BHP to increase direct shipping of supplies from Singapore to Port Hedland

BHP is set to increase direct shipping of supplies from Singapore to Port Hedland, cutting out road haulage and reducing transport time and cost.

The mining giant began trialling direct shipping in November 2020 through provider ANL, offering Pilbara businesses the chance to bypass the previous route of import via Fremantle and 1650km of road haulage to reach Port Hedland.

After the success of the trial, BHP will shift to shipping 7.5 per cent of containerised supplies received into WA through the route.

The move will also reduce greenhouse gas emissions related to transportation of the re-routed goods into the Pilbara by up to 75 per cent, per container, and reduce overall transport costs for supplies.

BHP WA iron ore general manager of port operations Cindy Dunham said since the trial began, businesses had seen safety, cost, efficiency and environmental improvements.

“This initiative not only improves efficiency, it also improves safety and environmental outcomes, thereby benefiting the whole community,” Ms Dunham said.

“BHP would like to work with local businesses in Port Hedland to explore opportunities to optimise their own supply chains via this shipping route. We are committed to helping develop Port Hedland as a thriving, sustainable place to live.”

More than 900 trailers have been removed from long distance routes per year under the project, with a six-day reduction in transport time also providing companies more direct access to suppliers.

Pilbara Port Authority chief executive Roger Johnston said direct shipping to the Pilbara had grown faster than anticipated since 2020, with benefits already being recognised.

“A recent report by ACIL Allen estimates the economic benefit of near-port freight efficiencies to be approximately $5 million per annum, while imported cargo freight efficiencies are in the order of $60m per annum,” he said.

BHP has also flagged a partnership between BHP and ANL to explore further opportunities to reduce shipping-related emissions, including the potential use of alternative fuel.