles - 6,387 3,689 14 - 10,090
Other 1,032 181,800 27,318 1,681 435 212,267
Other - Rig Tenders only - 12 31,526 - - 31,538
Paper - - 213 - - 213
Petroleum Products - 809,406 8,895 - - 818,301
Polymers and Plastics - 3,683 - - - 3,683

Grand Total 1,603 1,357,203 74,492 6,303 435 1,440,037

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 DARWIN PORT CORPORATION 2013/14 Annual Report

Petroleum and Liquid Bulk Imports (tonnes)

Petroleum and Liquid Bulk Motor Vehicle Imports

Combined petroleum and liquid bulk trade was down from Motor vehicle imports decreased by 25% or 1,916 vehicles in
1,036,783 tonnes to 933,048 tonnes, a decrease of 10% or 2013/14 from 7,645 to 5,729 vehicles.
103,000 tonnes.
There were 14 car carrier visits to East Arm Wharf, averaging
This figure is consistent with the last six years petroleum totals, 413 vehicles per shipment.
depicting a constant demand for petroleum and chemical
products for the Northern Territory over this period. The largest shipment of motor vehicles to Darwin was 648 in
March 2014 on the car carrier the Auriga Leader.
Petroleum and liquid bulk imports were down from 999,495 to
870,621 tonnes, a 13% decrease. While down, petroleum and
liquid bulk trade continue to be the Corporations largest import
cargo making up 60% of total imports for 2013/14.

Diesel makes up the largest portion of petroleum imports

accounting for over 78% with 638,782 tonnes.

Container/General Imports
A large portion of this trade was imported to Darwin by two liner
shipping companies, Mariana Express Lines and Swire Shipping
who service Darwin at East Arm Wharf as part of their Australian
and Asia services.
UP 53%
In 2013/14 generalised freight
This year there were also general cargo imports from nine increased by 53% from 302,519
European countries, mainly attributable to the INPEX Ichthys to 463,692 tonnes.
gas project and including countries such as Netherlands, Italy,
Belgium, France, Denmark and Germany. This illustrates the
integral role international shipping and globalisation can play in
supporting large infrastructure projects and economic growth.

This general cargo imports record equates to total petroleum

and liquid bulk import tonnages, historically, the Ports largest
import trade.

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DARWIN PORT CORPORATION 2013/14 Annual Report

Trading Analysis cont.

OUR OPERATIONAL PERFORMANCE

Total Trade by Vessel Type 2012/13 Total Trade by Vessel Type 2013/14

3 2

23 65% 19
7% 11%

23% 19%

3%
7 11
65
2%

Vessel Visits Analysis
The number of total trading vessels visiting Darwin harbour over
the past year increased significantly from 2,766 visits to 3,178
visits. This is an increase of 15% or 412 visits. A large portion of
the increase is attributable to the vessels used in the INPEXs
dredging program.
There were an additional 22 livestock vessels exporting from
East Arm in 2013/14, totalling 122 vessel visits, the highest
number of livestock vessels since 2009/10. Out of the 122
livestock vessel visits 89 or 73%, went to Indonesia,
predominately Jakarta, and 18 vessels or 15% went to the
newest market of Vietnam.

Offshore oil and gas support vessels or rig tenders increased
their visits to East Arm Wharf (EAW) in 2013/14 by 89 or 33% to
356 visits. Rig tenders were the most frequent vessel type at
EAW in 2013/14 making up 43% of total vessel visits to the
wharf and 31% of the total time spent alongside. The average
time at berth for a rig tender vessel was 18 hours.
Container and general cargo vessels made up 15% of visits to
EAW but 25% of total time alongside. The average time at berth
for container and general cargo vessels was 40 hours.
Livestock vessels made up 12% of total visits and 10% of time
alongside. The average livestock load per vessel was 3,328 head
and vessels were at berth 21 hours on average.
Car carrying vessels and cruise ships both remained consistent
with the previous year, decreasing by five and three vessel visits
respectively.

Dry bulk vessel visits totalling 60 remained consistent with the

previous year with only one additional vessel visit. Total dry bulk
tonnage increased by 259,768 tonnes or 10% reflecting the use
of larger vessels. While dry bulk vessel visits to EAW
represented only 6% of total visits, they contributed over 50% of
total trade time and 18% of time alongside. The average time at
berth for a dry bulk vessel was 4 days.

102 Gas vessel in Darwin harbour

 DARWIN PORT CORPORATION 2013/14 Annual Report

2013/14 Total Trade by Vessel Type

Vessel Type Tonnes In Tonnes Out Total

Barge 820 75 895

Car Carrier 11,007 62 11,069
Chemical/Products Tanker 205,749 - 205,749
Clinker Vessel 68,665 - 68,665
Container Vessel 172,614 44,231 216,846
Dry Bulk Carrier 102,495 2,759,057 2,861,552
General Cargo 168,564 77,968 246,532
Livestock Carrier - 158,169 158,169
Petroleum Bulk Carrier 664,746 5,776 670,522
Research Vessel 56 91 147
Rig Tender 40,299 111,233 151,532
Ro/Ro Vessel 258 - 258
Ro-Ro / Heavy Lift 3,961 - 3,961
Tug Boat 59 386 445
Unspecified Vessel Type 743 850 1,593

Grand Total 1,440,037 3,157,898 4,597,935

Vessel Type by Frequency of Call

2008/09 2009/10 2010/11 2011/12 2012/13 2013/14

Trading Vessels

Barge/stone dumping/dredging 585 586 635 639 1,951 2,298

Charter 6 1 2 14 3 23
Cruise 47 49 53 62 61 58
Bunkers/ferry 7 - - 2 - 23
Car carrier 12 13 18 22 19 14
Bulk clinker/concentrates/sulphur/dry 54 76 63 50 59 60
Container/general cargo/ro-ro 171 178 167 170 190 184
Tanker liquid bulk/petroleum 115 99 106 101 116 40
Rig tender 520 517 353 373 267 356
Livestock 108 123 83 69 100 122

Trading Vessels Total 1,625 1,642 1,480 1,502 2,766 3,178

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DARWIN PORT CORPORATION 2013/14 Annual Report

Business Output Groups

OUR OPERATIONAL PERFORMANCE

The Corporation operates three lines of business and records and

reports its performance against these:

1. East Arm Wharf

2. Navigation and Pilotage
3. City Wharves

These lines of business are managed under three categories:

1. Landside Operations
4.6Mt
2. Marine Services
3. Community Service Obligations
Record cargo trade
throughput across
East Arm Wharf
Landside Operations
EAST ARM WHARF
This line of business comprises the provision of services and
infrastructure for the operation of East Arm Wharf facilities including
facilitation of dry bulk handling, livestock exports, container and
general cargo, as well as offshore oil and gas rigs services.

Performance Measures 2012/13 Actual 2013/14 Actual

Quantity Total trade throughput (million tonnes) 4.3 4.6

Berth occupancy rate 1 40% 43%

Total trade volume growth 2 16.8% 7%

Quality Customer satisfaction 82%* 82%*

Cost Revenue growth 3 31% 24%

1
Industry standard considers 65% berth occupancy to be at full capacity.
2
Measured as the percentage increase in trade volume compared to the previous
financial year.
3
Measured as the percentage growth in total annual revenue compared to the previous
financial year.
* Based on actual independent survey result conducted in 2012.

Performance Comments:
Trade throughput for 2013/14 increased by 7% following the peak in
the previous year. The drivers for this increase relate to general and
containerised cargo, liquid bulk, livestock and dry bulk. Although
the growth rate in the throughput volume was moderate, the revenue
to East Arm Wharf still rose by 24% from last year. This is due to
revenue from vessel-related charges earned throughout the year that
were not connected to cargo.

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 DARWIN PORT CORPORATION 2013/14 Annual Report

Marine Services
NAVIGATION & PILOTAGE
This line of business provides navigational aids, safe channels and
berthage arrangements, moorings and anchorages in the Darwin
Harbour and the provision of pilotage services to all commercial
and non-commercial vessels.

Performance Measures 2012/13 Actual 2013/14 Actual

Quantity Acts of pilotage 1 2375 2513

Total number of vessels using the Port 2 3057 4887

Timeliness Navigational aid reinstated within 24 98% 98%

hours

Safety broadcast issued within 30 100% 100%

minutes

Cost Revenue growth 3 23% 20%

1
Involves a marine pilot boarding a vessel to manoeuvre and navigate it to its
destination.
2
Each vessel visit or rotation is measured as one vessel
3
Measured as the percentage growth in navigation and pilotage revenue compared
to the previous financial year.

Performance Comments:
Increased activity within the harbour generated a high demand
for our navigational and pilot services. The number of piloted
movements for the year reached over 2,513 in 2013/14 in line with
the increase in the number of vessels using the Port compared to
2012/13. The cause of the increase in demand stems from vessels
working in the harbour in support of the INPEX dredging operations
in the first half of the year. Our expectation for next year is that the
demand will remain high due to movements of vessels supporting
the INPEX pipe laying work in the first half of 2014/15.

Dredging vessels in Darwin Harbour channel

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DARWIN PORT CORPORATION 2013/14 Annual Report

Business Output Groups cont.

OUR OPERATIONAL PERFORMANCE

Community Service Obligations

CITY WHARVES
The operation of city wharves at Fort Hill, Stokes Hill and the Frances
Bay Mooring Basin provide services that, with the assistance of
community service obligations from the Territory, include the
operation of facilities that support cruise shipping and naval
presence in Darwin, the management of retail outlets and associated
facilities at the Wharf Precinct and the management and operation
of a tidal free facility for safe berthing of local fishing vessels.

Performance Measures 2012/13 Actual 2013/14 Actual

Quantity Cruise vessel visits 61 63

Defence vessel visits 70 102

Visiting number of cruise passengers 66,781 58,845

and crew

Berth occupancy rate Fort Hill Wharf 57% 46%

Quality Customer satisfaction 100%* 100%*

Cost Cost recovery 1 78% 78%

1
Calculated as revenue divided by expenses and is indicative of ability to recoup costs
rather than profitability as these are non-commercial CSO activities.
* Based on actual independent survey result conducted in 2012.

Performance Comments:
2013/14 was another busy year in respect of the number of cruise
vessels calls to Darwin with 63 cruise visits compared to 61 in
previous year. Although the number of vessel calls has increased,
the number of passengers recorded has declined. Defence vessel
visits also increased significantly with frequent port calls associated
with border protection activities. The rate for cost recovery is

58,845 passengers
and crew from 63
vessel visits recorded
showing a consistent trend relative to the previous year but is still
below what is required to break even. The Corporation continues during 2013/14
to monitor its activities with an emphasis on user pays as far as
practicable for all its CSO activities.

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 DARWIN PORT CORPORATION 2013/14 Annual Report

Business Planning Report

OUR OPERATIONAL PERFORMANCE

Consolidated Business Plan

The Corporations performance in terms of meeting corporate objectives through business initiatives is reported within the following pages.

TARGET # INITIATIVES TARGET MEASURE PERCENTAGE STATUS

DATE COMPLETE

INFRASTRUCTURE 1 Develop a Port-wide 30/06/15 Austal currently engaged at 22 hours 50%

IS APPROPRIATE programmed maintenance per month to develop and populate a
FOR THE FUTURE schedule for Port Assets and comprehensive asset maintenance
Facilities program (MEX). Bulk loading equipment
100% complete. This represents
approximatley 30% of all Corporation
assets. MEX system has been upgraded
to version 12.6, will need to upgrade to
version 14 to incorporate use of IPads or
similar. Engagement of a planner will be
necesary early new year to maintain
current momentum. Based on current
schedule all asset data will be loaded into
MEX by 30/06/2015
GROW TRADE

2 Develop Critical 30/06/14 Determine future infrastructure 80%

Infrastructure Plan requirements for existing and future
importers and exporters through regular
industry consultation. Cost requirements
with potential suppliers through
appropriate use of external consultants
experienced in the subject matter.
Determine business case and financial
model in consultation with CFO.

3 Deliver the Marine Supply
Base project
30/06/14 Keep abreast of construction status 100%
through regular interface with appointed
external consultant. Ensure early
identification of issues that may lead to
project delays and develop contingencies
through consultation with PMG and
stakeholders. Ensure appropriate
resources are allocated through
consultation at PRG meetings.

Completed or progressing according to schedule Progressing with minor issues to be addressed Not addressed or major issues outstanding

107
 DARWIN PORT CORPORATION 2013/14 Annual Report

Business Planning Report cont.

OUR OPERATIONAL PERFORMANCE

Consolidated Business Plan cont.

TARGET # INITIATIVES TARGET MEASURE PERCENTAGE STATUS
DATE COMPLETE

INFRASTRUCTURE 4 Construct and manage a Tug 01/01/17 Finalise preferred location for tug pen 15%
IS APPROPRIATE Facility at East Arm Wharf facility through consultation with PMG.
FOR THE FUTURE Cost preferred location through the use of
appropriately qualified external consultant.
Finalise most appropriate funding model
through consultation with CFO. Liaise with
towage companies to determine level of
commitment to funding options. Formalise
contractual arrangements with most
appropriate party through consultation.
Oversee delivery plan and manage on time
delivery through close consultation with
successful proponent.

CHANNEL ACCESS 5 Develop and Implement a 01/12/13 Define fairways and anchorages 50%
MEETS VESSEL Channel Navigation Strategy
CAPACITY

01/02/14 Evaluate AtoN requirements for defined

fairways
GROW TRADE

01/03/14 Develop hydrographic survey and

maintenance dredging plan

6 Determine costs and benefits On Hold
of a DUKC
Evaluate existing weather and wave data 10%
and determine if a DUKC system would
yield significant safety and commercial
advantage. If necessary develop a
business case.

7 Deliver the Channel
Enhancement Strategy
(harbour entrance dredging)
30/06/14 Finalise actual dredging requirement via 100%
consultation with GMO and determination
of industry requirements. Obtain
necessary regulatory approvals through
application. Determine availability of most
suitable equipment to undertake the task in
most cost effective manner through
consultation with dredge equipment
operators. Undertake procurement
process and award contract.

Completed or progressing according to schedule Progressing with minor issues to be addressed Not addressed or major issues outstanding

108
 DARWIN PORT CORPORATION 2013/14 Annual Report

Consolidated Business Plan cont.

TARGET # INITIATIVES TARGET MEASURE PERCENTAGE STATUS
DATE COMPLETE

EFFECTIVE 8 Review the Corporation's 30/12/13 Disseminate strategy and monitor 100%
CUSTOMER Communications and adherence.
COMMUNICATIONS Customer Engagement
Strategy
GROW TRADE

9 Implement an appropriate 30/06/14 Engage service provider to review 100%

social media environment to Corporation's requirements and make
complement Corporation's appropriate recommendations to Port
communications strategy Management on a social media presence.

10 Review the Corporation's 30/06/15 Engage service provider to review current 15%
Internet content internet and update, taking into account
new accessibility requirements.

WORKFORCE 11 Develop and implement an To be scoped. On hold. 10%

DEVELOP WORKFORCE

PROFILE organisation-wide Fit for

IS ALIGNED TO Work Program
CAPABILITY

BUSINESS NEEDS

ORGANISATIONAL 12 Review responsibilities of the 30/06/15 Not yet commenced. 100%

CULTURE IS CEO, Executive and Senior
VALUES BASED Managers to align with
strategic deliverables

MEET 13 Develop a 5 Year Port 30/12/13 Implemented. 100%

GOVERNMENT'S Development Strategy
FRAMING THE
MAINTAIN PROFITABILITY

FUTURE STRATEGY
- PROSPEROUS 14 Develop a 50 Year Port Plan On Hold. 50%
ECONOMY

15 Review the East Arm Wharf 30/06/15 Commence review following 0%

Facilities Masterplan 2030 implementation of Port Development
Strategy.

16 Develop a commercial 01/01/15 Transfer SHW to Darwin Waterfront, 100%

strategy for City Wharves continue discussion with LDC in regards to
other assets.

Completed or progressing according to schedule Progressing with minor issues to be addressed Not addressed or major issues outstanding

109
 DARWIN PORT CORPORATION 2013/14 Annual Report

Business Planning Report cont.

OUR OPERATIONAL PERFORMANCE

Consolidated Business Plan cont.

TARGET # INITIATIVES TARGET MEASURE PERCENTAGE STATUS
DATE COMPLETE

ORGANISATIONAL 17 Implement outcomes of the 01/01/14 Fully Implemented. 100%

STRUCTURE Mini Budget 2013-14
SUPPORTS
MAINTAIN PROFITABILITY

THE BUSINESS

18 Implement the 01/06/14 Seeking approval to develop Cabinet 20%

recommendations of the Submission
Review of the Darwin Port
Corporation Act and
Associated Legislation

19 Implement the Frontline 01/06/14 Fully implemented. 100%

Service Delivery Restructure

Work Safe. 20 Develop an organisation 31/12/14 Develop SMS framework 100%

Live Safe. wide Safety Management
System
Undertake functional area risk
assessments
PROVIDE A SAFE WORKING ENVIRONMENT

Undertake functional area risk

assessments

Implement systems

21 Develop a Business 30/06/14 Consultant developing plan from 50%

Continuity Plan subservient road map
to our Emergency
Management System

22 Develop and implement a 30/06/15 Develop scope for consultant 0%

Marine Safety Management
Component of the DPC
Safety Management System

23 Determine a baseline port 30/06/15 Undertake a port wide security risk 10%
wide security risk assessment

Completed or progressing according to schedule Progressing with minor issues to be addressed Not addressed or major issues outstanding

110
 DARWIN PORT CORPORATION 2013/14 Annual Report

Consolidated Business Plan cont.

TARGET # INITIATIVES TARGET MEASURE PERCENTAGE STATUS
DATE COMPLETE
PROVIDE A SAFE

ENVIRONMENT

Work Safe. 24 Undertake an organisation- 01/01/14 Implement risk assessments and monitor 100%
WORKING

Live Safe. wide strategic, operational mitigation actions

and financial risk
assessments

OPERATIONS 25 Develop an Environmental 30/06/14 Drafting being undertaken by Coffey 80%

HAVE MINIMAL Management Plan for the Environment
ENVIRONMENTAL Frances Bay Mooring Basin
IMPACT
BE ENVIRONMENTALLY RESPONSIBLE

26 Develop dredging plan for 20/12/13 Received quotation. Schedule capital 100%
Mooring Basin works based on business case.

27 Develop a Corporation 30/01/15 Develop checklist 80%

standard for bulk export
operations

28 Tender for port-wide 31/12/14 Future tender opportunity 100%

environmental monitoring
program

29 Scope a requirement for a Investigate where, when and how 30%

domestic washdown bay at
EAW

UTILISE 30 Implement PMIS Stage 2 30/10/13 Training workshops with stakeholders 100%
LEADING EDGE (Customer Interface)
SYSTEMS

31 Develop a scheduling system 30/01/14 Developed with training of key staff to take 100%
for Mooring Basin and place.
BE INNOVATIVE

Fisherman's Wharf

32 Establish a Harbour Control 1/03/14 Developed with training of key staff to take 100%
Centre (VTS) place.

33 Develop an emergency 31/12/13 Review being undertaken by AdISRM. 10%

management system for
Corporation

Completed or progressing according to schedule Progressing with minor issues to be addressed Not addressed or major issues outstanding

111
 DARWIN PORT CORPORATION 2013/14 Annual Report
HR Performance Report
OUR OPERATIONAL PERFORMANCE
Employment instructions and NTPS Agency Requirements
Number One Filling Vacancies
A Chief Executive Officer must develop a procedure for filling of
vacancies consistent with the Act, its subordinate legislation and
any relevant award or enterprise agreement.
Section 28(2) (c) of the Act requires the Chief Executive Officer to
report annually on the number of employees of each designation
and any variation in numbers since the last report.
Number Two Probation
A Chief Executive Officer must develop a probation procedure
consistent with the Act, its subordinate legislation and any
relevant award or enterprise agreement.
Number Three Natural Justice
A person who may be adversely affected by an impending
decision must be afforded natural justice before a final decision
is made.
Number Four Employee Performance
Management and Development Systems
Chief Executive Officers must develop and implement an
employee performance management and development
procedure consistent with the Act, its subordinate legislation
and any relevant award or enterprise agreement.
Section 28(g) of the Act requires Chief Executive Officers to
report annually on management training and staff development
programs within their agencies.
112
Darwin Port Corporation has fully implemented the filling vacancies
procedures with a focus on merit selection of candidates based
on the skills, qualifications, experience and potential for future
development of each candidate. The Corporation promotes the
NTPS Values of accountability, impartiality and diversity in filling
vacancies.
Where necessary HR provides support as selection panel
members to ensure panels are made up of trained personnel.
The Corporations selection policies are consistent with and apply
Sections 5D Merit and 5E Equality of Employment Opportunity
Principles of the Public Sector Employment and Management Act.
The Corporation has fully implemented procedures for the
probation process to reflect changes since commencement of the
amended Public Sector Employment and Management Act and the
issue of new and revised employment instructions.
No employees have required extended probation periods this year
under the probation process.No employees were terminated during
their probationary process.
The Corporation applies the principles of natural justice in all cases
where an employee may be adversely affected by an impending
decision and natural justice underpins all dealing with employees in
the workplace.
The Corporation promotes ethical and transparent conduct as a
Corporate Value and the NTPS Values of ethical practice,
impartiality, diversity, respect, accountability and commitment to
service.
The Corporation has performance management programs in place
that integrate with Northern Territory Public Sector Capability and
Leadership Framework, its values and Corporate Directions
Strategy.
 DARWIN PORT CORPORATION 2013/14 Annual Report

Employment instructions and NTPS Agency Requirements

Number Five Medical Examinations

No reporting requirements All new employees of the Corporation undertake pre-employment
medical examination. There were no employees directed to take a
medical examination due to inability or discipline matters.

Number Six Employee Performance

and Inability
Chief Executive Officers may develop employee performance and There have been no inability cases during 2013/14.
inability procedures consistent with the Act, its subordinate
legislation and any relevant award or enterprise agreement.

Section 18(2) (c) of the Act requires the Commissioner to report

annually on the extent to which inability procedures have been
invoked in the Public Sector.

Chief Executive Officers shall provide to the Commissioner with

the information necessary for the Commissioner to comply with
this reporting requirement.

Number Seven Discipline

Chief Executive Officers may develop discipline procedures One disciplinary process was addressed during the year, principally
consistent with the Act, its subordinate legislation and any in relation to code of conduct and failure to comply with policies.
relevant award or enterprise agreement.

Section 18(2) (c) of the Act requires the Commissioner to report

annually on the extent to which disciplinary procedures have been
invoked in the Public Sector.

Chief Executive Officers shall provide the information necessary

for the Commissioner to comply with this reporting requirement.

Number Eight Internal Agency Complaints and

Section 59 Grievance Reviews
Chief Executive Officers shall establish written grievance settling
procedures for their agencies, which should be made available to
all employees
The Corporations internal grievance policy and procedures are
consistent with the Public Sector Employment and Management
Act, the Darwin Port Corporation Enterprise Agreement and
Employment Instruction 8. The policy and procedures assist staff
through grievance processes.

The Corporation had no Section 59 Grievance Reviews in 2013/14.

113
 DARWIN PORT CORPORATION 2013/14 Annual Report
HR Performance Report cont.
OUR OPERATIONAL PERFORMANCE
Employment instructions and NTPS Agency Requirements
Number Nine Employment Records
Chief Executive Officers have the delegated responsibility for
keeping employment records, in accordance with the Act and its
subordinated legislation. Records must comply with the
requirements of the Information Act (NT) regarding correction,
collection and handling of personal information contained in an
employees employment record.
Number Ten Equality of Employment
Opportunity Programs
Chief Executive Officers must develop an Equality of Employment
Opportunity Program consistent with the Act, its subordinate
legislation, the Anti-Discrimination Act and any relevant award
or enterprise agreement
Number Eleven Occupational Health and
Safety Standards Programs
Chief Executive Officers must ensure the application in his or her
agency of appropriate occupational health and safety standards
and programs.
Chief Executive Officers are required to provide information in
his or her Agency Annual Report in relation to the Agency
Occupational Health and Safety programs.
114
Employee records are maintained by Department of Corporate and
Information Services and Darwin Port Corporation in accordance
with relevant records management policy and information
legislation. Personnel files held by the Corporation are managed
electronically in compliance with relevant legislation.
The Corporation complied with EI 10 by developing programs to
ensure employees have equal employment opportunities in
accordance with the Public Sector Employment
and Management Act.
The Corporations procedure for Filling Vacancies incorporates the
Equality of Employment Opportunity requirements.
The Corporations data indicates that our Indigenous employment
numbers are lower than those across the rest of the NTPS.
The number of employees identifying as being from a culturally
diverse background or a disability group is consistent with the
NTPS average.
To promote Indigenous employment the Corporation has
supported work experience programs for Indigenous students
and has committed to a work placement for an Indigenous trade
apprentice for the duration of his training.
We place a strong emphasis on Workplace Health and Safety with
inductions required to be completed by all staff every 12 months.
Employees are supported to maintain and improve safety related
qualifications including First Aid and High Risk work licences.
We provide fully funded flu vaccinations for employees. Specific
roles also receive additional preventive vaccinations and medicals
funded by the Corporation.
Additional information is provided separately in this Annual Report.

Employment instructions and NTPS Agency Requirements
Number Twelve Code of Conduct
A Chief Executive Officer may issue an Agency-specific code
of conduct which is consistent with the Act, its associated
subordinate legislation, this Code and any other relevant
legislation.
Number Thirteen Appropriate Workplace
Behaviour
Number Fourteen Redeployment and
Redundancy Procedures
DARWIN PORT CORPORATION 2013/14 Annual Report
We have an Agency-specific Workplace Behaviour Policy and
Acceptance of Gifts and Benefits policy to support and strengthen
elements of the Code of Conduct.
All new starters are provided with a copy of the Code of Conduct.
The Corporation has an Agency-specific Workplace Behaviour
Policy and procedure for dealing with workplace complaints
regarding inappropriate behaviour and has actively promoted the
Appropriate Workplace Behaviour employment instruction.
The Corporation acts in accordance with redeployment and
redundancy procedures set out under the Enterprise Agreement
and EI 14.
In 2013/14 six technical maintenance employees accepted
voluntary redundancies.
One employee was redeployed to another NTPS agency.
Dredging vessel Athena in Darwin harbour
115
DARWIN PORT CORPORATION 2013/14 Annual Report

Work Health and Safety Performance

OUR OPERATIONAL PERFORMANCE

Darwin Port Corporation Work Health and Safety Management System and Report

WH&S Policies
PMG Primary Commitment Statements (Sets the Direction)

Commitment, Workplace Hazard Selection, Communicate, Incident, Injury

Planning Management Induction & Consult & & Emergency
& Review Training Involvement Management

Safety Management System Standards (Sets the Direction)

Fatigue Hazard ID, Risk Recruitment & Management Safety Incident Report & Safety
Policy, Planning Assessment & Pre-employment Involvement & Management
Management & Resourcing Recording
Plan Control Process Medical Reporting Plan

Asbestos Training & Employee Safety Incident Analysis, Traffic

Legal Life Savers (Legal Information & Corrective Action Management
Management Requirements Compliance) Records
Plan Communication Closure Plan

Employee Health Employee Induction, WH&S First Aid &

Responsibility & & Health Job Skills & Work Representatives & Medical
Accountability Surveillance Process Training Committees Treatment

Design,Procurement Licences & Consultation Workers

Management Purchase Certificate of & Issue Compensation &
System Review & Disposal Competencies Resolution Injury Management

Lease, Contractor Consultation with Emergency

Documents & Management of Public & Visitor WH&S Regulatory
Records Charge Management Management
Authorities

Safe Work Procedures (Manages the Safety Management System)

Safe Work Systems of Work Forms &

Instructions Registers WH&S Tools Templates

Operational Processes (Controls the Work and Supports the Safety Management System)

Complete and Implemented In Progress.

116

Environmental Performance
OUR OPERATIONAL PERFORMANCE
Progress Report 2013/14
ELEMENTS
SYSTEMS
Develop and maintain Environmental
Management System to ISO14001 standard.
All activities that present an environmental
risk are to have documented management
procedures (Workplace Instructions, Standard
Operating Procedures and Management Plans).
REGULATORY COMPLIANCE
Maintain an up to date legislative register for
East Arm Wharf and have this accessible on
the Corporations intranet.
Identify any non-compliances with legal and
other regulatory requirements that occur at
East Arm Wharf and ensure that these are
reflected in the Issues Register and all fields
of the register are completed.
Maintain an up to date central licence and
permit register for all relevant licences and
permits.
Zero non-compliances with legal and other
regulatory requirements in each year.
Completed or progressing according to schedule
DARWIN PORT CORPORATION 2013/14 Annual Report
STATUS
Stokes Hill Wharf EMP completed.
Fort Hill Wharf EMP completed.
Internal auditing process developed and commenced.
Port monitoring program continuing.
Fishermans Wharf / Mooring Basin EMP completed
28 Procedures / Workplace Instructions have been identified as relevant to
environmental management.
2 Bulk mineral exporters have EPA approved EMPs. Cement clinker importer
has a voluntary EMP.
Bulk liquids operator has an EMP and procedures.
Licences to Occupy, for Corporation tenants when renewed, now have a clause
to require an EMP to be developed and submitted.
Legislative register complete.
East Arm Wharf expansion sewage works to connect to Power and Water sewage
system have been completed. (Wash bays and Individual storage tanks not
connected to the sewerage system require ongoing management).
Licence and permit register developed.
No non-compliances detected during the 2013/14 reporting year.
Progressing with minor issues to be addressed Not addressed or major issues outstanding
117
 DARWIN PORT CORPORATION 2013/14 Annual Report

Environmental Performance cont.

OUR OPERATIONAL PERFORMANCE

Progress Report 2013/14 cont.

ELEMENTS STATUS

PLANNING

All proposed significant infrastructure and No significant infrastructure required to be assessed.

alterations are assessed for environmental
impact.

Specific environmental management plans are
prepared as part of the project proposals that
sit under this EMP and implemented.
East Arm Wharf Expansion in accordance with the EPBC Act has the following
approved plans:
Port Environment Protection Plan
Dredging and Dredge Spoil Placement Management Plan
Migratory Bird Management Plan
Sediment Sampling and Analysis Plan
Water Quality Management Plan
Coastal Offset Plan
Port Environment Protection Plan developed by the Corporation and approved by
the Commonwealth Department of Sustainability, Environment, Water, Population
and Communities (SEWPAC) as part of East Arm Wharf expansion.

This EMP is reviewed on an annual basis and Due for review.

updated as required to ensure it accurately
reflects planning related objectives and targets.

Planning issues to be captured in Issues No planning issues identified.

Register and addressed.

COMMUNICATION

Port Environmental Policy to be publicly Policy available on website.

available via the Corporation website.

Communicate the objectives and targets for EMP has been distributed to Port Users Group.
East Arm Wharf to all stakeholders. Communicated when opportunities arise i.e. environmental incidents,
proposals.

Communicate progress on meeting objectives Communicated through annual report.

and targets for East Arm Wharf to all
stakeholders.

ENERGY AND RESOURCES

To comply with relevant Northern Territory
Government energy and resource use policies
(Northern Territory Climate Change Policy 2009
and NT Government Energy Smart Buildings
Policy).
Energy Smart Building Policy is no longer relevant.
Replacement vehicles meet minimum fuel efficiency standards.
6 cylinder vehicles have been replaced with 4 cylinder vehicles.

Completed or progressing according to schedule Progressing with minor issues to be addressed Not addressed or major issues outstanding

118

Progress Report 2013/14 cont.
ELEMENTS
ENERGY AND RESOURCES
All new developments (building and industrial
facilities) are to be assessed and must
incorporate energy efficiency design.
Report in accordance with the National
Greenhouse and Energy Reporting Act 2007
AIR QUALITY
To comply with relevant regulatory and policy
requirements including:
National Environment Protection (Ambient Air
Quality) Measure (NEPM).
National Environment Protection (Air Toxics)
Measure (NEPM).
State Environment Protection Policy (Air
Quality Management) (Victoria).
NOHSC:1003 Adopted National Exposure
Standards for Atmospheric Contaminants in
the Occupational Environment.
AIR QUALITY
Comply with National Environmental Protection
Council (Assessment of Site Contamination)
Measure.
Completed or progressing according to schedule
DARWIN PORT CORPORATION 2013/14 Annual Report
STATUS
No new developments to be assessed.
The Corporations energy consumption is below threshold for reporting.
National Environment Protection (Ambient Air Quality) Measure (NEPM).
2013/2014 PM10 monitoring has shown that the 50 ug/m3 guideline was only
slightly exceeded in close proximity to the source (inside the Port boundary)
which indicates the nearest residential dwellings (in excess of 4 km away) will
not be impacted. The breakdown of metals analysis and comparison of samples
away from the bulk minerals indicates this is mainly due to higher background
levels.
Air Toxics potential sources are bulk fuel (petrol) imports. The infrequent
nature of bulk fuels imports does not warrant further investigation into
compliance with guideline at this stage.
NOHSC 1003 - previous assessments within the bulk loading infrastructure have
all easily complied with NOHSC 1003 requirements.
An elevated level of contamination is known to exist at Frances Bay Mooring
Basin and Hornibrooks Wharf. It has accumulated over many years.
Hornibrooks Wharf has undergone refurbishment which has removed
contaminants and installed a paved surface with stormwater sediment traps to
prevent future contamination to soil and water.
A specialist water treatment company has developed a proposal to precipitate out
metal contaminants and stabilise them in sediments until maintenance dredging
can remove them. Comprehensive marine sediment sampling has been
conducted to investigate dredging options.
Port environmental monitoring has detected elevated levels of contaminants in
relation to the NEPM. Monitoring is continuing to establish extent of
contamination.
Progressing with minor issues to be addressed Not addressed or major issues outstanding
119
 DARWIN PORT CORPORATION 2013/14 Annual Report
Environmental Performance cont.
OUR OPERATIONAL PERFORMANCE
Progress Report 2013/14 cont.
ELEMENTS
LAND AND SOILS
Comply with the Waste Management and
Pollution Control Act
WATER AND MARINE SEDIMENTS
Comply with relevant regulations and adopted
guidelines including:
Marine Pollution Act.
Waste Management and Pollution Control
Act.
Water Act
Australian and New Zealand Guidelines for
Fresh and Marine Water Quality (2000).
Develop a Stormwater Management Plan for
East Arm Wharf that includes short, medium
and long term actions.
FLORA AND FAUNA
No adverse impact on native flora and fauna.
Programs to be in place to adequately manage
non-native pest flora and fauna.
HYDROCARBON AND HAZARDOUS MATERIAL
Spills of oil, other hydrocarbons and hazardous
materials are to be reported (as required) and
cleaned up immediately.
Risk of spills of oil, other hydrocarbons and
hazardous materials are to be minimised to the
maximum practical extent.
Adequate oil spill response equipment and
preparedness for the oil spill potential that
exists.
Completed or progressing according to schedule
120
STATUS
No non-compliances.
Works to connect East Arm Wharf to Power and Water sewerage system have
been completed. This resolves many sewage management issues.
Stormwater discharges are compliant. Works at East Arm have improved
stormwater quality. East Arm Wharf now has drainage collection along the wharf
face, new drainage in the bulk minerals area which all goes to Pond F
(stormwater pond). A new stormwater pond has also been constructed (Pond E)
which collects any overflow from pond F. Pond L now also has a large pump
which pumps any overflow into the greater mud pond area.
Medium term actions are substantially complete along with a number of long
term actions.
As part of the EIS for East Arm Wharf expansion, Mud pond D has been
protected under the EPBC Act due to the significant migratory bird population.
Protection measures are in place and bird monitoring by Conservation Volunteers
Australia continues.
Development (earthworks) around Pond A and Pond C and the Marine Supply
Base area has significantly reduced areas that can support noxious weeds.
Commenced action to repair erosion and remove trees around the East Arm
Wharf security fence to prevent access by dogs and dingoes.
Oil spills are reported in accordance with Corporation Environmental Incident
requirements and NT Oil Spill requirements.
Bulk liquids operator has current plans and procedures.
The Port has AMSA and Corporation spill equipment stored onsite.
AMSA has provided new and improved equipment with an increased capability.
Oil spill training and exercises have been undertaken with the new equipment.
Progressing with minor issues to be addressed Not addressed or major issues outstanding

Progress Report 2013/14 cont.
ELEMENTS
WASTE MANAGEMENT
Recycling facilities and systems in place to
allow the separation and recycling of materials
(including paper, cardboard, drink containers,
scrap metal, waste oil, lead acid batteries and
printer cartridges).
Manage quarantine waste in accordance with
AQIS requirements.
Manage general waste to prevent litter, odour
and pest infestations.
CARGO HANDLING BULK MINERALS
Handling of bulk minerals is to be conducted
in accordance with this EMP, relevant individual
Environment Management Plans for particular
products, NT Legislation, Operating
Agreements and Corporation requirements.
Completed or progressing according to schedule
DARWIN PORT CORPORATION 2013/14 Annual Report
STATUS
Waste contract has recycling requirements and provides receptacles and
collection.
East Arm has a current registration as a Quarantine Approved Premises
(Renewed Annually).
Quarantine waste is now provided offsite by a waste companys autoclave.
Corporation still provides quarantine wash bay facilities and methyl bromide
treatment area.
Waste contract requires frequent waste collection.
No complaints of litter, odour or pest infestations.
No incidents or issues have arisen that breach EAW EMP or individual EMPs, NT
Legislation, Operating Agreements or Corporation requirements.
Progressing with minor issues to be addressed Not addressed or major issues outstanding
Bird Sanctuary East Arm Wharf
121
 DARWIN PORT CORPORATION 2013/14 Annual Report

Pilotage Activities
OUR OPERATIONAL PERFORMANCE

The Ichthys project activities, coupled with an increase in some export and
import trades, kept the Marine Operations team very busy throughout the
reporting period.
Ongoing dredging and construction works for both the dedicated
INPEX plant Module Offloading Facility at Bladin Point Module Offload Facility (MOF) and the Product Loading Jetty (PLJ)
at Bladin Point increased pilotage activities in the Hudson Creek and
Elizabeth River areas of the harbour.

There was a significant increase in Pilotage Exempt Certificate (PEC)

ship moves throughout the year which reflected the heightened
construction activity on the harbour.

Our marine pilots attended ship simulator training for the Marine
Supply Base (MSB) and MOF. These two new facilities are served by
newly established channels. Simulator training prior to the facilities
becoming operational was essential to provide the pilots with some
ship handling experience in the channels and at the berths before
they had to conduct the manoeuvres in real life. The training was
valuable in providing our pilots with strategies and tactics for
handling ships safely at the new facilities.

The commencement of operations at the MSB and MOF had been

recognised as presenting an operational challenge due to both
facilities requiring slack tide and daylight for initial arrivals and
departures. This was a precautionary approach endorsed by the
Harbourmaster to allow the pilots and visiting ships masters to
progressively build their experience and knowledge of the facilities.
The MOF was the most challenging because of the natural undressed
channel and was therefore reliant on high tide to provide sufficient
navigable water for the module carriers.

The commencement of operations at the MSB and MOF in June

coincided with the laying of the Ichthys gas export pipeline which
goes some way to explaining the record 304 piloted moves that
occurred during the month. Ship numbers were also boosted by a
number of customers putting increased cargo volumes across East
Arm Wharf to meet end of financial year commitments.

The Marine Operations team was able to provide a high level of

service to the Ports existing and new customers despite the
challenging operating environment. Whilst there were some minor
delays to vessel movements, these were minimised by effective
planning and resource utilisation which saw two pilot boats in
operation on several occasions in order to meet concurrent pilot
transfer demands in different parts of the harbour.

122
 DARWIN PORT CORPORATION 2013/14 Annual Report

Piloted Vessels Two Year Comparison 2012/2013 2013/2014

Pilot Exempted Vessel Movements

ly

st

er

er

rch

ril

ne
be

be

Ma
ar

r
Ju

gu

Ap
ua
mb

tob

Ju
nu

Ma
m

em
Au

br
Oc
pte

ve

Ja
c

Fe
No

De
Se

123
 DARWIN PORT CORPORATION 2013/14 Annual Report

Procurement Overview
OUR OPERATIONAL PERFORMANCE

Darwin Port Corporation is a Government Business Division

committed to ensuring compliance with the Northern Territory
Government Procurement Legislative Framework underpinned
2013/14 Procurement Highlights
by the 5 fundamental Procurement Principles:

Best Value for Money In 2013/14 the Corporation released 33

Open and Effective Competition
Enhancing the Capabilities of Local Business and Industry
Environment Protection
Ethical Behaviour and Fair Dealing
The 33 quotations/tenders were released as follows:
The Corporation achieves efficient planning of procurement
practices to deliver high-quality outcomes and support continuous
improvement. Compliance and Strategic Risk Management, Work
Health and Safety and Environmental Protection are key priorities
for the Corporation in planning all procurement.
An Agency Procurement Management Plan (APMP) is maintained
by the Corporation in accordance with the Procurement Act and
Procurement Direction PO3. The APMP, along with other contract
management and project management policies and procedures, is
aimed at improving the Corporations ability to:
Of the 33, there were 27 contracts awarded as follows:
Achieve compliance with the procurement legislation and
directions
Make procurement planning an integral part of the Corporation's
planning cycle
Ensure that staff involved in procurement have the appropriate
competencies
Provide for more innovations in tendering and contract
management.
quotations/tenders with a total estimated value of
$9,378,500. 27 contracts were awarded with a total
award value of $5,521,021.
17 Tier Two (select) contracts with an estimated value
of $707,000 and a total award value $730,812
2 Tier Three and Five (select) quotations/tenders with
an estimated value of $3,170,000 and a total award
value $3,214,771
12 (public) quotations/tenders with an estimated value
of $1,712,500 and a total award value $1,575,438.
8 contracts with an estimated value of $3,783,000 were
awarded to interstate suppliers. The total award value
being $4,117,218
19 contracts with an estimated value of $1,806,500 were
awarded to local suppliers. The total award value being
$1,403,803

Procurement activities include the purchasing of works, goods,

2 contracts with an estimated value of $70,000 were
services, consultancies and lease or rental agreements. This
overview outlines the Corporations procurement activities and cancelled
performance as they relate to its vision, mission, values, strategic
objectives and lines of business. 4 contracts with an estimated value of $3,719,000 are
awaiting recommendation (released but not yet
Ethics, Fairness and Best Practice awarded)
The Corporation has a broad spectrum of stakeholders and is
dedicated to ensuring ethical conduct and fairness in all facets of its No pre-qualified tenders were awarded for the period
business transactions. The Corporation is committed to supporting of 2013/14.
local trades and industries through best practice procurement,
project and contract management methodologies and processes.

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 DARWIN PORT CORPORATION 2013/14 Annual Report

19

Comparative Snapshot
A comparative review of this year against the previous year shows
only a slight increase in procurement activity with a decrease in the
total value of quotations/tenders released.
Contributing factors include:

Costs related to removing and decommissioning the

Corporations container crane

Tier One (below $15,000) activity is not reported as a

procurement activity, and is captured as operating expenditure
in the financial reporting

A significant percentage of the Corporations capital works such

as the Fort Hill Wharf pontoon, Hornibrooks Wharf and drainage
at East Arm Wharf were undertaken by the Department of
Infrastructure

The completion of a number of major initiatives and business

systems and ongoing investment in building the capacity of the
Port to meet projected growth.

Natalie Toms, Procurement and Contracts Manager

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 DARWIN PORT CORPORATION 2013/14 Annual Report

Contractor Disclosure
OUR OPERATIONAL PERFORMANCE

Where the Corporation engages contractors to perform work, successful

procurement and management of a contractor is essential to ensure that both
the Corporation and the contractor meet work health, safety and environmental
requirements.
To warrant that conditions are met prior, during and post Expenditure for 2013/14 related to the Corporations contractor
engagement of a contractors supply of materials or labour, specific program is $715,637.75
safety and environmental obligations have been integrated into the
Corporations procurement process. Additionally, a systematic The Corporation supports the ongoing security of employment of
approach to the design, construction, commissioning, purchasing, its employees, however it acknowledges that various forms of
procurement and disposal phases is followed to ensure that contractor arrangements are a normal part of its operations,
contracts are managed and controlled with the concept of including the use of contractors to do work otherwise performed
eliminating or minimising risk to the Corporation, the contractor or by Corporation employees.
other stakeholders.

Generally, the Corporation contracts the following services:

Specialised maintenance
Industrial cleaning

Security screening (cruise vessels)
Courier services
Gardening
The Corporation
Pest control
Vessel crewing
prides itself on its
Environmental and waste management
Environmental and human health monitoring. ability to work
collaboratively with
suppliers, contractors
and stakeholders.

5.35% Return on net assets achieved in 2013/14

126

Compliance
OUR OPERATIONAL PERFORMANCE
Darwin Port Corporation complies with NTG procurement legislation and
reforms giving assurance of accountability and transparency throughout all
procurement activities.
In accordance with the procurement legislation the Corporation
engages probity advisors for its strategic high-risk, complex and
high-value contracts to oversee the procurement, negotiations and
awarding of contracts. This ensures best practice and increases
commercial focus.
To ensure improved compliance with policies and practices are
achieved the Corporation has provided:
-- Executive, Senior and Administration personnel continue to
undertake training in Procurement, Contract Management and
Project Management as required.
-- Development of Governance Frameworks is currently underway.
The Corporation remains committed to delivering high standard,
sustainable procurement, contract and project objectives and
outcomes suitable to the Ports needs.
The Corporation is striving towards stronger working relationships
with trades, industry and the wider supply market, continuing to
focus on meeting the governments objective of probity and
sustainable procurement through better contract and project
management.
DARWIN PORT CORPORATION 2013/14 Annual Report
Audit Activities
The Corporation has developed an annual Internal and External
Audit Schedule to monitor audit activity, expenditure and timing.
The Schedule also assists the Corporation in aligning audit activities
to its corporate and business planning. The Corporations Audit and
Risk Management Committee continued to monitor audit activity in
accordance with its Terms of Reference.
The Corporation took a proactive approach to its audit activities
in 2013/14, running in-house training for key staff on audit and
risk management. The training resulted in 20 staff receiving
qualifications in internal audit and the development and
implementation of guidelines and templates. In the coming year,
the Corporation will review its policy on Internal Audit, develop a
policy on compliance and develop a new program for internal and
external audits.
The following audit activities were conducted during 2013/14:
Internal Audits:
Vehicle Safety Audit
Fuel Line Audit (East Arm)
Pilotage QA System
External Audits:
Port Security Audit Office of Transport Security
DAFF Audits of Quarantine Approved Premise Class 1.1 Sea and
Airfreight Depot Operations
DAFF Audit Collection, Storage and Transport of
Quarantine Waste
Interim Financial Audit 2013/14
End of year Financial Statements Audit 2013/14.
127
 DARWIN PORT CORPORATION 2013/14 Annual Report

Case Study
OUR OPERATIONAL PERFORMANCE

OUR $8M DARWIN HARBOUR

CONTROL CENTRE
Improving harbour traffic management and safety
As Port operator, Darwin Port Corporation has the responsibility
to control and manage marine traffic within the harbour and with
anticipated traffic growth plus dredging programs associated with
two major projects, INPEXs Ichthys at Bladin Point and the Marine
Supply Base at East Arm Wharf, the Corporations interim VTS
arrangement was proving increasingly inadequate.

The introduction of an interactive monitoring system with the

capacity to maintain a surface picture of vessels and facilitate the
management and control of vessel traffic within the Port was
considered an urgent priority and was supported by legislative
requirements.

Investing in a new VTS has allowed the Corporation to improve

the safety and efficiency of navigation and protect the marine
environment and adjacent shore areas from the possible adverse
effects of maritime traffic.

The Corporation consulted broadly to gain a good understanding of

the capabilities of the latest VTS and the costs involved to provide a
future focused system that would accommodate the Ports current
needs as well as its projected growth.
Prime Minister Tony Abbott meeting Control Centre staff Mark Kershaw
Procuring the best for the Port of Darwin
A specialist consultant with both VTS and ports experience was
engaged to assist with the technical scoping, project delivery and
to oversee implementation and the development of compliant
standard operating system processes and procedures.

With government approval of a business case and budget allocation,

the tender documents were issued in October 2012.

Following successful negotiations, the contract was awarded on

15 April 2013 to Australian Maritime Systems Pty Ltd (AMS) for the
supply, installation, implementation, training and maintenance of a
HITT V3000 VTS.

AMS has strong global relationships with a number of market

leaders in this specialist field and is the sole Australian provider
of VTS software which can be fully integrated with the Corporations
new Klein Port Information Management System (PMIS).

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 DARWIN PORT CORPORATION 2013/14 Annual Report

Daniel Christopherson in new Harbour Control Centre

129
DARWIN PORT CORPORATION 2013/14 Annual Report

Case Study cont.

OUR OPERATIONAL PERFORMANCE

The lack of readily available and reliable input data for

DARWIN HARBOUR CONTROL meteorological conditions also caused some delay with an
CENTRE cont. additional contract required to source, access and integrate
this data into the new VTS.
The $6.9M contract incorporates a comprehensive maintenance
Delivering benefits
term providing certainty that Darwin Harbour will always have the
The Corporations HITT V3000 VTS meets worlds best practice
most up-to-date technology and that service levels are maintained
standards and provides complete coverage of the whole harbour
throughout the seven year term of the agreement.
area with full integration of all data feeds including RADAR, AIS,
VHF Radio, CCTV and telephones plus data replay.
Due to additional capital costs associated with relocation of the
Harbour Control Centre and additional tower infrastructure the total
All control room hardware has multiple backups to ensure a reliable
contract value on project completion was $8.2M.
and continuous service in case of faults or system failures. There are
also dedicated secured server rooms with a large backup generator
Making it happen
for the entire facility, along with full IT support for the life of the
As part of the project, the Corporation relocated its Harbour Control
contract on all equipment.
staff to a new purpose built centre at the East Arm Administration
Office which delivers increased efficiencies along with improved
These elements have all contributed to significant improvements in
workflows and security arrangements.
the management of vessel traffic throughout Darwin Harbour and
enhanced the Corporations ability to monitor important safety,
Personnel located at the new Harbour Control Centre include the
security and environmental situations.
Harbour Master, Assistant Harbour Master, Harbour Control
Manager, two shipping schedulers and six Harbour Control Officers.
The new VTS Harbour Control Centre has many advantages
including improved access to senior management for urgent
Significant periodic testing throughout the implementation of the
consultations, and better collaboration with pilots, Control Centre
VTS included factory acceptance testing in Melbourne and Brisbane
operators and security personnel. The facilities also provide a more
in July 2013 for key Port personnel. Staff received competency
efficient environment for training that allows onsite real-time access
based system training at the various stages of delivery, and
which does not interfere with the activities of staff on duty.
operating procedures to international standards were prepared
and implemented.
The implementation of new VTS technology marks a major
milestone for the Corporation which now has the worlds first
The project also included the installation of two radar transponders,
fully integrated Vessel Traffic and Port Management Information
Automatic Identification System (AIS) transceiver, radio
Systems. This places the Port of Darwin at the forefront of
communications, microwave links and the construction and
technology required to meet projected growth and support the
installation of transmission towers and radio masts, as well as
development of northern Australia.
additional CCTV cameras.

Managing challenges
The long lead times needed to accommodate a number of the

20%
project components, including the establishment of the new
Control Centre, required balancing the Ports operational
requirements to continue to maintain safe vessel management
practices during the installation and commissioning of the new
VTS. This necessitated a staged implementation and revised
timeline with the final acceptance testing taking place in May 2014.

Other challenges involved the harbour layout and surrounding increase in revenue
landscape, which required the system to have multiple sites for from marine services
equipment such as transmitter towers to provide the required
harbour coverage. Some locations were in sensitive areas such as
WWII heritage sites requiring appropriate consultation with relevant
stakeholders and agencies to be undertaken to ensure disruption
during construction was kept to a minimum.

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 DARWIN PORT CORPORATION 2013/14 Annual Report

Our Financials

Financial Highlights 132

Financial Graphs 133
Five Year Comparison 136
Auditor Generals Report 137
Financial Statements Overview 138
Financial Statements and Notes 139

Fort and Stokes Hill Wharves and Darwin CBD

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DARWIN PORT CORPORATION 2013/14 Annual Report

OUR Financials
Financial Highlights
for the year ended 30 June 2014

As a Government Business Division, the Darwin Port Corporation is committed

to its corporate objective of maintaining profitability and its role as a major
driver of economic growth for the Northern Territory.
Outcomes and Achievements for 2013/14
Record $17M profit before tax (2012/13: $11M)
5.35% return on net assets (2012/13: 5.2%)
14% revenue growth on previous year
Record $9M in berthage revenue, up 29% on previous year
$23M in wharfage revenue
$13M invested into capital works and dredging.
Financial Performance
The Corporations financial performance reached a record for the
second year running, which is reflective of increased harbour
activity directly related to the INPEX project with higher demands
for berth utilisation and pilot services.
This spin off from the construction of the INPEX facility at Bladin
Point has also contributed to a modest growth of 4.5 million tonnes
in total cargo trade throughput across East Arm Wharf in 2013/14,
up from 4.3 million tonnes in the previous year.
Bulk liquid imports saw a growth in volume of 4%, while dry bulk
exports jumped from 2.5 million tonnes to 2.7 million tonnes in
2013/14. These cargo volumes translate into $23M in wharfage
revenue. However the largest impact that the marine activity has
had on the Port this year has been the demand for berth and on-
water, such as the pilot services and mooring positions. Berthage
revenue was at record high at $9M in 2013/14, a 29% increase on
previous year. The total number of vessel calls recorded for the
year was 3178, an additional 413 or 15% on the previous year.
The Corporation receives $2.9M in annual government subsidies
for the running of the City Wharves Community Service Obligations
and $0.5M in connection with the coordination and project
management of the Darwin Marine Supply Base (DMSB).
Cash assets at the end of the period were $24M. A loan from
ASCO of $5M was received in accordance with the MSB concession
agreement. There was no major asset impairment or revaluations
during 2013/14.
The Year Ahead
With two further years still to go on the construction phase for the
INPEX projects onshore processing plant, vessel traffic and the
demand for berthing and on-water services is expected to remain
strong.
The year ahead will present some challenges with predicted
ongoing fluctuations and a downturn in global iron ore prices
expected to impact bulk customers and the Corporations revenue.
Territory Iron is continuing to engage with the Corporation,
however the export volume for next year is forecast to be reduced.
The transition to the MSB will see implications to the revenue
previously budgeted from this facility. The phased in pricing for the
MSB will mean that its revenue potential will not be reached next
year even if the vessel call target is met.
Budgetary constraints on public sector expenditure are set to
remain over the coming years in line with the Northern Territory
Governments fiscal strategy.
The Corporation is budgeted to trade in surplus in 2014/15
however there is a level of uncertainty that the strong financial
performance of the last two years will be repeated in the next
12 months.

The Corporations total revenue of $58M as at 30 June 2014

exceeded the years target by 11%. This was achieved with the
Corporations operating costs remaining within 1% of budget at
$40M which was consistent with the previous year.

Assets
The Corporation invested a total of $13M in the business with
major items being:
- Dredging of Charles Point Patches $3.5M;
- Contribution towards the MSB construction costs $5M;
- Fort Hill Refuelling facilities $1.3M.

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 DARWIN PORT CORPORATION 2013/14 Annual Report

OUR Financials
Financial Highlights
for the year ended 30 June 2014

$5M $10M $15M $20M $25M

Profitability
The financial results for 2013/14 show another record profit for the Darwin Port Corporation. The profit of $17M is the result of increased
demand for berth and waterside activities as a spin off from the Ichthys projects construction activity.

$5M $10M $15M $20M $25M

Revenue
Cargo volume traded was slightly higher in 2013/14 than on the previous year which saw total wharfage revenue reaching $23M. Higher
berth utilisation and vessel activities in the harbour were the key drivers in the spike in berthage and pilotage revenue during the reporting
period. The increase in other income compared to the previous year relates to the temporary higher demand for land-based support such
as storage of cargo, fuel bunkering and cost recovery activities.

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DARWIN PORT CORPORATION 2013/14 Annual Report

OUR Financials
Financial Highlights
for the year ended 30 June 2014

$2M $4M $6M $8M $10M $12M $14M $16M $18M

Expenditure
Operational expenses for the 2013/14 were 19% higher than those of the previous year. This is due to a one-off contribution towards the
mobilisation costs for harbour cranes and increased consultancy activities during the year. Employee costs remained constant with
previous years with financing costs reduced slightly due to debt reduction and lower interest rates.

2014

2013

2012

2011

2010

$5M $10M $15M $20M

Capital Expenditure
The Corporation invested a total of $13M in 2013/14 in channel deepening at Charles Point Patches, construction of the Marine Supply
Base and improvements to other Port facilities.

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 DARWIN PORT CORPORATION 2013/14 Annual Report

OUR Financials
Financial Highlights
for the year ended 30 June 2014

Return on Equity
The return on equity has seen a steady improvement over the past three 3 years and reached 5.76% in 2013/14.

Container/general cargo vessel at East Arm Wharf

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DARWIN PORT CORPORATION 2013/14 Annual Report

OUR Financials
Five Year Comparison of Achieved Values
for the year ended 30 June 2014

2014 2013 2012 2011 2010

Year ended 30 June $M $M $M $M $M

Operating Statement

Total Revenue 57.7 50.6 39.5 37.9 39.6

Shipping & Cargo Revenue 41.2 38.2 28.4 27.2 27.7

(wharfage, berthage, pilotage and port dues)

CSO Revenue 2.9 3.5 3.2 4.3 3.4

Total Expenditure 40.6 38.9 38.5 37.1 39.2

(before tax, revaluation and abnormal items)

Profit/(Loss) before Income Tax 17.1 11.7 1.0 0.8 0.3

(excluding revaluations)

EBITDAR 26.9 21.3 11.3 10.8 10.6

(Earnings before interest, tax, depreciation, amortisation, equity
funded expenses and revaluations)

income Tax Expense 4 - - - -

Statement of Financial Position

Net Cash Flow 10.6 14 (3.6) 3.0 2.6

Capital Expenditure 29.2 33.1 13.6 4.2 6.0

Total Assets 307.3 284.4 262 235.7 228.7

Total Liabilities 79.7 69.9 59.2 53.3 52.4

Net Assets 227.6 214.5 202.8 182.4 176.3

136
DARWIN PORT CORPORATION 2013/14 Annual Report

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 DARWIN PORT CORPORATION 2013/14 Annual Report

OUR Financials
Financial Statement Overview
for the year ended 30 June 2014

The financial statements contained in the following pages highlight the corporations financial performance which achieved a second year record.
There has been a peak in harbour activity directly connected to the inPEX project and a spike in revenue has been evident for two consecutive
years with higher demands for berth utilisation and pilot services.
The spin off from the construction of the inPEX module offload facility at Bladin Point has driven a small growth in cargo volume across East arm
Wharf in 2013/14 to 4.6 million tonnes, up from 4.3 million tonnes on the previous year.
Bulk liquid imports saw a growth in volume of 4%, while dry bulk exports rose from 2.5 million tonnes to 2.7 million tonnes in 2013/14. These
increases in cargo volumes translated into $23M in wharfage revenue for the year.
However, the most significant marine activity within the Port this year was the demand for berth and on-water services such as the pilot and
mooring facilities. Berthage revenue was at a record high of $9M in 2013/14, a 29% increase on previous year. The total number of vessel calls
recorded for the year was 4,887 compared to 3,057 last year. average berth utilisation at East arm Wharf rose from 40% in 2012/13 to 43% in
2013/14.
in 2013/14, the corporation received $2.9M in government subsidies for the management of the city Wharves community service Obligations and
$0.5M in connection to the cost of Marine supply Base coordination and project management.
The corporations total revenue was $58M as at 30 June 2014, exceeding the years target by 11%, whilst its operating costs of $40M remained
within 1% of budget which was consistent with the previous years forecast. Budgetary constraints on public sector expenditure are set to remain
over the coming years, in line with the northern Territory Governments fiscal strategy.

Bulk materials loader at East Arm Wharf

138
 DARWIN PORT CORPORATION 2013/14 Annual Report

OUR Financials
Financial Statements
for the year ended 30 June 2014

CERTIFICATION OF THE FINANCIAL STATEMENTS

We certify that the attached financial statements for the Darwin Port corporation have been prepared from proper accounts and records in
accordance with the prescribed format, the Financial Management Act and Treasurers Directions.
We further state that the information set out in the comprehensive Operating statement, statement of Financial Position, statement of changes
in Equity, statement of cashflows, and notes to and forming part of the financial statements, presents fairly the financial performance and cash
flows for the year ended 30June 2014 and the financial position on that date.
at the time of signing, we are not aware of any circumstances that would render the particulars included in the financial statements misleading
or inaccurate.

Terry Oconnor anne coulter

chief Executive Officer chief Financial Officer
22 september 2014 22 september 2014

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DARWIN PORT CORPORATION 2013/14 Annual Report

OUR Financials
Financial Report
for the year ended 30 June 2014

INDEX
Page
141 comprehensive Operating statement
142 statement of Financial Position
143 statement of changes in Equity
144 statement of cash Flows
145 index of notes to the Financial statements
146 notes to the Financial statements

140
 DARWIN PORT CORPORATION 2013/14 Annual Report

OUR Financials
Comprehensive Operating Statement
for the year ended 30 June 2014

The Comprehensive Operating Statement is to be read in conjunction with the notes to the financial statements.

141
DARWIN PORT CORPORATION 2013/14 Annual Report

OUR Financials
Statement of Financial Position
for the year ended 30 June 2014

142
 DARWIN PORT CORPORATION 2013/14 Annual Report

OUR Financials
Statement of Changes in Equity
for the year ended 30 June 2014

The Statement of Changes in Equity is to be read in conjunction with the notes to the financial statements.

143
DARWIN PORT CORPORATION 2013/14 Annual Report

OUR Financials
Statement of Cash Flows
for the year ended 30 June 2014

The Statement of Cash Flows is to be read in conjunction with the notes to the financial statements.

144
 DARWIN PORT CORPORATION 2013/14 Annual Report

OUR Financials
Notes of the Financial Statements
for the year ended 30 June 2014

INDEX OF NOTES TO THE FINANCIAL STATEMENTS

1. Objectives and Funding

2. statement of significant accounting Policies
3. comprehensive Operating statement by Output Group
INCOME
4. Gain on Disposal of assets
5. income Tax Expense
EXPENSES
6. Purchases of Goods and services
ASSETS
7. cash and Deposits
8. Receivables
9. Work in Progress
10. Property, Plant and Equipment
LIABILITIES
11. Payables
12. Borrowings and advances
13. Provisions
14. Other liabilities
EQUITY
15. Reserves
16. Deferred Tax liability
17. accumulated surplus
18. contributed Equity
OTHER DISCLOSURES
19. notes to the statement of cash Flows
20. Financial instruments
21. commitments
22. contingent liabilities and contingent assets
23. Events subsequent to Balance Date
24. Write-offs, Postponements, Waivers, Gifts and Ex Gratia Payments
25. Board Members Remuneration
26. senior Managers Remuneration
27. auditors Remuneration

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DARWIN PORT CORPORATION 2013/14 Annual Report

OUR Financials
Notes to the Financial Statements
for the year ended 30 June 2014

1. OBJECTIVES AND FUNDING

Darwin Port corporations mission is to strategically develop the Port of Darwin and facilitate trade for the benefit of the northern Territory, its
stakeholders and customers by:
Growing trade
Developing workforce capability
Maintaining profitability
Providing a safe and secure port environment
Being environmentally responsible
Being innovative
The corporation is predominantly funded by, and is dependent on, the revenue from properties and services provided. The financial statements
encompass all funds through which the corporation controls resources to carry on its functions and deliver outputs. For reporting purposes, outputs
delivered by the corporation are summarised into several output groups. note3 provides a summary of financial information in the form of a
comprehensive Operating statement by output group.

2. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of Accounting

The financial statements are a general purpose financial report which has been prepared in accordance with australian accounting standards,
australian accounting interpretations, other authoritative pronouncements of the australian accounting standards Board and the requirements of the
Financial Management Act and related Treasurers Directions. The corporation is a for-profit entity for financial reporting purposes under australian
accounting standards.
The Financial Management Act requires Darwin Port corporation to prepare financial statements for the year ended 30 June based on the form
determined by the Treasurer. The form of corporation financial statements is to include:
(i) certification of the Financial statements;
(ii) comprehensive Operating statement;
(iii) statement of Financial Position;
(iv) statement of changes in Equity;
(v) statement of cash Flows; and
(vi) applicable explanatory notes to the financial statements.
The financial statements have been prepared using the accrual basis of accounting, which recognises the effect of financial transactions and events
when they occur, rather than when cash is paid out or received, except for cash flow information. as part of the preparation of the financial
statements, all intra-agency transactions and balances have been eliminated.
Except where stated, the financial statements have also been prepared in accordance with the historical cost convention.
The form of the corporation financial statements is also consistent with the requirements of australian accounting standards. The effects of all
relevant new and revised standards and interpretations issued by the australian accounting standards Board (aasB) that are effective for the current
annual reporting period have been evaluated. The standards and interpretations and their impacts are:
AASB 13 Fair Value Measurement, AASB 2011-8 Amendments to Australian Accounting Standards arising from AASB 13 [AASB 1, 2, 3, 4, 5,
7, 9, 2009-11, 2010-7, 101, 102, 108, 110, 116, 117, 118, 119, 120, 121, 128, 131, 132, 133, 134, 136, 138, 139, 140, 141, 1004, 1023 & 1038
and Interpretations 2, 4, 12, 13, 14, 17, 19, 131 & 132]
aasB 13 replaces the guidance on fair value measurement in existing aasB accounting literature with a single standard. it clarifies the definition of
fair value, provides guidance on how to determine fair value and requires disclosures about fair value measurements. With some exceptions, the
standard requires entities to classify these measurements into a fair value hierarchy based on the nature of the inputs. additional disclosures
following from the standard are included in the notes to the financial statements.
AASB 119 Employee Benefits (2011), AASB 2011-10 Amendments to Australian Accounting Standards arising from AASB 119 (2011) [AASB
1, 8, 101, 124, 134, 1049 & 2011-8 and Interpretation 14]
aasB 119 amends the definition of short-term employee benefits and the accounting for defined benefit superannuation obligations.

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 DARWIN PORT CORPORATION 2013/14 Annual Report

OUR Financials
Notes to the Financial Statements
for the year ended 30 June 2014

2. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES cont.

AASB CF 2013-1 Amendments to the Australian Conceptual Framework, AASB 2013-9 Amendments to Australian Accounting Standards
Conceptual Framework, Materiality and Financial Instruments.
aasB cF 2013-1 incorporates chapters 1 and 3 of the iasBs Conceptual Framework for Financial Reporting into the aasB Framework for the
Preparation and Presentation of Financial Statements. it also withdraws sac 2 Objective of General Purpose Financial Reporting. The standards do
not impact the financial statements.
AASB 2012-5 Amendments to Australian Accounting Standards arising from Annual Improvements 2009-2011 Cycle [AASB 1, 101, 116,
132 & 134 and Interpretation 2]
The standard amends a number of pronouncements as a result of the 2009-2011 annual improvements cycle. in particular, amendments to aasB
101 Presentation of Financial Statements clarify requirements for comparative information, and amendments to aasB 116 Property, Plant and
Equipment clarify classification of servicing equipment. The standard does not impact the financial statements.
(b) Australian Accounting Standards and Interpretations Issued but not yet Effective
at the date of authorisation of the financial statements, the standards and interpretations listed below were in issue but not yet effective.

Standard/Interpretation Summary Effective for annual reporting Impact on financial statements

periods beginning on or after

aasB9 Financial instruments (Dec aasB 9 incorporates 1 Jan 2017 none.

2010), aasB 2010-7 amendments
to australian accounting standards
arising from aasB 9 (Dec 2010)
[aasB 1, 3, 4, 5, 7, 101, 102, 108,
112, 118, 120, 121, 127, 128, 131,
132, 136, 137, 139, 1023 & 1038
and interpretations 2, 5, 10, 12, 19
& 127], aasB 2012-6 amendments
to australian accounting standards
Mandatory Effective Date of aasB
9 and Transition Disclosures [aasB
9, 2009-11, 2010-7, 2011-7 &
2011-8], aasB 2013-9
amendments to australian
accounting standards conceptual
Framework, Materiality and
Financial instruments.
revised requirements for
the classification and
measurement of financial
instruments resulting from
the iasBs project to
replace ias 39 Financial
instruments: Recognition
and Measurement
(aasB139 Financial
instruments: Recognition
and Measurement).

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DARWIN PORT CORPORATION 2013/14 Annual Report

OUR Financials
Notes to the Financial Statements
for the year ended 30 June 2014

2. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES cont.

(c) Agency and Territory Items

The financial statements of the Darwin Port corporation include income, expenses, assets, liabilities and equity over which the Darwin Port
corporation has control (agency items). certain items, while managed by the corporation, are controlled and recorded by the Territory rather than the
corporation (Territory items). Territory items are recognised and recorded in the central Holding authority as discussed below.

Central Holding Authority

The central Holding authority is the parent body that represents the Governments ownership interest in Government-controlled entities.
The central Holding authority also records all Territory items, such as income, expenses, assets and liabilities controlled by the Government and
managed by agencies on behalf of the Government. The main Territory item is Territory income, which includes taxation and royalty revenue,
commonwealth general purpose funding (such as GsT revenue), fines, and statutory fees and charges.
The central Holding authority also holds certain Territory assets not assigned to agencies as well as certain Territory liabilities that are not practical or
effective to assign to individual agencies such as unfunded superannuation and long service leave.
The central Holding authority recognises and records all Territory items, and as such, these items are not included in the corporations financial
statements.

(d) Comparatives

Where necessary, comparative information for the 2012/13 financial year has been reclassified to provide consistency with current year disclosures.

(e) Presentation and Rounding of Amounts

amounts in the financial statements and notes to the financial statements are presented in australian dollars and have been rounded to the nearest
thousand dollars, with amounts of $500 or less being rounded down to zero.

(f) Changes in Accounting Policies

There have been no changes to accounting policies adopted in 2013/14 as a result of management decisions.

(g) Accounting Judgments and Estimates

The preparation of the financial report requires the making of judgments and estimates that affect the recognised amounts of assets, liabilities,
revenues and expenses and the disclosure of contingent liabilities. The estimates and associated assumptions are based on historical experience and
various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the
carrying values of assets and liabilities that are not readily apparent from other sources. actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in
which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both
current and future periods.
Judgments and estimates that have significant effects on the financial statements are disclosed in the relevant notes to the financial statements.
notes that include significant judgments and estimates are:
Employee Benefits note 2(s) and note 13: non-current liabilities in respect of employee benefits are measured as the present value of
estimated future cash outflows based on the appropriate Government bond rate, estimates of future salary and wage levels and employee
periods of service.
contingent liabilities note 22: The present value of material quantifiable contingent liabilities are calculated using a discount rate based
on the published 10-year Government bond rate.
allowance for impairment losses note 8: Receivables and note 20: Financial instruments.
Depreciation and amortisation note 2(k), note 9: Property, Plant and Equipment, and note 10.
Recovery of deferred tax assets Deferred tax assets are recognised for deductible temporary differences only if the corporation considers
it is probable that future taxable amounts will be available to utilise those temporary differences and losses.
Fair value of loan balances note 20: Financial instruments.

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OUR Financials
Notes to the Financial Statements
for the year ended 30 June 2014

2. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES cont.

(h) Goods and Services Tax

income, expenses and assets are recognised net of the amount of Goods and services Tax (GsT), except where the amount of GsT incurred on a
purchase of goods and services is not recoverable from the australian Tax Office (aTO). in these circumstances the GsT is recognised as part of the
cost of acquisition of the asset or as part of the expense.
Receivables and payables are stated with the amount of GsT included. The net amount of GsT recoverable from, or payable to, the aTO is included
as part of receivables or payables in the Balance sheet.
cash flows are included in the cash Flow statement on a gross basis. The GsT components of cash flows arising from investing and financing
activities, which are recoverable from, or payable to, the aTO are classified as operating cash flows. commitments and contingencies are disclosed
net of the amount of GsT recoverable or payable unless otherwise specified.

(i) Income Recognition

income encompasses both revenue and gains.

income is recognised at the fair value of the consideration received, exclusive of the amount of GsT. Exchanges of goods or services of the same
nature and value without any cash consideration being exchanged are not recognised as income.

Grants and Other Contributions

Grants, donations, gifts and other non-reciprocal contributions are recognised as revenue when the agency obtains control over the assets
comprising the contributions. control is normally obtained upon receipt.
contributions are recognised at their fair value. contributions of services are only recognised when a fair value can be reliably determined and the
services would be purchased if not donated.

Appropriation

Output appropriation is the operating payment to each agency for the outputs they provide and is calculated as the net cost of agency outputs after
taking into account funding from agency income. it does not include any allowance for major non-cash costs such as depreciation.
commonwealth appropriation follows from the intergovernmental agreement on Federal Financial Relations, resulting in specific Purpose Payments
(sPPs) and national Partnership (nP) payments being made by the commonwealth Treasury to state treasuries, in a manner similar to
arrangements for GsT payments. These payments are received by the Department of Treasury and Finance on behalf of the central Holding
authority and then on-passed to the relevant agencies as commonwealth appropriation.
Revenue in respect of appropriations is recognised in the period in which the agency gains control of the funds.

Sale of Goods

Revenue from the sale of goods is recognised (net of returns, discounts and allowances) when:
the significant risks and rewards of ownership of the goods have transferred to the buyer;
the agency retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over
the goods sold;
the amount of revenue can be reliably measured;
it is probable that the economic benefits associated with the transaction will flow to the agency; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of Services

Revenue from rendering services is recognised by reference to the stage of completion of the contract. The revenue is recognised when:
the amount of revenue, stage of completion and transaction costs incurred can be reliably measured; and
it is probable that the economic benefits associated with the transaction will flow to the entity.

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OUR Financials
Notes to the Financial Statements
for the year ended 30 June 2014

2. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES cont.

Interest Revenue

interest revenue is recognised as it accrues, taking into account the effective yield on the financial asset.

Goods and Services Received Free of Charge

Goods and services received free of charge are recognised as revenue when a fair value can be reliably determined and the resource would have
been purchased if it had not been donated. Use of the resource is recognised as an expense.

Disposal of Assets

a gain or loss on disposal of assets is included as a gain or loss on the date control of the asset passes to the buyer, usually when an unconditional
contract of sale is signed. The gain or loss on disposal is calculated as the difference between the carrying amount of the asset at the time of
disposal and the net proceeds on disposal. Refer also to note 4.

Contributions of Assets

contributions of assets and contributions to assist in the acquisition of assets, being non reciprocal transfers, are recognised, unless otherwise
determined by Government, as gains when the agency obtains control of the asset or contribution. contributions are recognised at the fair value
received or receivable.

(j) Repairs and Maintenance Expense

costs associated with repairs and maintenance works on agency assets are expensed as incurred.

(k) Depreciation and Amortisation Expense

items of property, plant and equipment, including buildings but excluding land, have limited useful lives and are depreciated or amortised using the
straight-line method over their estimated useful lives.
amortisation applies in relation to intangible non-current assets with limited useful lives and is calculated and accounted for in a similar manner to
depreciation.
The estimated useful lives for each class of asset are in accordance with the Treasurers Directions and are determined as follows:

2014 2013
Buildings 5-40 years 5-40 years
infrastructure assets 5-40 years 5-40 years
Plant and Equipment 5-40 years 5-40 years
leased Plant and Equipment 5-40 years 5-40 years
intangibles 2-10 years 3-5 years

assets are depreciated or amortised from the date of acquisition or from the time an asset is completed and held ready for use.

(l) Interest Expense

interest expenses include interest and finance lease charges. interest expenses are expensed in the period in which they are incurred.

(m) Cash and Deposits

For the purposes of the Balance sheet and the cash Flow statement, cash includes cash on hand, cash at bank and cash equivalents. cash
equivalents are highly liquid short-term investments that are readily convertible to cash.

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OUR Financials
Notes to the Financial Statements
for the year ended 30 June 2014

2. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES cont.

(n) Receivables

Receivables include accounts receivable and other receivables and are recognised at fair value less any allowance for impairment losses.
The allowance for impairment losses represents the amount of receivables the agency estimates are likely to be uncollectible and are considered
doubtful. analysis of the age of the receivables that are past due as at the reporting date are disclosed in an aging schedule under credit risk in
note 20 Financial instruments. Reconciliation of changes in the allowance accounts is also presented.
accounts receivable and other receivables are generally settled within 30 days.

(o) Property, Plant and Equipment

Acquisitions

all items of property, plant and equipment with a cost, or other value, equal to or greater than $10000 are recognised in the year of acquisition and
depreciated as outlined below. items of property, plant and equipment below the $10000 threshold are expensed in the year of acquisition.
The construction cost of property, plant and equipment includes the cost of materials and direct labour, and an appropriate proportion of fixed and
variable overheads.

Complex Assets

Major items of plant and equipment comprising a number of components that have different useful lives, are accounted for as separate assets. The
components may be replaced during the useful life of the complex asset.

Subsequent Additional Costs

costs incurred on property, plant and equipment subsequent to initial acquisition are capitalised when it is probable that future economic benefits
in excess of the originally assessed performance of the asset will flow to the agency in future years. Where these costs represent separate
components of a complex asset, they are accounted for as separate assets and are separately depreciated over their expected useful lives.

Construction (Work in Progress)

The Department of infrastructure is responsible for managing capital works projects on a whole of Government basis in return for program delivery
fees. The Darwin Port corporation is self-funded in respect to its capital expenditure, except in situations where borrowings are required to fund
major capital works. capital expenditure is recorded as construction work in progress on the balance sheet until such time they are completed.
Upon completion the WiP projects are recognized as an asset to the corporation and are then added to the corporations Fixed asset Register.

(p) Revaluations and Impairment

Revaluation of Assets

subsequent to initial recognition, assets belonging to the following classes of non-current assets are revalued with sufficient regularity to ensure
that the carrying amount of these assets does not differ materially from their fair value at reporting date:
land;
buildings;
infrastructure assets;
Fair value is the amount for which an asset could be exchanged, or liability settled, between knowledgeable, willing parties in an arms-length
transaction.
Plant and equipment are stated at historical cost less depreciation, which is deemed to equate to fair value.

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OUR Financials
Notes to the Financial Statements
for the year ended 30 June 2014

2. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES cont.

Impairment of Assets

an asset is said to be impaired when the assets carrying amount exceeds its recoverable amount. non-current physical and intangible agency assets
are assessed for indicators of impairment on a periodical basis when required. if an indicator of impairment exists, the agency determines the assets
recoverable amount. The assets recoverable amount is determined as the higher of the assets depreciated replacement cost and fair value less
costs to sell. any amount by which the assets carrying amount exceeds the recoverable amount is recorded as an impairment loss.
impairment losses are recognised in the comprehensive Operating statement. They are disclosed as an expense unless the asset is carried at a
revalued amount. Where the asset is measured at a revalued amount, the impairment loss is offset against the asset revaluation surplus for that
class of asset to the extent that an available balance exists in the asset revaluation surplus.
in certain situations, an impairment loss may subsequently be reversed. Where an impairment loss is subsequently reversed, the carrying amount
of the asset is increased to the revised estimate of its recoverable amount. a reversal of an impairment loss is recognised in the comprehensive
Operating statement as income, unless the asset is carried at a revalued amount, in which case the impairment reversal results in an increase in
the asset revaluation surplus. note 15 provides additional information in relation to the asset revaluation surplus.

(q) Leased Assets

leases under which the agency assumes substantially all the risks and rewards of ownership of an asset are classified as finance leases. Other
leases are classified as operating leases.

Finance Leases

Finance leases are capitalised. a lease asset and lease liability equal to the lower of the fair value of the leased property and present value of the
minimum lease payments, each determined at the inception of the lease, are recognised.
lease payments are allocated between the principal component of the lease liability and the interest expense.

Operating Leases

Operating lease payments made at regular intervals throughout the term are expensed when the payments are due, except where an alternative
basis is more representative of the pattern of benefits to be derived from the leased property. lease incentives under an operating lease of a building
or office space is recognised as an integral part of the consideration for the use of the leased asset. lease incentives are to be recognised as a
deduction of the lease expenses over the term of the lease.

(r) Payables

liabilities for accounts payable and other amounts payable are carried at cost, which is the fair value of the consideration to be paid in the future for
goods and services received, whether or not billed to the agency. accounts payable are normally settled within 30 days.

(s) Employee Benefits

Provision is made for employee benefits accumulated as a result of employees rendering services up to the reporting date. These benefits include
wages and salaries and recreation leave. liabilities arising in respect of wages and salaries, recreation leave and other employee benefit liabilities
that fall due within twelve months of reporting date are classified as current liabilities and are measured at amounts expected to be paid. non-
current employee benefit liabilities that fall due after twelve months of the reporting date are measured at present value, calculated using the
Government long-term bond rate.
no provision is made for sick leave, which is non-vesting, as the anticipated pattern of future sick leave to be taken is less than the entitlement
accruing in each reporting period.

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OUR Financials
Notes to the Financial Statements
for the year ended 30 June 2014

2. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES cont.

Employee benefit expenses are recognised on a net basis in respect of the following categories:
wages and salaries, non-monetary benefits, recreation leave, sick leave and other leave entitlements; and
other types of employee benefits.
TOil for Marine Pilots is recognised by the corporation as an internal commitment and shown at note 21.
as part of the financial management framework, the central Holding authority assumes the long service leave liabilities of Government agencies,
including Darwin Port corporation and as such no long service leave liability is recognised in agency financial statements.

(t) Superannuation

Employees superannuation entitlements are provided through the:

northern Territory Government and Public authorities superannuation scheme (nTGPass);
commonwealth superannuation scheme (css); or
non-government employee-nominated schemes for those employees commencing on or after 10 august 1999.
The corporation makes superannuation contributions on behalf of its employees to the central Holding authority or non-government employee-
nominated schemes. superannuation liabilities related to government superannuation schemes are held by the central Holding authority and as
such are not recognised in the corporations financial statements.

(u) Contributions by and Distributions to Government

The corporation may receive contributions from Government where the Government is acting as owner of the corporation. conversely, the
corporation may make distributions to Government. in accordance with the Financial Management Act and Treasurers Directions, certain types of
contributions and distributions, including those relating to administrative restructures, have been designated as contributions by, and distributions
to, Government. These designated contributions and distributions are treated by the corporation as adjustments to equity. The statement of
changes in Equity provides additional information in relation to contributions by, and distributions to, Government.

(v) Commitments

Disclosures in relation to capital and other commitments are shown at note 21. commitments are those contracted as at 30 June where the
amount of the future commitment can be reliably measured.

(w) Economic Dependence

Darwin Port corporation is subject to the direction of the Minister for Economic Development and Major Projects and is partially funded by the
Department of lands and Planning in recognition that it carries out activities on a noncommercial basis. such funding sources are called
community service Obligations and are reflected as such in the comprehensive Operating statement.

(x) Financial Instruments

Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions to the financial instrument.
For financial assets, this is equivalent to the date that the corporation commits itself to either purchase or sell the asset (ie trade date accounting is
adopted).
Financial instruments, incorporating financial assets and financial liabilities, are recognised when the corporation becomes a party to the
contractual provisions of the instrument. Financial instruments are initially measured at fair value plus transaction costs, except where the
instrument is classified at fair value through profit or loss in which case transaction costs are expensed to profit or loss immediately.

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DARWIN PORT CORPORATION 2013/14 Annual Report

OUR Financials
Notes to the Financial Statements
for the year ended 30 June 2014

2. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES cont.

Derecognition

Financial assets are derecognised where the contractual rights to receipt of cash flows expires or the asset is transferred to another party whereby
the entity no longer has any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are
derecognised where the related obligations are either discharged, cancelled or expired. The difference between the carrying value of the financial
liability extinguished or transferred to another party and the fair value of consideration paid, including the transfer of non-cash assets or liabilities
assumed is recognised in profit or loss.

Classification of Financial Instruments

aasB 7 Financial instruments: Disclosures requires financial instruments to be classified and disclosed within specific categories depending on their
nature and purpose.
Financial assets are classified into the following categories:
financial assets at fair value through profit or loss;
held-to-maturity investments;
loans and receivables; and
available-for-sale financial assets.
Financial liabilities are classified into the following categories:
financial liabilities at fair value through profit or loss (FVTPl); and
financial liabilities at amortised cost.

Financial Assets or Financial Liabilities at Fair Value through Profit or Loss

Financial instruments are classified as at FVTPl when the instrument is either held for trading or is designated as at FVTPl.
an instrument is classified as held for trading if it is:
acquired or incurred principally for the purpose of selling or repurchasing it in the near term with an intention of making a profit; or
part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent actual pattern
of short-term profit-taking; or
a derivative that is not a financial guarantee contract or a designated and effective hedging instrument.
a financial instrument may be designated as at FVTPl upon initial recognition if:
such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise; or
the instrument forms part of a group of financial instruments, which is managed and its performance is evaluated on a fair value basis, in
accordance with a documented risk management or investment strategy, and information about the grouping is provided internally on that
basis; or
it forms part of a contract containing one or more embedded derivatives, and aasB 139 Financial instruments: Recognition and
Measurement permits the contract to be designated as at FVTPl.

Loans and Receivables

For details refer to note 20: Financial instruments.

Financial Liabilities at Amortised Cost

amortised cost is calculated using the effective interest method.

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 DARWIN PORT CORPORATION 2013/14 Annual Report

OUR Financials
Notes to the Financial Statements
for the year ended 30 June 2014

2. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES cont.

(y) Fair Value Measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at
the measurement date.
Fair value measurement of a non-financial asset takes into account a market participants ability to generate economic benefits by using the asset in
its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The highest and best use
takes into account the use of the asset that is physically possible, legally permissible and financially feasible.
When measuring fair value, the valuation techniques used maximise the use of relevant observable inputs and minimise the use of unobservable
inputs. Unobservable inputs are used to the extent that sufficient relevant and reliable observable inputs are not available for similar
assets/liabilities.
Observable inputs are publicly available data that are relevant to the characteristics of the assets/liabilities being valued. Observable inputs used by
the agency include, but are not limited to, published sales data for land and general office buildings.
Unobservable inputs are data, assumptions and judgments that are not available publicly, but are relevant to the characteristics of the
assets/liabilities being valued. such inputs include internal agency adjustments to observable data to take account of particular and potentially
unique characteristics/functionality of assets/liabilities and assessments of physical condition and remaining useful life.
all assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the following fair value
hierarchy based on the inputs used:
level 1 inputs are quoted prices in active markets for identical assets or liabilities;
level 2 inputs are inputs other than quoted prices included within level 1 that are observable for the asset or liability, either
directly or indirectly; and
level 3 inputs are unobservable.

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DARWIN PORT CORPORATION 2013/14 Annual Report

OUR Financials
Notes to the Financial Statements
for the year ended 30 June 2014

3. COMREHENSIVE OPERATING STATEMENT BY OUTPUT GROUP

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 DARWIN PORT CORPORATION 2013/14 Annual Report

OUR Financials
Notes to the Financial Statements
for the year ended 30 June 2014

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DARWIN PORT CORPORATION 2013/14 Annual Report

OUR Financials
Notes to the Financial Statements
for the year ended 30 June 2014

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OUR Financials
Notes to the Financial Statements
for the year ended 30 June 2014

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DARWIN PORT CORPORATION 2013/14 Annual Report

OUR Financials
Notes to the Financial Statements
for the year ended 30 June 2014

2014 2013
$000 $000
10. PROPERTY, PLANT AND EQUIPMENT
Land
at fair value 73,419 73,419

Land Improvements
at fair value 11,221 11,221
less: accumulated depreciation (4,185) (3,680)
7,036 7,541
Buildings
at fair value 18,000 15,000
less: accumulated depreciation (2,977) (2,422)
15,023 12,578
Harbour Infrastructure
at fair value 122,625 114,161
less: accumulated depreciation (39,208) (35,525)
83,417 78,636
Utilities
at fair value 16,003 15,738
less: accumulated depreciation (2,348) (1,806)
13,655 13,932
Plant and Equipment
at fair value 38,562 35,308
less: accumulated depreciation (8,005) (8,427)
30,557 26,881
Furniture and Fittings
at fair value 274 214
less: accumulated depreciation (101) (78)
173 136
Computer Equipment
at capitalised cost 2,279 412
less: accumulated amortisation (422) (234)
1,857 178
Leased Equipment
at capitalised cost 5,009 -
less: accumulated depreciation - -
5,009 -
Total Property, Plant and Equipment 230,146 213,301

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Adelaide to Darwin Railway

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DARWIN PORT CORPORATION 2013/14 Annual Report

OUR Financials
Notes to the Financial Statements
for the year ended 30 June 2014

10. PROPERTY, PLANT AND EQUIPMENT (cont.)

2014 Property, Plant and Equipment Reconciliations

a reconciliation of the carrying amount of property, plant and equipment at the beginning and end of 2013/14 is set out below:

Land Land Improvements Buildings Harbour Improvements

$000 $000 $000 $000

carrying amount as at 1 July 2013 73,419 7,540 12,578 78,636
additions/(Transfers from WiP) - - 167 8,463
Other additions - - - -
Disposals - - (7) -
Depreciation - (504) (562) (3,682)
additions/(Disposals) from asset transfers - - 2,840 -
Revaluation increments/(decrements) - - - -
impairment losses - - - -
impairment losses reversed - - - -
Dep Transfer Out due to Write Off - - 7 -
Carrying Amount as at 30 June 2014 73,419 7,036 15,023 83,417

2013 Property, Plant and Equipment Reconciliations

a reconciliation of the carrying amount of property, plant and equipment at the beginning and end of 2012/13 is set out below:

Land Land Improvements Buildings Harbour Improvements

$000 $000 $000 $000
carrying amount as at 1 July 2012 73,419 8,046 13,044 82,261
additions - - - -
Disposals - - - -
Depreciation - (505) (466) (3,625)
additions/(Disposals) from administrative
- - - -
restructuring
additions/(Disposals) from asset transfers - - - -
Revaluation increments/(decrements) - - - -
impairment losses - - - -
impairment losses reversed - - - -
Other movements - - - -
Carrying Amount as at 30 June 2013 73,419 7,541 12,578 78,636

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OUR Financials
Notes to the Financial Statements
for the year ended 30 June 2014

Utilities Plant and Equipment Furniture and Fittings Computer Equipment Leased Equipment Total

$000 $000 $000 $000 $000 $000

13,932 26,881 136 178 - 213,300
265 6,312 60 1,867 - 17,134
- - - - 5,009 5,009
- (3,058) - - - (3,065)
(542) (1,892) (23) (188) - (7,393)
- - - - 2,840
- - - - - -
- - - - - -
- - - - - -
- 2,314 - - - 2,321
13,655 30,557 173 1,857 5,009 230,146

Utilities Plant and Equipment Furniture and Fittings Computer Equipment Leased Equipment Total
$000 $000 $000 $000 $000 $000
14,430 27,380 153 264 - 218,997
- 1,440 (121) 121 - 1,440
- - - - - -
(498) (1,939) 88 (190) - (7,135)
- - 16 (17) - (1)
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
13,932 26,881 136 178 - 213,301

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DARWIN PORT CORPORATION 2013/14 Annual Report

OUR Financials
Notes to the Financial Statements
for the year ended 30 June 2014

10. FAIR VALUE MEASUREMENT OF NON-FINANCIAL ASSETS

(a) Fair Value Hierarchy

Fair values of non-financial assets categorised by level of inputs used to compute fair value are:

2014
Level 1 Level 2 Level 3 Total Fair Value
$000 $000 $000 $000
Asset Classes
land (note 10) - 73,419 - 73,419
land improvements (note 10) - 7,036 - 7,036
Buildings (note 10) - 15,023 - 15,023
Harbour improvements (note 10) - - 83,417 83,417
Utilities (note 10) - 13,655 - 13,655
Plant & Equipment (note 10) - 30,557 - 30,557
Furniture & Fittings (note 10) - 173 - 173
computer Equipment (note 10) - 1,857 - 1,857
leased Equipment (note 10) - 5,009 - 5,009
Total - 146,729 83,417 230,146

There were no transfers between level 1 and levels 2 or 3 during the period.

2013
Level 1 Level 2 Level 3 Total Fair Value
$000 $000 $000 $000
Asset Classes
land (note 10) - 73,419 - 73,419
land improvements (note 10) - 7,540 - 7,540
Buildings (note 10) - 12,578 - 12,578
Harbour improvements (note 10) - - 78,636 78,636
Utilities (note 10) - 13,932 - 13,932
Plant & Equipment (note 10) - 26,881 - 26,881
Furniture & Fittings (note 10) - 136 - 136
computer Equipment (note 10) - 178 - 178
Total - 134,664 78,636 213,300

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 DARWIN PORT CORPORATION 2013/14 Annual Report

OUR Financials
Notes to the Financial Statements
for the year ended 30 June 2014

10. FAIR VALUE MEASUREMENT OF NON-FINANCIAL ASSETS (cont.)

(b) Valuation Techniques and Inputs

Valuation techniques used to measure fair value are:

Level 2 Level 3
Techniques Techniques
Asset Classes
land (note 10) 73,419 -
land improvements (note 10) 7,037 -
Buildings (note 10) 15,023 -
Harbour improvements (note 10) - 83,417
Utilities (note 10) 13,655 -
Plant & Equipment (note 10) 30,557 -
Furniture & Fittings (note 10) 173 -
computer Equipment (note 10) 1,857 -
leased Equipment (note 10) 5,009 -

There were no changes in valuation techniques during the period.

level 2 fair values of land and buildings were based on market evidence of sales price per square metre of comparable land and buildings.
level 3 fair values of specialised buildings and infrastructure were determined by computing their depreciated replacement costs because an
active market does not exist for such facilities. The depreciated replacement cost was based on a combination of internal records of the historical
cost of the facilities, adjusted for contemporary technology and construction approaches. significant judgement was also used in assessing the
remaining service potential of the facilities, given local environmental conditions, projected usage, and records of the current condition of the
facilities.

(c) Additional Information for Level 3 Fair Value Measurements

(i) Reconciliation of Recurring Level 3 Fair Value Measurements

Infrastructure
$000
Fair value as at 1 July 2013 78,636
additions 8,463
Disposals -
Transfers from level 2 -
Transfers to level 2 -
Depreciation (3,682)
Gains/losses recognised in net surplus/deficit -
Gains/losses recognised in other comprehensive income -
Fair value as at 30 June 2014 83,417

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DARWIN PORT CORPORATION 2013/14 Annual Report

OUR Financials
Notes to the Financial Statements
for the year ended 30 June 2014

10. FAIR VALUE MEASUREMENT OF NON-FINANCIAL ASSETS (cont.)

(ii) Sensitivity analysis

infrastructure improvements Unobservable inputs used in computing the fair value of infrastructure include the historical cost and the consumed
economic benefit for each building. Given the large number of agency infrastructure assets, it is not practical to compute a relevant summary
measure for the unobservable inputs. in respect of sensitivity of fair value to changes in input value, a higher historical cost results in a higher fair
value and greater consumption of economic benefit lowers fair value.

2014 2013
$000 $000
11. PAYABLES
accounts payable 542 1,359
accrued expenses 1,407 1,829
Other payables 1,043 -
Total Payables 2,992 3,188

12. BORROWINGS AND ADVANCES

Current
loans and advances 16,325 11,008
Finance lease liabilities 615 -
16,940 11,008
Non-Current
loans and advances 40,427 37,254
Finance lease liabilities 4,198 -
44,625 37,254
Total Borrowings and Advances 61,565 48,262

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 DARWIN PORT CORPORATION 2013/14 Annual Report

OUR Financials
Notes to the Financial Statements
for the year ended 30 June 2014

2014 2013
$000 $000
13. PROVISIONS
Current
Employee benefits
Recreation leave 1,010 1,690
leave loading 107 152
leave fares 19 20
Other employee benefits 30 23

Other current provisions

Other provisions 79 2,264
1,245 4,149
Non-Current
Other non-current provisions
Other provisions - 171
- 171
Total Provisions 1,245 4,320

Reconciliations of Provisions
Balance as at 1 July 4,320 2,586
additional provisions recognised - 3,245
Reductions arising from payments (3,075) (1,511)
Balance as at 30 June 1,245 4,320
The corporation employed 98 employees as at 30 June 2014
(108 employees as at 30 June 2013.)

14. OTHER LIABILITIES

Current
Other liabilities - Unearned Revenue 18 125
18 125
Non-Current
Other liabilities - Deferred Tax liability 13,950 14,014
13,950 14,014

15. RESERVES
Asset Revaluation Surplus
(i) nature and purpose of the asset revaluation surplus
The asset revaluation surplus includes the net revaluation increments and decrements
arising from the revaluation of non-current assets. impairment adjustments may also be - -
recognised in the asset revaluation surplus.

(ii) Movements in the asset revaluation surplus - -

Balance as at 1 July 48,782 48,782
Balance as at 30 June 48,782 48,782

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DARWIN PORT CORPORATION 2013/14 Annual Report

OUR Financials
Notes to the Financial Statements
for the year ended 30 June 2014

168
 DARWIN PORT CORPORATION 2013/14 Annual Report

OUR Financials
Notes to the Financial Statements
for the year ended 30 June 2014

2014 2013
$000 $000
19. NOTES TO THE CASH FLOW STATEMENT
Reconciliation of Cash
The total of the corporations 'cash and Deposits' of $31,293,626 recorded in the
statement of Financial Position is consistent with that recorded as cash and Deposits in
the cash Flow statement.

Reconciliation of Net Surplus Before Income Tax to Net Cash Provided by Operating
Activities

Net Surplus Before Income Tax 17,130 11,696

Non-cash items:
Depreciation and amortisation 7,396 7,135
Wharfage fee rebates recognised - (1,440)
asset write-offs 744 -
Gain on disposal of assets (1) -
assets acquired with nil consideration (2,840) -
Bad Debts 241 (14)
income received from offset agreement (79) 171

Changes in assets and liabilities:

Decrease/(increase) in receivables (2,719) 691
Decrease/(increase) in prepayments (111) 2
Decrease/(increase) in other assets (565) (54)
(Decrease)/increase in payables (196) (3,498)
(Decrease)/increase in provision for employee benefits (719) (211)
(Decrease)/increase in other provisions (2,519) -
(Decrease)/increase in other liabilities (107) 1,337
Net Cash from Operating Activities 15,655 15,815

Non-Cash Financing and Investing Activities

During the financial year the agency acquired computer equipment with an
aggregate fair value of $5,009,250 by means of a finance lease. (see note 10).

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DARWIN PORT CORPORATION 2013/14 Annual Report

OUR Financials
Notes to the Financial Statements
for the year ended 30 June 2014

20. FINANCIAL INSTRUMENTS

a financial instrument is a contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another
entity. Financial instruments held by the Darwin Port corporation include cash and deposits, receivables, payables and finance leases. The
Darwin Port corporation has limited exposure to financial risks as discussed below. Darwin Port corporations loans from Treasury corp are
listed in the below table.

Loan/Deal Number Principal Outstanding Interest Rate Maturity Date Repayment Dates

13518 $1,000,000 5.44% Fixed to 25 March 2018 26-Mar-18 Quarterly

17894 $5,000,000 5.51% Floating Rate 15-aug-22 Quarterly
10994 $4,000,000 6.7% Fixed to 7 July 2016 07-Jul-26 Quarterly
14563 $537,000 5.44% Fixed to 25 March 2018 26-Mar-18 Quarterly
18185 $20,371,715 5.22% Fixed to 14 Jul 2017 14-Jan-23 semi-annual
14775 $2,000,000 6.54% Fixed to 15 June 2014 12-Jun-19 Quarterly
11710 $3,500,000 6.91% Fixed to 20 December 2016 21-Dec-26 Quarterly
12888 $844,000 5.23% Fixed to 14 september 2017 14-sep-27 Quarterly
18596 $5,000,000 5.32% Fixed 16-July-18 Quarterly
TOTAL $42,252,715
,

a) Categorisation of Financial Instruments

2014 2013
$000 $000
Financial Assets
cash and deposits 31,294 20,610
Receivables 5,793 3,074

Financial Liabilities
Borrowings 61,565 48,261

The carrying amounts of the agencys financial assets and liabilities by category are disclosed in the table below.

b) Credit Risk

The corporation has limited credit risk exposure (risk of default). in respect of any dealings with organisations external to Government, the
corporation has adopted a policy of only dealing with credit worthy organisations and obtaining sufficient collateral or other security where
appropriate, as a means of mitigating the risk of financial loss from defaults.
The carrying amount of financial assets recorded in the financial statements, net of any allowances for losses, represents the corporations
maximum exposure to credit risk without taking account of the value of any collateral or other security obtained.

Receivables

Receivable balances are monitored on an ongoing basis to ensure that exposure to bad debts is not significant. a reconciliation and aging analysis
of receivables is presented over page.

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 DARWIN PORT CORPORATION 2013/14 Annual Report

OUR Financials
Notes to the Financial Statements
for the year ended 30 June 2014

20. FINANCIAL INSTRUMENTS (cont.)

Internal Receivables Aging of Receivables Aging of Impaired Net Receivables
Receivables
$000 $000 $000
2013/14
not overdue 44 - 44
Overdue for less than 30 days - - -
Overdue for 30 to 60 days - - -
Overdue for more than 60 days - - -
Total 44 - 44

2012/13
not overdue 22 - 22
Overdue for less than 30 days - - -
Overdue for 30 to 60 days - - -
Overdue for more than 60 days - - -
Total 22 - 22

External Receivables Aging of Receivables Aging of Impaired Net Receivables

Receivables
$000 $000 $000
2013/14
not overdue 3,799 - 3,799
Overdue for less than 30 days 1,401 - 1,401
Overdue for 30 to 60 days 220 - 220
Overdue for more than 60 days 323 (265) 58
Total 5,743 (265) 5,478

Reconciliation of the Allowance for Impairment Losses

Opening - 40 -
Written off during the year - (16) -
Recovered during the year - 15 -
Provision for doubtful debt accounts - 226 -
Total - 265 -

2012/13
not overdue 1,922 - 1,922
Overdue for less than 30 days 1,151 - 1,151
Overdue for 30 to 60 days 57 - 57
Overdue for more than 60 days 59 (40) 19
Total 3,189 (40) 3,149

Reconciliation of the Allowance for Impairment Losses

Opening - 70 -
Written off during the year - (16) -
Recovered during the year - 16 -
Provision for doubtful debt accounts - (30) -
Total - 40 -

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DARWIN PORT CORPORATION 2013/14 Annual Report

OUR FINANCIALS
Notes to the Financial Statements
for the year ended 30 June 2014

20. FINANCIAL INSTRUMENTS (cont.)

(c) Liquidity Risk

Liquidity risk is the risk that the Corporation will not be able to meet its financial obligations as they fall due. The Corporations approach to
managing liquidity is to ensure that it will always have sufficient liquidity to meet its liabilities when they fall due.
The following tables detail the Corporations remaining contractual maturity for its financial assets and liabilities. It should be noted that these
values are undiscounted, and consequently totals may not reconcile to the carrying amounts presented in the Statement of Financial Position.

2014 Maturity analysis for financial assets and liabilities

Interest Bearing
Fixed or Less than 1 to 5 Years More than Non Interest Total Weighted
Variable a Year 5 Years Bearing Average

$000 $000 $000 $000 $000 %

Assets
Cash and deposits 31,292 - - - 2 31,294 2.25
Receivables 5,478 - - - 315 5,793 15.00
Total Financial Assets 36,770 - - - 317 37,087

Liabilities
Payables - - - - 2,992 2,992 -
Borrowings Deal 18185 - 1,825 19,289 - - 21,114 5.22
Borrowings Deal 17894 - - 5,159 - - 5,159 5.51
Borrowings Deal 10994 - - 4,232 - - 4,232 6.70
Borrowings Deal 11710 - - 3,576 - - 3,576 6.91
Borrowings Deal 14775 - - 2,022 - - 2,022 6.54
Borrowings Deal 12888 - - 860 - - 860 5.23
Borrowings Deal 13518 - - 1,023 - - 1,023 5.44
Borrowings Deal 14563 - - 549 - - 549 5.44
Borrowings Deal 18596 - - 5,142 - - 5,142 5.32
Employee Entitlements - - - - 1,166 1,166 -
Finance lease liabilities - - - 4,813 - 4,813 8.5
Total Financial Liabilities - 1,825 41,852 4,813 4,158 52,648 -

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 DARWIN PORT CORPORATION 2013/14 Annual Report

OUR FINANCIALS
Notes to the Financial Statements
for the year ended 30 June 2014

20. FINANCIAL INSTRUMENTS (cont.)

2013 Maturity analysis for financial assets and liabilities

Interest Bearing
Fixed or Less than 1 to 5 Years More than Non Interest Total Weighted
Variable a Year 5 Years Bearing Average

$000 $000 $000 $000 $000 %

Assets
Cash and deposits 20,608 - - - 2 20,610 2.5
Receivables 3,149 - - - (75) 3,074 15.00
Total Financial Assets 23,757 - - - (73) 23,684 -

Liabilities
Payables - - - - 3,188 3,188 -
Borrowings Deal 1815 - 1,734 20,372 - - 22,106 5.22
Borrowings Deal 17894 - - 5,000 - - 5,000 5.51
Borrowings 10994 - - 4,000 - - 4,000 6.70
Borrowings 11710 - - 3,500 - - 3,500 6.91
Borrowings 14775 - - 2,000 - - 2,000 6.54
Borrowings 12888 - - 844 - - 844 5.23
Borrowings 13518 - - 1,000 - - 1,000 5.44
Borrowings 14653 - - 537 - - 537 5.45
Employee Entitlements - - - - 1,885 1,885 -
Total Financial Liabilities - 1,734 37,253 - 5,073 44,060 -

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DARWIN PORT CORPORATION 2013/14 Annual Report

OUR Financials
Notes to the Financial Statements
for the year ended 30 June 2014

20. FINANCIAL INSTRUMENTS (cont.)

(d) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices.

Interest Rate Risk

The corporation has limited exposure to interest rate risk, as the corporations financial assets and financial liabilities are non-interest bearing, with
the exception of finance leases. Finance lease arrangements are established on a fixed interest rate and as such do not expose the corporation to
interest rate risk.
Borrowings are established on a fixed interest rate and as such do not expose the corporation to interest rate risk.

Market Sensitivity Analysis

changes in the variable rates of 100 basis points (1 per cent) at reporting date would have the following effect on the agencys profit or loss and
equity.

(i) Price Risk

Profit or Loss and Equity

100 basis points increase 100 basis points decrease
$000 $000
30 June 2014
Financial assets cash at bank 313 (313)
Financial assets receivable loans 58 (58)
Net Sensitivity 371 (371)

30 June 2013
Financial assets cash at bank 206 (206)
Financial assets receivable loans 31 (31)
Net Sensitivity 237 (237)

The corporation is not exposed to price risk as it does not hold units in unit trusts.

(ii) Currency Risk

The corporation is not exposed to currency risk as it does not hold borrowings denominated in foreign currencies or transactional currency
exposures arising from purchases in a foreign currency.

(e) Net Fair Value

Fair values of financial instruments categorised by level of inputs used to measure fair value are:
The fair value of Darwin Port corporations outstanding loans is based on discounting the expected future cash flows by applying current market
interest rates for assets and liabilities with similar risk profiles. current market interest rates are determined with reference to the australian
Financial Markets association (aFMa) swap Reference Rates plus a margin. The market rates are then used to discount the expected future cash
flows arising from the financial assets and liabilities to their present value. The margins applied to the current market interest rates on the
corporations loans take into account credit quality and liquidity considerations.
The fair values represent the corporationss best estimate of the replacement cost of the financial transactions undertaken. The corporation
concedes that in its estimation of fair value there is an element of subjectivity involved in the calculations, given that loans with nTTc are not
readily priced and are not traded in the financial markets.

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 DARWIN PORT CORPORATION 2013/14 Annual Report

OUR Financials
Notes to the Financial Statements
for the year ended 30 June 2014

20. FINANCIAL INSTRUMENTS (cont.)

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DARWIN PORT CORPORATION 2013/14 Annual Report

OUR Financials
Notes to the Financial Statements
for the year ended 30 June 2014

2014 2013
Internal External Internal External
$000 $000 $000 $000
21 COMMITMENTS
(i) Capital Expenditure Commitments
capital expenditure commitments are primarily related land
and harbour improvements. capital expenditure commitments
- - - -
contracted for at balance date but not recognized as liabilities
are payable as follows:
Within one year - - - -
later than one year and not later than five years - - - -
later than five years - - - -
- - - -

(ii) Other Expenditure Commitments

Other non-cancellable expenditure commitments not
- - - -
recognised as liabilities are payable as follows:
Within one year 124 726 212 -
later than one year and not later than five years - - - -
later than five years - - - -
124 726 212 -

22. CONTINGENT LIABILITIES AND CONTINGENT ASSETS

a) Contingent Liabilities

East Arm Wharf Terminal Lease

The corporation agreed to indemnify the lessee, at clause 17.5, from any loss or claim brought against, incurred or suffered by the lessee to the
extent to which the loss or claim is a result of any pre-existing contamination of the land and subsequent contamination of the land caused by
the corporation. The corporation further agreed to indemnify the lessee in respect of any loss or claim incurred or suffered as a result of the
corporations failure to comply with its environmental obligation in clause 17 of the lessee.
The lease contains similar indemnities given by the lessee with respect to contamination caused by the lessee and a failure to comply with its
environmental obligations. Each party carries the risk to the level of control they may have over the circumstances that may give rise to a liability.
The indemnities are reasonable and do not greatly extend the obligations of each party beyond those under common law.

Bunkering at East Arm

an agreement exists between the corporation and The shell company of australia (shell) dated 27 June 2005 where the corporation indemnifies
shell against any claim, loss, damage, liability, cost and expense (including but not limited to product loss) that may be incurred or sustained by
shell arising out of any breach of the coprorations obligations under the agreement or in connection with any failure or defect in the integrity of
the bunker lines.

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 DARWIN PORT CORPORATION 2013/14 Annual Report

OUR Financials
Notes to the Financial Statements
for the year ended 30 June 2014

b) Contingent Assets

none to report

23. EVENTS SUBSEQUENT TO BALANCE DATE

no events have arisen between the end of the financial year and the date of this report that require adjustment to, or disclosure in these financial
statements.

24. WRITE-OFFS, POSTPONEMENTS, WAIVERS, GIFTS AND EX GRATIA PAYMENTS

Agency Agency Territory Items Territory Items
No. of No. of No. of No. of
2014 2013 2014 2013
Trans. Trans. Trans. Trans.
$000 $000 $000 $000
Write-offs, Postponements and Waivers Under
the Financial Management Act
Represented by:
Amounts written off, postponed and waived by
- - - - - - - -
Delegates
irrecoverable amounts payable to the Territory or
3.9 2 1.4 1 - - - -
an agency written off
losses or deficiencies of money written off - - - - - - - -
Public property written off - - - - - - - -
Waiver or postponement of right to receive or
- - - - - - - -
recover money or property
Total Written Off, Postponed and Waived by
3.9 2 1.4 1 - - - -
Delegates

Amounts written off, postponed and waived by the

Treasurer
irrecoverable amounts payable to the Territory or
12 1 14 1 - - - -
an agency written off
losses or deficiencies of money written off - - - - - - - -
Public property written off - - - - - - - -
Waiver or postponement of right to receive or
- - - - - - - -
recover money or property
Total Written Off, Postponed and Waived by the
12 1 14 1 - - - -
Treasurer

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DARWIN PORT CORPORATION 2013/14 Annual Report

OUR Financials
Notes to the Financial Statements
for the year ended 30 June 2014

25. BOARD MEMBERS REMUNERATION

2014 2013
No. No.
Board Members income level
< $10,000
$10,001 - $20,000
$20,001 - $30,000 2 2
$30,001 - $40,000 - -
$40,001 - $50,000 - 1
$50,001 - $60,000 1 -
Total 3 3

Total Income Paid or Payable to Board Members $106,000

The names of each person holding the position of advisory Board Member as at the end of the financial year are Mr John Watkinson (chairman),
Karen Green, and alan Grummitt. The chief Executive Officer of the Darwin Port corporation is an ex-officio member of the advisory Board.

no advisory Board Member has entered into a material contract with the entity since the end of the previous financial year and there were no
material contracts involving advisory Board Members interest in existence at year end.

26. SENIOR MANAGERS REMUNERATION

2014 2013
No. No.
Senior Managers Income Level
< $100,000
$100,001 - $120,000 - -
$120,001 - $140,000 1 1
$140,001 - $160,000 - -
$160,001 - $180,000 - -
$180,001 - $200,000 3 4
$200,001 - $220,000 2 4
$220,001 - $240,000 1 1
$240,001 - $260,000 - -
$260,001 - $280,000 - 1
$280,001 - $300,000 1 -
Total 8 11

Total Income Paid or Payable to Senior Managers $1,656,000 $2,187,000

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 DARWIN PORT CORPORATION 2013/14 Annual Report

OUR Financials
Notes to the Financial Statements
for the year ended 30 June 2014

Senior Managers within Port Management Group

The names of each person holding the position of senior management which forms the Port Management Group during the financial year are as
follows:
Mr Terry Oconnor as chief Executive Officer
Mrs Melissa Reiter as General Manager corporate services
Mr Peter Dummett as General Manager Port Development
Mrs anne coulter as chief Financial Officer
captain Tony OMalley as Harbourmaster
captain ian niblock as General Manager Operations
Mr alastair Black as Engineering Manager
Mr Peter Raines as General Manager Facilities

27. AUDITORS REMUNERATION

2014 2013
$000 $000
auditors Remuneration - auditing financial reports 49 46

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DARWIN PORT CORPORATION 2013/14 Annual Report

Livestock vessel at East Arm Wharf

180
 DARWIN PORT CORPORATION 2013/14 Annual Report

Index

Advisory Board 10,83 Environmental Management 55,62,66,107

Auditor Generals Report 137 Financials & Profitability 52,131
Business Planning 43,107 Harbourmasters Report 10
Case Studies: Health & Safety 30,53,89,116
Investing in Pilotage 38 HR and Training 21,22,26,51,112
Channel Dredging 57 Governance 76
Marine Supply Base 72 Maps 60,61
Harbour Cranes 91 Performance Reports 104,107,112,116,117
Harbour Control Centre 130 Pilotage 38,122
CEOs Overview 7 Port Management Group 15
Chairmans Perspective 12 Procurement 124
Committees and Groups 86 Risk Management 81
Compliance & Audits 127 Security 54,69,90
Corporate Social Responsibility 35,37 Trading & Growth 40,45,56,94

Abbreviations and Acronyms

AACo Australian Agricultural Company MOF Module Offload Facility
AFANT Amateur Fishermens Association of the MOU Memorandum of Understanding
Northern Territory MTPA Million Tonnes per Annum
AMSA Australian Maritime Safety Authority NADO North Australia Development Office
APMP Agency Procurement Management Plan NEPM National Environment Protection Measure
ARA Australasian Reporting Awards NPAT Net Profit after Tax
CDS Corporate Directions Strategy NT Northern Territory
CSO Community Service Obligation NTEPA Northern Territory Environment Protection
CSR Corporate Social Responsibility Authority
CTO Control Tower Officers NTG Northern Territory Government
DCM Department of the Chief Minister NTPS Northern Territory Public Sector
DPC Darwin Port Corporation OCPE Office of the Commissioner for Public Employment
DPIS Darwin Port Induction System OTS Office of Transport Security
DRMS Document Records Management System PEC Pilotage Exemption Certificate
EAW East Arm Wharf PLJ Product Loading Jetty
EBIT Earnings before interest and tax PMG Port Management Group
EEO Equal Employment Opportunity PMIS Port Management Information System
EMS Environmental Management System PPE Personal Protective Equipment
EMP Environmental Management Plan PPI Positive Performance Indicators
ERP Emergency Response Plan PSEMA Public Sector Employment and Management Act
FTE Full Time Equivalent QM2 Queen Mary 2
FVTPL Fair Value through Profit or Loss QA Quality Assurance
GST Goods and Services Tax SMP Safety Management Plan
IFRS International Financial Reporting Standards TEU Twenty-foot Equivalent Unit
IMO International Maritime Organisation TMP Traffic Management Plan
INTEFET International Force for East Timor TOIL Time Off In Liew
JSEA Job Safety Environment Analysis TPH Tonnes per Hour
JCC Joint Consultative Committee TRIM Tower Records Information Management System
KPI Key Performance Indicator WHS Work Health & Safety
LNG Liquefied Natural Gas WHSMS Work Health & Safety Management System
MSB Marine Supply Base VTS Vessel Traffic System
MSIC Maritime Security Identification Card

181
DARWIN PORT CORPORATION 2013/14 Annual Report

Train carrying manganese ore to East Arm

182
 DARWIN PORT CORPORATION 2013/14 Annual Report

Wed appreciate your feedback

As part of the Darwin Port Corporations policy of continuous improvement and in order to continue to meet the needs of our
stakeholders we welcome your comments on our latest annual report.

Please copy this form, complete it and either fax to (08) 8922 0666, email feedback.dpc@nt.gov.au or post to
Darwin Port Corporation, GPO Box 390, Darwin NT 0801.

1. Does the information in the report meet your requirements as an interested party or stakeholder?
Yes No

2. Are there areas/issues that you believe have not been addressed in sufficient detail? If yes, please list them here.

3. Please rate the report using the following criteria

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Content
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4. Do you have any comments or suggestions on how our future annual reports could be improved?

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Thank you for your feedback.

183
Darwin Port Corporation was proud to be awarded a
prestigious Silver Medal in the Public Sector Category of
the 2013 Australasian Reporting Awards (ARA) for its
2012/13 Annual Report.

We are committed to transparent governance and

welcome your feedback on our report. Please use the
feedback form provided and/or submit your comments
to feedback.dpc@nt.gov.au

In keeping with our Environmental Policy we have

printed a limited number of hard copies of our Annual
Report. This Annual Report has been produced on fully
recycled paper that is chlorine free and manufactured
carbon neutral.

For information about doing business with the Darwin

Port Corporation go to www.darwinport.nt.gov.au
Chief Executive Officer
Mr Terry OConnor
Telephone: 08 8922 0644

Harbourmaster
Captain Tony OMalley
Telephone: 08 8999 3867

General Manager
Corporate Services
Mrs Melissa Reiter
Telephone: 08 8922 0626

General Manager
Operations
Captain Ian Niblock
Telephone: 08 8999 3949

General Manager
Port Development
Mr Peter Dummett
Telephone: 08 8922 0688

Chief Financial Officer

Mrs Anne Coulter
Telephone: 08 8922 0622

General Manager
Facilities
Mr Peter Raines
Telephone: 08 8943 6182

Street Address
Darwin Port Corporation
Administration Building
Export Drive
Berrimah NT 0828

Telephone: 08 8922 0660

Email: darwinport@nt.gov.au
www.darwinport.nt.gov.au

Cover photo: Geo Caspian exploration vessel