Pilbara Ports Authority Research Report

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TABLE OF CONTENTS

1.        ORGANISATIONAL PROFILE        3

2.        VALUES                3

3.        vision          3

4.        MISSION        3

5.        STRATEGY        4

6.        PESTEl analysis        5

7.        FIVE FORCES ANALYSIS        7

8.        THE FUTURE        9

9.        SWOT analysis        10

10.        VALUE CHAIN        11

11.        DATA SOURCES AND COLLECTION METHODS        12

12.        REFERENCES        13

1. Organisational Profile

Pilbara Ports Authority (PPA) Is a corporatised Government Trading Enterprise, governed under the Port Authorities Act 1999 WA (the Act).  

PPA is the world’s largest bulk export port, responsible for

• 75% of state and 50 percent of global iron-ore exports
• 8% of global LNG exports.

The Board of Directors sets PPA’s strategic direction, and monitors management’s achievement against the strategic objectives. (www.pilbaraports.com.au)

1. Values

EXCELLENCE                be the best in all we do

RESPECT                        in all our dealings

INTEGRITY                operate honestly, fairly and impartially

CARE                        for our environment, our staff and our community

COURAGE                do the right thing

1. Vision

“To be the global leader in port planning, operations and marine services”.

1. Mission

Facilitation of Trade through the Pilbara for the benefit of the State and our customers;

Sustainability: To manage the ports’ growth and operations, while respecting the Pilbara’s community, environment and heritage; and

Business Excellence: Optimised performance through industry leading practices and innovation.

1. Strategy

Trade facilitation:

• Diversification – Explore opportunities for alternative trade.
• Strategic Asset Management.
• Identify and analyse supply chain opportunities.

Sustainability: 

• Asset sales

• Operate Utah Bulk Handling Facility as a world class asset while under PPA management.
• Maintain the viability of PPA’s remaining businesses.

• Manage relationships with key stakeholders.

• Regional Approach

• Apply a Pilbara wide approach to service provision, development and decision making.
• Establish port access corridors and buffers zones around critical infrastructure.

Business Excellence: 

• Workforce

• Identify capability and growth opportunities.
• Deliver leadership and training.

• Business continuity

• Strengthen ICT governance.

• Technology

• Identify and assess new technologies to be integrated into the business.

1. PESTEL ANALYSIS

Political

• China’s geopolitical influence will impact inter-state relationships and global balance of power. (Latimer, C 2015)

• Reduced global demand for key commodities results in oversupply, driving prices down.

• 60% of metal price variances are explained by fluctuations in China’s industrial production. (Kasperson, A, Sola, I & Davison, G. 2016)

• Energy and water Scarcity:

• 32% (copper) and 39% (iron-ore) of mines are in regions with high risks of scarcity. (Thompson & Fraser 2015)

Economic

• Increased demand for mineral products, particularly in China.

• 2017 Global iron-ore trade is forecast to grow by 4.0 percent.
• Australia’s Iron-Ore export volumes are forecast to reach 852 million tonnes in 2016–17, up from 748 million tonnes in 2014–15. (Resources and Energy 2016)

• Iron ore prices apply downward pressure on Australia’s export earnings

• Iron-ore is forecast to be US$45 a tonne in 2017, representing no change from 2016. (Resources and Energy 2016)

• Oil prices are expected to increase (US$55 a barrel in 2017).

• Higher contracted LNG prices.
• Spot prices to remain low as new supply is added in the US and Australia. (Resources and Energy 2016)

• Mining companies continued global search for attractive returns on investment adversely affects investment in Australia. (PriceWaterHouseCoopers, 2015)

• Capital expenditure declined 30 percent year-on-year in 2016. (Albeit from a high base). The forecast is for further falls. (Resources and Energy 2016)

• The high Australian dollar and falling US dollar make Australian exports more expensive and less desirable.

• Australian dollar declined from US$1.1, to US$0.76 in the last four years. (www.rba.gov.au)

Sociocultural

Mining can transform a region, potentially to the detriment of traditional, established sources of economic production. (Moffatt, K and Lacey, J, 2012) resulting in: