KANGAROO Island Plantation Timbers (KPT) announced last week that it had signed a memorandum of understanding with Flinders Ports to develop a port-operating model for a planned woodchip-export port on Kangaroo Island.
In a letter to shareholders, ASX-listed KPT said the MoU commits the parties to work together to achieve a mutually beneficial outcome.
“The board believes that Flinders Ports’ ability to manage and deliver services at the new KI Seaport using existing efficiencies from operating numerous ports in the region makes it an ideal partner for KPT,” the letter reads.
“[The MoU] sets out a process for progressing towards a full port operating agreement by locking in agreed milestones as a condition for maintaining exclusivity. The parties have also agreed in the MoU to share and protect each other’s intellectual property in relation to marine operations at the KI Seaport.”
Flinders Ports manages Port Adelaide, Port Lincoln, Port Pirie, Thevenard and other ports around South Australia.
KPT is a timberland company managing forestry plantations on Kangaroo Island. The company is planning to build a woodchip-export facility at Smith Bay on the north coast of the island.
The port is to feature a 200-metre causeway and 100-metre suspended deck jetty attached to a 167-metre-long pontoon, which will serve as the berth.
KPT has signed an agreement with infrastructure and timber marketing company Mitsui to develop, maintain and operate the onshore woodchip-handling facility.