Port Hedland Port Authority Annual Report 2011 - Parliament of ...

Operating Lease Commitments
Within One Year 273 226
Later Than One Year but Not Later Than 5 Years 300 428
Later Than 5 Years - -
Total 573 654
Construction was completed during the financial year on a new multi-user public berth at Utah Point, Port
Hedland. It has been funded by capital contributions, prepaid charges and borrowings.
The prepaid charges will be applied as future prepaid revenue as the new port facilities are utilized. The amount
advanced as at 30 June 2010 was $46.5 million, included as part of prepaid revenue in Note 17 and the capital
contribution of $70 million was received in 2008/09. The remaining funding has been sourced from port
borrowings, which will be fully repaid with port user fees within ten years.
Lease Rentals
Properties are leased to tenants under operating leases with rental payments in accordance with the terms of
the lease agreement. Minimum lease payments receivable on property leases are as follows:
Minimum lease payments under non-cancellable operating leases not
recognised in the financial statements are as follows: 2011 2010
$'000
$'000
Within One Year 7,280 4,262
Later Than One Year but not Later than Five Years 24,878 16,089
Later Than Five Years 85,008 41,079
TOTAL 117,166 61,430
Note 25. Related Parties
Directors
Mr. M Currie and his alternate Mr. R Richardson and Mr. C Campbell are employees of BHP Billiton Iron Ore Pty
Ltd. Mr J Tapp is an employee of Fortescue Metals Group Pty Ltd. Both BHPB and FMG use port facilities for the
export of iron ore commodities and the terms of trade offered to these customers are equivalent to those
offered to all other port users.
BHPB and FMG are leaseholders of the Port Hedland Port Authority, and the lease agreements are based on
normal commercial terms and conditions.
Port Hedland Port Authority lease a house from Mr. André Bush to assist with staff housing needs. This house is
leased at the lower end of market rates.
Mr. Ian Williams has declared a non-pecuniary interest in the Pinc Group. Pinc Group provide management
posts as part of a PHPA integrated construction management team for the construction of the Utah Berth.
Remuneration Benefits
Information on remuneration of Directors is disclosed in the Directors’ Report.
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