BHP Will Beef Up Hedland Port, Acquire Tugs

BHP Billiton said on Tuesday it will spend $240 million upgrading its marine iron ore facilities in Western Australia.

The funds will be used to purchase six tug boats and build a new tug harbor in the Port Hedland Port, with construction due to be completed in the September 2016 quarter.

BHP is expected to show it shipped a record 250 million tonnes of iron ore through the port in fiscal 2015. when it releases its year-end operations report on Wednesday.

"This project will enable BHP Billiton to safely meet projected demand for tug services and effectively manage shipping risk for all users of the Port Hedland Port," BHP iron ore division head Jimmy Wilson said in a statement.

Port Hedland, which is also used by iron ore miner Fortescue Metals Group, shipped a record 446.9 million tonnes of cargo in the 12 months to June 30, port data shows.

Iron ore exports for the year climbed to 439.6 million tonnes, up by 75.2 million tonnes from the previous year. (Reporting by James Regan