Agrimin and Newhaul Pty Ltd have formed a 50:50 incorporated joint venture named Newhaul Bulk Pty Ltd to provide road haulage and maintenance services for the Mackay potash project in Western Australia.
Craig Mitchell, the Founder and Former Owner of Mitchell Corp, one of the largest suppliers of trucking and bulk logistics services to Western Australia’s mining industry prior to being acquired by Toll Group in 2011, has been appointed CEO of the new joint venture.
The JV will provide Agrimin with benefits, including:
- The potential for cost savings over the project’s 20-year life through the elimination of management role duplication, sharing the benefits of innovation and maximising locally sourced labour;
- De-risking product haulage by using a proven Western Australia bulk logistics operator, while retaining control of the logistics chain;
- Greater transparency relating to a future haulage contract; and
- Development of driver training programs in order to maximise the opportunity to use local and Indigenous truck drivers.
The establishment of Newhaul Bulk, in partnership with an experienced operator, represents a significant milestone in the risk management and reduction of costs in relation to Agrimin’s future product haulage, Agrimin said.
The contract terms relating to the provision of haulage services for the initial 20-year project life are to be agreed in due course and, pursuant to a future haulage contract, to be executed between Agrimin and Newhaul Bulk.
Newhaul Bulk’s haulage operation is planned to include a fleet of around 24 road trains to transport 426,000 t/y of potash from Lake Mackay to Wyndham Port, where Agrimin’s proposed shiploading facility will be located.
“Newhaul Bulk has been established with the clear objective of maximising the employment of local and Indigenous people involved with the haulage of Agrimin’s potash production,” the company said. “A plan to achieve this includes the development of driver training centres and job readiness programs in regional communities, including Kununurra and Halls Creek.”