Peninsula Ports secures AUS$8.3 million seed investment for Port Spencer grain export terminal
Updated: May 12, 2020
Our client, Peninsula Ports Pty Ltd, has secured AUS$8.3 million of seed funding for its Port Spencer project, a new grain export terminal with an integrated natural deep-water port on the southeastern coast of the Eyre Peninsula in South Australia. Construction is planned to commence in mid-2020 and to complete in late 2021. When complete, the Port Spencer project will be able to handle 1 million tonnes of grain per year, and will accommodate Panamax vessels.
Given its location and its deep water port, Port Spencer is estimated to deliver a freight cost saving of up to AUS$10 per tonne for local farmers in the Eyre Peninsula as compared to competing routes.
John Crosby, chairman of Peninsula Ports said that he is ‘“very pleased with progress to date with major contractors selected and close coordination with the 475 mostly farmer shareholders who have supported the development through Free Eyre Ltd".
Following this successful first round of seed funding, Peninsula Ports will be raising further seed funding of up to AUS$20 million this quarter, in advance of a further round of institutional funding, which is expected to comprise AUS$90 million of equity and AUS$130 million of debt.
Brigg Macadam and Baker Young have been jointly exclusively mandated to raise the total AUS$220 million to finance the construction of the Port Spencer grain project.