Buying the Port Operations
Port Melville is a deep-water port strategically located on the Tiwi Islands. It falls within the boundaries of the Pirlangimpi Township Lease and is subleased to Port Melville Pty Ltd, a 100% Tiwi owned business.
Initially constructed in 2013, Port Melville underwent a $130 million expansion in 2015-16, by its then Singaporean owners, to enable the export of forestry products produced from plantations managed by the Tiwi Plantations Corporation. The facilities at the Port include a floating concrete wharf providing a 220-metre berth face capable of docking vessels up to 50,000 Deadweight Tonnage (DWT), a 110-metre floating concrete jetty supported by mooring piles and linking the wharf to the landside facilities, and a 30 million litre fuel storage and supply system.
In December 2022, the Singapore based parent company of Port operator, NT Port and Marine Pty Ltd (NTPM), was placed in administration. As a result NTPM was also placed into administration. The key role the Port plays in the viability of the Tiwi forestry operations was immediately recognised by the administrators who worked to ensure Port operations continued during administration.
In early 2023, when woodchip exports resumed after COVID, the administrators reached out to OTL seeking working capital to support Port operations. Working closely with Tiwi Plantations Corporation, the Tiwi Land Council (TLC) and the National Indigenous Australians Agency (NIAA), we were able to secure funding to keep the Port operating while the sale process was undertaken. To further support operations, the Department of Defence entered into a fuel supply contract. This represented a new revenue stream for the Port and an important step in assuring the future viability of the infrastructure.
As the sale progressed, the Board of Port Melville Pty Ltd realised that they were best placed to both own and operate the Port. Following a due diligence process (also funded through OTL) which identified both a recommended purchase price and substantial diversification opportunities in the future, the Board determined to make a bid to purchase the Port operations business. It was also important to ensure the future of forestry on the Tiwi Islands.
A key piece of the puzzle to secure the ongoing operations of the Port was recognition of its strategic national importance. This was realised during a visit by the Deputy Prime Minister and Minister for Defence the Hon Richard Marles accompanied by then Assistant Minister McCarthy. Their commitment to ensure the ongoing viability of the Port through an increased use of fuel storage and supply by the Australian Defence Force provided the certainty needed for the Board of Port Melville to commit to the purchase.
The finalisation of the acquisition is anticipated to occur in the first quarter of 2024-25, with funding supported through NIAA, TLC and commercial partners. This is a major step in the economic development of the Tiwi Islands, with Traditional Owners now in control of the industrial infrastructure which drives economic empowerment across the Tiwi Islands and will impact local jobs, trade and small business opportunities. The foresight by early Tiwi leaders to establish the conditions for the current generation of leaders to take these opportunities should not be understated. The next generation of Tiwi will have brighter futures because of it.
This project demonstrates a successful whole of Australian Government collaboration to secure this key asset of strategic national importance. To ensure its sustainability and underpin future growth, this collaboration is set to continue. Assuming the acquisition completes as anticipated, the OTL is committed to supporting Port Melville Pty Ltd to undertake an economic viability assessment which will inform the business's capital needs to diversify income. Following this assessment we expect to be engaging further with our Commonwealth Government colleagues to source this capital and create lasting economic empowerment for Tiwi Islanders.