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Business

Bundaberg Port project on schedule, budget despite parties 'in talks' after voluntary administration

A multi-million-dollar project to improve ship loading capacity and export opportunities in regional Queensland remains on track, despite the contractor's parent company plunging into financial turmoil. 

The Port of Bundaberg is a key site for shipping sugar, timber products and agricultural produce to Australian and overseas suppliers.

The Common User Infrastructure (CUI) project will build a bulk goods conveyer facility to help increase exports of bulk commodities.

The project has received almost $18 million in federal funding.

The contract was awarded to Clough Projects Queensland in July, but its parent company went into voluntary administration earlier this month to undergo a restructure.

Sugar Terminals Limited (STL) said it was "in talks" with Clough about "options to complete the construction" of the project.

STL chief executive David Quinn said the company "remains committed" to delivering the facility as soon as possible in 2023.

"The civil works for the CUI project are almost complete," he said.

"The Clough team was due to mobilise to site on 9 January 2023 to begin construction of new multi-use infrastructure at the Port.

"Discussions are ongoing with Clough to determine the most viable option to see the project delivered."

But Mr Quinn said the work was on schedule and on budget.

No delays despite parental turmoil

Port operator Gladstone Ports Corporation said it also remained committed to the project.

"The parties are meeting regularly to ensure the project continues to move forward," it said in a statement.

Meanwhile, Clough said works for the CUI infrastructure were progressing well and it did "not envisage any delays due to the issues that have surrounded other Clough entities over the past week or so".

'See it done'

The project has been in the pipeline for years, but delays in approvals resulted in the cost blowing out by almost $8 million.

"We had the money for this prepared literally years ago as part of the Hinkler Regional Deal," Hinkler MP and former federal resources minister Keith Pitt said.

Transport and Main Roads Minister Mark Bailey's office was contacted for comment, but it had not responded by time of publishing. 

State member for Bundaberg Tom Smith declined to comment, however, Mr Pitt said the "critical" infrastructure would mean "a very long future" for the Port of Bundaberg.

"It is a missing link in terms of the infrastructure at the port," he said.

"They [companies] have to be able to load and unload at the facility in a way that is competitive and cost effective.

"I just want to see it done."

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