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Competition the grains industry is rapidly expanding

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COMPETITIONThe grains industry is rapidly expanding on a global scale, and competitors and serious businesschallenges can emerge quickly.Aggressive marketing by the existing or emerging competitors (includingthe proponents of other port projects on the Eyre Peninsula, and the incumbent operator) could reduce theprofitability of Peninsula Ports, and in-turn the Company’s profitability, slow the growth of the Companyand potentially harm the Company in the marketplace.31
7. KEY RISKS(cont)KEY PERSONNELThe key personnel employed or engaged by FEL and by PPPL in relation to the project have a highdegree of expertise and the Company and PPPL are reliant upon their continued service to maintain highperformance in system administration, project development and management.The loss of key executives,staff or consultants or the inability to recruit staff and retain high calibre staff or consultants to manage theproject could adversely affect the Company and/or the Project.RISK MANAGEMENTThe directors of the Company have attempted to address all the associated risks as best as possible.However, there are other factors which are not specific to the Company which may impact on theCompany, including:• economic policies;• interest rate changes;• taxation policies;• inflation rate changes;• business confidence; and• the state of the Australian economy and global economies.CONSTRUCTION AND ENVIRONMENTAL PLANNING RISKThe key construction, environmental and planning risks are as follows:• The construction costs are development estimates, are constantly being updated based on non-bindingquotes and quantity surveyor estimates and are subject to latent risks. They include contingencyallowances for risk as the final jetty and wharf designs are subject to completion of below-seabedgeotechnical testing.• The coastal land is subject to Native Title and will require an “Indigenous Land Use Agreement” or“ILUA” with the Barngarla people. The details of this agreement have been negotiated and are awaitingendorsement by a meeting of the Barngarla Determination Aboriginal Corporation (BDAC) due inOctober.• The full approval process may take longer than expected resulting in a delayed start to construction.Approvals are subject to usual political risks (including policy changes). Approvals include but arenot limited to: lodging a Public Environmental Report (PER), land use, geology and soils, surfacewater, groundwater, air quality, noise assessment, waste and materials, ecology, hydraulic modelling,Environment Protection and Biodiversity Conservation assessment, indigenous land use, visual amenityassessment, and socio-economic impacts.• The jetty will be constructed offsite in China and shipped to site. To ensure the jetty meets AustralianStandards a suitably qualified representative of the Project Manager will supervise and approve theindividual stages of fabrication on site in China. The components may be damaged during transport.

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Term
Fall
Professor
N/A
Tags
South Australia, Eyre Peninsula

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