Service review dredges up savings for Council

Published 4th August 2023

SERVICE REVIEW DREDGES UP SAVINGS FOR COUNCIL

MEDIA RELEASE - 4 AUGUST 2023

Council continuously reviews its operational service delivery to look for efficiency gains, and recent focus has been on dredging activities at Cape Jaffa.  The Kingston District Council is therefore excited to announce it has entered a long-term partnership with South Australian owned company Maritime Constructions, which will see considerable cost savings in dredging operations at the Cape Jaffa Marina.

Council has owned and operated its Damen Cutter Suction Dredge since mid-2018 and until recently, was the only dredge owned by a South Australian Council.  In reflecting on the Council’s original decision to procure the dredge, Chief Executive Officer Nat Traeger said, “it was a bold and innovative solution to sand bypassing at the time, and without question, the most significant purchase the Council has undertaken in terms of logistics of an overseas purchase, transportation, assembly and ensuing successful operation.”

“It is a credit to Council staff that they have successfully managed the dredging program at Cape Jaffa for five-years”, she said.  “However, when it is all said and done, this is a specialised activity and our team, small and mighty as they are, have the opportunity to achieve significant efficiency gains and cost savings, with outsourcing the service to a reputable and experienced operator”.

Mayor Jeff Pope indicated that the decision was not taken lightly.  “Council has been deliberating its options since January 2022, and has undertaken considerable financial and service analysis, due diligence and prudential reviews to ensure the best possible outcome for our community”.

The Council anticipate that over a ten-year period, cash benefits of close to one million dollars can be realised, not to mention efficiency gains by not having to manage such a complex and risky undertaking.

Mayor Jeff Pope confirmed that it was very much a risk-based decision, with investigations revealing that entering a contract with Maritime Constructions, who has impressive maritime experience and credentials, carried significantly less risk compared to the Council continuing to undertake dredging in-house.

“With cash benefits, efficiency gains, risk mitigation and no change to existing service standards, whilst it took eighteen months to make, at the end of the day, the decision was obvious and one we (the Council) made unanimously”, Mayor Pope said.

The Damen Cutter Suction Dredge has now been removed from the water by crane, and dismantled piece by piece, in preparation for its five-yearly out of water survey.  Ms Traeger indicated that this process alone was a mammoth and expensive task, and that as part of negotiations with Maritime Constructions, further cost savings to Council have been achieved.

Maritime Constructions’ Chief Executive Officer Shane Fiedler said, “we are very proud to be partnering with the Kingston District Council on their maintenance dredging requirements. By working together and adopting a pragmatic and long-term partnering approach, Council and Maritime Constructions have combined to achieve the surety of scheduled ongoing dredging services for the Council, whilst also facilitating the deployment and higher utilisation of a modern cutter suction dredger to service the wider South Australian market”.

“This partnership has resulted in the creation of new fulltime jobs for skilled workers in SA along with multiple training and development opportunities. We look forward to working with Nat and her team at Kingston District Council on this exciting venture.”

With the disposal of the dredge and contract secured for future dredging campaigns, the Council will now turn its attention to disposing of the Coomera support vessel, which is no longer required because of this decision, with further cost benefits anticipated in the process.

- ENDS –

Contact:

Nat Traeger

CHIEF EXECUTIVE OFFICER | KINGSTON DISTRICT COUNCIL

Phone: 0408 809 712 | E: ceo@kingstondc.sa.gov.au