Towage services in one of Australia’s largest ports and a strategic export hub will be reshaped following an agreement between tug operators
Kotug Australia has taken full management of towage operations in Port Hedland following an agreement with venture partner Westug.
The agreement will rearrange towage services for Pilbara Marine, a subsidiary of Fortescue Metals Group in the port, one of the busiest dry bulk export hubs worldwide.
Kotug will take over operation of nine Rotortugs at Port Hedland, which have been servicing Fortescue and other port users since the commencement of operations in 2019.
Previously, Kotug sub-contracted to Westug to operate these tugs and provide marine services in the port.
On 1 August, Kotug and Westug mutually and amicably agreed to exit their agreement for these operations.
Both companies agreed that Fortescue’s Port Hedland towage business will benefit from having a single party managing operations.
There was belief a single contractor delivery model would have a positive impact on the management of operations and overall responsiveness Pilbara Marine.
“Kotug is fully committed to Pilbara Marine and Fortescue, we now look forward to focusing on working to fully optimise our Port Hedland towage operations and working in partnership with our valued client,” said Kotug chief executive Ard-Jan Kooren.
“With our tugs, motivated back-office team, shore support staff and crew partnerships, we look forward to taking the Port Hedland towage business to the next level.”
Kotug will retain its existing agreement with Pilbara Marine, covering supply of tugs and having overall responsibility for the delivery of Port Hedland towage services.
All existing Westug personnel will be transferred across to Kotug as part of the agreement.
Westug chief executive Mark Malone confirmed his company was exiting the previous arrangement and discussed the logistical difficulties that led to the decision.
“The intensity of the operational requirements to keep such a busy port serviced to the required level is best served by a single towage operator,” Mr Malone said.
“Despite our best efforts, having two parties sharing responsibility proved to be too much of a challenge,” he added.
“We leave the operation with strong relationships and will focus squarely on other growth opportunities in the Australian market.”
Westug is a subsidiary of Engage Marine, providing port operations and support in Western Australia.
In May 2021, Engage Marine contracted Damen Shipyards to supply three new tugs as it modernises its fleet in Australia.
That followed Engage securing a long-term contract to provide towage services in the Port of Abbot Point, in northern Queensland, Australia.
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