JV Van Oord, Dredging International Australia Acquire Contract for Gladstone Western Basin Dredging

Van Oord Australia Pty Ltd and Dredging International (Australia) Pty Ltd, member of the DEME Group, have been awarded a third contract for the Western Basin Main Works Dredging at the Port of Gladstone. This third contract signed with the Gladstone Ports Corporation on 15th July 2011 represents a value of AUD 120 million (EUR 90 million) and involves the dredging of Parcel 7 for the Western Basin Development. The total value of the three contracts awarded to date by the Gladstone Ports Corporation to the Joint Venture for the same Western Basin development exceeds AUD 925 million (EUR 695 million).

The dredging volume of Parcel 7 will be approximately 2.9 million m3 for the construction of one coal berth, comprising a berth pocket, berth pocket extension, departure/arrival channel and a swing basin. The multi-billion dollar industry-funded Wiggins Island Coal Terminal is expected to provide 80 million tonnes per annum in additional export coal capacity through the Port of Gladstone once fully commissioned. The Wiggins Island Coal Export Terminal Pty Ltd (WICET) is owned and being developed by existing and potential coal exporters in Queensland.

The total scope of work for all three contracts awarded to date to the JV Van Oord Australia Pty Ltd and Dredging International (Australia) Pty Ltd includes the dredging of various channels, swing basins and bypass channels for the access to various berth pockets, embarkation docks and material offloading facilities. The total dredging volume of the three contracts will exceed 27 million m3 of dredged material.

Dredging has commenced in early June and will be completed in 2014. A heavy-duty cutter suction dredger with floating booster stations, a large trailing suction hopper dredger, two backhoe dredgers, a backactor and a spread of split barges will be deployed to execute these important dredging assignments.

Special attention will be given to the Environmental Management and the Management of the Possible Acid Sulphate Soil in the reclamation area. All environmental and dredging plans are verified and permits are in place.

The dredging of the Western Basin Dredging Project will facilitate both the provision of increased long term export coal capacity and the export of the LNG produced at the facilities under construction in Gladstone. The AUD 1.3 billion (EUR 985 million) development of the Western Basin area will expand the footprint of Queensland’s largest multi-commodity port and will make the Port of Gladstone one of the largest ports in Australia.

Source: DEME, August 10, 2011

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