Rio Tinto has awarded a $200 Million long-term contract to Western Australian-based company Westug, on the basis that they provide towage services at the company’s iron ore ports of Cape Lambert and Dampier in the State’s Pilbara region.
The contract covers the four terminals at Rio Tinto’s two ports in the Pilbara which last year shipped a combined 330.1 million tonnes of iron ore to customers.
Under the contract, Westug is to be responsible for the operations and maintenance of Rio Tinto’s tug fleet of 11 vessels as well as four smaller craft. The contract will help sustain more than 130 jobs. Westug has also agreed to an ‘enhanced local procurement strategy’ under the new contract. This strategy will focus on commitments to boost the relativity of Pilbara specific spending and to maximise their footprint in the local community.
Rio Tinto’s marine operations unit is responsible for the movement of over 2,000 vessels, which contain iron ore, salt and fuel at the two ports. This corresponds to 4,000 inbound and outbound vessel movements through the year.
“Towage operations and vessel maintenance are a critical element in our supply chain. Rio Tinto has a long history of working with Westug at our ports and this new contract is an endorsement of both the value and opportunity available in the next phase of our relationship,” commented Rio Tinto Iron Ore Managing Director (Rail, Port & Core Services), Ivan Vella.
“Rio Tinto’s values around local procurement align with those of Westug’s and we look forward to seeing the benefits of this approach flow through to local businesses and workers in the Pilbara,” he announced.