The Company has signed a contract for the construction of the Kangaroo Island Seaport at Smith Bay.
The contract partners in the Early Contractor Involvement Agreement (ECI), led by Maritime Constructions (MC) from Port Adelaide, include KBR and WGA, two global leaders in the field of civil and marine construction.
The ECI Agreement establishes an innovative Alliance Agreement model, under which the Contractor will build a deep-water wharf at Smith Bay, Kangaroo Island. The Alliance Agreement itself will now be prepared under the ECI Agreement terms and conditions.
Managing Director of KIPT Keith Lamb said he was pleased to formalise the long-standing strategic partnership with Maritime Constructions.
“There are many advantages for our shareholders in this ECI arrangement. In particular, we welcome the fact that this Alliance Agreement model allows KIPT and Maritime Constructions to share the financial risks and rewards of building the KI Seaport. We respect the skills and experience of Maritime Constructions and we are pleased that this ECI has the practical effect of establishing them as our development partner for the KI Seaport project,” Mr Lamb said.
MC is SA-owned and employs 130 people. KIPT has employed experienced engineer Alan Braggs as its KI Seaport Manager to work directly with MC on the project and the associated agreements and contracts.
“Alan comes with almost 30 years of experience in civil engineering in Adelaide, Perth and Singapore, and expertise in marine structures,” Mr Lamb said. “We are very pleased to have him on board and he has already brought significant value to the project and our shareholders.”
In another step forward, the company is also expecting submissions from a number of contractors expressing their interest for significant contracts for the provision of harvest and haulage services on island. This is essential to salvage the softwood logs, which are at most risk of deterioration if not harvested soon.
Mr Lamb welcomed the Federal announcement last week of the $10m Salvage Storage Fund – Securing Forestry Resources for Economic Recovery.
He said the fund, to help in establishing storage facilities for bushfire-affected timber, was timely for KIPT as its salvage harvest loomed, and could benefit Australian mills.
KIPT still awaits approval for its Kangaroo Island Seaport export facility.
“Kangaroo Island has received two major setbacks this year with the devastation of the fires, and now the COVID-19 pandemic, both of which have had a major impact on the lives and prosperity of Island residents.
“KIPT shareholders and the independent growers on the Island suffered significant losses from the fires, and the company is determined to push ahead with plans to build the Seaport and salvage what it can of the fire-affected logs before decay sets in and any chance of salvage is lost.”