Much focus has concentrated on the five main coal export gateways – Dalyrymple Bay, Hay Point, Gladstone, Newcastle and Abbot Point – and their attempts to keep up with the huge production jumps scheduled by Australia’s leading mining companies.

Despite the massive port expansion programmes planned, most analysts forecast that delays in funding and constructing terminal upgrades and, more significantly, their rail links to the hinterland, could see coal export projections fall short of targets because of supply chain bottlenecks, already much in evidence at some terminals where delays for capesize vessels have been measured in weeks rather than days since late 2004.

However, faring much better are Australia’s iron ore exporters, partly because of the more integrated approach taken in western Australia where the big two producers – BHP Billiton and Rio Tinto – keep a tight rein on their supply chain management and investment programmes, with the focus on port development all-important.

This has been no small task as they seek to maintain market share in the face of the steep demand hikes caused by China’s insatiable desire for iron ore.This has seen the country increase imports from 70m tonnes in 2000 to some 275m tonnes last year on the back of booming steel production and rapid economic growth.

As well as taking all the excess out of the iron ore supply system in five short years, this unprecedented growth has seen global steel output rise from 800m tonnes to 1.1bn tonnes over the same period. Around 75% of future global iron ore demand growth is forecast to come from the Chinese market and according to BHP Billiton, by 2008 China will account for over 50% of the total global seaborne trade in iron ore.

As the world's second largest iron producer and exporter with production totalling 261.7m tonnes in 2005 – 239m tonnes of which was exported – Australia has a sizeable role to play in feeding the Chinese economic miracle. The country’s leading miners supplied 117.2m tonnes of iron ore to China in 2005,a figure that will rise quickly as mine, railway and port investments bear fruit.

As a result Western Australia has seen the value of its exports multiply, now accounting for almost US$36.5bn a year, with much of it generated by exports of iron ore from the Pilbara region through terminals at Cape Lambert, Dampier and Port Hedland. In total, it is hoped the ports will have combined nominal capacity for 440m tonnes of iron ore by 2010, up from less than 280m tonnes in the financial year 2005-06, which ended June 30.

Rio Tinto, which runs an integrated operation via its terminals at Dampier, is in the midst of a $700m investment programme designed to boost capacity at Dampier’s terminals to over 140m tonnes in the coming years.

Dampier’s terminals handled total throughput of 96m tonnes in 2004-05, including 76m tonnes of iron ore. This increased substantially during 2005-2006 to over 110m tonnes, including almost 90m tonnes of iron ore exports. Rio Tinto also owns a 53% stake in Robe River Iron which ships iron ore exports from West Angelas via the port of Cape Lambert.The port,complete with it is own crushing and screening plant, can handle over 50m tonnes of iron ore at present with substantial capacity improvements due on stream in the near future.

BHP Billiton manages two heavy haulage railroads into Port Hedland, running some of the heaviest trains in the world on 426km of line from the Newman,Yandi and Area C mines, and the 210-km stretch to Yarrie mine. The entire logistics system is in the process of being upgraded and in August a fourth car dumper was commissioned at the port.

The result saw nominal export capacity from the region’s mines rise to 105m tonnes earlier this year, compared with just 68m tonnes in 2001. Additional upgrade programmes are now underway designed to take export potential to 152m tonnes.

A major new iron ore port in Western Australia is also mooted as Australia battles to maintain market share against rivals in Brazil and India. Steel giants Mitsubishi and Posco, along with logistics company Toll Holding,are examining the potential of a new port and rail faciltity 25km north of Geraldton at Oakajee.

The attraction of the site is the potential to handle capesize vessels, something the port of Geraldton is unable to manage, despite substantial dredging programmes. The results of a feasibility study are due to be published mid-2007.