Cement Australia will spend A$30m over three years to knock down two smaller silos and build a larger one, increasing overall storage capacity at the Devonport wharf. Loading facilities would also be expanded.
A shortfall in Cement Australia’s current storage capacity last week cost the company A$30,000 a day in charges while a ship waited to load bulk cement.
Cement Australia general manager supply chain Murray Adams said the A$30m investment showed the company had confidence in the Railton plant’s long- term future.
Mr Adams said work would start in 2011 on the staged replacement of two 2000t silos with one the size of the bigger silos.
"Upon completion of the project, Cement Australia will have three 10,000t silos. Additionally, there will be an upgrade to the rail offloading facilities, which is expected to be completed in 2013," Mr Adams said.