Thevenard Marine Offloading Facility
The District Council of Ceduna has developed the concept for, and is planning to construct a purpose built facility adjacent to the Thevenard Slipway for the loading & unloading of commercial fishing vessels fishing within local waters & the Great Australian Bight. The construction comprises:
- Dredging & dredge de-watering of seabed for depth access to the Facility
- Construction of breakwater for harbour protection from prevailing winds
- Construction of wharf-side loading/unloading area capable of servicing four (4) 30 metres vessels at any time
- Construction of marina berths with floating pontoon access.
The estimated construction costs are $9.66 million which is proposed to be funded by grants provided from the Commonwealth Government’s National Stronger Regions Fund (“NSRF”), the South Australian State Government and a contribution of $3.3 million by Council via borrowing funds from the Local Government Finance Authority (“LGFA”).
Post construction, the Facility will again enable Great Australian Bight fishing trawlers access to Thevenard to load and unload marine products and supplies, as access to Thevenard Wharf is now infrequent due to the increased volume in bulk export vessels loading commodities from Thevenard. It is estimated that the return of the trawler fleet and additional vessels from other fishing industries could contribute an additional $10.9 million annually into the regional economy.
Council’s financial analysis is consistent with accepted standards and can be relied on for the purposes of determining at least short and medium-run costs associated with undertaking the project. It is possible that long-run costs may be differ from Council’s projected analysis. Should Council’s future costs be higher and revenue lower than forecast, the impact would simply be that Council may not have accumulated sufficient cash from generating enough revenue to fully offset depreciation) to undertake future major asset renewal, without borrowing additional funds either from general revenue or loan funds.
The project is forecasted to initially result in annual deficits for the first 11 years before returning surpluses each year thereafter over the 30 year period of financial analysis. This means that Council’s general long run financial performance will not be negatively impacted by undertaking this project; however Council will require the operation of the Facility to be partially funded by Council General Revenue until external loan funds are extinguished.
Council has identified the potential financial risk exposures associated with the Facility. Council’s primary risks associated with the Facility surround initial funding of the project and ensuring future revenues at least meet all future operating and capital costs of the project. The likely consequences of these risks if they materialised could in all reasonable probability be managed by Council without impact (short or long-term) on the existing service levels provided to its community.
Council could proceed with this project as the financial risks associated with the project are manageable in the context of Council’s projected performance, having regards to the available tools to mitigate risk. Meeting project milestones (financial and other) can be managed through governance arrangements set up to monitor progress and performance.