SUSTAINABLE DEVELOPMENT REPORT 2013
ABOUT THIS REPORT
GY IVERSITY, R E N BIOD NNING A PL
RE A & P BE E H
NT Pg 13 G E M N OV O R ER VI N IENCY, TR EFFIC
E
E
The purpose of this report is to provide those with an interest in our operations an easy to access summary of our performance.
LT EQ H & TRA UAL SA DEVE ININ I LO P
L, SU HIRING LOCA AL, PPO C RTING LO E SUS AB L HIRINTAIN LICIES G PO
SOCIA L P g 8
As an organisation we value open and honest two-way communication for the improvement it enables.
AR G SP RTIN L N O ICA R TH VIOU A
OUR PEO P HEA
7 Pg LE
While there are many models for sustainability, for us, it is about balancing these sometimes competing factors to achieve a fair and positive outcome for all stakeholders, while conducting our business in a responsible and ethical way.
Pg 4 E C N NA ENT
ENGAGIN CONTRIBU G & , TIN TY TO S O C FE , I ET G Y TY & G ENT M
Sustainable development underpins everything we do at Port Waratah Coal Services. Health, safety, environmental, social and economic aspects are integrated throughout our decision making, activities and processes. It means that we continuously strive to understand and fulfil our responsibilities as an employer and community member, as well as meet our legal obligations.
ECO 11 g P NOMIC
2
CHIEF EXECUTIVE OFFICER’S OVERVIEW REPORT FROM HENNIE It gives me great pleasure to once again introduce you to the Port Waratah Coal Services Sustainable Development Report.
With respect to the safety and health of our people for example, 2013 was a very successful year. We were able to reduce the number of people injured in our operations from ten in 2012 to four in 2013– an achievement that we are very proud of as a team. In addition to safety and health, this report addresses all aspects of our approach to sustainable development: our people, our social contributions and our relationship with neighbouring communities, our environmental impact, and improvement activities and governance.
Port Waratah’s commitment to environmental improvement was demonstrated in 2013 when full implementation of our Intelligent Dust Management System was completed at both terminals. Significant improvements were also made to the capacity of the stockpile spray systems at the Kooragang Terminal.
safety, respect, fairness and trust. Most of all, it emphasises the value we attach to developing and growing in partnership with our community and stakeholders. Port Waratah and its people value open and transparent two-way communication as a key enabler for improvement, so we invite you to provide us with your feedback on this report.
One of the most important milestones reached during 2013 was The year 2013 brought a number of the completion of our expansion challenges and changes for our projects. With the commissioning of business, the most significant of these projects now complete, our which was the very significant current capacity obligations to the – Hennie du Plooy, CEO deterioration in the economics of At Port Waratah we recognise that coal industry have been met. With an the Hunter Valley coal industry; the we still have many opportunities for eye to the future, we continue to industry that is our reason for being. improvement, so the purpose of this pursue the development approval for report is to provide you with Challenging times such as these are a Terminal 4 so that we are positioned information that will enable you to good reminder of why a focus on to develop that capacity if required. assess our progress. sustainable development is so However, we announced during 2013 important for our business. By its During 2013 we reached some that following a voluntary reduction very meaning, ‘sustainable’ implies a significant milestones on this path. In process undertaken with coal focus on the longer term and an addition to the reduction in injuries, producers, the immediate need for we upgraded our health and safety ability to look beyond short term ups Terminal 4 was removed. management system. At the end of and downs. A comprehensive the year this was certified to comply 2013 was also the year in which Port approach to sustainability, such as we with the international standard Waratah fully implemented our have at Port Waratah, also demands OHSAS18001, positioning us for refreshed stakeholder engagement that we see the economic challenge further improvement in the future. program. This implementation as just one component of our We completed the implementation included publishing the first version business. of the recommendations from the of this report last year, introducing a While the fall in the price of the employee health study (published in new quarterly community newsletter, product we handle is certainly 2012) on schedule. A significant and importantly the renewal of our consistent with a severe downturn, number of employees took the brand – a brand that aims to embody other aspects of our organisation are opportunity to be screened for the principles and values that we experiencing success. wish to convey to our stakeholders: melanoma and bowel cancer.
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GOVERNANCE
Many aspects of our business are regulated by government agencies GOVERNANCE IS including the ACCC, Newcastle AT THE HEART OF Port Corporation, WorkCover, SUSTAINABILITY NSW Environmental Protection Port Waratah’s systems aim to Agency and NSW Department of utilise all levels of the organisation Planning. We work in partnership to review, identify and manage risks with authorities such as the and opportunities to the business, Australian Federal Police, Australian people and the environment. From Customs and the Australian the Board, to our employees, Quarantine and Inspection Service everybody is involved in the to ensure our compliance with governance system in some way. maritime security legislation. As a non-listed public company Port Waratah is overseen by a Board of Directors representing a range of investors. The Board determines and monitors the strategic direction of the organisation, reviewing and supporting us to meet our legal and social responsibilities. The Audit and Risk and Health, Safety and Environment Sub-Committees of the Board provide specific focus on compliance and effective, safe operations which manage our risks and challenges.
We have a Corporate Fraud and Improper Conduct Policy, which clearly sets out expectations for our employees while providing an independent reporting and investigation framework for those who have concerns. Port Waratah does not make donations or contributions to political parties or campaigns.
Port Waratah has a comprehensive internal audit program, which is aimed at confirming that the governance processes achieve their objective. Port Waratah is also subject to external financial, health and safety, and environmental audits. We have worked hard to establish and maintain our Environmental Management System and Health and Safety Management Systems to relevant ISO certification standards. 4
WHO WE WERE IN 2013 OUR VISION:
TO BE A RESPECTED, WORLD CLASS COAL EXPORT FACILITY THAT CONSULTS, EDUCATES AND SUPPORTS ITS STAKEHOLDERS AT ALL LEVELS BY ALWAYS BEING RESPONSIBLE AND DEDICATED TO EXCELLENCE. TO DO THIS WE MUST PIONEER NEW WAYS OF DOING THINGS AND WORK IN PARTNERSHIP WITH ALL OF OUR STAKEHOLDERS:
COMMERCIAL CUSTOMERS, OTHER COAL CHAIN SERVICE PROVIDERS...
INTERNAL
EMPLOYEES, CONTRACTORS...
EXTERNAL
COMMUNITY, GOVERNMENT, LOCAL RESIDENTS...
PORT WARATAH
92
LOADED
IN 2013 1 0 9 . 2 MILLION TONNES
OF THERMAL COAL
17.2
MILLION TONNES
OF COKING COAL
WE NOW HAVE
MILLION TONNES INTO
1,193
VESSELS
MILLION 145 TONNES PER ANNUM
MTPA INTO
105.9
1,174 VESSELS
WHERE CHINA 12% SOUTH DID KOREA THE 22% COAL 51% GO? JAPAN 10% TAIWAN
A NOMINAL CAPACITY OF
AN INCREASE FROM 2012
5%
OTHER 5
MAJOR MILESTONES • Our intelligent dust management system (IDMS) operates at both sites for a full summer for the
• One lost time injury at Port Waratah. • New Port Waratah logo unveiled. • First quarterly Port
first time.
• Two lost time injuries at Port Waratah. • Port Waratah accepts reduction in tonnes in long-term contracts from coal producers. • The contractual demand for Terminal 4 is now no longer required in the near future. Port Waratah announces
Dust monitoring
Waratah Community
that it will be placing the engineering studies on hold at
results indicate dust
Newsletter
the end of the feasibility stage, while continuing with the
levels are below
distributed to
environmental approval process.
government air
neighbouring suburbs.
quality standards.
JAN • New monthly shipping record set – 10.3 million tonnes loaded.
after both parties were unable to reach agreement.
APR • Port Waratah accepts a penalty for minor water overflow of $25,000. • Port Waratah announces that all of the recommendations from the Employee Health Study (released in 2012) are complete.
JUL
• Protected industrial action commences at Port Waratah
AUG
MAY • Kooragang Expansion Project completed – bringing Port Waratah’s nominal capacity to 145 mtpa. • Terminal 4 Preferred Project Report and Response to Submissions goes on public exhibition.
SEP
• One lost time injury at Port Waratah. • Terminal 4 Public Exhibition closes – approximately 1,000 submissions are received by the Department of Planning – about 600 in support of the project, about 350 in opposition and the remainder providing comment.
OCT
• After ongoing community debate about air quality in Newcastle, Port Waratah releases a review of the Coal Terminal Action Group’s Coal Dust in Our Suburbs by Dr Nigel Holmes. Dr Holmes’ report highlights inconsistencies in the data presented and the conclusions of the group.
JUN • The completion of the Kooragang Master Plan is formally celebrated with the opening of the Kooragang Expansion Project by Minister for Ports and Roads The Hon. Duncan Gay, MLC.
NOV 6
OUR PEOPLE
identify what could be improved quickly and easily and develop Port Waratah is proud an efficient way to implement This initiative, to employ people in a diverse these ideas. together with improved training range of roles at its operations. for contractor managers and At the end of 2013 approximately 85 per cent of our employees supervisors, an increased focus lived in the Newcastle, Port on the management of projects, a Stephens or Lake Macquarie targeted audit system, and active Local Government Areas. involvement of our Health Safety and Environment Committee One of the ongoing challenges led to Port Waratah’s best safety for Port Waratah in 2013 was performance in five years. With the finalisation of the enterprise four injuries in 2013, we are agreement negotiations. By the still a way from achieving our end of the year, an agreement goal of zero harm and we will still had not been reached continue the development and despite significant protected integration of the “What’s Next” industrial action during the year. program in 2014. While this action has been difficult for Port Waratah, HEALTH employees and their families, it was a credit to all that we were In 2013 we focussed not just able to operate as a team in a on safety but also the ongoing responsible and respectful manner. health and well-being of all Work will continue in 2014 to employees. We implemented all finalise an agreement that provides of the Port Waratah Employee benefits to both employees and Health Study recommendations by August and, under the guidance the company. of an expert health panel, Port Waratah developed and SAFETY implemented screening programs – OUR GOAL IS ZERO for melanoma and colorectal One of the major achievements cancers for employees. An of the year was the reduction in independent hygienist performed the number of injuries at Port a comprehensive review of Waratah. After ten injuries in the Kooragang Terminal and 2012, a concerted effort was made provided a clean bill of health. to reflect on how we work and The Port Waratah workforce to identify new ways of operating. jumped feet first into a 12 week To identify the most practical fitness challenge which culminated and realistic improvement in 127 Port Waratah employees, opportunities, we worked and their families participating together as part of the ‘What’s in the inaugural Run Newcastle Next’ program. This program event. This fitness program has created a collaborative forum continued, with personal training where technical experts, leaders, and group fitness sessions offered contractors and people who to employees at various times perform the tasks every day could during the week.
LIVING & WORKING
LOC ALLY
404
WHERE OUR EMPLOYEES LIVE
EMPLOYEES
19
4
TRAINEES
APPRENTICES
14%
37% Lake Macquarie 37% Port Stephens 12% Maitland 11% Cessnock 2% Other 1% Newcastle
6
UNIVERSITY SCHOLARSHIP STUDENTS
THE GOAL IS ZERO In 2013 we had four lost time injuries.
FEMALE
WORKFORCE
OVER 42
employees involved in 7 “What’s Next” workgroups to make Port Waratah a safer place to work.
2013 CONTRACTOR HOURS
955,678 7
SOCIAL HELPING BUILD A STRONG, SUSTAINABLE COMMUNITY Port Waratah’s social contribution involves offering local employment and development opportunities, procuring goods and services from local businesses, providing funding for community groups and charities and minimising our impacts on the environment.
SOME OF THE KEY ACTIVITIES RELATING TO THE ROLL-OUT OF THIS REVITALISED STRATEGY IN 2013 INCLUDED: • The establishment of quarterly community newsletters distributed to local residents and businesses; • Formalisation of the Community Terminal Meetings with a regular program and quarterly frequency; • Development and launch of a new brand and logo to provide a foundation on which to improve communication and understanding between all stakeholders; • Undertaking a Community Dust Profile to better understand the perceptions and concerns of the local community around dust and our operations; • Working with other Kooragang Island industry to establish a formal forum to improve communication between industry members and, in turn, working to address cumulative issues; 8
• Implementing a formal Community Investment and Partnership Strategy including:
- Increasing the Community Investment Fund to $700,000 per annum; and - Encouraging employees to become involved in community projects and programs.
Consistent with other phases of the Project, Port Waratah also produced a dedicated community information sheet to provide an overview of the design and technical, environmental and social studies.
SHARED UNDERSTANDING AND TRUST, WORKING IN PARTNERSHIP AND UNDERSTANDING AND MANAGING SOCIAL IMPACTS:
COMMUNITY NEWSLETTERS
4
COMMUNITY TERMINAL MEETINGS MAYFIELD
$736,247
CONTRIBUTED TO OVER 75 COMMUNITY PARTNERS
THROSBY VILLAGES HARBOUR COMMUNITY
CARRINGTON
NEWCASTLE REGION
OTHER
HUNTER REGION
Note: Contributions made via the Port Waratah Community Investment Fund and the KCT and CCT Terminal Sponsorship and Donations Committees. For the purposes of analysis only one category was selected per project, however, some projects have delivered benefits to multiple categories.
STOCKTON/FERN BAY
TRAIN NOISE
COMMUNITY COMPLAINTS OTHER
3
4 6
8
21
IN TOTAL
Port Waratah continued to engage with stakeholders in regard to the Terminal 4 Project – particularly with the release of the Preferred Project Report and Response to Submissions in October. Port Waratah conducted a number of briefings with commercial, community and government stakeholders as well as increasing awareness and access to information about the Project through advertising and establishment of a dedicated website.
52,000
OVER
- Establishment of Kooragang and Carrington Terminal Sponsorship and Donations Committees with $25,000 each to provide support to neighbouring suburbs;
DUST
NOISE
As a result of community complaints in 2013, we made a number of changes to our operations: - We were able to tighten a loose conveyor belt emitting noise within the same shift. - We have tightened the threshold for Carrington Terminal alarms to warn supervisors that errors have been detected in the system, such as an issue in the dust management system. - Dust trigger levels at Carrington Terminal have been adjusted to include periods when the risk of dust emissions is low, however are persistent for a length of time.
To find out more visit the website planningforfutureopportunity.com.au 9
2013 marked the first full year of a revitalised Community Stakeholder Engagement Strategy. The strategy was developed in 2012 based on the feedback from consultation with community stakeholders and employees. This strategy aimed to: • Build genuine, reliable relationships with our community based on respect. • Create community partnerships which address areas of need and build capacity in the community. • Understand, manage and, where appropriate, enhance our positive social impacts.
10
ECONOMIC
Project, 2013 also marked the end of a significant, long term capital POSITIVELY investment program for Port Waratah. The Kooragang Expansion CONTRIBUTE TO Project increased Port Waratah’s A ROBUST AND nominal capacity to 145 million PROSPEROUS LOCAL tonnes per annum and represented ECONOMY WHILE over five million work hours and ENSURING OUR $1.5 billion in capital investment. BUSINESS REMAINS Over 59 per cent of the contracts ECONOMICALLY or the equivalent of $446 million SUSTAINABLE were awarded to contractors Economically, 2013 will be within the Hunter and a further remembered as an interesting year for mining and associated industries, $121 million to contractors in NSW. particularly in the Hunter. While With the conclusion of the the demand for coal volumes Kooragang Expansion Project, remained strong, declining prices placing Terminal 4 on hold, and saw the industry look for new reducing operational spend by ways to become more efficient. over $15 million, Port Waratah This, combined with a number of delivered a substantial reduction other factors, led to a revision of in the coal handling charge during projected coal output from the 2013, achieving the efficiencies Hunter. The new forecast would requested by our investors and still see a long-term increase in customers. Despite these savings, throughput, but not at the rate of Port Waratah still provided a previous years. significant contribution to the local economy, with over $100 million Port Waratah Coal Services was not spent with businesses located in immune to these trends. During 2013 coal producers formally the Hunter and Central Coast. requested that Port Waratah allow This, along with over $35 million them to reduce coal volumes provided in employee wages and in their long-term contracts. In salaries, represents an ongoing allowing reductions to contracted commitment and contribution to tonnes, the amended volumes the local Hunter economy. predicted that demand could be Increasingly, we are conscious of met by existing infrastructure, the balance between achieving removing the immediate demand economic sustainability for our own for the Terminal 4 Project. business, while ensuring that we Without Terminal 4 moving to construction phase in the near future and with the completion of the Kooragang Expansion
continue to positively contribute to the local economy and strive to meet the expectation of all of our stakeholders. 11
(1%)
$15M
$9.9M
(12%)
(8%)
HUNTER & CENTRAL COAST
NSW
$1.5M
AUSTRALIA
OVERSEAS
12 MONTH SPEND (2013) REGION PROFESSIONAL SERVICES
MATERIALS PURCHASES
$13.7M
$6.5M CONTRACTORS
$83.3M
$103.5M (79%)
MATERIALS/PURCHASES SPEND BY REGION $13.7m HUNTER & CENTRAL COAST $3.4m NEW SOUTH WALES $2.5m AUSTRALIA $1.5m OVERSEAS
CONTRACTORS/CONSULTANTS SPEND BY REGION $83.3m HUNTER & CENTRAL COAST $2.7m NEW SOUTH WALES $4.2m AUSTRALIA
Spending includes professional services, materials and services to site. This Summary excludes Electricity, T4 and Kooragang Expansion Project expenditure.
12
ENVIRONMENT PERFORM OUR ACTIVITIES IN A MANNER WHICH PREVENTS POLLUTION, PROMOTES SUSTAINABILITY AND MINIMISES IMPACTS ON THE ENVIRONMENT AND LOCAL COMMUNITY Operating in the Port of Newcastle, Port Waratah has the potential to impact both natural and urban environments. Our environmental program encompasses air quality, noise, water, waste and ecology.
13
WATER One of the standout challenges for Port Waratah in 2013 involved water management. Our goal is to use the least amount of potable water possible for operational uses, while having sufficient water storage and infrastructure to meet our licensing conditions, particularly during major rain events. We use water throughout the business for human consumption and hygiene, supplying vessels with drinking water, wash down of machinery and infrastructure and through our dust suppression system. In 2013 Port Waratah used approximately 6,574,108kL of water, with 85 per cent of this comprising of recycled water harvested from our sites. During 2013, Port Waratah spent $2.2 million on improvement projects to upgrade our water management facilities; in part these projects are being undertaken to improve and upgrade our operational water storage capacity and in part they are in response to issues identified following two overflows of our drainage system at the Carrington Terminal wharf. Port Waratah apologises unreservedly for these incidents and has accepted two separate prosecutions from the Newcastle Local Court as a result (one handed down in August 2013, and the other in April 2014).
To meet the water needs of all users on site, we have a complex system of water channels, pipes, tanks and ponds, which collect, move and store all water at our Terminals. Managing this system is a careful balance between having enough water available to use for operational purposes, such as dust suppression and hosing down as well as having enough storage capacity to capture extreme rain or storm events. If we don’t have enough recycled water available on our site, then we must purchase town water.
85
%
PROCESS/ RECYCLED
5,620,565 KILOLITRES
TOTAL WATER CONSUMPTION
6,574,108
15%
POTABLE
953,543 KILOLITRES
KILOLITRES
14
WORK IN 2013 LAID THE FOUNDATION
FOR FURTHER WATER
MANAGEMENT PROJECTS FOR
2014 – 2017 WITH AN ESTIMATED SPEND OF APPROXIMATELY
14 MILLION
$
15
AIR QUALITY
TOTAL SUSPENDED PARTICULATES (TSP)
= 90
35
61 58
36 37
KOORAGANG TERMINAL
32 35 57
28
77 43
AVERAGE
STOCKTON
MAYFIELD EAST
50 53 FERN BAY
8
DEC
There are significant cost and environmental benefits for Port Waratah to successfully pioneer new ways to reduce our energy consumption. Between 2003 and 2013 we have made a 10.7% improvement to electricity efficiency across the business. This is an equivalent saving of approximately 3,400 average Newcastle households, and 15,853 tonnes of carbon dioxide.
80
60
As part of our continuous improvement program, Port Waratah upgraded water pumps and associated infrastructure at Kooragang Terminal to increase the performance and capacity of the stockpile spray system. A number of in-line water sprays were installed inside conveyors to ensure coal has adequate moisture levels to minimise dust emissions during the ‘stacking’ process.
NOV
OUR EQUIPMENT AND MACHINERY IS RUN BY ELECTRICITY.
69
54
The impact we have on the levels of dust and noise in local suburbs is something we proactively manage. While there was debate in the community about dust (particularly coal dust) during the year, the air quality monitoring undertaken by Port Waratah under our environmental protection licences showed that air quality in the community remained within relevant air quality criteria.
OCT
CARRINGTON TERMINAL
ELECTRICITY
41
SEP
2.83%
76 72
31
AUG
13.77%
54 59
22
33
JUL
KILOWATT HOURS
46
26
JUN
31
PWCS
152,101,601
MAY
34
48
10.7% 10 YEARS
APR
39
49
REDUCTION OVER
MAR
(ANNUAL AVERAGE)
37
59 56
FEB
AIR QUALITY
JAN
70
89
NSW ASSESSMENT CRITERIA
48
16
PORT WARATAH UNDERTOOK A SURVEY
OF LOCAL RESIDENTS TO DEVELOP A COMMUNITY DUST PROFILE IN ORDER TO BETTER UNDERSTAND AND ADDRESS CONCERNS ABOUT DUST.
17
NOISE
2013
AND VIBRATION
IN PORT WARATAH TRIALLED VARIOUS REAL-TIME NOISE MONITORS
IMPROVE
OVER THE LAST
MONTHS
18
OUR OPERATIONS
WE HAVE BEEN TESTING LOW NOISE CONVEYOR ROLLERS
AT OUR
IN AN EFFORT TO MINIMISE NOISE
KOORAGANG
TERMINAL
ON COMPLETION OF
THE KOORAGANG
SET OUT IN THE
KOORAGANG COAL TERMINAL MODIFIED PROJECT
APPROVAL.
OPERATIONAL NOISE RELATED CONDITIONS
AUDIT CONF Y A
ED IRM
D
EXPANSION PROJECT
A 90
For more information about our environmental monitoring data, please visit pwcs.com.au
NOISE
TO
In 2013, Port Waratah trialled various real-time noise monitors to improve the quality of the information we use to manage our operations. Over the last 18 months we have been trialling low noise idlers (or conveyor rollers) at the Kooragang Terminal in an effort to minimise noise. Following the completion of the Kooragang Expansion Project, a 90 day noise audit confirmed compliance with all operational noise related conditions set out in the Kooragang Coal Terminal Modified Project Approval.
COMPLIANCE
WITH ALL 18
ECOLOGY Following the purchase of the Terminal 4 ecological offset lands at Ellalong and Tomago in 2012, Port Waratah undertook fencing, weed, pest and fire management activities during the year, to ensure these sites were appropriately and responsibly managed.
RECYCLING In July and August 2013 several waste improvement initiatives were implemented across Port Waratah. The three key areas were: • Replacing bins in kitchens and meal rooms with better designed bins that are colour coded, signposted, and sized for each area and the level of use. • A ‘no bins at office desks’ trial in the Kooragang Administration building. This was highly successful and is planned to be rolled out across all offices at Port Waratah in 2014. • Following an employee raised initiative, we have installed drycell battery recycling bins. In the first two months of the changes, municipal recycling rates doubled at Carrington and tripled at Kooragang.
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20
Produced on 100% recycled paper
24-hr Community Enquiries Line (02) 4907 2280 contact_us@pwcs.com.au PO BOX 57 Carrington NSW 2294 pwcs.com.au
T E P W