Westug is to carry on providing towage services to Rio Tinto’s iron ore ports of Cape Lambert and Dampier in Western Australia’s Pilbara region after the two signed a new long-term deal.

The new contract, valued at more than $156 million over five years, covers the four terminals at Rio’s two ports in the Pilbara.

Westug will be responsible for the operations and maintenance of the miner’s tug fleet of 11 vessels as well as four smaller craft under the contract. It will help sustain more than 130 jobs.

Rio’s ports shipped a combined 330.1 million tonnes of iron ore to customers last year, making use of the company’s vast operations that include 1,700km of rail, 16 mines and the four port terminals.

Westug, which has provided towage services at both Cape Lambert and Dampier for many years, has also agreed to an enhanced local procurement strategy under the new contract. “This will focus on commitments to boost the relativity of Pilbara specific spending and to maximise its footprint in the local community,” Rio said.

Rio Tinto Iron Ore Managing Director Rail, Port & Core Services Ivan Vella said: “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.”