Iron Ore: Midwest Iron Ore Supply Chain

The Geraldton Port Authority (GPA), Westnet Rail (WNR) and Australian Railroad Group (ARG) have used simulation modelling to explore the impact on total system capacity of introducing additional (iron ore) users into the supply chain (both on the railway and at the port) and to explore various infrastructure upgrade options that could be implemented to offset this impact. Simulation was used to help decide on the minimum infrastructure requirements to satisfy the demands of all shareholders, including two rail operators, the port operator and a number of potential users in the Midwest region.

The simulation model considers all of the main operations in the iron ore supply chain including train loading, train movements, dumping to stacking, storage, reclaiming to ship loading, shipping movements and tidal constraints.

Outcomes of the model enabled the stakeholders to gain a better understanding of:

• The impact of port storage constraints on system throughput
• Benefits of alternative rail upgrade scenarios and operating strategies
• The implications of different port infrastructure options

The model continues to be a valuable ongoing tool that is being used by both the original study team and third parties to assist in decision making and risk management. For example, Karara Mining Limited (KML) was able to use the simulation modelling outcomes to help optimise their storage requirements at the port, resulting in a revised shed design that yielded multimillion dollar savings.