Mackay upgrade expanding for the future

The analogy is apt, say Caltex Marketing and Supply Chain people, because the tank is as much a symbol of the future as a tribute to the success of Caltex’s transport fuel business in central Queensland in the past.

It not only testifies to how well the business has shrugged off recessionary times, it shows how confident Caltex is about the future of the market centred round the Bowen Basin, according to Mick Jarvie, National Sales Manager Mining.

“Despite a downturn in the resources sector, which seems likely to be short-lived, our diesel volumes in the region over the past 12 to 18 months have actually grown significantly,” says Mick. “The latest infrastructure developments at Mackay are setting us up well for future growth.”

The latest, $15-million upgrade at Mackay comprises four elements: the new diesel tank, an additional truck-loading bay, new ethanol storage and blending facilities as well as tank product changes.

The new tank received its first product delivery in December, allowing fuel to be reallocated to tanks that were previously reserved for diesel, explains Mackay Upgrade Project Manager David Cooper.

The reallocation allows for more unleaded petrol storage and the introduction of premium unleaded storage for the first time. The existing diesel tank will store unleaded, and the current unleaded tank will switch to premium unleaded.

The ethanol storage and blending facility means Caltex is well placed to meet Queensland’s upcoming five percent renewable fuel mandate scheduled for 2010.

The benefits

What are the advantages of this reshuffling? A major advantage will be evident “upstream,” says David, in cost savings from shipping. We’ll need fewer ships to bring in product to Mackay, whether it’s imported refined fuel from overseas or product from Lytton refinery.

In addition there’s the potential for exciting Marketing growth directly linked to the mining business. Caltex’s customers include mining giants Rio Tinto, Felix Resources, Wesfarmers, Jellinbah Resources, Ensham Resources, Leighton Construction, Thiess and Golding Contractors, as well as the many other contractors that serve the coal industry in this region.

“We’d been sourcing additional product from further afield to support expanding customer requirements; now we have substantial capacity to take advantage of sales opportunities in mining and the civil construction development supporting it,” says Mick Jarvie.

The end result will be “a first-rate, fully capable terminal that allows highly efficient import of product, especially diesel, into a key growth area and the coal market where we’ve been winning new business,” says Ken James, General Manager Supply and Distribution.

It will also serve as a critical link in the supply chain from the new Lytton diesel hydrotreating unit that came on line earlier in 2009, says Ken.

Impressive specs

The specifications of the new, $8-million diesel tank are impressive. It’s 120 metres in circumference, 39 metres in diameter and 22 metres high. A total of 785 tonnes of steel went into its construction and 15,000 cubic metres of earth were excavated before the foundations – a two-metre-deep concrete ring beam – could be laid.

Each stage of the project which began in July 2008 has met tight timelines while workers have kept a close eye on safety and incident-free construction work.

“Commissioning on time is a huge credit to everyone involved,” says David Cooper. “Caltex’s turnaround on decisions has been fast and sharp. In fact, without the engineering, legal, procurement, environmental and other support we’ve received, we’d never have been able to meet the deadlines.”

Though there have been a couple of disappointing minor incidents that required medical attention, such as a cut to the back of a hand, there have been no lost-time injuries to date.

More infrastructure work at Mackay is likely in future. “When we built the tank we left room for another, which is a definite option for us,” says Ken James.

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