Bloomberg reported that Fortescue Metals Group Ltd Australia third largest iron ore producer expects to receive government approval to develop a fifth berth at Port Hedland as soon as next month as the company plans to triple output.

Mr Peter Meurs development director said “We think it’s as close as the next month or so, during February. A fifth berth will increase efficiency of loading and exporting.”

Mr Malcolm Southwood a commodities analyst at Goldman Sachs Australia Pty said Fortescue controlled by Australia richest man Mr Andrew Forrest is spending USD 8.4 billion on building export capacity to 155 million tonnes a year by 2013. The company joins BHP Billiton Ltd. in expanding at the port as iron ore demand is set to remain strong.

He said that Fortescue already has approval from the port authority to build a fourth shiploader that will be sufficient to move almost all of the expanded iron ore production. It can probably ship all of its planned output from four berths, though an extra berth would be more efficient.

He added that “Having a fifth berth simply allows you to have a ship on a lay-by berth waiting while you’re loading another ship.”

(Sourced from Bloomberg)