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2010/11 Annual Report

DARWIN PORT CORPORATION 2010/11 Annual Report2

Front Cover - Marine Services Officer, Shaun Uden, conducting pilot transfer operations in the Port of Darwin

DARWIN PORT CORPORATION 2010/11 Annual Report 3

The Hon Gerry McCarthy MLAMinister for TransportParliament HouseState SquareDARWIN NT 0800

Dear Minister

I have pleasure in presenting to you the Darwin Port Corporation’s Annual Report for 2010/11.

The report details the activities and operations of the Corporation for the year ended 30 June 2011 in accordance with Section28 of the Public Sector Employment and Management Act.

In presenting this report I advise that, to the best of my knowledge and belief, the Corporation’s systems of internal controlprovide reasonable assurance that:

a) proper records of all transactions affecting the Corporation are kept and that employees under my control observe the provisions of the Financial Management Act, the Financial Management Regulations and Treasurer’s Directions;

b) procedures within the Corporation are such that they afford appropriate internal control and current description of such procedures is recorded in the accounting and property manual which has been prepared in accordance with therequirements of the Financial Management Act;

c) there is no indication of fraud, malpractice, major breach of legislation or delegation, major error in or omission fromthe accounts and records;

d) in accordance with the requirements of Section 15 of the Financial Management Act, the internal audit capacity available to the Corporation is adequate and the results of internal audits have been reported to me;

e) the financial statements included in the report have been prepared from proper accounts and records and are in accordance with Treasurer’s Directions where appropriate; and

f) all Employment Instructions issued by the Commissioner for Public Employment have been satisfied.

I advise that the Auditor-General has audited the Corporation’s financial statements for the year ending 30 June 2011 and hiscomments are contained in this report.

Yours sincerely

TERRY O’CONNOR Chief Executive Officer

30 September 2011

The Darwin Port Corporation Annual Reportprovides a comprehensive overview of thesuccesses and outcomes achieved during the2010/11 financial year. The report outlinesthe effectiveness of the Corporation againstits Business Planning Strategy 2010 – 2011and its identified Corporate Objectives:

• Grow Trade• Develop Workforce Capability• Achieve Financial Viability• Provide a Safe Working Environment• Be Environmentally Responsive• Be Innovative

Our report outlines the operational,environmental, financial and community-based performance outputs and articulatesthe Corporation’s dynamic growth strategyand planning for future challenges.

As the Northern Territory’s leading portauthority, the Darwin Port Corporation has prepared this document in accordancewith Section 28 of the Public SectorEmployment and Management Act.

It provides a comprehensive report for ourMinister to table to the Legislative Assemblyincluding a summary of activity based on theapproved budget.


Our Report

We are committed to transparent governanceand welcome your feedback on our report. A feedback form is located at the back of the report, or alternatively please submit your comments to [email protected]

In keeping with our Environmental Policy wehave printed a limited number of hard copies.

For information about doing business with the Darwin Port Corporation go towww.darwinport.nt.gov.au


The Darwin Port Corporation Annual Reportaims to inform our diverse stakeholders,Parliament, Territorians and the community of our strategic objectives, performance andfuture activities.

Our stakeholders include but are not limited to: • Importers and exporters • Port operators• Freight forwarders• Mining sector• Oil & gas companies• Shipping lines and agents’

operators• Pearling companies• Commercial fishing and seafood

operators• Recreational boat users• Recreational fishermen • Transport companies• AustralAsia rail operators and

users• Conservationists• Defence• Unions

In line with the Northern TerritoryGovernment’s Territory 2030 Strategic Plan, we expect a much broader group ofstakeholders will benefit from the contents of this report.

Our Audience

mailto:[email protected]

http://www.darwinport.nt.gov.au

Our Highlights


2 – Developing Workforce Capacity

Port People Plan implemented setting outcareer pathways and development of a workforce culture and values focusing on safetyand security.Key achievements:• Training and Development priorities

under Port People Plan met in areas of Employment diversity, Indigenous employment, Knowledge management and Workforce development

• Appointment of first dedicated Harbourmaster position

• Port Security Committee continued to develop heightened security awareness

• 66% of all DPC staff undertook 120 relevant training courses

• Reforms to managerial structure and implementation of Performance Management Program

• Indigenous trainee Luke Neave signed on as a Metal Fabrication Apprentice

• Harry Bliss GTNT 2010 Apprentice of the Year and NT Apprentice of the Yearfinalist.

1 – Growing Trade

Trade figures second highest to datefollowing record trade last year, in line withTerritory 2030 objective of doublinginternational shipping links. Key achievements:• Record manganese exports with 24

bulk vessels visits. Up 15% on previous year

• $4m spend on new and improved Port infrastructure

• Feasibility studies undertaken for all tides access and accommodation of larger vessels

• Cruise ship visits up with 53 recorded, ten more than forecast

• Port Users Survey revealed an overall 86% satisfaction with services provided

• Stakeholder Engagement Strategy developed as part of the Corporate Marketing Strategy.

3 – Achieving Financial Viability

Net Profit of $0.8m recorded exceedingbudget forecast and more than double theprofit made last year.Key achievements:• New Schedule of Port Charges with

3% CPI increase developed to apply from 1st July 2011

• Initiated online Purchase Ordering System that interfaces with Finance One General Ledger

• Business Lines restructured to enable better cost allocation and recovery and improved efficiency in front line business processes

• Changes implemented to the Agency Procurement Management Plan to incorporate the PMBOK methodology toensure robust project management.


5 – Being Environmentally Responsive

The Corporation recognises the importance ofthis natural asset and is committed to theeffective management of its environment inorder to ensure the sustainable future ofDarwin Harbour. Key achievements:• Environmental Management System

ISO 14001 developed and implemented• East Arm Environmental Management

Plan developed and implemented• Bulk User Group Environmental

Advisory Committee established• Bulk loading infrastructure modified

to reduce environmental impacts • Active participation in the Department

of NRETAS review of Waste Management and Pollution Control Act

• Full review of oil spill contingency and response achieved with ongoing training for DPC staff and stakeholders

• Exercise Black Pearl concluded oil spill response joint exercises with NRETA

• Independent consultants engaged for extensive Environmental Monitoring Program of Darwin Port facilities

• New tug service with 2 x 48 tonne ASD vessels with additional fire fighting and oil spill capabilities.

4 – Providing a Safe Working Environment

A safe and secure working environment underthe Work Safe.Live Safe. initiative continuesto be a high priority as part of DPC’s ongoingsafe workplace culture to also deliver highprofessional standards of service. Key achievements:• Full review of Port Security Plan• Development and implementation of

Port Emergency Response Plan including ongoing training

• CCTV digital monitoring system provides 100% access control

• Port Safety Days introduced for DPC staff and East Arm Stakeholders

• Implementation of Standard Operating Procedures across all areas

• Cyclone Management Plan activated forcyclone Carlos will inform ongoing improvements

• Risk management updated with additional safety and security initiative ‘If you see something, say something’.

6 – Being Innovative

Continuous improvement is a priority acrossall areas from corporate to operationalthrough rigorous reviews and introduction ofleading edge systems and technologies.Key achievements:• Review of the Darwin Port Corporation

Act underway and NT Marine Act Amendment Bill passed to address accelerated growth and future needs

• New VTS (Vessel Traffic Service) Centre at Fort Hill Wharf in preparation for future increased traffic

• Port stakeholders access 24/7 VTS shipping updates

• New equipment upgrades for VTS include radar, AIS, Ecdis and radios to improve efficiency and safety

• New AIS (Automatic Identification System) on five key buoys to assist traffic with remote monitoring from Harbour Control Centre

• Project Management Body of Knowledge ISO10006 systems adopted as a best practice

• Introduction of Electronic Document Records Management System

• Fatigue Management Program implemented for marine pilots.


Our Highlights

Our Vision, Our Mission, Our Values

Our Leaders

- Chief Executive Officer’s Overview- Harbourmaster’s Report- Chairman’s Perspective

Our Organisation

- The Darwin Port Corporation- Port Management Group- Organisational Structure- Our Stakeholders- Our People - Industrial Relations- Occupational Health & Safety- Personnel Reporting- Training & Development

Case Study: Training our future workforce- NTPS Employment Management Report- Community Engagement & Sponsorship

Case study: Sustainable partnerships

Our Environment

- Location and Surrounds Proximity Map

- Port Boundaries - Natural Environment- Our Community Neighbours- Port of Darwin- Assets and Access- Maritime Security

Case Study: Digital Surveillance- Environmental Management

Case Study: Environmental improvements

6

10

111314

15

16161819202020222627283132

33

3434353637383839404044


Our Corporate Governance

- Governance Overview- Governance Highlights- Legislation- Darwin Port Corporation Act Review- Policies and Standards- Risk Management- Advisory Board- Committees

Our Growth Strategy

- Outlook- Charter of Operations- Corporate Directions Strategy- Growing Trade - Developing Workforce Capability - Achieving Financial Viability- Providing a Safe Working Environment- Being Environmental Responsive- Being Innovative

Our Operational Performance

- Operational highlights- Trading Analysis

Total Cargo TradeExport CargoImport Cargo Shipping Review

- Achievements against Strategic Objectives- Business Output Groups

Landside OperationsMarine ServicesCommunity Service Obligations

- Procurement OverviewCase Study: Transparent Project Management

Our Financials

- Financial Overview- Five Year Comparison- Auditor General’s Report- Financial Statements and Notes

AbbreviationsFeedback Form

45

4647474749495052

55

565757585959606161

63

64646466687072767677787980

81

82838485

120122


Port of Darwin: Australia’s Northern Gateway of Choice

Our Vision

We are committed to high-quality outcomesand embracing continuous improvement, asreflected in:

• Ethical and Transparent ConductWe will conduct our business across allsectors and with all stakeholders to thehighest commercial standards of ethical behaviour and transparency.

• Respect for EmployeesWe will at all times engage with all our employees with a high degree of respect and will appreciate the efforts and needs of individuals to achieve a work/life balance.

• Responsible Safety, Security and Environmental PracticesThe safety of our employees and stakeholders is a major priority in everything we do. Rigorous security standards are applied at all of the Port’s locations along with a strong commitment to minimise any impacts from our activities.

• Relationships with StakeholdersWe will deliver world class service to all internal and external customers and stakeholders and communicate in aprofessional and commercial manner atall times to achieve effective outcomes.

• Motivating Work EnvironmentsWe will operate on the basis of valuing teamwork and mutual trust while maximising training opportunitiesfor professional and personal growth and development.

Our Values

To strategically develop the Port of Darwinand facilitate trade for the benefit of theNorthern Territory, our stakeholders andcustomers, by:• Growing trade• Developing workforce capability• Achieving financial viability• Providing a safe and secure port

environment• Being environmentally

responsible• Being innovative.

Our Mission


overall is less than forecast and much of this is due to the impact of global economicchallenges, political decisions and anextended wet season in the top end ofAustralia.

• Limited mining capacity of iron ore • Reduced copper exports whilst

railways lines are cut due to water• Limited cattle export whilst railway

lines are cut, reduced cattle weight for export

• Reduced offshore operational support activity due to fewer oil rigs returning to Darwin Port.

The Northern Territory’s strong tradepartnerships with China and to a lesser extentIndia, indicates that in the future all thosetrades will return to forecast numbers anddeliver a stable source of income and forecastfigures for growth.

The breakdown of the Port’s only containercrane was commercially damaging to the Corporation, our clients and the NTcommunity as the response time to repair the crane was too long. A Root CauseAnalysis established procedure andoperational training issues as well asequipment limitations. I can confidently saythese have now been fully addressed.

As a result, the improved crane equipment is now in place and new maintenanceprocedures have been implemented. It is also worth noting that the Corporation hasdemonstrated that it had contingency systemsin place to ensure the Port could continue tooperate in the event of a crane breakdown(this meant a slowing of loading andunloading but not a loss of business).

During this period, the Darwin PortCorporation embarked on an extensive public communication strategy, taking stepsof informing and engaging stakeholders to ensure trust and partnership through atransparent approach.

The future is even more exciting for DarwinPort Corporation. 2010/11 was a year ofconsiderable fluctuation on the stock marketfor the resource sector which required theCorporation to have a flexible business model to accommodate global pricing

This has been a significant year for theCorporation including the conclusion of RobertRitchie’s contract as Chief Executive Officerand my appointment by the Minister forTransport as Acting Chief Executive Officer.

The Corporation continues to focus on itsgrowth strategy in line with the Territory 2030objective to double international shippinglinks and to support other initiatives tocontribute to a prosperous Territory economy.

A priority of the Corporation’s continuousimprovement program is to provide a safeworking environment. This has seen theestablishment of regular meetings andexercises, the implementation of externalaudits for ongoing improvements and the development of a stronger workingpartnership with the Maritime Union. TheCorporation values its staff and stakeholdersand these initiatives reflect their status as our number one priority.

Of particular note is the recognition of ourstaff’s effort, hard work and commitmentduring cyclone Carlos. The intelligentimplementation of Cyclone Plans and theresponse and commitment by our people was outstanding and the Port stakeholderswere impressed. Foremost of our manyachievements during the year, profits are up.The manganese exports were above forecastas were the cruise passenger ship arrivals.

In 2011 the Mariana Shipping Company addeda second service to Darwin, doubling itsability to grow imports and exports to South East Asia. Such additions to theCorporation’s business portfolio strengthenDarwin’s position as a key Australian port to service South East Asia.

General cargo and containers are in line withforecasts and the Port is certainly confidentthat we will see growth in these areas.

The announcement of Darwin as a strategicAustralian Defence port within the NationalPorts Strategy, has and will, continue to have a significant impact on port infrastructure,security and traffic. We are working hard to provide the infrastructure and accessrequired without impacting on the commercialenterprises that share the space. Whilst profit is up, tonnages and export performance

CEO’s Overview

changes and diversify its target markets toensure a balanced portfolio of industry andexport markets.

The oil and gas support sector continued toprovide growth and demand for improved Port structure. For example the Shell PreludeOffshore facility will provide significantdemand for operational services for both vessel and cargo during the installationphase, with ongoing trade services over the prolonged period of 10 years.

It is too early to accurately predict the impactof the proposed ‘Marine Supply Base’ andwhat that will mean for the Darwin PortCorporation. The NT Government hascommitted to a marine supply base to servicethe oil and gas industry in the future and the Darwin Port Corporation is an activeparticipant in the 2011 tender panel whichwill consider the options.

As the Acting CEO I am focused on developinga culture of increased awareness and action. An increasingly important role of the PortManagement Group is to grow the focus and implement environmentally sustainablepractices within the organisation.

Considerable time has been spent with thePort community to plan and make futureimprovements. These include a program ofreduced power and water consumption acrossthe assets, redirecting storm water runoff,retention ponds in the Port, improved clinkerhandling, undertaking long-term drainagedesign work and implementing an overarchingenvironmental management system for the Port. The Darwin Port Corporation isgenuinely working with local authorities,stakeholders and other interested groups tomonitor water pollution in Darwin Harbour.

The Corporation is commercially focused andis intent on remaining a profitable Port inthese challenging economic times.

Terry O'Connor Chief Executive Officer30 September 2011


“One of my primary roles is to regulate the harbour and its users by implementingprocesses, procedures and investments aimed atcontinually improving activity,safety and the environment for the Port and its users.”


Ensuring that the Port is prepared toeffectively handle environment incidents is akey component of the Harbourmaster’s role.

Exercise Black Pearl which was held inOctober 2010 formed the conclusion of aseries of training and field exercises managedby the Corporation. The exercise providedvaluable information to assist with thedevelopment of a revised response plan for the future.

Other programs undertaken were theHarbourmaster’s follow up reviews of a number of small oil spills from thecommercial vessels using Frances BayMooring Basin. These prompted areinvigorated education programme andpolicing irresponsible work practices, whichresulted in operational changes and theremoval of oil from a vessel suspected ofcausing pollution.

Looking ahead there will be ambitiouschanges required to ensure the long-termbenefits for the Northern Territory. The NTGovernment is embracing the Darwin PortCorporation’s recommendations and aproactive partnership has led to a dynamicand innovative period in the Corporation’shistory.

The Amendment Bill passed by Parliament in April 2011 means that the Minister for Transport will in future appoint theHarbourmaster and thereby establish theincumbent as the Pilotage Authority and theDarwin Port Corporation as the Pilot ServiceProvider. This is crucial to the strengtheningof the regulatory authority and theprofessionalism and integrity of the DarwinPort Corporation and is necessary for thecontinual improvement of navigation andsafety practices as the Corporation movesinto the next growth phase.

The considerable recreational boating activityin Darwin Port and its interaction withshipping activities is a key priority for the

I was appointed by the Darwin PortCorporation to the newly structured positionof Harbourmaster in October 2010.

The creation of the first Harbourmasterposition was one of the key outcomes of theAugust 2008 Review of Harbour Managementand Pilotage Operations, which identified theneed to separate the Harbourmaster role fromthe day to day operations of the Port. Thisallows the Harbourmaster to maintain anindependent overview of navigation andsafely on the harbour.

This also realised the Darwin PortCorporation’s strategic objective to regulatethe ‘water-side’ of Darwin Port activities inorder to improve efficiency, safety and theongoing sustainability of services to meet the demands of future growth.

One of my primary roles is to regulate theharbour and its users by implementingprocesses, procedures and investments aimedat continually improving activity, safety andthe environment for the Port and its users.

The implementation of the Harbourmaster rolealso provided a timely opportunity to reviewthe Darwin Port Corporation Act, Marine Actand associated regulations and by-laws. All of these are crucial to ensure that future Portactivity and expansion align with the Territory2030 Strategic Plan and the East Arm WharfFacilities Masterplan 2030. Work on thisproject has progressed well and it isanticipated that recommendations foramendment of the legislation will be made to the NT Government to reflect global bestpractice and strengthen the competitivepositioning of Darwin Port for the future.

In February 2011 Cyclone Carlos warrantedthe activation of the Cyclone ManagementPlan including specific directions by theHarbourmaster to close the Port of Darwin.This was done in a planned and efficientmanner however this further highlighted theneed for the current legislation to be updated.

Harbourmaster’s Report

Harbourmaster. Safe enjoyment of thesewaters is an important part of the Territorylifestyle and ensuring access and safety are paramount to the Corporation and itsstakeholders.

The Corporation is in the process ofbenchmarking itself internationally,investigating new systems and practices for harbour management and exploring the industry’s most advanced methods of operation.

Holding the Harbourmaster role during a time of such growth is both exciting andchallenging. As the Corporation continues togrow, change and respond to client demandsit is essential that the appropriate policies and strategies are in place to assist theCorporation achieve its business andenvironmental objectives.

Captain Ian Niblock Harbourmaster


Chairman’s Perspective

My Advisory Board colleagues and I continueto work closely and provide advice to theCorporation’s Port Management Group tostrategically position the Port of Darwin asAustralia’s Northern Gateway of Choice.The Corporation is a major contributor togrowing the Territory economy and theAdvisory Board is focused on realising thecommitment to doubling the number ofinternational shipping links in line with theobjectives of the Territory 2030 strategic plan.

The Advisory Board welcomes Terry O’Connorinto the role of Acting Chief Executive Officerin mid-April and we look forward to workingwith him and the Port Management Group todevelop the Port of Darwin into a world classfacility.

On behalf of the Advisory Board members mysincere thanks and appreciation is extendedto Robert Ritchie for his four years at the helmof the Corporation. Robert’s achievementsduring his tenure as Chief Executive Officerinclude a significant organisational reviewand restructure. He also oversaw a doublingof revenue, largely through increased trade.In March 2011 Peter Youens resigned fromthe Board in his second term due to personalcircumstances. Peter’s active contributions to the strategic issues and his engineering,commercial and governance expertise will be sorely missed.

The Advisory Board was pleased to see thatthe financial year saw the realisation of key elements of the Corporation’s strategicplanning, this included an increase in profitdespite a reduction in trade results and theimplementation of substantive reforms to themanagerial structure, particularly the creationof an independent Harbourmaster position.

The Advisory Board also welcomed the DPC stakeholder survey conducted by anindependent consultant in late 2010. Thisrevealed an 86% overall satisfaction rate with the services provided by the Corporation,which reflects an objective endorsement bykey stakeholders of the Corporation’sperformance.

In considering these results, the Boardreflected on the nature of the Corporation’score business, which includes:• Managing a rapidly developing harbour

(vessel traffic, ship size, infrastructure issues, etc)

• Operating both commercial wharves and CSO assets, with their vastly different stakeholder groups and expectations

• Having general cargo, bulk liquid and bulk mineral operations on the same quay line, which means a complex cargo operation and diverse stakeholder challenges

• A customer focused organisation operating common user facilities requiring strong safety, security, industrial relations and environmental overlays.

Significant and strategic work undertaken bythe Advisory Board during the year included:• A comprehensive study tour to Marine

Supply Bases in the United Kingdom, Scandinavia, United States, Malaysia and Singapore to establish the best practice model for a Darwin Marine Supply Base (MSB)

• Advice on strategic transport and logistics issues, bulk mineral export prospects, governance matters, risk management, regulatory policy and legislation review.

Chris BiggChairman

“The Advisory Board welcomesTerry O’Connor into the role ofActing Chief Executive Officer in mid-April and we look forward to working with him and the PortManagement Group to developthe Port of Darwin into a worldclass facility.”


Our Organisation


Our Organisation

Port Management GroupTerry O’ConnorActing Chief Executive Officer

Terry joined the Darwin Port Corporation inJune 2008 as the General Manager LandsideOperations. In March 2011, the former CEO Robert Ritchie departed and Terry waspromoted to Acting Chief Executive Officer in April 2011.

At the time of publishing this report Terry was formally appointed as the Chief Executive Officer.

Prior to joining DPC, Terry held roles withDefence Maritime Services as Logistics andFacilities Manager and with the AustralianGovernment’s Department of Transport andRegional Services as Maritime Specialist with the Office of Transport Security.

Terry has a strong understanding of theDarwin Port operating environment, its globalopportunities and the challenges ahead. Thisis particularly important as he leads the PortManagement Group to expand and developfacilities to meet future demands from themining sector and maximise the significantadvantages of Darwin’s close proximity toSouth East Asia.

Terry is committed to the Corporation being a profitable, safe and environmentally friendlyoperation within the Port of Darwin with the confidence of the NT Government,commercial stakeholders and the generalpublic.

Anne Coulter Chief Financial Officer

Anne joined the Corporation in March 2008.She is a Chartered Accountant and hasextensive experience in financialmanagement, taxation compliance andreporting across both private and publicsectors.

She ensures corporate accountability inaccordance with the Northern TerritoryGovernment’s financial managementframework and statutory compliance onfinancial and taxation matters. Anne managesthe provision of financial and commercialservices including operational keyperformance indicators, budget development,

The Darwin Port Corporation

The Darwin Port Corporation is established by the Darwin Port Corporation Act. AGovernment Business Division of the NorthernTerritory, the Corporation is responsible forthe management and operation of the Port of Darwin in accordance with powers andfunctions defined in the Act and By-Laws.

The Darwin Port Corporation facilities servethe following shipping and cargo markets: • Cruise and naval vessels• Livestock exports • Dry bulk ore imports and exports • Off shore oil and gas rig services• Petroleum/avgas & other bulk liquids • Container and general cargo

The Darwin Port Corporation operatesfacilities for non-trading vessels. This marketsegment includes customs, conservation,research, fishing and pearling vessels.

The Corporation acknowledges its importantrole in growing the Territory through theTerritory 2030 strategic plan across: • Education – our learning and

development program• Society – workplace safety• Economic Sustainability – contributing

to the Territory’s economic growth across a range of targets

• Environment – energy and water efficiency.

Tanya LingOutsourced Legal Counsel

Tanya is a senior lawyer with the Solicitor forthe Northern Territory, Department of Justice,and joined the Corporation in November 2010as its first dedicated agency-based lawyer.

Tanya’s principal role is to review DPC’scommercial arrangements with its clients andother Port users. The focus for the comingyear will be the continued structuring of thecommercial and statutory compliance aspectsof DPC’s business arrangements, with aparticular emphasis on establishing andmaintaining health, safety and environmentalcompliance which are rapidly evolving areasof corporate law. Tanya provides strategic andlegal advice, consistent with governmentpolicy, to the CEO and works closely with the Port Management Group.

financial reporting to management andexternal bodies, business services andinsurance.

Guided by Anne’s expertise, her teamcontinues to play a key role in refiningbusiness models for the Corporation’s newpartnerships and upcoming major projects toensure that Darwin Port meets its forecastsfor profit growth.

Melissa ReiterGeneral Manager Corporate Services

Melissa has many years’ experience with theNorthern Territory Government in paralegal,policy and legislation, communication andcorporate management and as a companydirector.

Melissa provides strategic advice andcorporate services to the Chief ExecutiveOfficer, Port Management Group and AdvisoryBoard to meet the business objectives of the Corporation.

As General Manager Corporate Services,Melissa leads a highly qualified teamresponsible for; corporate governance,ministerial liaison, human resourcemanagement, industrial relations, records and information management, legal services,information communications technology andstrategy, occupational health and safety andenvironmental management.

The focus for this year will be onstrengthening the Corporation’s ‘Work Safe,Live Safe’ program, implementing theEnvironmental Management Plan, stafftraining and retention, leadership performanceand supporting upcoming major projectsthrough the coordination of key strategicplanning.

Matthew Phillips Acting General Manager Landside Operations

Matthew joined Darwin Port Corporation inNovember 2009 as Port Development Analystafter working in various positions in marineand transport agencies across Government.

He was appointed as Acting General Manager Landside Operations in May 2011.He is responsible for the management ofinfrastructure and staff associated with the


delivery of cargo operations including all bulk handling facilities, port security, fishingindustry requirements and the commercial use of all Darwin Port facilities.

Matthew also leads a team focused ondelivering port services and facilities andensuring a customer-focused approach todoing business. The priority is to ensure the Port meets the current and futurerequirements of its stakeholders in anefficient and commercially viable manner.Priorities for the team are to betterunderstand the industries their clientscompete in and maximise innovation andwork place expertise to deliver a qualityservice and infrastructure.

Alastair Black Engineering Manager

Alastair has been with the Corporation since2000 and brings to the role over 30 years ofglobal experience in construction and portengineering.

Alastair is responsible for the implementationof repairs, maintenance and capital worksprograms, environmental commitments andmanagement of the Engineering Group.Under his leadership a number of key projects

will come to fruition including considerablereclamation work resulting in new assets andnew revenue streams for the Darwin PortCorporation. However the greatest prioritywill be the ongoing implementation of theEngineering group’s staged capital works,processes and procedures to ensure a vastlyimproved environmental record for the future.

Captain John Ellyett General Manager Marine Services

John joined the Corporation in September2009 to head up the newly created MarineServices Group. He brings extensiveexperience in the provision of marine servicesto the Port and was previously aHarbourmaster and Marine Pilot in otherAustralian jurisdictions.

John has a wide range of marine andmanagement experience including safetyconsultancy in PNG, qualifications in marinepilot transfer methodology studies, VesselTraffic Service (VTS) and emergency responsemanagement and implementation.

Through strategic planning and theintroduction of the staged VTS system underhis leadership, the Darwin Port Corporationhas seen a major shift in the way shipping

traffic is managed on Darwin Harbour, themost significant being the improved safetyand efficiencies in the management of Portactivities and resources.

John and his team are implementingprocesses and procedures with the requiredexpertise in preparation for an expanding andmuch busier Port.

Peter Raines General Manager City Wharves

Peter joined the team in September 2010. He has extensive contract managementexperience and a varied private sectorcommercial background including ownershipof a bank franchise, senior roles in propertymanagement services and director roleswithin major body corporate groups.

As General Manager City Wharves, Peter is responsible for marina and retailoperations, cruise facilitation and the CityWharf facilities. His team is acutely aware of the significant community obligation andcommercial opportunities that this prime real estate and infrastructure provide tostakeholders. Current priorities include themajor restoration projects and improved all-weather facilities of Stokes Hill and Fort Hill


wharves and the commercial fishing precinct.Peter’s team will focus on building businessinitiatives and strategies to optimise return on investment for the Corporation and itsstakeholders.

Captain Ian Niblock Harbourmaster

The employment of internationallyexperienced Captain Ian Niblock in October2010 has provided the Port with its firstdedicated Harbourmaster. This realised theDarwin Port Corporation’s strategic objectiveto regulate the ‘water side’ of Darwin Portactivities in order to improve efficiency andsafety to meet the demands of ongoinggrowth.

A master mariner, Ian has completed a formalapprenticeship as a harbour pilot in the UnitedKingdom. This was followed by considerableexperience as a ship’s officer on various cargoships including oil tankers. Ian was a marinepilot at the Port of Tauranga in New Zealandfor eight years during which time he obtaineda Graduate Diploma in Business (Port andTerminal Management) through the AustralianMaritime College.

Ian’s role is primarily to regulate the harbourand its users by implementing processes,procedures and investments aimed atcontinually improving Port activities, safetyand the environment. He is a key part of thesteering committee to review the Darwin PortCorporation Act, Marine Act and associatedregulations and by laws which are crucial toensuring future Port efficiency and expansionin line with the Territory 2030 Strategic Plan.

Mr Peter Hopton Commercial Manager

Peter was appointed in November 2010 with responsibility for developing trade andgeneral business for the Corporation. Peterconcluded his contract in July 2011.

Organisational Structure

Chief Executive Officer Advisory Board

Minister

Business Services Chief Financial Officer

- Accounts Payable- Accounts Receivable- Financial Systems- Insurance- Taxation

Corporate Services GM Corporate Services

- Adminstration- Occupational Health & Safety- Procurement- Advisory Board Secretariat- Corporate Governance

- Ministerial Liaison- Records Management- Human Resources- Environmental Management- Corporate Communications- IT Strategy & Systems

Commercial GM Commercial

- Trade Development- Port Promotion- Defence Strategy

Landside Operations GM Landside Operations

- Cargo Operations- East Arm Wharf- Port Services- Security

Marine Services GM Marine Services

- AMSA Maintenance- Marine Safety- Navigation- Pilotage Services- Vessel Traffic Service- Pilot Training and Policy

City Wharves GM City Wharves

- Marina Operations- Retail Operations- City Wharf Facilities- Cruise Strategy

Port Regulation Harbourmaster

- Dangerous Goods- Safety Approval- Legislation Review

Engineering Engineering Manager

- Repairs and Maintenance


FinancialShareholders

Minister for Transport

BusinessCustomers

Importers • containers and

general cargo• chemicals• petroleum• bulk liquids• dry bulks

Exporters • oil and gas• containers and

general cargo• live stock• dry bulk• bulk liquids

Freight forwarders

Customs brokers

Road transportcompanies

Rail transportcompanies

Port operators

Shipping agents

Cruise shipping lines

Commercial fishingand pearling vessels

Suppliers

Stevedores

Work boat operators

Tug boat operators

Fishing touroperators

GovernmentStakeholders

Federal

Department ofInfrastructure,Transport, RegionalDevelopment andLocal Government

Department ofDefence

Australian MaritimeSafety Authority

AustralianQuarantineInspections Services

Port Authorities

Search and RescueOperations

Northern TerritoryTreasury

Department of theChief Ministers

Tourism NT

Department of Landsand Planning

Department ofResources

Department NaturalResourcesEnvironment andArts and Sport

Department ofConstruction andInfrastructure

Department ofJustice

LocalDarwin City Council

Palmerston CityCouncil

CommunityStakeholders

Environmentalgroups

Community groups

Education groups

Local recreationalusers of Darwin Port

Tourist visitors to thePort

Media

Unions

Our Stakeholders

The success of the Corporation and itsbusiness objectives is linked intrinsically tothe professional relationship that is held withits stakeholders. We must work closely withour stakeholders to drive business growth,ensure safety and prioritise environmentalsustainability.

An increasingly important part of stakeholderrelationships is the growing focus onimplementing environmentally sustainablepractices across the organisation. The DarwinPort Corporation is genuinely working withlocal authorities, stakeholders and otherinterested groups to monitor theenvironmental status of Darwin harbour.

The Darwin Port Corporation has alsoembarked on an extensive publiccommunication strategy, taking steps ofinforming and engaging stakeholders toensure strengthened trust and partnershipthrough a transparent approach to operations.

Our values articulate our commitment to high-quality outcomes and embracingcontinuous improvement for all stakeholders.Our stakeholders cover a range of sectors and are detailed in the table opposite.

Our Organisation

Occupational Health & Safety

To provide a safe working environment is a corporate objective crucial to strong and efficient business outcomes for theCorporation. As a responsible employer, theCorporation is committed to providing andmaintaining a safe work place, therebyminimising lost time injuries.

In the past year, the Corporation introducedthe ‘Work Safe. Live Safe.’ philosophy in thework place, as part of all staff inductions andongoing work place training.

This safety initiative was extended to includePort Safety Days and the Take 5 initiativewhich are aimed at enhancing safetyawareness, outcomes and communicationacross the Corporation’s facilities. Take 5 is a valuable tool which puts at the forefront ofworkers’ minds the importance of their safety,a duty of care for all workers and a solidsafety culture.

The Corporation conducts detailed riskassessments on a range of operationalactivities and equipment which areworkshopped with stakeholders andemployees.

The introduction of a formal “MaintenanceDefect Reporting System” in the LandsideOperations Cargo area has seen a significantimprovement in the speed of repair to minordamage to DPC equipment.

This improvement in efficiency has beenwelcomed by Port stakeholders in particular.

The Corporation is committed to theseinitiatives in order to ensure that staff andstakeholders are responsive to a safe workingenvironment.

Our People

The recruitment and retention of a diverseand skilled work force is crucial to thesuccess of the Port. As identified in ourCorporate Objectives, developing workforcecapability and providing a safe workingenvironment are proud achievements of the Port Management Group.

Staff are employed under the Darwin PortCorporation (Northern Territory Public Sector)Union Collective Agreement 2008 - 2011 andDarwin Port Corporation Marine Pilots 2008Union Collective Agreement which providesthe employment framework that underpinscommercial business operations and enablesus to compete for specialist maritimeresources in the market.

Employee Snapshot• 107 people were employed at

Darwin Port Corporation• At 30 June 2010 the average FTE

was 95.3• 9% of staff are categorised as

Executive or Board Members• 6% of staff are aged 30 years

or under• 56% of staff are aged 46 years or over• 24% of our workforce is female• $147,365 was spent on learning

development.

Industrial Relations

Darwin Port Corporation’s two UnionCollective Agreements expire on 30 June2011. Negotiations with the Maritime Unionof Australia, Australian Maritime OfficersUnion and Australian Manufacturing WorkersUnion commenced in 2011 in accordance withNTPS wages policy.

The Corporation’s management and HumanResources staff led by the Office of theCommissioner of Public Employmentcommenced negotiations in February 2011with employees and their representatives,towards achieving an Enterprise Agreementthat will continue to develop our workforcecapability and to support the Corporation inachieving its mission consistent with ourcorporate objectives.


Stakeholder Survey

The Darwin Port Corporation carried out anindependent Port Users Satisfaction Surveyduring the months of August and September.

A total of 70 stakeholders representing theEast Arm Wharf, the Frances Bay MooringBasin and the City Wharves (Stokes Hill andFort Hill) participated in the survey.

The feedback overall was positive andprovided the Corporation with some very gooddirection on its service delivery and theexpectations of its customers and users.Overall, 86% of clients surveyed reported they were satisfied with our services:• 23% said they were very satisfied• 63% satisfied• 12% were partially satisfied• 2% reported not being satisfied

Satisfaction levels dissected by locationwere:• Mooring Basin 100%• East Arm Wharf 81%• City Wharves 80%

The overall key themes from the survey,which are being translated into action are: • A proactive rather than reactive

maintenance schedule• A strong focus on core business as

an operational port• A consistent, open and transparent

approach to quality client and community relationships

• A more balanced approach to growth which integrates the Corporation’s responsibilities to local economic development.

Our Organisation

Workers’ Compensation

The number of claims this year is similar to that of the previous year. The nature of the claims,being mainly minor in nature, has resulted in a significant reduction in lost days and the cost of claims.

Three claims remain open from the previous year, two in relation to manual handling backinjuries. Further training and information has been provided to staff to prevent manual handling injuries in the future. No back injuries have occurred this year.

Claims 2010/11 2009/10 2008/09

Number 10 9 3Lost days 25 252 50Open Claims 0 3 0Value of Insured Claims $16,145 $269,677 $23,807

Summary of 2010/11 ClaimsNumber of Claims 10Number of Claimants 9Claims with no lost time 3

Claim typeActual minor non-disabling injury or illness 8Significant injury or illness 2Extensive injury or illness or loss of life 0



EMPLOYEES BY DIVISION

Executive 2Corporate Services 10Business Services 7Marine Services 25.5Engineering 14Landside Operations 27City Wharves 8Port Regulation 1.5Port Development 2

STAFF BY LOCATION

Stokes Hill Wharf 3Administration Office Berrimah 21East Arm Wharf 37Fort Hill Wharf 32Fishermans Wharf/Mooring Basin 4

Our Organisation

Personnel Reporting


STAFF BY AGE AND GENDER 20

18

16

14

12

10

8

Male 6

Female 4

2

0

16-20 21-25 26-30 31-35 36-40 41-45 46-50 51-55 56-60 61-65 66-70

STAFF BY STREAM AND GENDER 40

35

30

25

20

Male 15

Female 10

5

0

PAO PSW MSO MPL ECO MSG CTO BM PEO Non Class

CLASSIFICATIONS Port Administration Officer PAO - Port Service Worker PSW - Maritime Service Officer MSO - Marine Pilot MPL - Executive Contract Officer ECO - Maritime Security Guard MSG - Control Tower Officer CTO - Board Member BM - Port Executive Officer PEO - Workers Compensation Non Class


Our Organisation

EEO DATA

10%

8%

WOG 6%

DPC 4%

2%

0%

ATSI NESB Disability

TRAINING BY EXPENDITURE PER AVERAGE FTE

$1,500

$1,000

$500

02008/09 2009/10 2010/11

Personnel Reporting cont.


TRAINING BY TYPE

Occupational Health and Safety 31Job Specific 22Administrative 2Management 65

HISTORICAL COMPARATIVE DATA FTE*

100

95

Establishment 90

FTE 30 June 85

80

75

2008/09 2009/10 2010/11

2010/11 2009/10 2008/09

Total Training Expenditure $147,635 $124,040 $78,239 Training Expenditure per average FTE $1,500 $1,319 $932

*Full Time Equivalent (FTE)


Our Organisation

Training and Development

The Corporation’s focus on Training andDevelopment has been achieved by meetingthe priorities set out in the Port People Plan:

• Employment diversity• Indigenous employment• Knowledge management• Workforce development

Expenditure on training and development

Our commitment to the development of ourstaff saw expenditure increase by $24,000.Total training expenditure is approximately $1,500 per average full-time equivalentemployee.

During the year 62 staff attended at least onetraining or development course with 120courses in total attended. Of the 120 coursesthere were 43 different types of trainingprograms attended or completed.

The Corporate priorities this year haveincluded:1. Oil spill management 2. Safety training and refreshers, such as

a. First aid b. Working safely at heightsc. Confined space entryd. Firefighting equipment operations.


Case Study

TRAINING OUR FUTURE WORKFORCE

The Corporation is proud to present asuccessful HR case study reflecting ourcommitment to our business objectives andour contribution towards progressing theTerritory 2030 target to improve Indigenousemployment rates.

In 2010 Luke Neave commenced employmentas a temporary Port Service Worker. Duringthis period Luke showed a keen interest inwork undertaken by our metal fabricators andboilermakers.

In 2011 Luke has been signed on as anapprentice employed through GTNT tocomplete a Metal Fabrication Apprenticeship.The Corporation is the host employercommitted to training and financing and weare confident this is the start of a new era inachieving Indigenous employment outcomesfor the Darwin Port Corporation.

Trainee Luke Neave and supervisor MauroCammarano pictured top right.

Developing new staff is crucial to work skillsand retention within the Corporation. TheCorporation prides itself on its commitment to these programs. The Corporation’s lastapprentice, Harry Bliss, was named GTNTApprentice of the Year in 2010 and was afinalist in the NT Apprentice of the Year.

Harry is pictured bottom right receiving hisaward from Chief Minister the HonourablePaul Henderson MLA.

OUR ACTION

A significant review of procedures andpolicies has occurred in 2010 to ensure aconsistent approach across all recruitmentand selection processes.

HR provides support to selection panelmembers where necessary to ensurepanels include recruitment expertise.

Darwin Port Corporation selection policiestake into account the ‘Merit SelectionGuide’ and focus on candidates’ skills,knowledge, experience and potential forfuture development in merit assessment.

Probation process is covered as part of theinduction with new employees.

In 2010/11 no employees requiredextended probation periods and there wereno terminations under the probationprocess.

We apply the principles of natural justice inall dealings with employees.

We have two performance managementprograms in place; information on theprograms is published on our intranet.

The learning and development plans, thatare part of the performance developmentprocess, aid in the development ofcorporate training priorities.

Management liaises with HR and OH&S toresolve any medical incapacity. Incidentsare managed on a case-by-case basis.

There have been no inability cases during2010/11.


Our Organisation

NTPS Employment Management Report

DPC EMPLOYMENT INSTRUCTION AND AGENCY REQUIREMENTS

Number 1 – Advertising, Selection, Appointment, Transfer and PromotionDevelop Agency specific procedures for the recruitment, selection and retention ofemployees.

Number 2 – PromotionChief Executive Officer to develop a probationary process for employees and conveydetails within the first week of reporting for duty.

Number 3 – Natural JusticeThe rules of natural justice shall be observed in all dealings with employees.

Number 4 – Performance ManagementChief Executive Officer to develop and implement performance management systemsfor the Agency.

Chief Executive Officer to report annually to OCPE on management training and staffdevelopment programs within the Agency.

Number 5 – Medical IncapacityNo reporting requirements.

Number 6 – Inability to Discharge DutiesChief Executive Officer may establish procedures regarding inability within the Agency.

Chief Executive Officer to report annually to OCPE on the extent to which inabilityprocedures have been used.


OUR ACTION

A number of disciplinary processes wereaddressed during the year, principally inrelation to personal and professionalbehaviour.

A policy on Workplace Behaviour wasintroduced in 2010/11 to establishprocedures and guidance for staff. This isavailable on the intranet.

A dispute resolution/grievance policy iscurrently being developed. Darwin PortCorporation has the capacity to commiteither HR or a senior manager to considerall workplace grievances.

A register is maintained.

All personnel files are maintained by theDepartment of Business and Employment inaccordance with relevant recordsmanagement policy and informationlegislation.

Darwin Port Corporation’s data indicatesthat there have been fewer Indigenousemployees than the average for NTPS thisyear.

Staff identified as being from a non-English speaking background and from adisability group is consistent with the NTPSaverage.

To promote Indigenous employment at theCorporation DPC has proactively developedwork experience programs for Indigenousstudents across the NT.

We have recently committed to being theofficial work placement for an Indigenoustrade apprentice for the duration of histraining. We will case study this initiativeto help grow awareness of opportunities.


Number 7 – DisciplineChief Executive Officer may establish procedures regarding breaches of disciplinewithin their Agency.

Chief Executive Officer to report annually to OCPE on the extent to which disciplineprocedures have been used.

Number 8 – Management of GrievancesChief Executive Officer shall establish written grievance settling procedures and makethem available to all employees.

Number 9 – Omitted

Number 10 – Employee Records

The Agency shall maintain all Employee records in a secure and confidential area.

Number 11– Equal Employment Opportunity

Chief Executive Officer to devise and implement programs to ensure equal employmentopportunities.

Chief Executive Officer to report annually to OCPE on program outcomes and initiatives.


Our Organisation

OUR ACTION

We place a strong emphasis onoccupational health and safety with site-specific inductions provided relevant toindividual staff and roles oncommencement. The program is titledWork Safe, Live Safe and is furthersupported by the Take 5 initiative.

Staff is supported to maintain and improvesafety-related qualifications including firstaid and occupational licensing.

We provide fully funded flu vaccinations foremployees. Specific roles also haveadditional preventive vaccinations andmedicals funded by the Corporation.

We have the Darwin Port CorporationWorkplace Behaviour Policy and the DPCAcceptance of Gifts and Benefits policy tosupport and strengthen elements of our Codeof Conduct.

All new starters are provided with a copy ofthe Code of Conduct as part of theircompulsory induction. As required bymanagement, identified staff is required torefresh their understanding of the Code ofConduct.

We have supported one employee throughpart-time working arrangements as part of areturn to work from extended leave.

We are open to flexible work practices andinnovative arrangements.


Number 12 – Occupational Health and SafetyChief Executive Officer to develop programs that ensure employees and theirrepresentatives are consulted in the development and implementation of occupationalhealth and safety programs in the Agency.

Chief Executive Officer to report annually to OCPE on occupational health and safetyprograms.

Number 13 – Code of ConductChief Executive Officer may issue guidelines regarding acceptance of gifts and benefitsby employees.

Chief Executive Officer may issue an Agency specific Code of Conduct.

Number 14 – Part-time EmploymentThe OCPE to advise unions at six monthly intervals of the number of part-timeemployees by salary stream.

Community Sponsorship

The Corporation is committed to making a positive social contribution and provides variousforms of support in accordance with its Sponsorship Policy. In general terms it is consideredthat sponsorship should be ‘marine oriented’ in view of the nature of the Corporation’sbusiness.

Organisation Activity

Darwin Port Welfare Committee DPC Corporate Golf DayMaritime Union Picnic DayNT Livestock Association NTLEA 2010 Golf Day NT Chamber of Commerce NT 2010 Chamber Golf DayDinah Beach Yacht Club Wet Seasons Series Race

Darwin-Ambon RaceDarwin Festival Thuringowa Helicopter ProjectNT Seafood Council 2011 NT Seafood Industry Awards

Darwin Harbour Clean Up DayCruising Yacht Association Darwin to Dili Yacht RallyRotary Club 34th Australian Golfing Fellowship of RotariansExpotrade Australia NT Major Projects ConferenceInforma Australia Australian Shipping and Transport AwardsInforma Australia Lloyds List DCN Shipping & Transport AwardsDepartment of the Chief Minister Chief Minister’s NT Export & Industry Awards

Community Engagement

The Darwin Port Corporation respects theinterest and ownership that the communityhas in the Port of Darwin, its environment andits business growth. The CommunityEngagement Charter, which was recentlyreviewed as part of the Corporation’sMarketing Strategy, underpins theopportunities extended to community toinfluence and provide input into Corporationstrategies.

The Community Engagement Charter isgoverned by the following principles:

• Adopt a responsible and pro-active approach towards safety and environmental management in relation to all company matters

• Operate in a responsible, ethical and honest manner in all dealings and negotiations

• Create an open, encouraging, motivating environment that gives stakeholders the opportunity to developand participate in the planning of Port operations

• Meet customer and stakeholders’ expectations by adopting a high commitment to quality

• Interact and maintain two-way communication between the Corporation and Port users

• Provide communication channels that may be accessed by the community

• Make decisions to benefit the Territory.



Our Organisation

Case study

SUSTAINABLE PARTNERSHIPS

Darwin Port Corporation was a proud sponsorof the first Darwin Harbour Clean-Up Day on13 July 2010, organised by the NorthernTerritory Seafood Council and OceanWatchAustralia’s SeaNet Program with funding fromthe Australian Government’s Caring for ourCountry initiative and Territory NaturalResource Management’s Coastcare Program.

The supply of cranes, boats, staff, skips andremovalists by the Corporation was a majorcontribution to the project which saw eightland-based sites around Darwin and on CoxPeninsula, eight boats covering the watersbetween Fishermen’s Wharf and East Armand 93 people directly involved on the day.

Over two and a half tonnes of rubbish wascollected, including half a tonne of truck tyresfrom around the wharf, 300 kg of tangledpearl floats and rope from East Arm, 17shopping trolleys from the water aroundFishermen’s Wharf and along the coast atCoconut Grove. Also collected were around1,800 plastic drink bottles and 7,600aluminium cans.

Darwin Port Corporation intends to be anongoing partner of this significant annualenvironmental clean-up initiative.


Environmental Management

To ‘Be Environmentally Responsive’ is a key Corporate Objective for the Darwin PortCorporation. In 2010, the Corporationimplemented its Environmental ManagementSystem (EMS) in accordance withrequirements of ISO14001:2004 (InternationalStandard for Environmental ManagementSystems) which provides a framework for the achievement of continual environmentalimprovement.

The EMS outlines the relationship betweenthe DPC Environmental Policy, procedures,environmental management plans and otherrelated documents. The DPC’s EMS consistsof the five main ISO elements: policy, plan,do, check and review.

The recently developed East ArmEnvironmental Management Plan is the firstmajor output of the EMS.


To ‘Be Environmentally Responsive’ is a key Corporate Objective for the Darwin Port Corporation. In 2010, the Corporation implementedits Environmental Management System (EMS) in accordance with requirements ofISO14001:2004 (International Standard for Environmental Management Systems) whichprovides a framework for the achievement of continual environmental improvement.

The EMS outlines the relationship between the DPC Environmental Policy, procedures,environmental management plans and other related documents. The DPC’s EMS consists of thefive main ISO elements: policy, plan, do, check and review.

The recently developed East Arm Environmental Management Plan is the first major output ofthe EMS.

Our Environment


Our Environment

Location and Surrounds

The Port of Darwin is a deep sea port locatedin Australia’s Northern Territory at latitude12° 28’S, longitude 130° 50’E on the southernshore of the Beagle Gulf in the Timor Sea, andencompasses an area of approximately 1,000square kilometers.

The Port of Darwin’s geographical location as‘Australia’s Northern Gateway to Asia’ andproximity to the oil and gas fields in the Timorand Arafura seas are fundamental to thenation’s planned growth.

BROOME

KUNUNURRA

KATHERINE

PORT HEADLAND

COOLGARDIE

NATIONAL HIGHWAYSNATIONAL RAIL

NORSEMAN

ALICE SPRINGS

TENNANTCREEK

PORTAUGUSTA

LONGREACH

MACKAY

TOWNSVILLE

CAIRNS

BURNIE

NEWCASTLE

TAMWORTH

GLEN INNES

BALLARAT

MILDURA

DUBBO

TARCOOLA

TOOWOOMBA

ROCKHAMPTON

CLONCURRY

NEWMAN


Beagle Gulf

Shoal Bay

PORTDARWIN

Tapa Bay

Charles Point

Ida Bay

West Point

Boundary of the Port of Darwin

Picnic Point

MANDORAH

COX PENINSULAPALMERSTON

STUART HWY

DARWIN

Aerial Complex

DARWIN LNG PLANT

ChannelIsland

StormPoint

ColvinPoint

FrancesBay

EAST ARMWHARF

CITYPORT

Swires Bluff Wickham Point

12˚ 18' 11" S130˚ 41' 3.5" E(WGS 84)

Talc Head

CasuarinaCoastalReserve

Lee Point

Tree Point

East Arm

Middle Arm

West Arm

TurnbullBay

ALIC

E SPRIN

GS-DARWIN

RAILW

AY

Port Boundaries

The Port of Darwin boundaries are the hightide mark as indicated in the map below. Thenorthern boundary is defined by a line fromCharles Point to Lee Point via a point at 12°18' 11" S, 130° 41' 3.5" E (WGS 84).

The Australian Territorial Sea Baseline islocated on the northern side of the TiwiIslands (Melville and Bathurst) some 150 kmnorth of Darwin. This boundary is subject tothe ratification of the Australia and IndonesiaTreaty signed on 14 March 1997. The closetpart of the territorial baseline to the Port ofDarwin boundaries is some 50 km to the west.

Coastal waters therefore extend threenautical miles beyond this line. This area iswithin the jurisdiction of the NorthernTerritory. The Australian Territorial Sea thenextends to 12 nautical miles from theTerritorial Sea Baseline.


Our Environment

Natural Environment

Mangroves lining the tidal boundaries andgrowing in fine sediments characterise muchof the Darwin Harbour.

The East Arm Wharf is located on the estuaryof the Elizabeth River which experiencessignificant seasonal fluctuations in salinityand temperature. Run off containingsuspended particulate matter, inorganic and organic nutrients and a wide range ofother constituents enters the estuary fromdeveloped and under developed sections ofthe catchment.

Within Darwin Harbour there are designatedNational Park areas, the most significantbeing Charles Darwin National Park, locatedbetween Darwin City and East Arm Wharf,which has World War II infrastructure and a shoreline of pristine mangroves.

The Port of Darwin is also recognised for itsabundance of wildlife. The wetlands andcoast are home to over 36 species of birdsand the estuaries, rivers and ocean arebrimming with fish and reptiles including the iconic NT barramundi and crocodiles.

Territorians are proud of their harbour and thePort Corporation recognises the importance of this natural asset and is committed to theeffective management of its environment.

The Corporation’s EnvironmentalManagement Plans aim to develop andimplement best practice strategies tominimise the impacts of our operation anddevelop our Port in a sustainable manner.

The Darwin Port Corporation understands theimportance of informing and engaging withour clients and the NT community in order toassist in raising awareness of the uniquecoastal eco system of Darwin Harbour.

The Darwin Port Corporation is proud of its ongoing partnershipwith the reputable environmental group Australian ConservationVolunteers. Each month their ornithologist leads up to eightconservationists in the East Arm Wharf Shore Bird Survey tocompile baseline data for shore birds in the region.

Our Community Neighbours

The Port of Darwin encompasses all of Darwin Harbour and incorporates a diverse range oflocal Territory neighbours and also has an influence over other port communities due to itsclose proximity to South East Asia.

The neighbouring community can be summarised as follows:


RecreationalStakeholders

Recreational Boatingfacilities: DinahBeach, Fannie Bay,Nightcliff, East Arm

Coastal Reserves:Casuarina, Lee Point,East Point

ResidentialCommunity

Darwin City, Bayview,Tipperary Waters

Mandorah andWagait Beach

Larrakeyah Navy Base

BusinessCommunity

Darwin CBD

Darwin WaterfrontPrecinct includingDarwin ConventionCentre

Stokes Hill Wharfcommercial operators

Commercial Fishing:Frances Bay MooringBasin, Fisherman’sWharf

Industrial suburbs:Winnellie, Berrimah,East Arm

Darwin InternationalAirport

AustralAsia Rail

Port Community

Ports of NorthernAustralia (NT, QLD,WA)

Ports of SouthAustralia

Ports of Timor Leste,Singapore, Jakarta,China

STOKES HILL WHARF - Public access• Retail shops• Function Centre• Tourism• Recreational and fishing vessels

FORT HILL WHARF - Restricted access• Customs berth• Cruise ships• Naval vessels• Tug boats• Pilot vessels

FRANCES BAY MOORING BASIN- Public access• Access via lock• Prawn vessels• Fishing vessels• Pearling vessels• Private/recreational vessels

FISHERMAN’S WHARF ANDHORNIBROOK’S WHARF - Public access• Commercial fishing• Small vessel refueling• Fishing vessel loading and unloading


Our Environment

Port of Darwin

The Port of Darwin is strategically positionedas Australia’s nearest port to the fast growingeconomies of Asia and is the northernterminus of the AustralAsia Railway whichconnects East Arm Wharf to the national rail network. In addition to its foremostoperations at East Arm Wharf, theCorporation manages a number of facilitieswhich cater for naval vessels, fishing andpearling fleets, recreational vessels andcruise ships, and tourism.

EAST ARM WHARF - Restricted access• Bulk ores • Bulk liquids• Live cattle• Cement clinker• Rig tenders• Vehicle imports• General cargo• Containers

Assets (and access)

Also developed this year was the Darwin Port Staff and Visitor Induction Program, aformality designed to improve awareness ofSafe Work Practices, OH&S and securityissues. In late 2011 an online inductionprogram will be launched which will becompulsory for all staff and visitors.

The Darwin Port Corporation will continue tobe active in the national arena to ensure that the application of government securityregulations is complementary to business and development. Participation in nationalworking groups provides the Corporation with a valuable forum through which it cancontribute to the development of nationalstandards and policy.

Maritime Security

The Darwin Port Corporation implemented theMaritime Security Plan for the Port of Darwinin 2004 and subsequently invested in thenecessary resources to meet the securityrequirements of a growing and diverse clientbase. The plan was subsequently reviewedand amended in 2010 as required under the Federal Government legislation.

Darwin Port Corporation provides theoverarching Maritime Security Plan for thePort of Darwin whilst facilities such asDarwin LNG and Toll Perkins operateindependent Port Facility Security Plans. The Corporation is working closely with INPEX and the proposed Marine Supply Baseto ensure that appropriate security planningfor these major projects is in place.

In 2010 Darwin was identified as a keystrategic Defence port in the National PortsStrategy due to its geographic proximity to South East Asia. The Corporation iscommitted to delivering the required levels of security, infrastructure and access.

Darwin Port Corporation works with a rangeof NT Government and Federal Governmentagencies to ensure adequate securityarrangements are in place for Naval vesselsfrom all countries which visit Darwin.

The Darwin Port Corporation is vigilant in adhering to its National Securityrequirements, undertaking all recommendedsecurity exercises. Security measures are in place to ensure that the Port meetsinternational requirements under theInternational Ship and Port Security (ISPS)guidelines and as required under the FederalGovernment’s Maritime Security Legislation.


Security Initiatives

In line with the Corporate Objective ‘DevelopWorkforce Capability’, the Maritime SecurityStrategy is to focus on a workforce aligned to business needs. For the Port SecurityCommittee there has been a continueddevelopment of heightened securityawareness practices, shared responsibilityand intelligent culture amongst staff andstakeholders.

As part of ongoing risk managementstrategies and upgrades to security at all Portof Darwin locations around the harbour, thenew DPC initiative ‘If you see something, say something’ has been implemented.

Promotional material developed to assistworkers, stakeholders and visitors, has beenpositioned strategically around the Port toinstill proactive security behaviour. Theprogram also involves an efficient reportingprocess and ongoing staff and visitor training.


Our Environment

The major benefits of this CCTV Upgrade are the:• Centralised Control Centre at East Arm• Automated control of Fort Hill Wharf• Improved efficiency and safety of

Marine Security patrol staff• Real time viewing of CCTV footage

throughout the Darwin Port infrastructure.

The CCTV upgrade has made an enormousdifference to the DPC’s ability to monitor and report on operational issues. Real time footage of activities can be viewed from numerous locations providing Portstakeholders with the reassurance that allinfrastructure and resources are beingmonitored to world class standards.

CCTV digital coverage has also enabled the Marine Security team to contribute toimproved environmental practices. Additionalcameras have been installed to enablesecurity to monitor strategic areas that have been the subject of past environmental concerns.


To ‘Be Environmentally Responsive’ is a key Corporate Objective of the Darwin PortCorporation. In 2010, the Corporationimplemented its Environmental ManagementSystem (EMS) in accordance withrequirements of ISO14001:2004 (InternationalStandard for Environmental ManagementSystems) which provides a framework for the achievement of continual environmentalimprovement.

The EMS outlines the relationship betweenthe DPC Environmental Policy, procedures,environmental management plans and otherrelated documents. The DPC’s EMS consistsof the five main ISO elements: policy, plan,do, check and review.

The recently developed East ArmEnvironmental Management Plan is the first major output of the EMS.

Case Study

DIGITAL SURVEILLANCE

The Darwin Port Corporation has set aboutimplementing an ambitious multi-levelcontinuous improvement strategy to ensure it can deliver its corporate objectives byembracing new technologies and innovativeways of working.

The significant investment in, and installationof, CCTV and 100% access control throughoutthe Darwin Port is a key outcome ofcontinuous improvement through focusing on doing the right things, in the right way, toachieve the right outcomes. Over 60 camerasare now capturing activity in six sites with six separate workstations for vastly improved observation by security personneland management. In addition a 12 monthmaintenance program has been approved to ensure ongoing efficiency and budgetmanagement.

The significant investment in, and installation of, CCTV and 100% access controlthroughout the Port is a keyoutcome of our continuousimprovement policy.


East Arm Environmental ManagementPlan Target Progress Report

For further details regarding the EMP reportgo to our website or request information viathe dedicated annual report email address.

Progressing according to schedule or completed

Progressing with minor issues to be addressed

Not addressed or major issues outstanding

STATUS


ELEMENTS

SYSTEMS

Develop and maintain Environmental Management System to ISO14001standard.

Document management procedures for all activities that present anenvironmental risk.

REGULATORY COMPLIANCE

Maintain Legislative Register for East Arm Wharf and to be accessible on the DPC intranet.

Identify any non-compliances at East Arm Wharf in the Issues Register.

Maintain a central Licence and Permit Register.

Zero non-compliances with legal and other regulatory requirements.

PLANNING

All significant infrastructure and alterations at East Arm Wharf are preassessed for environmental impact.

Specific environmental management plans are prepared and implemented aspart of project proposals that sit under this EMP.

This EMP is reviewed on an annual basis and updated as required to ensure it accurately reflects planning related objectives and targets.

Planning issues to be captured in Issues Register and addressed.

COMMUNICATION

DPC Environmental policy to be publicly available via the DPC website.

Communicate the objectives and targets for East Arm Wharf to allstakeholders.

Communicate progress on meeting objectives and targets.

ENERGY AND RESOURCES

To comply with relevant Northern Territory Government energy and resourceuse policies (Northern Territory Climate Change Policy 2009 and NTGovernment Energy Smart Buildings Policy).

All new developments (building and industrial facilities) to incorporate energyefficient design.

Report in accordance with the National Greenhouse and Energy ReportingAct 2007


Our Environment

STATUS


ELEMENTS

AIR QUALITY

To comply with relevant regulatory and policy requirements including:• National Environment Protection (Ambient Air Quality) Measure (NEPM).• National Environment Protection (Air Toxics) Measure (NEPM).• State Environment Protection Policy (Air Quality Management) (Victoria).• NOHSC:1003 Adopted National Exposure Standards for Atmospheric

Contaminants in the Occupational Environment.

LAND AND SOILS

Comply with National Environmental Protection Council (Assessment of SiteContamination) Measure.

Comply with the Waste Management and Pollution Control Act.

WATER AND MARINE SEDIMENTS

Comply with relevant regulations and adopted guidelines including:• Marine Pollution Act• Waste Management and Pollution Control Act• Water Act• Australian and New Zealand Guidelines for Fresh and Marine Water

Quality (2000).

Develop a Stormwater Management Plan for East Arm Wharf.

FLORA AND FAUNA

No adverse impact on native flora and fauna.

Programs to be in place to manage non-native ‘pest’ flora and fauna.

HYDROCARBON AND HAZARDOUS MATERIAL

Spills of oil, other hydrocarbons and hazardous materials are to be reportedand cleaned up immediately.

Risk of spills of oil, other hydrocarbons and hazardous materials are to beminimised to the maximum extent practical.

Adequate oil spill response equipment and preparedness for the oil spillpotential that exists.


Please note for further detail regarding theEMP Action and Results please requestinformation via the dedicated annual reportemail address.





STATUS


ELEMENTS

WASTE MANAGEMENT

Recycling facilities and systems in place to allow the separation and recyclingof materials.

Manage quarantine waste in accordance with AQIS requirements.

Manage general waste to prevent litter, odour and pest infestations.

CARGO HANDLING – BULK MINERALS

Handling of bulk minerals to be conducted in accordance with this EMP,relevant individual product specific Environment Management Plans,NT Legislation, Operating Agreements and DPC requirements.


Please note for further detail regarding theEMP Action and Results please requestinformation via the dedicated annual reportemail address.




The DPC is currently in Phase 3 with aspirations of achieving full accreditation by 2012. It isalso important to highlight that this is an ongoing process implemented across all Darwin Port Corporation facilities. The EMS has been established with an Issues Register to rankenvironmental issues according to a risk matrix which dictates the setting of objectives, targets and programs in a focused manner.

The Corporation’s Environmental Management System is underpinned by the following:

• Environmental Legislation• Environmental Approvals and Licences• Environmental Policy• Environmental Management Standard• Environmental Management Plan (General)• Environmental Management Plans (Specific Operations)• Environmental Monitoring and Measurement Program

The objective of the Environmental Management System and its procedures are crucial to thePort’s future sustainable growth. Darwin Port Corporation’s management team is focused onensuring a dynamic system with appropriate resourcing and expertise in order to:

• Continually improve our knowledge and understanding of the Port operations and environment

• Measure and report on any change or impact • Provide transparent compliance with all legislative and guideline requirements• Minimise the environmental footprint of the operations • Work in partnership with stakeholders to provide innovative solutions for a

sustainable future.

The Corporation’s Environmental Policy can be reviewed at:http://www.darwinport.nt.gov.au/environment-and-safety

http://www.darwinport.nt.gov.au/environment-and-safety


Our Environment

In September 2010 the Corporationengaged independent specialistconsultants to undertake anextensive Environmental Monitoringprogram covering all Darwin Portfacilities. This included takingsamples of marine water, stormwater, treated sewage, marinesediment, soil, air (dust), drinkingwater and environmental noise.Monitoring is conducted on aquarterly basis with transparentreports to be made public as soon as they are finalised.

Case Study

ENVIRONMENTAL IMPROVEMENTS

The refurbishment of the bulk loadinginfrastructure to accommodate a variety ofores and the establishment of a Bulk UserGroup Environmental Advisory Committee areaimed at providing greater efficiencies andcontinuous improvements.

Darwin Port Corporation has addressed issues relating to the bulk loading facility at East Arm Wharf and the storm water drain management with a successfulimplementation of temporary solutions duringthe last Dec-April wet season. The DarwinPort Corporation is currently developing adetailed short and long-term ‘East Arm WharfStorm Water Management Strategy’ with the assistance of expert consultants.

Darwin Port Corporation has been an activeparticipant in the Environment ProtectionAuthority review of the Waste Managementand Pollution Control Act legislativeframework and processes.

A full review of oil spill contingency andresponse capabilities has also been achievedand ongoing training is provided for DPCpersonnel and external stakeholders. Thesereviews are expected to result in change and to ensure the introduction of robustenvironmental practices for a sustainablefuture.



Our Governance Overview

The Darwin Port Corporation CorporateGovernance Framework provides for a fair andtransparent structure for decision making.Governance leadership by the PortManagement Group builds confidence instakeholders that the organisation is drivinggrowth whilst still meeting necessary riskmanagement and internal controlrequirements.

The Corporation takes a structured approachto corporate governance as set out in itsGovernance Framework. Two key elements tothis are:

PerformanceTo ensure the governance actions contributeto overall performance and the delivery ofbusiness objectives, services, goods andprograms.

The Darwin Port Corporation’sPort Management Group hasresponsibility for corporategovernance and monitors theperformance of the Corporationagainst its business objectives.

Conformance To ensure governance actions guidecompliance of legal obligations,regulations,policies and standards and satisfyexpectations of probity, accountability andtransparency for all stakeholders.

Governance Model

To reinforce its commitment to goodgovernance principles, the Corporation drawson a governance model which incorporatesthe following key elements:

• CEO and Port management commitment

• Corporate structure • Legislative compliance • Human resource management• Culture and ethics • Financial management • Knowledge management • OHS and environment management • Risk management and audit.


Governance Highlights

The Corporation has implemented its PortPeople Plan which represents workforceplanning initiatives to meet future needs andalign with Whole-Of-Government strategies.The Corporation continues to operate inaccordance with the Corporate DirectionsStrategy 2009-2014 (CDS), outlining its vision,mission, values and corporate objectives forthe next five years. The Business PlanningStrategy 2010-2011 is the next level basis for performance reporting under the CDS.

Development and implementation of anEnvironmental Management System inaccordance with AS14001 (standard onEnvironmental Management Systems) tookplace in December 2010. Implementation ofthe East Arm Environmental ManagementPlan in December 2010.

Implementation of a new comprehensiveEnvironmental Monitoring and MeasurementProgram across Port facilities. This monitoringincludes sampling of marine water, stormwater, treated sewage, marine sediment, soil, air (dust), drinking water and noise. Thisstrategy is reported in the ‘Our OperationalPerformance’ section.

Development of a DPC Emergency ResponsePlan for the whole of the Port in consultationwith stakeholders, DPC staff and NTEmergency Services. Implementation includedtraining workshops and exercises whichvalidated this organisational structure.

Occupational Health and Safety is a highpriority. A review of our OHS Policy took placein January 2010 and a continued review ofthe OHS Management System will lead to a full audit in late 2011.

The Corporation has adopted ProjectManagement Body of Knowledge (PMBOK)ISO10006 as its preferred best practice guide for Project Management, with thismethodology implemented to complement theNT Government’s Procurement Framework.

The Corporation’s Audit and RiskManagement Committee reviewed its terms of reference in 2010 with theappointment of a new Chairperson.Implementation of key governance policies

(Gifts and Benefits, Fraud and Corruption,Conflict of Interest, Risk Management andAccess to Facilities) and reviews of existingpolicies occurred throughout the period.

Completed external audits on theCorporation’s financial internal controls and financial statements audit 2010/11

• External audit on Performance Reporting Systems

• External Procurement Compliance Audit

• Development of Marine Services Standard Operating Procedures.

The Corporation actively promoted the Codeof Conduct to ensure awareness andcompliance throughout the period.

Port Management Group (PMG) met 46 timesin 2010/11 and is the Corporation’s principalplanning and decision-making group.

Legislation

As a government business division, theCorporation acts in accordance with itsCharter of Operations that has beendeveloped in recognition of the Principles ofOperations for Government Business Divisionspublished by the Northern Territory Treasury.The governance environment is furtherenhanced by the following legislation:

• Marine Act• Public Sector Employment and

Management Act, its regulations, by-laws, Commissioner’s determinations, employment instructions, public instruments and public sector management regulations

• DPC (Northern Territory Public Sector) 2008/2011 Union Collective Agreement

• Darwin Port Corporation Marine Pilots’ 2008 Union Collective Agreement

• Financial Management Act • Procurement Act • Audit Act• Information Act• Maritime Transport and Offshore

Facilities Security Act 2003 (Commonwealth)

• International Ship and Port Security (ISPS) Code.

The Corporation is responsible foradministering the Darwin Port CorporationAct and subordinate legislation.

Darwin Port Corporation Act Review

A comprehensive review of the Darwin PortCorporation Act was initiated for the first time in 30 years. Recommendations foramendments will be proposed to Governmentduring 2011/12. The Review has strategicconsideration with regard to the changingnature of the Port’s business with the growthin oil and gas support and exports and otherinfluences, which include:

• Future operational, regulatory and commercial realities of managing a port

• Effective interaction with the Northern Territory Marine Act on harbour control and whole-of-Northern Territory marinematters, with consequent necessary amendments to the Marine Act.

The Consultancy Bureau was appointed by theCorporation to undertake the Review and withthis was the establishment of a Whole-Of-Government Steering Committee to providepolicy advice and review interim outcomes.

The Steering Committee membership wasdrawn from senior executives from:

• Department of the Chief Minister • NT Treasury • Department of Justice • Department of Lands and Planning

(NT Marine Branch) • Darwin Port Corporation.

Additionally a Marine Act Amendment Bill,which is yet to be commenced at the time of reporting, is intended to establish theHarbourmaster by ministerial appointment asthe person with total pilotage authority andthe Darwin Port Corporation as the pilotservice provider for a period of 10 years.

This will cement the separation of theregulatory responsibilities from the servicedelivery responsibilities in recognition of the2007 Council of Australian Governments(COAG) which approved the Competition andInfrastructure Reform Agreement (CIRA).



In October 2010 a strategic Risk Management project titled Exercise BlackPearl concluded a series of training and field exercises managed by theCorporation. This joint exercise between NRETAS (Department of NaturalResources, Environment, the Arts and Sport) and Darwin Port Corporationprovided an excellent opportunity to exercise training in oil spill responseprocedures in an Incident Control Centre environment. The Harbourmasterbrought considerable experience to the role of Incident Controller and theexercise provided valuable information to assist and develop a revisedresponse plan for the future.


Information Act Compliance

The Corporation did not receive any requestsunder the Information Act in 2010/11.Pursuant to Section 5 of the Information Act,the Corporation (as a Government BusinessDivision) is a public sector organisation forpersonal information only and not subject tothe full scope of the FOI legislation.Information from which a person’s identity isapparent or is reasonably able to beascertained may be requested.

Risk Management

The Corporation manages its strategic risksthrough a strategic risk analysis, undertakenbi-annually as part of its corporate planningprocess. Similarly, each of the Corporation’sbusiness units conduct operational riskassessments based on the businessobjectives and risk analysis undertaken byindependent assessors. The Corporation’sstrategic risks include:

• Capacity to expand to meet growing trade demands

• Fluctuations in the mining and resources sectors

• Regulatory compliance• Competition from other ports • The ability to manage the recruitment

and retention of key staff.

Strategic and operational risks are managedthrough a regime of monthly reviews of themitigation actions and the review of theresidual risks for those in the medium to highcategories. Risk Management is a standingagenda item for the Port Management Groupand actions are captured in business planningactivities and managed by the member of PortManagement with the respectiveresponsibility for that risk.

The objectives of the CIRA include promotingthe efficient provision and use of nationallysignificant economic infrastructure includingports and rail. The CIRA required eachjurisdiction to review the regulatoryframework for significant ports, to ensure that effective competition in the provision of port infrastructure and related services is not impeded, unless the benefits to the community outweigh the costs. CIRAidentified the Port of Darwin as a significantPort requiring regulatory review.

Policies and Standards

The Corporation operates in accordance withkey policies, standards and guidelines underits governance model, which include:

• Corporate governance• Risk management • Strategic planning• Occupational health and safety• Environmental management• Fraud and corruption• Conflict of interest • Gifts and benefits• Procurement • Project management • Information management• Motor vehicle use.

Records Management

Implementation of the revised Records andInformation Management Plan and theRecords Policy are ongoing. Specifically theSecurity Matrix is complete and the DisposalSchedule has been approved by the PortCorporation Committee and is now in thefinal steps of NTG Policy approval. The planprovides a strategic focus for the directionand development of records management atthe Darwin Port Corporation. In March 2011Darwin Port Corporation moved over to theElectronic Document Records ManagementSystem (EDRMS). This online system enablesthe digital recording of all information and theexternal provision of public information to beaccessed safely and in real time from all Porthubs. There is a high demand for historicalinformation regarding Port Corporationactivity and this is a vital attribute assisting to improve the professional reputation of theorganisation and the integrity of its corporaterecords and information.

Emergency Response Plan

The DPC Emergency Response Plan was developed using a specialist firm(International Safety and Risk Management(ISRM)). Consultation with stakeholders, DPC staff and NT Emergency ResponseServices such as police, ambulance and firedepartments were undertaken. A series of riskworkshops was conducted with the interestedparties to highlight requirements for theresponse plan. The plan was delivered to DPC and stakeholders in 2010 with a series of training workshops for the EmergencyManagement Team being conducted. Thiswas followed by a two day workshop whichincluded two desktop exercises. Theseexercises validated the organisationalstructure and provided essential training to the management team. An emergencyevacuation exercise was also conducted forEast Arm Wharf. This exercise utilised thedifferent muster points outlined in the newresponse plan.

The Critical Incident Management Team asstructured in the Emergency Response Planhas been convened on a number of occasionsand has proved this organisational structure,particularly in light of cyclone Carlos.

The next stage will be a full practical exerciseto provide continuing training for DPC staffand stakeholders. This is planned for the thirdquarter of 2011.



Advisory Board

The Darwin Port Corporation Act provides for the establishment of an Advisory Board.Constituted by the Chief Executive Officer,who is also a member, the Advisory Boardmembers are appointed by the Minister for a period of up to three years.

The Advisory Board’s role is to provide adviceto the Corporation on strategic mattersreferred to it by the Chief Executive Officer. In considering its advice, the Advisory Boardmust take a generally commercial approachbut must also have regard to governmentstrategic objectives including tradedevelopment.

Bruce Fadelli AM FAICD Member

Bruce was appointed to the Board inDecember 2004. He is an experiencedcompany director and a Fellow of theAustralian Institute of Company Directors. He is currently the Managing Director ofBromavic Properties Pty Ltd, Chair of theTennant Creek Foundation, a member of theJoint Policy Committee of the MOU betweenthe Northern Territory and IndonesianGovernments, board director and pastpresident of the NT Chamber of Commerce.

At the national level he is a board directorand the NT representative to the AustralianChamber of Commerce and Industry (ACCI), a member of the Audit Committee, chair ofthe Small Business Committee, member ofthe Trade and Internal Affairs Committee andthe representative on the Defence ReserveSupport Council. He is also the chair of theNational Small Business Coalition.

Chris Bigg Chairman

Chris was appointed Chairman of the Darwin Port Corporation Advisory Board on 13 February 2009.

Chris spent a decade in the airline industry, 25 years with the Northern TerritoryGovernment and more recently ran his owntransport consultancy. Chris has a widebackground in transport complemented by lands and planning and central agencygovernment experience.

Chris is a Fellow of both the CharteredInstitute of Logistics and Transport and theAustralian Institute of Company Directors.Chris has a Masters degree in TransportEconomics.


Rod Applegate Member

Rod was appointed to the Board as the NTGovernment representative in August 2010. In his current role as Deputy Chief Executiveof the Department of the Chief Minister he is responsible for a Whole-Of-Governmentfocus and contribution to overall strategy and direction through effective resourcemanagement, agency performance andinnovative approaches to workforce planning.

Previously Rod was Deputy Chief Executive of the former Department of Planning andInfrastructure where he was responsible forthe delivery of lands, transport and buildingoperational and regulatory services.

Rod holds a Bachelor of Agricultural Science(Hons), a Graduate Certificate in BusinessAdministration (Executive) and is a member ofthe Australian Institute of Company Directors.

Terry O’Connor Acting Chief Executive Officer

Terry has been a member of the AdvisoryBoard since being appointed Acting CEO in April 2011.

Prior to joining the Corporation, Terry wasemployed in senior roles with DefenceMaritime Services as logistics and facilities manager and with the Australiangovernment’s Department of Transport andRegional Services as a maritime specialist.This followed an extensive career with theRoyal Australian Navy which included beingthe Deputy Harbour Master and Port ControlOfficer in Dili, East Timor during INTEFET in1999/2000.

Terry holds a Bachelor of Business inMaritime and Logistics Management from the Australian Maritime College and has postgraduate qualifications in IT Management.

Melissa Reiter Executive Officer

Melissa has many years’ experience with theNorthern Territory Government in paralegal,policy and legislation, communication andcorporate management and as a companydirector. Melissa provides strategic adviceand corporate services to the Advisory Board to meet the business objectives of theCorporation.

As General Manager Corporate Services,Melissa leads a highly qualified teamresponsible for; corporate governance,ministerial liaison, human resourcemanagement, industrial relations, recordsmanagement, legal services, informationcommunications technology and strategy,occupational health and safety andenvironmental management.

Melissa is a Certified Practicing ProjectPractitioner and an Associate of the Instituteof Project Management, with an AdvancedDiploma of Project Management, and she alsoholds a Graduate Certificate in ProfessionalManagement from the University of Adelaide.



ADVISORY BOARD MEETINGS

The Advisory Board is required to meet as often as is necessary to perform its statutoryfunction. It met five times in 2010/11. Advisory Board meetings include briefings from theCorporation’s Port Management Group, stakeholders and key representatives from industry and government.

Member Meetings Attended

Mr Chris Bigg Chairman 4Mr Bruce Fadelli Member 5Mr Rod Applegate Member 4Mr Peter Youens Member 2Mr Robert Ritchie Member 5Mr Terry O’Connor Member 1*Mrs Melissa Reiter Executive Officer 5

(*Attendance for observatory purposes and handover)

Committees

The Corporation convenes the following governance committees:

• Audit and Risk Management Committee• Joint Consultative Committee• Health, Safety and Environmental (HSE) Committee.

Audit and Risk Management Committee

OBJECTIVE

The Darwin Port Corporation’s Audit and Risk Management Committee is a key component ofthe Corporation’s Governance Framework. The Committee is established in accordance withthe Financial Management Act (Sections 13 and 15) and the Treasurer’s Directions (Part 3,Sections 2 and 3). The objectives of the committee are to assist the Accountable Officer(Chief Executive) and the Port Management Group to:

• Meet the strategic objectives of the Corporation• Fulfill their responsibilities in relation to corporate governance activities within the

Corporation, including risk management, internal control structures as required by the Financial Management Act, the performance of internal and external audit functions andother internally commissioned risk-based strategic and operational reviews and

• Foster a risk management culture throughout the Corporation.

MEMBERSHIP

Mrs Diane Hussey (Chair) HR ManagerMr Matthew Phillips Acting GM Landside OperationsMrs Melissa Reiter General Manager Corporate ServicesMrs Anne Coulter Chief Financial Officer (invited)Ms Marilynne Marshall Policy Coordination, Department of the

Chief Minister (external member)Ms Sue Cooper Office of the Northern Territory Auditor

General (observer)Mr Terry O’Connor A/Chief Executive Officer (observer)

Robert Ritchie Chief Executive Officer (Retired May 2011)

Robert has an extensive career in the shippingindustry spanning more than thirty years. Hehas held various financial and managementpositions in Brisbane, Sydney and Stockholm.Robert has worked for container lines,stevedores, general agencies and Ro-Rooperators.

Robert began his career in Brisbane workingin financial roles for ACTA Conacaust (NSW)and Burns Philp & Co Ltd. Following thepurchase of Burns Philp Shipping by NYK, he continued as an accountant until beingappointed Brisbane Manager for NYK Line in 1990.

Robert joined Wilhelmsen Lines in 1998 as General Manager Operations, where he was responsible for all Oceania ports, beforeaccepting a two year assignment as Head of Global Operations based in Stockholm.

Upon completion of the Stockholmassignment in December 2004, Robertreturned to Australia as Vice PresidentOperations Oceania, responsible foroperations as well as port strategy.

Peter Youens Member (Retired March 2011)

Peter was appointed to the Advisory Board in 2008. He has over 30 years experience inthe Australian and international engineering,construction and project management sectorsapplicable to resources and infrastructureindustries. He has held senior and executivepositions in marketing, business developmentand general management as well as directorand managing director roles for public andprivate companies.

During his career he gained significantexperience in the local and internationalengineering infrastructure and resourceindustries, together with experience in themanagement and governance of majorresource and infrastructure-focusedorganisations.

Peter holds a Bachelor of Science degree fromthe University of the Southbank London, is aChartered Professional Engineer and a Fellowof the Institute of Engineers Australia.


ACHIEVEMENTS

The Committee met twice during the year and provided advice to the Chief Executive Officer ona range of risk and audit related issues. The Committee reviewed its terms of reference as partof its annual requirement.

Joint Consultative Committee

OBJECTIVE

The JCC’s role is to monitor the implementation of agreed work and management practices andmake appropriate recommendations to the Port Management Group.

MEMBERSHIPNominations

Australian Maritime Officers Union staff representatives 2 Maritime Union of Australia staff representatives 4 Office of the Commissioner of Public Employment representative 1 DPC Management representative 3 DPC Workforce Relations Officer Meeting Coordinator

ACHIEVEMENTS

The Committee met twice during the reporting period, revised its terms of reference andelected a new chairperson. The committee has presided over new corporate policies andwork practices.

Health, Safety and Environmental Committee

The Darwin Port Corporation’s Health, Safety and Environmental Management Committee (HSE Committee) is a key component of the Corporation’s Governance Framework.

The objective of the HSE Committee is to oversee the HSE performance of the DPC and toprovide advice and guidance to assist the Port Management Group regarding the continualimprovement of its performance in this area.

In seeking to meet this objective, the HSE Committee can investigate any matter brought to itsattention in accordance with its terms of reference, with full access to records, facilities andpersonnel of the DPC.

OBJECTIVE

The functions and responsibilities of the HSE Committee are to review and provide advice andguidance on:

• Objectives and targets set as part of the EMS and the Occupational Health and Safety Management System (OHSMS) to ensure they adequately address the DPC’s environment policy, health and safety policy, identified environmental issues and impacts, legislation and regulations, business requirements, operating conditions, financial and technological options and views of stakeholders

• Progress on meeting the objectives and targets established as part of the management systems

• Health, safety and environmental audit investigation findings and DPC’s response

• Significant HSE incidents and DPC’s response to these

• Processes within the DPC for compliance with relevant legislation

• Rate of progress and appropriateness of response regarding the DPC’s addressing of the environmental issues and impacts as captured in the issues register.

HSE Committee members are responsible forbeing familiar with the following:

• The DPC Environment Policy• The DPC Health and Safety Policy• The targets and objectives of the EMS

and Health and Safety System• HSE legislative requirements.

The Committee meets quarterly, with aweekly meeting of a subgroup of membersconvened to address emerging operationalissues and monitor corrective actions.

MEMBERSHIP

Membership of the HSE Committee comprises:

Internal Members• General Manager Port Development

Chairperson• Harbourmaster • Two members from the Port

Management Group as nominated by the Chief Executive Officer

• An executive officer will be appointed by the Chief Executive to coordinate thecommittee secretariat.

Invited Attendees• A standing invitation is extended to the

Chief Executive Officer• Senior staff and external stakeholders

may be invited by the chairperson to represent on matters arising from audits, incident investigations or other matters as related to the objective of the HSE Committee.



MEMBERSHIP

The committee is chaired by Darwin PortCorporation’s Port Security Officer, TerryO’Connor.

The committee comprises of representativesfrom across the various NT and Australiangovernment bodies that have border control or law enforcement roles. These include,Australian Federal Police, NT Police,Australian Customs Service, AustralianQuarantine Inspection Service, AttorneyGeneral’s Department and the RoyalAustralian Navy. Other Maritime SecurityPlan holders who operate in the Port ofDarwin are also members. These include,Conoco Phillips, Perkins Shipping and Svitzer.

ACHIEVEMENTS

The committee meets every six months. It coordinates exercises and exchangesinformation relevant to security within the Port.

External Committees and Groups

The Corporation also has interests in thefollowing major external committees andgroups in order to facilitate importantfunctional aspects of the Corporation or thewider Port of Darwin ambit:

• Community Service Obligation Activities Working Party

• Ports Australia Board (and its subcommittees in HR, Environment, Engineering, Safety, Finance and IT)

• Cruising Down Under (National Cruise Shipping Forum)

• Darwin Harbour Advisory Committee (Environmental Forum)

• Darwin Harbour Dredging Technical Advisory Committee

• East Arm Development Group• AustralAsia Trade Route Task Force• Defence Support Taskforce• International Trade Strategy Taskforce• NT Freight Working Group• Government/industry/union working

groups• NTG Communications Directors • NTG Procurement Managers Group.

ACHIEVEMENTS

Significant investment in workplace healthand safety has continued during 2010/11.

DPC has implemented a formal SafetyManagement System (SMS) to better manageand improve workplace health and safety forworkers, contractors and the general public.The OHS Manager visits and advises DPCstaff from all work locations on OccupationalHealth and Safety matters as well as ensuringcompliance with relevant legislation.

DPC has a robust Health and Safety Policyand Standard which addresses key areas ofcontemporary safety management. Theoverall safety management system comprisessafety policies, legislative compliancerequirements, incident trends, training andlicensing and emergency preparedness. It also assists with overall risk managementand identifies workplace hazards.

The system also simplifies the process forreporting accidents and incidents. Allworkplace accidents are investigated todetermine a root cause. DPC then developsappropriate controls to ensure that the risk of a repeat incident is formally managed.

The Corporation, at the time of reporting, is inthe process of electing six Health and SafetyRepresentatives (HSRs) in accordance withthe Work Health and Safety Act, with theassistance of the Maritime Union of Australia.

Port Security Committee

OBJECTIVE

The Port Security Committee is responsiblefor the coordination of responses to eventsthat require the implementation of the PortSecurity Plan. The Port Security Plan isapproved by the Federal Government’s Officeof Transport Security under the MaritimeTransport and Offshore Facilities Security Act 2003.

The committee ensures that the responsesare in accordance with the protocols andassets available across the variousorganisations.

The Corporation has actively worked todevelop closer working relationships with allmajor stakeholders and contractors regardinghealth and safety. Darwin Port Corporationnow participates in regular safety committeemeetings with stakeholders includingstevedores, freight and logistics operators andother harbour users. Management regularlyexchanges safety and emergency responseexperience and expertise with all stakeholdersin order to better understand shared risk andto leverage from the experience of other Portstakeholders.

The Darwin Port Corporation also ensurescomplete consultation with our clients andstakeholders whenever a change in policy orprocedures occurs.


Our Growth Strategy


Our Growth Strategy

• PPTEP’s Montara oil platform rebuild

• Minemakers’ Woonarah Phosphate Mine

• Sherwin Iron’s Hodgson Downs project

• New Australian Navy Amphibian Fleet to be based in NT

• New larger vessels for Australian Customs and Border Patrol’s NT fleet

• New business acquisitions resulting in increases of small coastal landing craft (46 metres) to transport freight to regional communities.

For example:The Shell Prelude offshore facility will provide demand for significant operationalservices for both vessel and cargo during the installation phase, with ongoing tradeservices over the prolonged period of 10 years.

The Marine Supply Base will increase marinecapacity and capabilities to service theregion’s growing offshore petroleum sectorand will facilitate growth in local rig tendermovements.

The announcement in 2010 of Darwin as astrategic Australian Defence port within the National Ports Strategy has, and will continue to have, a significant impact on Portinfrastructure, security and traffic.

The release of the East Arm Wharf FacilitiesMasterplan 2030 in June 2010 was asignificant milestone in developing the futurestrategy for Port expansion. This is directlyaligned with the NT Government’s Territory2030 Strategy and Economic Sustainabilitytargets relating to long-term infrastructuredevelopment, international trade,employment, the Marine Supply Base andestablishing Darwin as a key centre for oiland gas operations, maintenance andworkforce.

The Port of Darwin remains Australia’sleading port for live cattle exports to Asia. The Corporation has spent the year workingclosely with the Department of Chief Ministerand Australian Cattlemen’s Association to

Outlook

The Corporation continues to focus on itsgrowth strategy in line with the Territory 2030 objective to double internationalshipping links and to support other initiativesto contribute to a prosperous Territoryeconomy.

The Port of Darwin, with its strategic regionallocation, deep water harbour and connectionto the national rail network, is a major exportport. It is Australia’s nearest port to Asia’sfast growing economies and is the only portbetween Townsville and Fremantle with fullaccess to multi-modal transport services tohandle Australia’s increasing trade needs.

Ideally positioned to service the region’sdeveloping offshore oil and gas fields it is already the import destination anddistribution centre for most cargoes used inthe Timor Sea offshore oil and gas industry.The Port is about to become the location of a second Darwin liquid natural gas facility.

Darwin Port Corporation is preparing for aperiod of exciting growth. Following a seriesof comprehensive reviews, the Corporationhas set about implementing an ambitiousmulti-level continuous improvement strategyto ensure it can deliver on its corporateobjectives by embracing new technologiesand innovative ways of working. It has alsodeveloped a flexible business model toaccommodate global pricing changes anddiversify its target markets to ensure abalanced portfolio of industry and exportmarkets.

The rail terminus and bulk loading facilities at the Port’s East Arm Wharf have positionedDarwin as the northern gateway for mineralsexports and continue to attract new bulk oreexports.

The resources sector will continue to providegrowth and demand for improved Portinfrastructure, with major activity forecastsincluding:

• Ichthys’ INPEX project• Shell’s Prelude project • Marine Supply Base• Substantial increase in forecast in

cruise ship visits


Corporate Directions Strategy

The Corporation’s Corporate DirectionsStrategy 2009-2014 was implemented in April2009 and established six corporate objectives,their associated strategies are the focus forcommercial operations going forward, whichare listed below:

Grow Trade• Infrastructure is appropriate for the

future• Channel access is suitable for future

vessel requirements • Marketing strategy

Develop Workforce Capability • Workforce profile is aligned to

business needs• Organisational culture is values based

Achieve Financial Viability • Achieve a return to government • Establish a competitive advantage• Organisational structure supports core

business

Provide a Safe Working Environment • Commitment to safety

Work Safe. Live Safe.

Be environmentally responsive• Port operations have minimal

environmental impact

Be Innovative• Implement leading edge systems• Continuous improvement through

focusing on doing the right things, the right way to achieve the right outcomes.

diversify the international export markets and Indonesia, Vietnam, Philippines and Malaysiacontinue to be targeted for future growth.

In addition to its major industrial and commercial operations at East Arm Wharf, theCorporation operates a number of facilities which cater for a growing commercial pearling andfishing industry, recreational boating and various tourism experiences, in particular significantincreases in cruise passenger arrivals.

Charter of Operations

The Corporation maintains a Charter of Operations in accordance with the Northern TerritoryTreasury’s Principles of Operation for Government Business Divisions. The charter defines theCorporation’s scope of operations, including all activities and services provided through theCorporation’s lines of business.


Our Growth Strategy

In anticipation of upcoming major projects theDPC has commenced reclamation work whichwill result in six additional hectares of laydown area and the sealing of a further 2.8hectares of hardstand which will provide anadditional revenue stream and go a long waytowards meeting growing demands andcapacity for the future.

To service the growing mining industry andimprove efficiencies, the $24 million shiploader and conveyor at East Arm Wharf,which was first used to load bulk manganese,was refurbished in 2010 to more effectivelyaccommodate other bulk ores. This includes a1,500 tph rail dump with a capacity of 25 oretrains per week. Major capital works in 2010included the design of a 2.5 km overlandconveyor which will link stockpiles to the bulk loader to replace the current truck dump.

The Northern Territory Government isproposing to expand the East Arm Wharf.Expansion of the wharf is necessary to meetDarwin’s needs into the future, particularlythe increasing demand in bulk mineral exportvolumes and the increasing businessgenerated by the oil and gas industry. A DraftEnvironmental Impact Statement (DEIS) hasbeen developed in accordance with theCommonwealth Environment Protection andBiodiversity Conservation Act 1999 (EPBC Act)and the Northern Territory EnvironmentalAssessment Act 1982.

Darwin is growing as a cruise destination with the Port able to receive mega liners at adedicated cruise ship berth just minutes fromthe city. Of all Australian cruise ship ports,Darwin recorded the second highest growth in cruise ship visits for the year after Sydneyand ahead of Cairns. A number of new cruisevessel visits are planned for 2012 includingthe Queen Mary II in February.

With a substantial increase in cruise shippassenger numbers forecast for the future, the Corporation is continuing to build capacitywith upgraded passenger handling facilities,procedures and systems at Fort Hill Wharfincluding the introduction of two new 15metre gangways that have dramaticallyimproved safety and access. This investmentis part of a planned program to enhance thearrival and departure experience for thegrowing number of cruise ship visitors.

Confidence in the capacity of the DarwinHarbour channel access is crucial to thecompetitive positioning of Darwin PortCorporation. Two Federal GovernmentFeasibility Studies, All Tides Access andVessels Greater than Panamax, have beenundertaken with the aim of accommodatinglarger modern vessels.

An exciting partnership betweenGeo Science Australia through the Australian Institute of MarineScience and survey company IX Survey will result in 67 days of scientific innovation and 100% of Darwin Harbour being surveyed. The significance of this partnership is unprecedented;the Port of Darwin is the only Port in Australia selected for the project.

BUSINESS PLANNING STRATEGY

The Port Management Group undertakescorporate and business planning on an annualbasis. The Business Planning Strategy issubordinate to the Corporate DirectionsStrategy and guides the Corporation's groupbusiness plans. It also forms the basis forsubsidiary planning and performancemanagement across the organisation.

The Corporation is positioned to achievesignificant commercial outcomes and delivergenuine economic benefits to the NorthernTerritory. It has adopted a more strategicapproach to trade development which ensures a strong capacity to link withGovernment strategies for trade andeconomic development and to react quicklyand appropriately to change.

Growing Trade

The Corporation is committed to the ongoingdevelopment of its port infrastructure to meetcurrent and future growth and the needs of itsstakeholders.

Since its launch in 2010 the East Arm WharfFacilities Masterplan 2030 has focused on acomprehensive and forward looking land-usestrategy, directly aligned with the NTGovernment’s own Territory 2030 Strategy.


MARKETING OUR PORT

The Darwin Port Corporation has developed a comprehensive communications strategy that willguide its marketing, community engagement and promotional activities. This includes onlineand offline promotion of its services and facilities, the preparation of detailed business casesfor potential clients and participation in trade events, targeted presentations and networkingopportunities. The Darwin Port Corporation works in conjunction with other governmentdepartments, particularly Department of Chief Minister, Department of Resources and TourismNT, to strengthen its marketing impact and attract potential new clients.

2010/11 Darwin Port Corporation promotional activities include:

VIPsAmbassador-designate to Indonesia - Greg Moriarty September 2010Governor of East Kalimantan May 2011 RACP Occupational Physicians & Advanced Trainees May 2011 Ambassador of the Slovak Republic - Her Excellency Mrs Eva Ponomarenkova June 2011

CommunityBachelor Institute of Indigenous Territory Education October 2010TOPROC November 2010Probus Club April 2011Department of Lands and Planning Graduates May 2011Rotary June 2011

Speaker/PresentationsRegional Ports 2010 July 2010Darwin Harbour Advisory Council July 2010Manufacturers Council August 2010Minerals Council of Australia August 2010Meet Darwin – A Journey of Discovery August 2010ICHCA 2010 August 2010Mining the Territory September 2010Department of Foreign Affairs & Trade October 2010Infrastructure Australia October 2010NT Major Projects November 2010Australian Green Infrastructure Council November 2010Australian Petroleum Production & Explorations Association November 2010Minerals Council of Australia December 2010Chartered Institute of Transport April 2011

Trade Events Cruise Down Under August 2010SUT Dredging Engineering Seminar September 201020th International Maritime Pilots Association Meeting September 2010AHRI 2010 Leadership Conference September 2010NT Resources Week – SEAAOC and Mining the Territory October 2010Expo Trade Australia Conference December 2010Lloyds Informa Australia Pty Ltd January 2011Workplace Training Regional Leadership June 2011APPEA 2011 June 2011 INFORMA Australia June 2011Balikpapan Mining Expo June 2011

Developing Workforce Capability

Due to the diversity of specialised skillsrequired to deliver the full complement of portservices, it is important the Corporationcontinues to build workforce capacity now forits expanding future in line with Territory2030. Major projects on the horizon arealready being carefully considered andrecruitment and training is underway with twonew marine pilots soon to be recruited. Thenew dedicated harbourmaster position is akey outcome for the effective managementthe Port’s future growth as the independentregulator.

The Landside Operations and EngineeringReview completed in October 2010 iscurrently being implemented across theCorporation with full support of the Ministerfor Transport and relevant unions. This reviewwill see the re-structuring and consolidationof the Landside and Engineering teams, with afocus on the efficient delivery of programmedmaintenance, safety initiatives and theintroduction of a 24/7 workforce.

Achieving Financial Viability

The Darwin Port Corporation is a GovernmentBusiness Division which enables it tointegrate its financial investments withtaxpayer obligations using a more commercialapproach. Following the implementation of afully restructured commercial pricing regimein 2009, the DPC has in 2010/11 exceededbudget targets and more than doubled theprofit made in the previous year.

While total trade through Port facilities hasdecreased 16% year on year, the impact of theDPC pricing regime remains fair and positive.The emphasis on gaining a competitive returnon all its investments will provide confidencefor stakeholders that the outlook to the end ofthe DPC’s Strategic Plan 2009-2014 ispositive.

The upgrading of Stokes Hill Wharf (SHW)commenced in 2010 with the renovation ofthe SHW Function Centre, which has alreadyprovided considerable financial return oninvestment. Also included is a major upgradeof facilities for tour operators. Darwin PortCorporation aspires to make this precinct thehub for harbour cruise vessels, where locals


Our Growth Strategy

objectives and outcomes suitable to the Port’sneeds. The Corporation is striving towardsstronger working relationships with trades,industry and the wider supply market,continuing to focus on increasing thegovernment’s objective on probity andsustainable procurement, contract and project management.

In 2011 the Corporation adopted ProjectManagement Body of Knowledge (PMBOK) ISO10006. Changes to the AgencyProcurement Management Plan to incorporatethe best practice PMBOK methodology haveresulted in robust business planning anddocumentation for delivering and achievingtransparent and improved project andprocurement outcomes for the Corporationand its stakeholders.

A focus on improved financial viability hasalso resulted in improved communication,perceived value and enhanced customerservice processes within DPC. In particularpricing and procurement information is nowmore accessible, competitive and transparentthan ever before.

Providing a Safe Working Environment

In 2010 the Corporation developed andimplemented its Occupational Health andSafety Management System in line withAustralian Standard 4804:2001. The systemis underpinned by a philosophy designed toconnect its workers and instill a culture thatencourages everyone to be safe in all thatthey do - ‘Work Safe. Live Safe.’

The continued implementation of the OHSSystem has seen the development of aFatigue Management Policy, review of theOHS Policy Statement of the PortManagement Group, development of safetyprocedures and processes including the Take5 Safety System.

Port safety extends beyond the staff to thewellbeing and responsible practices of allstakeholders. This year saw the completionof a comprehensive survey of the Port ofDarwin, including the surveying of areas notpreviously considered to determine accuratedepths and safe positions for moorings. Thisinvestment has enabled the identification ofsafe moorings, which has particular

and visitors enjoy cruising, fishing and diningin one spectacular location. This is part of a future plan for Stokes Hill Wharf andassociated retail and commercial activities as detailed in the proposed SHW marketingstrategy. This strategy will be consulted andproposed to government in 2011/12.

In March 2011 the NT Government initiated a major under deck restoration, committing$20M to the three-year project. To date thisproject remains on time and under budget and will ensure the longevity of the iconichistorical Stokes Hill Wharf as a populartourism attraction.

Organisational structural changes to supportcore business have also contributed toimproved financial performance. Restructuredbusiness lines, which enable better costallocation and recovery and improvedefficiency in front line business processessuch as invoicing and debt management, are all contributing to the success of theCorporation.

PORT PEOPLE PLAN

In July 2010 the Corporation implemented itsPort People Plan, a strategic workforce plandesigned to meet the Corporate Objectivesset out in the Corporate Directions Strategy2009-2014.

The plan focuses on the value of ’Developingour Workforce Capability’ and aligns with theWhole-Of-Government approach, includingthe Indigenous Employment CareerDevelopment Strategy 2010-2012. This isbeing achieved through better defined lines ofreporting and revising job descriptions toreflect current and future operational needs.

The plan also clearly sets out career paths for workers and supports the development of a work culture that is values based andfocused on safety and security and deliveringcontinuous improvement to meet the servicedelivery requirements of a growing anddiverse client base.

PROCUREMENT MANAGEMENT PLAN

Darwin Port Corporation remains committedto improving and delivering high standard,sustainable procurement, contract and project

importance during cyclone season. This hasgreatly improved the risk management andpossible environmental issues arising out oflack of knowledge of our preciousenvironment.

PORT SECURITY PLANS

The Darwin Port Corporation is responsible forsecurity at East Arm and Fort Hill Wharvesand waterside security within the regulatedport, extending from the Charles Point Patchesand Lee Point Harbour Limits through to WestArm, Middle Arm, East Arm and HudsonCreek. Individual wharf operators areresponsible for security within their ownfacilities. Increased requirements for portsecurity, including a full review of the PortSecurity Plan, were achieved, implementedand approved by the Federal Department ofTransport.

To ensure the integrity and effectiveness ofthe Port Security Plan, the DPC incorporatesexternal expertise and considers globalissues. To do this the Port ManagementGroup coordinates a Port Security Committeewhich is attended by law enforcementagencies, border protection agencies, federal and NT government representatives in addition to port users and stakeholders.DPC is also represented as part of the PortsAustralia Working Group on Port Security. The Port Security Officer represents the DPCat various national working groups in regardsto a review of the training for MaritimeSecurity Guards and the provision of securityfor cruise ships visiting Australia.

The DPC’s Emergency Response Plan wasdeveloped in consultation with stakeholders,DPC staff and NT emergency responseservices with specialist firm InternationalSafety and Risk Management (ISRM). It wasdelivered in 2010 with a series of risk andtraining workshops and an emergencyevacuation exercise was conducted for East Arm Wharf.

The Critical Incident Management Team asstructured in the Emergency Response Planhas been convened on a number of occasionsand has validated this organisationalstructure, particularly in light of its workduring cyclone Carlos.


Being Environmentally Responsive

The Darwin Port Corporation recognises the environmental, social and economicimportance of operating in an environmentallysustainable and responsible manner andensuring a high level of environmentalperformance.

In 2010 the Corporation implemented itsEnvironmental Management System (EMS) in accordance with requirements ofISO14001:2004 (the International Standard forEnvironmental Management Systems) whichprovides a framework for the achievement ofcontinual environmental improvement acrossall DPC facilities.

The East Arm Environmental ManagementPlan was completed in December 2010. The EMP sets out the high-level framework,objectives and targets for sound andresponsible environmental management of East Arm Wharf. It sets the structure for issues and aspect-specific managementplans, standard operating procedures, training procedures and manuals, monitoringprocedures and auditing procedures.

The Corporations is working withstakeholders to provide innovative solutionsto minimise its environmental footprint.

Being Innovative

The implementation of leading edge systemsis crucial to the growth strategy of the DarwinPort Corporation. Strategic innovationcombined with continuous improvement will be the point of difference for the Port as it drives business to and from the highlycompetitive areas of South East Asia. DPC is in the process of benchmarking itselfinternationally, investigating new systemsand practices for harbour management andexploring best practice and most advancedmethods of operation. The Corporationcontinues to grow, change and respond toclient demands to ensure that all its strategicobjectives are met.

The CCTV Digital Monitoring System whichprovides 100% access control throughout the Port’s facilities has made an enormousdifference to the Corporation’s ability tomonitor and report on operational issues andobserve environmental risk areas.


Our Growth Strategy

Significant investment has been made in stage one of a two-stage process to implement a Vessel Traffic Service (VTS) with the introduction of AIS mapping, which will see theestablishment in 2011/12 of a new integrated Port Management System benchmarked on best practice systems in other Australian ports.

The development of the interim VTS Centre has seen a major shift in the way shipping traffic is managed on Darwin Harbour. It has increased safety whilst reducing risks and mostimportantly Port stakeholders now have 24/7 access to shipping updates improving operationalefficiency. This, coupled with the genuine focus on the Corporate Objective to DevelopWorkforce Capacity, means operators’ skills are being increased in preparation for a muchbusier Port.

A comprehensive review of the Darwin Port Corporation Act was initiated for the first time in 30 years. The review is expected to deliver recommendations that will take into accountstrategic consideration of the accelerated growth expected by the Port over the next 10+ years,including:

• Future operational, regulatory and commercial realities of managing a port • Effective interaction with the Northern Territory Marine Act on harbour control and whole

of Northern Territory marine matters, with consequent necessary amendments to the Marine Act.

Additionally a Marine Act Amendment Bill,was passed by Parliament in April 2011, (is yet to be commenced) that proposes toestablish the Harbourmaster as a ministerialappointment with total pilotage authority andthe Darwin Port Corporation as the pilotservice provider. This restructure addressesthe recommendations of the 2007 Council of Australian Governments (COAG) approvedthe Competition and Infrastructure ReformAgreement (CIRA). The objectives of the CIRA include promoting the efficient provisionand use of nationally significant economicinfrastructure including ports and rail.

The CIRA required each jurisdiction to reviewthe regulatory framework for significant ports,to ensure that effective competition in theprovision of port infrastructure and relatedservices is not impeded, unless the benefits to the community outweigh the costs. CIRAidentified the Port of Darwin (the Port) as asignificant port requiring regulatory review.

The Fatigue Management System, FAID, forMarine Pilots implemented in December 2010is an outcome of the Harbour Managementand Pilotage Operations Review, which wasaimed at improving efficiency and safety toaccommodate the demands of future growthin shipping.

The Corporation is a well-functioning, flexibleteam committed to continuous improvementacross all divisions. It engages with itsemployees, clients and stakeholders tomaximise efficiencies and realise theCorporation’s vision as Australia’s NorthernGateway of Choice.

Operational Highlights

• Trade through the Darwin Port Corporation in 2010/11 reached its second highest level on record. This follows a record year for trade in 2009/10.

• Record for manganese exports for DPC in 2010/11 totalling 882,804 tonnes. This is an increase of 108,519 tonnes or 15% on the previous year.

• Increase of 8 % to 53 cruise ship visits for 2010/11, 10 more than forecast.• 3,172,325 tonnes of manganese have been exported from East Arm Wharf since June 2006.• 5,556,930 tonnes of iron ore have been exported from East Arm Wharf since September 2007.• 458,672 tonnes of copper concentrate have been exported from East Arm Wharf since April 2009.• 24 bulk vessels specifically for the transport of manganese visited the Port of Darwin in 2010/11. • 18 bulk vessels specifically for the transport of copper concentrate visited the Port of Darwin in 2010/11. • 17 bulk vessels specifically for the transport of iron ore visited the Port of Darwin in 2010/11.



TRADE Tonnes 2010/11

Livestock 129,133Food products 18,158Building supplies 10,707Livestock Feed 9,667Beverages 17,359Dry Bulk 2,509,311Metal Waste 11,150Petroleum 843,240Chemicals 132,319Paper 2,384Timber 130Metal Products 27,205Machinery and Equipment 25,343Motor Vehicles and Parts 9,289Glass 783Other 89,179

TOTAL 3,835,355

TRADING ANALYSIS - (I) TOTAL CARGO TRADE

TOTAL

03/04 1,097,086

04/05 1,892,451

05/06 1,077,108

06/07 1,461,164

07/08 2,729,896

08/09 3,774,638

09/10 4,577,532

10/11 3,835,355

0 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000


ANALYSIS OF TOTAL CARGO TRADE

• Following 4 years of positive growth, total trade through Darwin Port Corporation facilities decreased 16% in 2010/11 compared to 2009/10. This decrease was made up of a 20% drop in exports and 4% drop in imports.

• Total trade dropped 740,000 tonnes mainly due to a decrease in bulk ore exports and to a less extent a reduction in live cattle exports.

• Despite the decrease 2010/11 remainedthe DPC’s second highest trading year on record – the major component being dry bulk.

• Of the total cargo moved through the port 92% was international trade, 5% was intrastate and 3% interstate.

• Exports to China made up 59% of overall trade and 83% of total exports.

• DPC remains the largest livestock exportport in Australia despite a 27% decrease in cattle exports from 2009/10.

• A 4% decrease in imports can be mainlyattributed to a decrease in dry bulk materials (clinker for cement) and chemicals.

• Imports from Singapore made up 60% of total imports into the Port of Darwin.

• Trading vessel visits decreased 10% to 1,480 in 2010/11, the lowest level since2006/07. The decline in trading vessels is mainly due to a reduction in rig tenders and live cattle visits. A drop in rig tender visits is primarily due to changes in schedules in exploration and drilling. Visit numbers are now comparable to those made in 2007/08.



EXPORTS Overseas Interstate Intrastate Total Exports Exports Exports ExportsTonnes Tonnes Tonnes Tonnes

Livestock 127,569 - 1,564 129,133Food products 13,029 - 3,144 16,173Building supplies 356 - - 356Livestock Feed 9,019 - 83 9,101Beverages - - - -Dry Bulk (Total) 2,362,883 11,274 6,897 2,381,054

Uranium and thorium 608 - - 608Copper ores and concentrates 190,688 11,274 - 201,962Manganese 882,804 - - 882,804Iron ore and concentrates 1,288,658 - - 1,288,658Other 125 - 6,897 7,022

Metal Waste 8,857 - 17 8,873Petroleum 1,614 37 68,202 69,853Chemicals 14,064 1,526 7,159 22,749Paper 378 - - 378Timber 39 - - 39Metal Products 2,059 - 520 2,579Machinery and Equipment 327 - 12,830 13,157Motor Vehicles and Parts 59 - 9 67Glass 22 - - 22Other 18,467 4,981 28,289 51,737

TOTAL 2,558,739 17,819 128,713 2,705,271

TRADING ANALYSIS - (II) EXPORT CARGO

Other

Motor Vehicles

Petroleum (Total)

Machinery

Metal Waste

Metals

Livestock

Bulk Ores

Livestock Feed

Chemicals

Foodstuffs

0 100,000 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000


ANALYSIS OF EXPORT CARGO

• Total exports reached a level of 2,705,271 tonnes – a decrease of 20% on 2009/10, although remaining 8% above 2008/09 levels.

• The reduction in exports is mainly due to a reduction in bulk exports declining 642,000 tonnes or 27% in 2010/11. The significant factor in the reduction was the record wet season in 2010/11 resulting in a drop in mining production during the ‘wet’ season. The ‘wet’ also restricted the ability to transport bulk products.

• Despite the decrease, bulk exports make up 62% of all trade through the Port of Darwin.

• Iron ore exports from Territory Resources operations at Frances Creek reached 1,288,000 tonnes a reduction of721,000 tonnes or 35% on the previous year.

• Copper concentrate exports from Oz Minerals operations at Prominent Hill inSouth Australia reached 201,962 tonnes, a drop of 10% or 22,000 tonnes on 2009/10.

• Exports of Manganese from OM Holdings operations at Bootu Creek reached 882,804 tonnes in 2010/11, an increase of 15% or 114,000 tonnes.

• Since 2006 9.2 million tonnes of bulk ore have been exported via DPC facilities.

• Cattle exports dropped 27% or 48,000 tonnes during 2010/11. Issues surrounding the restriction of import permits to Indonesia and the enforcement of Indonesia’s 350kg limit were considered the main reasons for the decrease in livestock export numbers. The ban on the export of live cattle into Indonesia that came into effect in early June 2011 was also a contributing factor.



EXPORTS Overseas Interstate Intrastate Total Exports Exports Exports ExportsTonnes Tonnes Tonnes Tonnes

Foodstuffs 530 1,018 437 1,985Beverages 590 16,768 - 17,359Chemicals 79,592 27,806 2,172 109,570Dry Bulk 111,010 5,324 11,923 128,257Metals 21,300 3,304 22 24,626Metal Waste - - 2,277 2,277Machinery 3,592 528 8,067 12,186Motor Vehicles 6,975 1,976 271 9,222Paper 702 1,304 - 2,006Petroleum (Total) 727,743 45,376 268 773,387

Automotive Distillates 469,472 24,228 5 493,705Motor Spirits 102,452 14,620 - 117,072Aviation Gasoline 155,279 6,528 95 161,902Other 540 - 169 709

Timber 90 - - 90Glass 761 - - 761Other 22,197 2,394 23,768 48,359

TOTAL 975,082 105,799 49,204 1,130,085

TRADING ANALYSIS - (III) IMPORT CARGO

Other

Paper

Foodstuffs

Aviation Gasoline

Glass and Timber

Motor Spirits

Automotive Distillates

Motor Vehicles

Machinery

Metals

Petroleum

Dry Bulk (Total)

Chemicals

Beverages

0 50,000 100,000 400,000 500,000 600,000 700,000 800,000


ANALYSIS OF IMPORT CARGO

• Overall imports to DPC facilities totalled1,130,085 in 2010/11, down 4% or 51,000 tonnes on 2009/10. This is the second year of a slight decrease in imports for the Darwin Port following a record year for imports in 2008/09.

• Petroleum products continue to be the largest cargo import contributing 68% of total imports. Petroleum imports grew 4% during 2010/11 to a total of 773,387 KL. Automotive distillates grew 9% to 493,705 KL, offsetting slightdecreases in aviation gasoline, down 6% to 171,823 KL and motor spirits down 2% to 117,072 KL.

• Chemical imports decreased for 2010/11, down 34% or 58,000 KL, mainly attributed to a 60,569 KL decrease in sulphuric acid. Despite the decrease sulphuric acid made up 89% of all chemical imports.

• Singapore, a regional transport hub, contributed 60% of all imports to the Port of Darwin, while Japan made up 18%.

“Robert’s achievements duringhis tenure as Chief ExecutiveOfficer include a significantorganisational review andrestructure.”

Chris BiggChairman



Vessel Type by Frequency of Call 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11

Trading VesselsBarge/stone dumping 293 628 550 594 585 586 635Charter 18 20 23 153 6 1 2Cruise 22 42 44 45 47 49 53Bunkers/ferry 1 1 2 1 7Car carrier 12 12 13 13 12 13 18Bulk – clinker/concentrates/sulphur/dry 12 10 21 44 54 76 63Container/general cargo/ro-ro 178 163 107 145 171 178 167Tanker – liquid bulk/petroleum 44 55 88 97 115 99 106Rig Tender 366 270 307 369 520 517 353Livestock 95 94 98 86 108 123 83Trading Vessels Total 1,041 1,295 1,253 1,547 1,625 1,642 1,480

Non-trading VesselsNaval 80 87 69 65 50 35 70Research 17 24 18 32 16 30 35Pleasure/yacht 122 118 116 252 23 134 103Sail/training 3 2 5 6 1 1Tug 36 42 28 53 78 97 143Fishing/fishing supply/prawning 3 089 2 750 3 057 3 074 3 673 3182 3101Pearling 159 129 112 148 3 117 73Patrol Boat/other/unspecified 68 90 59 163 144 312 308Non-trading Total 3,574 3,242 3,464 3,793 3,988 3,908 3,833

TOTAL 4,615 4,537 4,717 5,340 5,613 5,550 5,313

SHIPPING REVIEW

TOTAL

03/04 784

04/05 1,041

05/06 1,295

06/07 1,253

07/08 1,547

08/09 1,625

09/10 1,642

10/11 5,313

0 1,000 1,500 2,000 3,000 4,000 5,000 6,000


ANALYSIS OF TOTAL TRADING VESSELS

Vessels calling at the Darwin Port Corporationfacilities are categorised into ‘trading’ and‘non-trading.’ Trading vessels are normallycommercial vessels carrying cargo orpassengers. These vessels include tankers,livestock carriers, bulk cargo vessels,container and general cargo vessels, rig tenders, barges and cruise vessels.Non-trading vessels include naval vessels,research and pleasure craft, fishing andfishing industry supply vessels and pearlingindustry support vessels.

• The total number of vessel visits for 2010/11 decreased by 4% or 237 vessels on the previous year. The total number of trading vessels calls decreased by 162 or 10% and non-trading vessel visits decreased by 75 calls or 2%.

• The decrease in trading vessel visits was mainly due to a reduction of in the number of rig tender calls and livestock vessel visits.

• Rig tender visits decreased by 162 calls or 31% to a yearly total of 353 calls while livestock carriers decreased by 40 visits or 32% to a yearly total of 83 calls. The reduction in rig tender calls is attributed to an the industry’s scheduled drilling program and exploration activities in the Timor Sea with vessel calls returning to levels similar to that in 2007/08. The abandonment of the Jabiru and Challis fields in the Timor Sea is seen as contributing factors to the decline.

• Cruise ship visits increased 8% to 53 visits for 2010/11 reflecting the continual growth in Darwin as a cruise ship destination.



Achievements against CorporateObjectives

The Corporation’s Corporate DirectionsStrategy 2009-2014 establishes six corporateobjectives to drive strategy and set targetsfor business initiatives to ensure we conductour business in a way that is consistent withour Vision, Mission and Values.

The Corporation undertakes an annualbusiness planning exercise in order to review achievements in meeting corporateobjectives. These achievements are realisedthrough an agreed set of business initiativesand targets, usually within the 5-yearstrategy. Our performance objectives againstbusiness initiatives are reported opposite:

Objective 1 – Grow Trade

BUSINESS STRATEGY INFRASTRUCTURE IS APPROPRIATE FOR THE FUTURE

Our Target Status

Procure a new pilot boat Achieved

Implementation of a E-LUFF system for ship loader Under development

Develop a programmed maintenance plan for all Port assets and facilities Under development

Review bulk handling equipment for future products Not achieved

Contribute to the development of a Marine Supply Base Achieved

Management of Reclamation Projects (Pond F and Eastern Reclaim Area) Under development

Implementation of the Gallery Conveyor modification project Under development

BUSINESS STRATEGY CHANNEL ACCESS MEETS VESSEL CAPACITY

Our Target Status

Develop a business case and strategies for the recommendations of the ALL Tides Access and Vessels Greater than Panamax study Not achieved

BUSINESS STRATEGY EFFECTIVE CUSTOMER COMMUNICATIONS

Our Target Status

Develop and implement a communication strategy for the tie rod remedial works that will ensure disruption is minimised and users are informed Under development

Develop a Stakeholder Engagement Strategy (as part of Corporate Marketing Strategy) Achieved

Develop a Customer Survey for performance reporting purposes Achieved

Develop an Economic Impact Statement for DPC (in accordance with Ports Australia Guidelines) Not achieved


Objective 2 – Develop Workforce Capability

BUSINESS STRATEGY WORKFORCE PROFILE IS ALIGNED TO BUSINESS NEEDS

Our Target Status

Develop and implement a generalinduction program Under development

Implement performance management program (incorporating capability and leadership framework) Achieved

Implement the recommendations of the Landside and Engineering Review Under development

Develop and implement a training management system to inform the budget process and ensure knowledge management Not achieved

BUSINESS STRATEGY ORGANISATIONAL CULTURE IS VALUES BASED

Our Target Status

Develop DPC-specific Staff Census and strategies that respond to the outcomes of NTPS Employee Survey Not achieved

Objective 3 – Achieve Financial Viability

BUSINESS STRATEGY ACHIEVE A RETURN TO GOVERNMENT

Our Target Status

Investigate potential for returns in fuel supply (i.e. surcharge on use of pipeline and road tankers) for spill equipment Under development

Implement online purchasing module for Finance 1 Achieved

Develop commercial strategies for Stokes Hill and Fort Hill Wharves Under development

Develop commercial strategy for Frances Bay Mooring Basin Under development



Objective 3 – Achieve Financial Viability cont.

BUSINESS STRATEGY PROVIDE A COMPETITIVE ADVANTAGE

Our Target Status

Develop a system to manage commercial contracts Achieved

Develop a business case for a Training Simulation Centre and a strategy for training and use by external parties Achieved

BUSINESS STRATEGY ORGANISATIONAL STRUCTURE SUPPORTS THE BUSINESS

Our Target Status

Implement the Port People Plan Achieved

Objective 4 – Provide a Safe Working Environment

BUSINESS STRATEGY WORK SAFE. LIVE SAFE.

Our Target Status

Implement licence and accreditation checking program for third party operators Not achieved

Exercise emergency response plan and train crisis management team in their roles Under development

Develop an emergency plan for Darwin Harbour Under development

Develop and implement drug and alcohol program Not achieved

Objective 5 – Be Environmentally Responsive

BUSINESS STRATEGY OPERATIONS HAVE A MINIMAL ENVIRONMENTAL IMPACT

Our Target Status

Develop and implement an environmental management system in accordance with ISO14001 Achieved

Develop and implement an Environmental Management Plan for East Arm Wharf Achieved


Objective 5 – Be Environmentally Responsive cont.

BUSINESS STRATEGY OPERATIONS HAVE A MINIMAL ENVIRONMENTAL IMPACT cont.

Our Target Status

Develop a Monitoring and Measurement Program that includes an external reporting framework Achieved

Objective 6 – Be Innovative

BUSINESS STRATEGY UTILISE LEADING EDGE SYSTEMS

Our Target Status

Procure a replacement Port Management System Under development

Implement the FAID Fatigue Management System for Marine Pilots Achieved

Develop a business case for Dynamic Under Keel Clearance (DUKC) Under development

Develop a business case for marine simulator Not achieved

BUSINESS STRATEGY RIGHT FOCUS, RIGHT PROCESSES, RIGHT OUTCOMES

Our Target Status

Review the Darwin Port Corporation Actand associated legislation Under development



LANDSIDE OPERATIONS

East Arm WharfThis line of business comprises the provision of services and infrastructure for the operation ofEast Arm Wharf facilities including facilitation of dry bulk handling, livestock exports, containerand general cargo, as well as offshore oil and gas rig services.

Performance Measures 2010/11 Actual 2010/11 Budget

Quantity Total trade throughput (million tonnes) 3.84 4.16Berth occupancy rate 1 34% 45%Total trade volume growth 2 -16% 10%

Quality Customer satisfaction 81%* 81%

Cost Revenue growth 3 -2% 15%

1 Industry standard considers 65% berth occupancy to be at full capacity.2 Measured as the percentage increase in trade volume compared to the previous financial year.3 Measured as the percentage growth in total trade revenue compared to the previous

financial year. *Based on actual independent survey result conducted in 2009/10.

PERFORMANCE COMMENTS:Our trade throughput for 2010/11 fell below budget at 3.84 million tonnes due to the fall in thetrade volume for iron ore and copper as well as the decline in the number of rig tender vesselsin the second half of the year. The record wet season and the global economic factors were themain contributing factors. Our berth capacity was also lower than average with a negativetrends recorded in trade and revenue growth.

Business Output Groups The Corporation operates three lines ofbusiness against which performance isreported:• East Arm Wharf• Navigation and Pilotage• City Wharves

These lines of business are managed underthree categories:1. Landside Operations2. Marine Services3. Community Service Obligations


MARINE SERVICES

Navigation & PilotageThis line of business provides navigational aids, safe channels and berthage arrangements,moorings and anchorages in Darwin Harbour, as well as pilotage services to all commercial andnon-commercial vessels.


Quantity Acts of pilotage 1 1734 1687Total number of vessels using the Port 2 1745 1900

Timeliness Pilot on board within 30 minutes of nominated time 100% 100%Navigational aid reinstated within 24 hours 99% 98%Safety broadcast issued within 30 minutes 100% 100%

Cost Revenue growth 3 13% 15%

1 Involves a marine pilot boarding a vessel to manoeuvre and navigate it to its destination.2 Each vessel visit or rotation is measured as one vessel. 3 Measured as the percentage growth in navigation and pilotage revenue compared to the

previous financial year.

PERFORMANCE COMMENTS:In line with the fall in trade numbers recorded at East Arm Wharf, the number of vessels usingthe Port fell below budget. However, the number of pilotage activities increased due to theenforcement of compulsory pilotage requirements by the Harbourmaster for vessels over 25metres in length. The increase in pilotage activity is reflected in the growth in pilotage revenueof 13% from the previous year.



COMMUNITY SERVICE OBLIGATIONS

City WharvesThe operation of city wharves at Fort Hill, Stokes Hill and the Frances Bay Mooring Basinprovide services that, with the assistance of community service obligations from the Territory,include the operation of facilities that support cruise shipping and a naval presence in Darwin,the management of retail outlets and associated facilities at the Wharf Precinct and themanagement and operation of a tidal free facility for safe berthing of local fishing vessels.


Quantity Cruise vessel visits 53 43Defence vessel visits 62 60Visiting number of cruise passengers and crew 44,211 46,000Berth occupancy rate – Fort Hill Wharf 38% 45%

Quality Customer satisfaction 94%* 94%

Cost Cost recovery1 -19% 40%Return on investment 2 -4% -7%

1 Calculated as revenue divided by expenses and is indicative of ability to recoup costs rather than profitability as these are non-commercial CSO activities.

2 Net profit over written down value of CSO assets as at 30 June each year.*Based on actual independent survey result conducted in 2009/10.

PERFORMANCE COMMENTS:2010/11 was a busy year in respect of the number of cruise vessel calls to Darwin. A total of53 vessel calls were recorded, 10 more than budgeted. The number of defence vessels alsoincreased significantly from the previous year with a total of 62 calls recorded. Due to the highproperty maintenance and repairs at the city wharves incurred during the year, the costrecovery rate was significantly below budget.


Procurement Overview

Supporting local trades and industry is vital for the Darwin Port Corporation’s alignment withthe Territory 2030 Strategic Plan economic sustainability targets.

The Corporation maintains an Agency Procurement Management Plan (APMP) in accordancewith the Procurement Act and Procurement Direction PO3. The APMP ensures the Corporation’sprocurement and project activities are undertaken in accordance with the NTG’s procurementDirections and the overarching policy framework.

The Corporation contributes to supporting local trades, industry and social outcomes byencouraging and promoting fair and equitable procurement practices, upholding transparentand ethical behaviour, ensuring the promotion of occupational health and safety andenvironmental protection requirements are met and providing value for money when conducting all procurement activities.

Procurement HighlightsDarwin Port Corporation total contracted works between Tiers 2 to 5 are valued at $5,317,840

EstimateActual

Total contracts released - 28 Total Estimated Value $7,765,085

Of the 28 contracts:• 24 were awarded prior to end of financial with a total value of $5,317,840• 13 were publically tendered with a total estimated value of $4,360,513 and an actual

awarded value of $3,496,854• 15 were select quotations/tenders with a total estimated value of $3,343,585 and an

actual awarded value of $1,820,987• 2 were cancelled with a total estimated value of $213,085• 1 Expression of Interest – with an estimated value of $1,300,000• 4 of these quotation/tenders were not yet awarded with a total estimated value

of $2,065,000

$8,000,000

$7,000,000

$6,000,000

$5,000,000

$4,000,000

$3,000,000

$2,000,000

$1,000,000

$0

13 15 28 24 2 1 4

Public Select Released Awarded Cancelled EOI Not Yet Awarded


Case Study

TRANSPARENT PROJECT MANAGEMENT

The Corporation has adopted ProjectManagement Body of Knowledge (PMBOK)ISO10006. PMBOK is a best practice guide for Project Management, providing thefundamentals of project managementregardless of the project type.

Changes to the Agency ProcurementManagement Plan to incorporate the PMBOKmethodology have resulted in robust businessplanning and documentation for delivering andachieving better project and procurementoutcomes for the Corporation and itsstakeholders.

The Corporation has an improved knowledgebase of:• Policies and procedures relating to

procurement, contracts and project management

• Procurement and project information (located on the web).

A number of PMG and administrative staffmembers have undertaken training in:• Procurement of goods and services• Project administration• Advanced Diploma in Strategic

Procurement.

As a result DPC has achieved reducedinefficiencies in these practices, enhancedstaff skills and achieved improved efficiencyand consistency across the Corporation.Darwin Port Corporation remains committed toimproving and delivering high standard,sustainable procurement, contract and projectobjectives and outcomes suitable to the Port’sneeds and strives towards stronger workingrelationships with trades, industry and thewider supply market, continuing to focus onthe government’s objective on probity andsustainable procurement, contract andproject management.

Audit Report

The Auditor General’s Office conducts auditsto ensure the Corporation’s compliance with:• Treasurer’s Directions• Financial Management Act• Procurement Act

The NT Auditor-General’s Office conducted a service-wide performance audit of theDarwin Port Corporation’s procurementpolicies. The primary objective of the auditwas to ascertain the reliability of the originalcost estimates for selected tenders that weresought by the Corporation. The audit alsoassessed whether, for each procurementtransaction selected, the appropriate tieractivity process was properly applied.

The audit sample was drawn from datamaintained by CAPS on the following basis:a. Contracts that showed deviations of

greater than 50% between the estimated value and contract value

b. Cancelled tenders where the reason given for the cancellation was no suitable tenders received all tenders declined or tender validity expired

c. Contracts awarded to interstate based contractors that were not the result of public tenders.



Our Financials

Financial Overview 82

Five Year Comparison 83

Auditor General’s Report 84

Financial Statements and Notes 85


FINANCIAL OVERVIEW

The Darwin Port Corporation is acommercially focused Government BusinessDivision which is committed to its corporateobjective to achieve financial viability, in linewith the Territory 2030 Strategic Plan’seconomic sustainability targets.

The Corporation is pleased to report that thenet profit result for 2010/11 exceeded budgetand was more than double the profit madelast year. This was achieved despite toughglobal conditions, a dip in bulk ore exportsprimarily due to the extended wet season inthe Top End, and declining cattle numbers.

The Corporation earned a total income of$38M in 2010/11, $4M of which was fundingreceived from NT Government in the form of Community Service Obligations. TheCorporation’s main income is derived from the provision of services and facilities at East Arm Wharf, City Wharves, from pilotageservices and Port dues.

Total expenses incurred during 2010/11 were$37M, the largest component of this figurebeing employee expenses at $12M, followedby purchases of goods and services at $11Mwhile $4M was spent on assets maintenance.

The Corporation achieved a net profit of$0.8M for 2010/11, which is better than thebudgeted profit of $0.6M and an increase onlast year’s profit of $0.3M.

Assets and liabilities at 30 June 2011remained steady in comparison with theprevious year. The Corporation invested $4Min new or improvement to infrastructure in2010/11. New loans of $2.5M were drawn to fund major projects during the year.

In general the Finance Department of theDarwin Port Corporation has focused onstreamlining its external communications andprocesses to accommodate its increasinglyglobal clientele. This has strengthened itspartnerships and vastly improved customerservice and commercial performance.

Vastly improved internal business processes have been implemented with the ultimate outcomebeing a more transparent and timely reporting process to Treasury.

Insurance ArrangementsThe Darwin Port Corporation under Treasurer’s Direction R2.1 is excluded from self-insuranceprovisions. Accordingly, Darwin Port Corporation purchase commercial insurance for protectionagainst potential liabilities. Details of our commercial insurance arrangements are as follows:

Industrial Special Risks – Primary $360,908.38Industrial Special Risks – Excess $737,105.56Port Operators Liability $108,537.00Motor Vehicle $18,259.03Machinery Breakdown $3,735.27Business Travel $1,608.36Marine Hull $9,705.58Fidelity Insurance $2,722.50Workers Compensation $367,150.08

Total $1,609,731.76

Our Financials


FIVE YEAR COMPARISON OF ACHIEVED VALUES AND 2011/12 ESTIMATE

Total Revenue

Shipping & Cargo Revenue (wharfage, berthage, pilotage & port dues)

Total Expenditure (before tax, revaluation & abnormal items)

Operating Expenditure(before depreciation, interest, amortisationrevaluation, equity funded expenses, personnel, repairs and maintenance)

Repairs and Maintenance

Profit/(Loss) before income tax (excluding revaluations)

EBITDAR (Earnings before interest, tax, depreciation,amortisation, equity funded expenses and revaluation)

Dividends

Income Tax Expense

CSO Revenue

Balance Sheet

Total Assets

Capital Expenditure

Net Cash Flow

Total Liabilities

Net Assets

07/08$000

20.923

18.208

24.994

6.48

2.698

(4.070)

4.562

0

0

3.606

210.207

2.639

(0.758)

42.639

160.628

08/09$000

27.552

21.185

29.065

8.269

2.902

(1.513)

7.455

0

0

3.606

210.207

6.257

2.000

45.470

164.737

09/10$000

39.555

27.746

39.224

11.758

4.323

331

10.561

0

0

3.421

228.701

6.415

2.630

52.356

176.345

10/11$000

37.879

27.249

37.121

10.836

4.005

758

10.848

0

0

4.316

235.705

7.736

3.038

53.281

182.424

11/12$000

40.364

30.180

38.911

9.193

6.049

1.453

12.834

0

0

3.161

240.644

17.434

931

62.215

178.429


1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of preparation The financial statements are a general purpose financial report which has been prepared in accordance with Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the requirements of the Financial Management Act and Treasurer's Directions.

The financial statements have been prepared in accordance with the historical cost convention and, except where stated, does not take into account changing money values or fair values of non-current assets. These accounting policies have been consistently applied and, except where there is a change in accounting policy, are consistent with those of the previous year.

The Treasurer has determined that Darwin Port Corporation is a Government Business Division as defined in Section 3(1) of the Financial Management Act. In accordance with Section 10 of the Financial Management Act, the financial statements of the entity have been prepared on commercial accounting principles.

The following is a summary of the material accounting policies, which have been adopted in the preparation of the financial statements.

(b) Comparatives

Where necessary, comparative information for the 2009-2010 financial year has been reclassified to provide consistency with current year disclosures.

(c) Changes in Accounting Policies There have been no changes to accounting policies adopted in 2010-11 as a result of management decisions.

(d) Income recognition Income encompasses both revenue and gains. Income is recognised at the fair value of the consideration received net of the amount of goods and services tax (GST). Exchanges of goods or services of the same nature and value without any cash consideration are not recognised as income.

Rendering of services Revenue from rendering services is recognised upon the rendering of services to customers.

Interest Revenue Interest revenue is recognised as it accrues, taking into account the effective yield on the financial asset.

Disposal of assets A gain or loss on disposal of assets is included as a gain or loss on the date control of the asset passes to the buyer, usually when an unconditional contract of sale is signed. The gain or loss on disposal is calculated as the difference between the carrying amount of the asset at the time of disposal and the net proceeds on disposal.

Community service obligation funding Community service obligation (CSO) funding is generally received from the Northern Territory (NT) Government where the entity is required to carry out activities on a non-commercial basis. Revenue in respect of this funding is recognised in the period in which it is billed.

FINANCIAL STATEMENTS AND NOTES

Certification of Financial Statements

We certify that the attached financial statements for the Darwin Port Corporation have been prepared from proper accounts and records inaccordance with the prescribed format, the Financial Management Act, Darwin Port Corporation Act and Treasurer's Directions.

We further state that the information set out in the Comprehensive Operating Statement, Balance Sheet, Statement of Changes in Equity, CashFlow Statement, and Notes to and forming part of the financial statements presents fairly the financial performance and cash flows for the yearended 30 June 2011 and the financial position on that date.

At the time of signing, we are not aware of any circumstances that would render the particulars included in the financial statements misleadingor inaccurate.

Terry O'Connor Anne CoulterChief Executive Officer Chief Financial OfficerAccountable Officer30 September 2011 30 September 2011

Our Financials

INCOMEGrants and Subsidies RevenueCurrentSales of Goods and ServicesInterest RevenueGain on Disposal of AssetsOther Income

TOTAL INCOME

EXPENSESEmployee ExpensesAdministrative ExpensesPurchases of Goods and ServicesRepairs and MaintenanceDepreciation and AmortisationOther Administrative ExpensesInterest Expenses

TOTAL EXPENSESPROFIT/(LOSS) BEFORE INCOME TAXIncome Tax BenefitPROFIT/(LOSS) AFTER INCOME TAX

OTHER COMPREHENSIVE INCOMENet gain on revaluation of non-current assets

TOTAL COMPREHENSIVE INCOME

The Comprehensive Operating Statement is to be read in conjunction with the notes to the financial statements.


Comprehensive Operating Statementfor the year ended 30 June 2011

NOTE

4

2

3

9(c)

5

2010$’000

3,200 32,726

194 14

3,421

39,555

(10,796)

(11,758)(4,323)(7,341)(2,117)(2,889)

(39,224)331

- 331

14,465

14,796

2011$’000

- 33,235

328 -

4,316

37,879

(12,190)

(10,836)(4,005)(7,203)

- (2,887)

(37,121)758

4,6175,375

925

6,300


Balance Sheetas at 30 June 2011

ASSETSCURRENT ASSETSCash and cash equivalentsTrade and other receivablesPrepaymentsTotal Current Assets

NON-CURRENT ASSETSProperty, plant & equipmentDeferred tax assetsOther Assets (WIP)Total Non-Current AssetsTOTAL ASSETS

LIABILITIESCURRENT LIABILITIESTrade and other payablesBorrowings & AdvancesProvisionsOther LiabilitiesTotal Current Liabilities

NON-CURRENT LIABILITIESBorrowings & AdvancesProvisionsDeferred tax LiabilitiesTotal Non-Current LiabilitiesTOTAL LIABILITIES

NET ASSETS

EQUITYCapitalReservesAccumulted FundsTOTAL EQUITY

The Balance Sheet is to be read in conjunction with the notes to the financial statements.

NOTE

678

988

10111314

111312

171516

2010$’000

7,192 4,011 157

11,360

209,636 1,290 6,415

217,341 228,701

5,891 2,227 1,128 126

9,372

36,718 637

5,629 42,98452,356

176,345

166,346 30,302

(20,303)176,345

2011$’000

10,230 4,886 191

15,307

206,367 6,2957,736

220,398233,705

4,521 2,3241,307 191

8,343

37,901 742

6,295 44,93853,281

182,424

166,402 30,950

(14,928)182,424


2010/11Accumulated Funds

Reserves

Capital - Transaction with OwnersEquity InjectionsEquity Transfers In

Total Equity at End of Financial Year

2009/10Accumulated Funds

Reserves

Capital - Transaction with OwnersEquity InjectionsEquity Transfers In

Total Equity at End of Financial Year

The Statement of Changes in Equity is to be read in conjunction with the notes to the financial statements.

NOTE

15

15

Equity at30 June

$’000

(14,928)(14,928)

30,950

166,346

56166,402

182,424

(20,303)(20,303)

30,302

165,195

1,151166,346

176,345

Transactionswith owners

in theircapacity as

owners

$’000

4,6174,617

(277)

5656

4,396

-

(4,339)

1,1511,151

(3,188)

OtherCompre-hensive

result

$’000

925

14,465

Equity at1 July

$’000

(20,303)(20,303)

30,302

166,346

166,346

176,345

(20,634)(20,634)

20,176

165,195

165,195

164,737

Compre-hensive

result

$’000

758758

758

331331

331

Statement of Changes in Equityfor the year ended 30 June 2011

CASH FLOWS FROM OPERATING ACTIVITIESOperating Receipts

Grants and Subsidies ReceivedCurrentCommunity Service Obligations

Receipts from Sales of Goods and ServicesInterest Received

Total Operating Receipts

Operating PaymentsPayments to EmployeesPayments for Goods and ServicesInterest Paid

Total Operating Payments

Net Cash From/(Used In) Operating Activities

CASH FLOWS FROM INVESTING ACTIVITIESInvesting Payments

Purchases of AssetsProceeds from Assets

Total Investing Payments

Net Cash From/(Used In) Investing Activities

CASH FLOWS FROM FINANCING ACTIVITIESFinancing Receipts

Proceeds of Borrowings Total Financing Receipts

Financing PaymentsRepayment of Borrowings

Total Financing Payments

Net Cash From/(Used In) Financing Activities

Net Increase/(Decrease) in Cash HeldCash at Beginning of Financial Year

CASH AT END OF FINANCIAL YEAR

The Cash Flow Statement is to be read in conjunction with the notes to the financial statements.


Cash Flow Statementfor the year ended 30 June 2011

NOTE

18

6

2010$’000

3,200 3,421

31,390 175

38,186

(10,415)(15,236)(2,800)

(28,451)

9,735

(5,988)14

(5,974)

(5,974)

- -

(1,131)(1,131)

(1,131)

2,630 4,562 7,192

2011$’000

- 4,316

35,435 323

40,074

(11,831)(19,353)(2,923)

(34,107)

5,967

(4,208)-

(4,208)

(4,208)

2,500 2,500

(1,221)(1,221)

1,279

3,038 7,192 10,230


Notes to the Financial Statementsfor the year ended 30 June 2011

INDEX OF NOTES TO THE FINANCIAL STATEMENTS

1 Statement of Significant Accounting Policies2 Revenue from Ordinary Activities3 Profit / (Loss) From Ordinary Activities before Related Income Tax Expense4 Gain on Disposal of Assets5 Income Tax Expense6 Cash and Deposits7 Receivables8 Other Assets9 Property, Plant and Equipment10 Payables11 Borrowings and Advances12 Deferred Tax Liabilities13 Provisions14 Other Liabilities15 Reserves16 Accumulated Surplus17 Contributed Equity18 Notes to the Statement of Cash Flows19 Financial Instruments20 Commitments21 Community Service Obligations22 Contingent Liabilities and Contingent Assets23 Events Subsequent to Balance Date24 Write Offs, Postponements and Waivers25 Board Members' Remuneration & Information26 Senior Managers' Remuneration & Information27 Auditors Remuneration28 Segment Information






(b) Comparatives









1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of Preparation The financial statements are a general purpose financial report which has been prepared in accordance with Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the requirements of the Financial Management Act and Treasurer's Directions.




(b) Comparatives

Where necessary, comparative information for the 2009/10 financial year has been reclassified to provide consistency with current year disclosures.

(c) Changes in Accounting Policies There have been no changes to accounting policies adopted in 2010/11 as a result of management decisions.

(d) Income Recognition Income encompasses both revenue and gains. Income is recognised at the fair value of the consideration received net of the amount of goods and services tax (GST). Exchanges of goods or services of the same nature and value without any cash consideration are not recognised as income.


Interest revenue Interest revenue is recognised as it accrues, taking into account the effective yield on the financial asset.





1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES cont. Contribution of assets Equity injections by the Northern Territory Government for the acquisition of non-current assets are recorded as equity transfers in and movements in equity have been disclosed in the analysis of the Contributed Equity (Note 17).

(e) Goods and Services Tax Income, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred on a purchase of goods and services isnot recoverable from the Australian Tax Office (ATO). In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of the expense.

Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or payable to, the ATO is included as part of receivables or payables in the Balance Sheet.

Cash flows are included in the Cash Flow Statement on a gross basis. The GST components of cash flows arising from investing and financing activities which are recoverable from, or payable to, the ATO are classified as operating cash flows. Commitments and contingencies are disclosed net of the amount of GST recoverable or payable unless otherwise specified.

(f) Interest Expense Interest expenses include interest and finance lease charges. Interest expenses are expensed in the period in which they are incurred.

(g) Taxation The entity is required to pay income tax on its accounting profit, excluding extraordinary items, at the company tax rate of 30% in accordance with the requirements of the Treasurer's Directions and the National Tax Equivalents Regime.

(h) Cash and Deposits For the purpose of the Balance Sheet and the Cash Flow Statement, cash includes cash on hand, cash at bank and cash equivalents. Cash equivalents are highly liquid short-term investments that are readily convertible to cash.

(i) Receivables Receivables include amounts receivable and other receivables and are recognised at fair value less any allowance for impairment losses.

The allowance for impairment losses represents the amount of receivables DPC estimates are likely to be uncollectible and are considered doubtful. Analyses of the age of the receivables that are past due as at the reporting date are disclosed in an aging schedule under credit risk in Note 19 Financial Instruments. Reconciliation of changes in the allowance accounts is also presented.

Accounts receivable and other receivables are generally settled within 30 days.


1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (j) Property, Plant and Equipment Acquisitions Items of property, plant and equipment with a value equal to or greater than $10,000 are initially recorded at cost at the date of acquisition, being the fair value of the consideration provided plus incidental costs directly attributable to the acquisition and depreciated as outlined below. Costs incurred on property, plant and equipment which do not meet the criteria for capitalisation are expensed as incurred.

Work in progress The cost of property, plant and equipment constructed by the entity includes the cost of materials and direct labour, and an appropriate proportion of fixed and variable overheads.

Complex assets Major items of plant and equipment comprising a number of components that have different useful lives, are accounted for as separate assets. The components may be replaced during the useful life of the complex asset.

Subsequent additional costs Costs incurred on property, plant and equipment subsequent to initial acquisition are capitalised when it is probable that future economic benefits in excess of the originally assessed performance of the asset will flow to the entity in future years. Where these costs represent separate components of a complex asset, they are accounted for as separate assets and are separately depreciated over their useful lives.

Revaluations The entity independently revalues property, plant and equipment every 5 years and these values are currently held at written down current replacement cost (WDCRC). Potential capital gains tax is not taken into account in determining revaluation amounts of property, plant and equipment, as there is no current intention to realise the assets.

Depreciation and amortisation Items of property, plant and equipment, including harbour improvements and buildings but excluding freehold land, have limited useful lives and are depreciated/amortised using the straight-line method over their estimated useful lives.

The estimated useful lives for each class of asset, for the current and previous years, are as follows: 2011 2010 Harbour Improvements 5 - 40 5 - 40 Land Improvements 5 - 40 5 - 40 Buildings* 5 - 40 5 - 40 Utilities 5 - 40 5 - 40 Plant & Equipment 5 - 40 5 - 40 Furniture & Fittings 2.5 - 40 2.5 - 40 Leased Computer Software 5 5

*Buildings are depreciated over 40 years except for the Cruise Ship Terminal which is depreciated over 100 years.

Assets are depreciated or amortised from the date of acquisition or from the time an asset is completed and held ready for use. Assets may be constructed internally or acquired assets may have modifications and accessories installed or equipment calibrated and tested, which willaffect the date held ready for use.




1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES cont. Impairment of assets An asset is said to be impaired when the assets carrying amount exceeds its recoverable amount.

The Corporation assesses its material assets for indicators of impairment on a periodic basis.If an indicator of impairment exists, the Corporation determines the assets recoverable amount. The assets recoverable amount is determined as the higher of the assets depreciated replacement cost and fair value less costs to sell. Any amount by which the assets carrying amount exceeds the recoverable amount is recorded as an impairment loss.

Impairment losses are recognised in the Comprehensive Operating Statement unless the asset is carried at a revalued amount. Where the asset is measured at a revalued amount, the impairment loss is offset against the Asset Revaluation Reserve for that class of asset to the extent that an available balance exists in the Asset Revaluation Reserve. Note 15 provides additional information in relation to the Asset Revaluation Reserve.

In certain situations, an impairment loss may subsequently be reversed. Where an impairment loss is subsequently reversed, the carrying amount of the asset is increased to the revised estimate of its recoverable amount. A reversal of an impairment loss is recognised in the Comprehensive Operating Statement as income, unless the asset is carried at a revalued amount, in which case the impairment reversal results in an increase in the Asset Revaluation Reserve.

(k) Leased Assets Leases under which the entity assumes substantially all the risks and benefits of ownership are classified as finance leases. Other leases are classified as operating leases.

Finance leases Finance leases are capitalised. A leased asset and a lease liability equal to the present value of the minimum lease payments are recorded at the inception of the lease. Lease payments are allocated between the principal component of the lease liability and the interest expense.

Operating leases Payments made under operating leases are expensed on a straight-line basis over the term of the lease, except where an alternative basis is more representative of the pattern of benefits to be derived from the lease property.

(l) Payables Liabilities for accounts payable and other amounts payable are carried at cost which is the fair value of the consideration to be paid in the future for goods and services received, whether or not billed to the Corporation. Accounts payable are normally settled within 30 days.


1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (m) Government Loans Payables and Other Liabilities are carried on the Balance Sheet at their principal amount and are described as borrowings and advances. Interest expense is accrued at the contracted rate and is included in Payables.

(n) Employee Benefits

Provision is made for employee benefits accumulated as a result of employees rendering services up to the reporting date. These benefits include wages and salaries and recreation leave. Liabilities arising in respect of wages and salaries and recreation leave that fall due within twelve months of the reporting date are classified as current liabilities and are measured at amounts expected to be paid. Non-current employee benefit liabilities that fall due after twelve months of the reporting date are measured at present value, calculated using the Governement long term bond rate. No provision is made for sick leave, which is non-vesting, as the anticipated pattern of future sick leave to be taken is less than the entitlement accruing in each reporting period. Employee benefit expenses are recognised on a net basis in respect of the following categories: - wages and salaries, non-monetary benefits, recreation leave, sick leave and other leave entitlements; and - other types of employee benefits.

As part of the Financial Management Framework, the Central Holding Authority assumes the long service leave liabilities of Government Agencies and Government Business Divisions, including Darwin Port Corporation and as such no long service leave liability is recognised in DPC financial statements.

(o) Superannuation Employees' Superannuation entitlements are provided through the: - NT Government and Public Authorities Superannuation Scheme (NTGPASS) - Commonwealth Superannuation Scheme (CSS); or - non-government employee nominated schemes for those employees commencing on or after 10 August 1999.

The Corporation makes superannuation contributions on behalf of its employees to the Central Holding Authority or non-government employee nominated schemes. Superannuation liabilities related to government superannuation schemes are heald by the Central Holding Authority and as such are not recognised in DPC financial statements.

(p) Dividends The entity provides for a dividend payable at the rate of 50% of net profit after tax in accordance with the Northern Territory Government's dividend policy. No such dividend is payable or has been provided for in respect of the current year due to the use of accumulated losses for the Corporation.




1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES cont. (q) Economic Dependence Darwin Port Corporation is subject to the direction of the Minister for Transport and is partially funded by the Department of Lands and Planning in recognition that it carries out activities on a noncommercial basis. Such funding sources are called 'Community Service Obligations' and are reflected as such in the Comprehensive Operating Statement (refer notes 2 and 21).

These financial statements are prepared on a "going concern" basis in the expectation that such funding will continue.

(r) Presentation and Rounding of Amounts Interest expenses include interest and finance lease charges. Interest expenses are expensed in the period in which they are incurred.

(s) Financial Instruments Recognition and initial measurement Financial instruments, incorporating financial assets and financial liabilities, are recognised when the Corporation becomes a party to the contractual provisions of the instrument. Financial instruments are initially measured at fair value plus transaction costs.

Derecognition Financial assets are derecognised where the contractual rights to receipt of cash flows expires or the asset is transferred to another party whereby the entity no longer has any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are derecognised where the related obligations are either discharged, cancelled or expired. The difference between the carrying value of the financial liability extinguished or transferred to another party and the fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed is recognised in profit or loss.

Classification and subsequent measurement Loans and receivables Loans and receivables with fixed or determinable payments are subsequently measured at amortised cost using the effective interest rate method. Financial liabilities Financial liabilities are subsequently measured at amortised cost using the effective interest rate method.



2 REVENUE FROM ORDINARY ACTIVITIESRendering of services revenue from operating activities

Other revenue:Current GrantsCommunity Service ObligationsGain on Disposal of AssetsInterestTotal other revenueTotal revenue from ordinary activities

3 PROFIT / (LOSS) FROM ORDINARY ACTIVITIES BEFORE RELATED INCOME TAX EXPENSE

Profit / (Loss) before Income Tax Expense

Profit / (Loss) from ordinary activities before related Income Tax Expensehas been arrived at after charging/(crediting) the following items:

Depreciation of:Harbour ImprovementsLand ImprovementsBuildingsUtilitiesPlant & EquipmentFurniture & FittingsComputer Equipment

Total Depreciation Expense

Other Administrative Expenses:Asset Impairment LossTotal Other Administrative Expenses

Interest ExpenseTotal Interest Expenses

Repairs and Maintenance ExpenseTotal Repairs and Maintenance Expenses

NOTE

21

2010$’000

32,726

3,200 3,421

14 194

6,829 39,555

331

4,540 471 454 516

1,348 6 6

7,341

7,341

2,117 2,117

2,889 2,889

4,323 4,323

2011$’000

33,235

- 4,316

- 328

4,644 37,879

758

4,594 495 313 267

1,492 38 4

7,203

7,203

- -

2,887 2,887

4,005 4,005



3 PROFIT / (LOSS) FROM ORDINARY ACTIVITIES BEFORE RELATED INCOME TAX EXPENSE cont.

Employee Expenses:Salaries and employee benefitsTotal Employee Expenses

Purchases of Goods and Services:Audit and other servicesInsuranceCorporate support by external agenciesConsultantsFeasibility StudiesAdvertisingDocument ProductionMarketing and promotionLegal feesRecruitmentTraining and studyOfficial duty faresTravelling allowanceOther expenses not individually detailedTotal Purchases of Goods and Services

4 GAIN ON DISPOSAL OF ASSETSNet proceeds from the disposal of non-current assetsLess: Carrying value of non-current assets disposedGain on the disposal of non-current assets

NOTE 2010$’000

10,796 10,796

50 939 256 731

3,200 80 25

134 80

104 199 218 26

5,716 11,758

14 -

14

2011$’000

12,190 12,190

52 1,273 303

1,202 -

115 25

181 395 62

147 97 19

6,965 10,836

- - -



5 INCOME TAX EXPENSEIncome StatementCurrent income taxCurrent income tax chargeDeferred income taxRelating to the origination and reversal of temporary differencesIncome tax expense reported in the income statement

Statement of changes in equityDeferred income tax related to items charged or credited directly to equityRevaluation of landIncome tax expense reported in equity

A reconciliation between tax expense and the product of accounting profitbefore income tax multiplied by the applicable income tax rate is as follows:Accounting profit / (loss) before tax from continuing operationsAccounting profit / (loss) before income tax

At the income tax rate of 30% (2010:30%)Non-deductible amountsTax assets identifiedTax free proceeds on disposal of landOtherRecognition of deferred tax assetsTax losses not recognised/(utilised)

Income tax expense reported in the income statement

Deferred income tax as at 30 June relates to the following:Deferred tax liabilitiesLeasesPlant & EquipmentPrepayments/ReceivablesLandGross deferred income tax liabilities

Deferred tax assetsOtherFixed AssetsGross deferred income tax assets

NOTE 2010$’000

-

--

4,339 4,339

331 331

99 - -

- 1,167

(1,266)-

- -

103 8

5,518 5,629

1,290 1,290

2011$’000

-

229229

278278

758 758

227 2-

(5,133)

287(4,617)

(4,617) (4,617)

4899

5,7976,295

5,1331,1626,295



6 CASH AND DEPOSITSCash at BankCash on Hand

7 RECEIVABLESCurrentAccounts ReceivableLess: Allowance for Impairment Losses

Interest ReceivablesGST ReceivablesOther Receivables

Total Receivables

Consisting of:NT Government AgenciesExternal Bodies

8 OTHER ASSETSCurrentPrepayments

Non-currentCapital works in progress at costDeferred income tax assets

NOTE 2010$’000

7,189 3

7,192

3,821 (84)

3,737

27 10

237 274

4,011

3 4,008 4,011

157 157

6,415 1,290 7,705

2011$’000

10,228 2

10,230

4,373 (90)

4,283

31 (152)724 603

4,886

946 3,940 4,886

191 191

7,736 6,29514,301



9 PROPERTY, PLANT AND EQUIPMENT(a) Unimproved Land

At fair value

Harbour ImprovementsAt fair valueAccumulated depreciation

Land ImprovementsAt fair valueAccumulated depreciation

BuildingsAt fair valueAccumulated depreciation

UtilitiesAt fair valueAccumulated depreciation

Plant & EquipmentAt fair valueAccumulated depreciation

Furniture & FittingsAt fair valueAccumulated depreciation

Computer EquipmentAt fair valueAccumulated depreciation

Total Property, Plant and Equipment net book value

(b) Property, Plant and Equipment Valuations

The Accountable Officer of the Corporation revalued the land at East Arm Wharf Berrimah reflecting the Unimproved Capital Valuation undertaken in December 2010 by the Valuer-General. In accordance with AASB116 Property, Plant and Equipment, the entire asset class of Land was revalued by the Accountanble Officer.

(c) Impairment of Property, Plant and Equipment

The Corporation's property, plant and equipment assets were assessed for impairment as at 30 June 2011. As a result of this review no impairment losses were recognised.

NOTE 2010$’000

53,710 53,710

114,126 (23,195)90,931

10,653 (2,184)8,469

13,327 (1,354)11,973

15,888 (921)

14,967

33,338 (3,800)29,538

107 (66)41

41 (34)7

209,636

2011$’000

54,635 54,635

114,349 (27,789)86,560

10,730 (2,678)8,052

14,850 (1,632)13,218

15,738 (1,041)14,697

33,874 (5,009)28,865

109 (83)26

351 (37)314

206,367



9 PROPERTY, PLANT AND EQUIPMENT cont.

Land Land Buildings Harbour U P F C L T Improvements Improvements E F H C E $'000 $'000 $'000 $'000 $ $ $ $ $ $

(d) Reconciliations 2011 Carrying Amount as at 1 July 2010 53,710 8,468 11,972 90,931 1 2 4 7 - 2 Additions - 79 1,588 244 - 8 2 3 - 3Disposals (29) (1) ( ( ( - - (Depreciation - (495) (313) (4,594) ( ( ( ( - (Revaluation Increments/(Decrements) 925 - - - - - - - - 9Carrying Amount as at 30 June 2011 54,635 8,052 13,218 86,560 1 2 2 3 - 2 2010 Carrying Amount as at 1 July 2009 39,245 8,629 10,981 93,067 1 2 2 4 - 1Additions - 310 1,445 2,404 2 3 2 9 - 7Disposals - - - - - - - - - -Depreciation - (471) (454) (4,540) ( ( ( ( - (Revaluation Increments/(Decrements) 14,465 - - - - - - - - 1Carrying Amount as at 30 June 2010 53,710 8,468 11,972 90,931 1 2 4 7 - 2


L L B H Utilities Plant & Furniture & Computer Leased TOTAL I I Equipment Fittings Hardware Computer Equipment $ $ $ $ $'000 $'000 $'000 $'000 $'000 $'000

( R 2 C 5 8 1 9 14,967 29,539 42 7 - 209,636

- 7 1 2 - 827 23 311 - 3,052 ( ( (3) (9) (1) - - (43) - ( ( ( (267) (1,492) (38) (4) - (7,203) 9 - - - - - - - - 925

5 8 1 8 14,697 28,865 26 314 - 206,367 2 C 3 8 1 9 15,253 27,324 24 4 - 194,527

- 3 1 2 230 3,563 24 9 - 7,985 - - - - - - - - - - - ( ( ( (516) (1,348) (6) (6) - (7,341) 1 - - - - - - - - 14,465

5 8 1 9 14,967 29,539 42 7 - 209,636



10 PAYABLESCurrentAccounts PayableAccrued ExpensesTotal PayablesConsisting of:

NT Government AgenciesExternal Bodies

11 BORROWINGS AND ADVANCESCurrentLoans and Advances

Non-currentLoans and Advances

Total Borrowings and Advances

12 DEFERRED TAX LIABILITIESProvision for deferred tax liabilities

13 PROVISIONSCurrentEmployee BenefitsRecreation LeaveLeave LoadingLeave FaresOther ProvisionsTotal Current

Non-currentRecreation LeaveTotal Non-currentTotal Provisions

(a) Reconciliations:Balance as at 30 June 2010Reductions arising from paymentsAdditional provisions recognisedBalance as at 30 June 2011

Darwin Port Corporation employed 95 employees as at 30 June 2011 (94 employees as at 30 June 2010).

NOTE 2010$’000

593 5,298 5,891

1,218 4,673 5,891

1,220 1,220

37,725 37,725 38,945

5,629 5,629

776 150 33

169 1,128

637 637

1,765

1,384 (218)599

1,765

2011$’000

280 4,241 4,521

1,156 3,365 4,521

1,317 1,317

38,908 38,908 40,225

6,2956,295

922 16625

194 1,307

742 742

2,049

1,765 (480)764

2,049



14 OTHER LIABILITIES OTHER LIABILITIESCurrentUnearned Revenue

15 RESERVES Nature and Purpose of the Asset Revaluation ReserveThe asset revaluation reserve includes the net revaluation increments and decrements arising from the revaluation of non-current assets. Impairment adjustments may also be recognised in the Asset Revaluation Reserve.

Movements in the Asset Revaluation Reserve

Balance as at 1 JulyIncrement LandBalance as at 30 June

16 ACCUMULATED SURPLUS / (DEFICIT)Balance as at 1 JulyChanges in Accounting PoliciesNet Surplus / (Deficit)Accumulated Surplus / (Deficit) as at 30 June

17 CONTRIBUTED EQUITY Contributed Equity as at 1 JulyEquity transfers in:Portion of TDZ Admin BuildingTotal Equity InjectionsContributed Equity as at 30 June

Transfers InDuring the 2010/11 financial year, an inter-agency transfer between the Department of Construction and Infrasture (DCI) and DPC, a bookvalue sum of $56K. The transfer represents a portion of DPC's Administration Building recorded by DCI.

The accounting transfer was performed by way of an equity transfer between agencies agreed between Accountable Officers in accordancewith agreed processes for inter-agency transfers.

NOTE

1(c)

2010$’000

126 126

20,176 10,126 30,302

(20,634)-

331 (20,303)

165,195

1,151 1,151

166,346

2011$’000

191 191

30,302 648

30,950

(20,303)-

5,375(14,928)

166,346

56 56

166,402



18 NOTES TO THE STATEMENT OF CASH FLOWSReconciliation of CashThe total Cash and Deposits of $10,230,370 recorded in the Balance Sheet is consistentwith that recorded as 'cash' in the Cash Flow Statement.

Reconciliation of Net Surplus / (Deficit) to Net Cash From Operating Activities

Net Surplus / (Deficit)Non Cash Items:Depreciation and Amortisation(Gain) / Loss on Disposal of AssetsChanges in Assets and Liabilities:Decrease/(Increase) in ReceivablesDecrease/(Increase) in PrepaymentsIncrease/(Decrease) in ProvisionsIncrease/(Decrease) in PayablesNet Cash from Operating Activities

NOTE 2010$’000

331

7,341 (14)

(1,355)(114)381

3,165 9,735

2011$’000

5375

7,203 -

(6157)(34)285

(705)5,967



19 FINANCIAL INSTRUMENTSA financial instrument is a contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of anotherentity. Financial instruments held by the Darwin Port Corporation include cash and deposits, receivables and payables. The Darwin Port Corporation has limited exposure to financial risks as discussed below.

The entity's operating account earns monthly interest at a variable interest rate (NT Treasury Corporation's average 11am cash rate less 25 basis points).

Borrowings are through NT Treasury Corporation on the following terms and conditions:

Principal Maturity Date Interest Rate Interest Due

$23,526,663 16 Jan 2023 7.75% Bi-Annually 13519$4,000,000 7 July 2026 6.82% Quarterly 10994$3,500,000 21 Dec 2026 6.91% Quarterly 11710$2,000,000 17 June 2019 6.54% Quarterly 14775$844,000 14 Sep 2027 7.32% Quarterly 12888$1,000,000 26 Mar 2018 7.90% Quarterly 13518$537,000 26 Mar 2018 5.45% Quarterly 14563$1,000,000 21 Jan 2019 5.34% Quarterly 14385$2,500,000 15 Jun 2021 6.70% Quarterly 16809

The interest rate on the borrowings of $23,526,663 is fixed at 7.75% for five years and reviewed every five years. The next date for review is 14 January 2013. This is a principal repayment and interest payment loan (credit foncier loan).

The interest rate on the borrowings of $4,000,000 is fixed at 6.82% for five years and reviewed every five years. The next date of review is 7 July 2011. This is an interest only loan.

The interest rate on the borrowings of $3,500,000 is fixed at 6.91% for five years and reviewed every five years. The next date of review is 20 December 2011. This is an interest only loan.

The interest rate on the borrowings of $2,000,000 is fixed at 6.54% for five years and reviewed every 5 years.The next review date is 15 June 2014. This is an interest only loan.

The interest rate on the borrowings of $844,000 is fixed at 7.32% for five years and reviewed every five years.The next date of review is 14 September 2012. This is an interest only loan.

The interest rate on the borrowings of $1,000,000 is fixed at 7.90% for five years and reviewed every 5 years.The next review date is 25 March 2013. This is an interest only loan.

The interest rate on the borrowings of $537,000 is fixed at 5.45% for five years and reviewed every 5 years.The next review date is 25 March 2013. This is an interest only loan.

The interest rate on the borrowings of $1,000,000 is fixed at 5.34% for five years and reviewed every 5 years.The next review date is 20 January 2014. This is an interest only loan.

The interest rate on the borrowings of $2,500,000 is fixed at 6.70% for five years and reviewed every 5 years.The next review date is 15 June 2016. This is an interest only loan.



19 FINANCIAL INSTRUMENTS cont(a) Categorisation of Financial Instruments

Financial AssetsCash and DepositsLoans and Receivables

Financial LiabilitiesBorrowings

(b) Credit Risk

The Darwin Port Corporation has limited credit risk exposure (risk of default). In respect of any dealings with organisations external toGovernment, the Corporation has adopted a policy of only dealing with credit worthy organisations and obtaining sufficient collateral orother security where appropriate, as a means of mitigating the risk of financial loss from defaults.

The carrying amount of financial assets recorded in the financial statements, net of any allowances for losses, represents the Corporation'smaximum exposure to credit risk without taking account the value of any collateral or other security obtained.

NOTE 2010$’000

7,192 4,011

38,945

2011$’000

10,230 4,886

40,225






(b) Comparatives









NetReceivables

$’000

3,582 580 49

162 4,373

84 (10)(2)18 90

3,089 331 181 220

3,821

66 (11)(11)40 84

Aging ofImpaired

Receivables$’000

-

-

-

-

Aging ofReceivables

$’000

3,582 580 49

162 4,373

84 (10)(2)18 90

3,089 331 181 220

3,821

66 (11)(11)40 84

19 FINANCIAL INSTRUMENTS cont2010/11Not Over DueOverdue for less than 30 DaysOverdue for 30 to 60 DaysOverdue for more than 60 DaysTotal

Reconciliation of the Allowance for Impairment LossesOpeningWritten off during the yearRecovered during the yearIncrease/(Decrease) in allowance recognised in profit or lossTotal

2009/10Not Over DueOverdue for less than 30 DaysOverdue for 30 to 60 DaysOverdue for more than 60 DaysTotal

Reconciliation of the Allowance for Impairment LossesOpeningWritten off during the yearRecovered during the yearIncrease/(Decrease) in allowance recognised in profit or lossTotal

ReceivablesReceivable balances are monitored on an ongoing basis to ensure that exposure to bad debts is not significant. A reconciliation and aging analysis of receivables is presented below:



19 FINANCIAL INSTRUMENTS cont(c) Liquidity Risk

Liquidity risk is the risk that the Darwin Port Corporation will not be able to meet its financial oblilgations as they fall due. The Corporation's approach to managing liquidity is to ensure that it will always have sufficient liquidity to meet its liabilities when they fall due.

The following tables detail the Corporation's remaining contractual maturity for its financial assets and liabilities. It should be noted thatthese values are undiscounted, and consequently totals may not reconcile to the carrying amounts presented in the Balance Sheet.

Weighted Variable Non- Totalaverage interest Under 1 1 to 5 Over 5 interest

Year Years Years bearing% $'000 $'000 $'000 $'000 $'000 $'000

2011 Maturity analysis for Financial Assets & Liabilities

AssetsCash and Deposits 5.25 10,228 - - - 2 10,230 Receivables 15.00 4,886 - - - - 4,886Total Financial Assets 15,114 - - - 2 15,116

LiabilitiesPayables - - - - 4,521 4,521 Borrowings - Deal 13519 7.75 - 1,317 7,710 15,817 - 24,844 Borrowings - Deal 10994 6.82 - - 4,000 - - 4,000 Borrowings - Deal 11710 6.91 - - 3,500 - - 3,500 Borrowings - Deal 14775 6.54 - - 2,000 - - 2,000 Borrowings - Deal 12888 7.32 - - 844 - - 844Borrowings - Deal 13518 7.90 - - 1,000 - - 1,000 Borrowings - Deal 14563 5.45 - - 537 - - 537 Borrowings - Deal 14385 5.34 - - 1,000 - - 1,000Borrowings - Deal 16809 6.70 - - 2,500 - - 2,500Employee entitlements - - - - 2,049 2,049 Net Financial Liabilities - 1,317 23,091 15,817 6,570 46,795

2010 Maturity analysis for Financial Assets & Liabilities

AssetsCash and Deposits 5.25 7,189 - - - 3 7,192Receivables 15.00 4,011 - - - - 4,011 Total Financial Assets 11,200 - - - 3 11,203

LiabilitiesPayables - - - - 5,891 5,891 Borrowings - Deal 13519 7.75 - 1,220 8,656 16,188 - 26,064 Borrowings - Deal 10994 6.82 - - 4,000 - - 4,000 Borrowings - Deal 11710 6.91 - - 3,500 - - 3,500 Borrowings - Deal 14775 6.54 - - 2,000 - - 2,000 Borrowings - Deal 12888 7.32 - - 844 - - 844Borrowings - Deal 13518 7.90 - - 1,000 - - 1,000 Borrowings - Deal 14563 5.45 - - 537 - - 537 Borrowings - Deal 14385 5.34 - - 1,000 - - 1,000Employee entitlements - - - 1,765 1,765 Net Financial Liabilities - 1,220 21,537 16,188 7,656 46,601

Fixed Interest Maturity



19 FINANCIAL INSTRUMENTS cont(d) Market Risk

Market risk is the fair value of future cash flows of a financial insturment will fluctuate because of changes in market prices. The DarwinPort Corporation's market risk comprises interest rate risk. The Corporation has limited exposure to interest rate risk as the Corporation's financial liabilities are non-interest bearing. Borrowings are established on a fixed interest rate and as such do not expose the Corporationto interest rate risk.

Market Sensitivity AnalysisChanges in the variable rates of 100 basis points (1 per cent) at reporting date would have the following effect on the Corporation's profit orloss and equity:

Profit or Loss and Equity 100 basis points increase decrease

$'000 $'000

30 June 2011Financial Assets - Cash at Bank 102 (102)Financial Assets - Receivables 49 (49)Net Sensitivity 151 (151)

30 June 2010Financial Assets - Cash at Bank 72 (72)Financial Assets - Receivables 40 (40)Net Sensitivity 112 (112)

(e) Net Fair Value

The carrying amount of financial assets and financial liabilities recorded in the financial statements approximates their respective valueswith the exception of borrowings from NT Treasury Corporation. The market value of the borrowings at balance date amount to $43,122,609compared to the amount of $40,224,566 reported in the Balance Sheet.

The NT Treasury Corporation fair values are based on discounting the expected future cash flows by applying current market interest ratesfor assets and liabilities with similar risk profiles. Current market interest rates are determined with reference to the Australian FinancialMarkets Association (AFMA) Swap Reference Rates plus a margin. The market rates are then used to discount the expected future cashflows arising from the financial assets and liabilities to their present value. The margin applied to the current market interest rates on theCorporation's loans take into account credit quality and liquidity considerations.

The fair values represent NT Treasury Corporation's best estimate of the financial transaction undertaken.



19 FINANCIAL INSTRUMENTS cont(e) Net Fair Value cont.

2011Financial AssetsCash and DepositsReceivablesTotal Financial Assets

Financial LiabilitiesPayablesBorrowingsTotal Financial Liabilities

2010Financial AssetsCash and DepositsReceivablesTotal Financial Assets

Financial LiabilitiesPayablesBorrowingsTotal Financial Liabilities

Net Fair Value Total

$’000

10,230 4,886 15,116

4,521 43,123 47,644

7,192 4,011 11,203

5,891 42,17348,064

Net FairValue Level 1

$’000

10,230 4,886 15,116

4,521

4,521

7,192 4,011 11,203

5,891

5,891

Total CarryingAmount$’000

10,230 4,886 15,116

4,521 40,225 44,746

7,192 4,011 11,203

5,891 38,945 44,836

Net Fair Value Level 2

$’000

-

43,123 43,123

-

42,173 42,173



20 COMMITMENTS Capital Expenditure CommitmentsEstimated capital & maintenance expenditure contracted for at balance datebut not provided for and payable:Within one yearOne year or no later than five yearsTotal Capital Expenditure Commitments

Other CommitmentsMarine Pilot's Time off In Lieu, accrued as at balance date:Total Other CommitmentsTotal Commitments

21 COMMUNITY SERVICE OBLIGATIONS

Small Craft ServicesCommunity Service Obligation receivedOther revenueTotal revenueTotal costs associated with the delivery of this serviceCSO FUNDING SURPLUS/(DEFICIT)

This Community Service Obligation (CSO) has been provided to the entity by the Department of Lands and Planning to meet operational andgeneral repairs for Frances Bay Mooring Basin, Fisherman's Wharf and Hornibrook's Wharf, including maintenance of a tidal-free facilitythat provides a safe haven for the fishing industry of Northern Australia. Services are also provided to the seafood industry and smallpleasure craft vessels.

CSO revenue for 2010/11 includes one off funding for the Fisherman's Wharf concrete deck repairs of $2,010K. The repair costs are beingexpensed over two financial years while work is being undertaken.

NOTE 2010$’000

1,061 -

1,061

221 221

1,282

280 902

1,182 (1,753)(571)

2011$’000

1,389 -

1,389

297 297

1,686

2,290 758

3,048 (1,991)1,057



21 COMMUNITY SERVICE OBLIGATIONS cont.Tourism & Real EstateCommunity Service Obligation receivedOther revenueTotal revenueTotal costs associated with the delivery of this serviceCSO FUNDING SURPLUS/(DEFICIT)

This CSO has been provided to the entity by the Department of Lands and Planning to meet the Wharf Precinct operating expenses. TheWharf Precinct provides retail outlets and associated facilities, entertainment, infrastructure and services on Stokes Hill Wharf, in supportof general tourism activities.

Cruise & Defence FacilitiesCommunity Service Obligation receivedOther revenueTotal revenueTotal costs associated with the delivery of this serviceCSO FUNDING SURPLUS/(DEFICIT)

This CSO has been provided to the entity by the Department of Planning & Infrastructure to meet operational and repairs and maintenancecosts to support the provision of a cruise shipping and naval presence in the Northern Territory.

NOTE 2010$’000

480 279 759

(2,499)(1,740)

2,661 140

2,801 (3,735)(934)

2011$’000

480 518 998

(2,088)(1,090)

1,546 325

1,871 (3,202)(1,331)



22 CONTINGENT LIABILITIES AND CONTINGENT ASSETS a) Contingent Liabilities

East Arm Wharf Terminal LeaseThe DPC agreed to indemnify the lessee, at clause 17.5, from any loss or claim brought against, incurred or sufferred by the lessee to theextent to which the loss or claim is a result of any pre-existing contamination of the land and subsequent contamination of the land causedby DPC. The DPC further agreed to indemnify the lessee in respect of any loss or claim incurred or sufferred as a result of DPC's failure tocomply with its environmental obligation in clause 17 of the lease.

The lease contains similar indemnities given by the lessee with respect to contamination caused by the lessee and a failure to comply withits environmental obligations. Each party carries the risk to the level of control they may have over the circumstances that may give rise toa liability. The indemnities are reasonable and do not greatly extend the obligations of each party beyond those under common law.

Bunkering At East ArmAn agreement exists between the entity and The Shell Company of Australia Limited ("Shell") dated 27 June 2005 where the Corporationindemnifies Shell against any claim, loss, damage, liability, cost and expense (including but not limited to product loss) that may be incurredor sustained by Shell arising out of any breach of DPC's obligations under the agreement or in connection with any failure or defect in the integrity of the bunker lines.

b) Contingent Assets

Container CraneThe Container Crane located on East Arm Wharf was involved in an incident in January 2011 during high winds and will result in aninsurance claim payable in the 2011/12 financial year. The claim is estimated to be $233,968.



23 EVENTS SUBSEQUENT TO BALANCE DATE No events have arisen between the end of the financial year and the date of this report that require adjustment to, or disclosure in thesefinancial statements.

24 WRITE OFFS, POSTPONEMENTS AND WAIVERS

Write offs, waivers and postponements under theFinancial Management ActRepresented by:Amounts written off, waived and postponed byDelegatesIrrecoverable amounts payable to the Territory or anAgency written offTotal

Amounts written off, waived and postponed by theTreasurerIrrecoverable amounts payable to the Territory or anAgency written offTotal

Write offs, postponements and waivers authorisedunder other legislation

25 BOARD MEMBERS' REMUNERATION

Board Members' Income Level< $10,000$10,001 - $20,000$20,001 - $30,000$30,001 - $40,000$40,001 - $50,000$50,001 - $60,000Total

Total Income Paid or Payable to Board Members

The names of each person holding the position of Advisory Board Member as at the end of the financial year are Mr Chris Bigg (Chairman),Mr Bruce Fadelli, Mr Rod Applegate (appointed August 2010), and Mr Peter Youens (resigned February 2011). The Chief Executive Officer ofthe Darwin Port Corporation is a member of the Advisory Board.

No Advisory Board Member has entered into a material contract with the entity since the end of the previous financial year and there wereno material contracts involving Advisory Board Member's interests in existence at year end.

No. ofTrans.

4

4

3

3

7

No. ofTrans.

3

3

1

1

4

2011$’000

6

6

4

4

10

2011No.

3

1

4

2011$'000

94

2010$’000

3

3

27

27

30

2010No.

3

1

4

2010$'000

87



26 SENIOR MANAGERS' REMUNERATION Senior Managers' Income Level< $100,000$100,001 - $120,000$120,001 - $140,000$140,001 - $160,000$160,001 - $180,000$180,001 - $200,000$200,001 - $220,000$220,001 - $240,000$240,001 - $260,000$260,001 - $280,000$280,001 - $300,000Total

Total Income Paid or Payable to Senior Managers

Senior Managers comprises of Port Management Group.

The names of each person holding the position of senior management which forms thePort Management Group during the financial year are as follows:

Mr Robert Ritchie as Chief Executive Officer until May 2011Mr Terry O'Connor as Chief Executive Officer from May 2011Mr Terry O'Connor as General Manager Landside Operations until May 2011Mr Mathew Phillips as General Manager Landside Operations from May 2011Mr Peter Hopton as General Manager Commercial from November 2010 until June 2011Captain John Ellyett as General Manager Marine ServicesCaptain Ian Niblock as Harbourmaster from October 2010Mrs Anne Coulter as Chief Financial OfficerMr Alastair Black as Engineering ManagerMrs Melissa Reiter as General Manager Corporate ServicesMr Peter Raines as General Manager City Wharves from September 2010

27 AUDITORS REMUNERATIONAuditors Remuneration - auditing financial reports

2011No.

1

3112

8

2011$'000

1,481

2011$'000

46

2010No.

1

31

21

8

2010$'000

1,217

2010$'000

48



28 SEGMENT INFORMATION

Industry Segment

Revenue outside the entity

Total Revenue

Segment OperatingSurplus/(Deficit)

Surplus/(Deficit) fromOrdinary Activities afterIncome Tax

Segment assets

Total Assets

2011$’000

37,879

37,879

758

758

230,700

230,700

2010$’000

39,555

39,555

331

331

228,744

228,744

2011$’000

6,834

6,834

(550)

(550)

2,769

2,769

2010$’000

7,534

7,534

(2,505)

(2,505)

2,746

2,746

2011$’000

25,035

25,035

4,451

4,451

199,525

199,525

2010$’000

26,803

26,803

7,307

7,307

197,833

197,833

2011$’000

6,010

6,010

(3,143)

(3,143)

28,406

28,406

2010$’000

5,218

5,218

(4,471)

(4,471)

28,165

28,165

City Wharves East Arm Wharf Navigation &Pilotage

Darwin PortCorporation

During the financial year the entity has operated under a line of business structure.Overhead costs have been apportioned as a percentage basis over the three lines of business.The major services from which the above segments derive revenue are:

Industry Segment Service

City Wharves Wharf Precinct Retail, Stokes Hill Wharf, Fort Hill Wharf, Mooring Basin, Fisherman's Wharf,Hornibrooks, Sadgroves Creek Moorings

East Arm Wharf East Arm Wharf, Bulk Loader, Container Crane, Land Rental, Incinerator

Navigation & Pilotage Pilotage, Port Dues & Harbour Services, Moorings & Anchorages, Navigational Aids

The entity operates wholly within the Northern Territory.


Abbreviations


AAPMA Association of Australian Ports and Marine Authorities (now Ports Australia)AIS Auto identification SystemAMSA Australian Maritime Safety Authority CSO Community Service ObligationDBE Department of Business and EmploymentDCP Darwin Consulting PsychologistsDOTARS Department of Transport and Regional ServicesDPC Darwin Port CorporationEAP Employee Assistance ProgramEBIT Earnings Before Interest and TaxEDRMS Electronic Document Records Management System EEO Equal Employment OpportunityFTE Full Time EquivalentEMS Environmental Management SystemGST Goods and Services TaxHSEC Health, Safety and Environmental CommitteeIFRS International Financial Reporting StandardsIMC Information Management CommitteeJCC Joint Consultative CommitteeKPI Key Performance IndicatorMSIC Maritime Security Identification CardMOU Memorandum of UnderstandingMT Motor TankerMTPA Million Tonnes per AnnumNT Northern TerritoryNTG Northern Territory GovernmentNTPS Northern Territory Public SectorNRETAS Natural Resources, Environment, The Arts and SportOCPE Office of the Commissioner for Public EmploymentOH&S Occupational Health & SafetyORA Operational Risk AssessmentPER Public Environmental ReportPIPS Personnel Information & Payroll SystemPMBOK Project Management Body Of KnowledgePMG Port Management GroupPMS Port Management SystemPPE Personal Protective EquipmentPSEMA Public Sector Employment Management ActQA Quality AssuranceRMAA Records Management Association of AustraliaRMS Records Management SystemSRA Strategic Risk AssessmentTEU Twenty-foot Equivalent UnitTPH Tonnes per HourTRIM Tower Records Information Management SystemVTS Vessel Traffic SystemWOG Whole-Of-Government

Abbreviations


We’d appreciate your feedback

As part of the Darwin Port Corporation’s policy of continuous improvement and in order to meet the needs of our stakeholders we welcome your comments on our latest annual report.

Please copy this form, complete it and either fax to (08) 8922 0666, email [email protected] or post to Darwin Port Corporation, GPO Box 390, Darwin NT 0801.

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Chief Executive OfficerMr Terry O’ConnorTelephone: 08 8922 0644Facsimile: 08 8922 0666

HarbourmasterCaptain Ian NiblockTelephone: 08 8999 3867Facsimile: 08 8941 2039

General ManagerCorporate ServicesMrs Melissa ReiterTelephone: 08 8922 0626Facsimile: 08 8922 0666

A/General ManagerLandside OperationsMr Matthew PhillipsTelephone: 08 8947 7221Facsimile: 08 8984 3926

General ManagerMarine ServicesCaptain John EllyettTelephone: 08 8999 3949Facsimile: 08 8941 2039

Chief Financial OfficerMrs Anne CoulterTelephone: 08 8922 0622Facsimile: 08 8922 0666

Engineering ManagerMr Alastair BlackTelephone: 08 8922 0650Facsimile: 08 8922 0666

General ManagerCity WharvesMr Peter RainesTelephone: 08 8943 6182Facsimile: 08 8981 9130

Street AddressDarwin Port CorporationAdministration BuildingExport DriveBerrimah NT 0828

Email [email protected]


http://www.darwinport.nt.gov.au

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