Kotug Australia and Westug have successfully concluded an agreement wherein Kotug will take over all towage services on behalf of Pilbara Marine, the Port Hedland-based subsidiary of Fortescue Metals Group.
The service includes the operation of nine tugs that have been servicing Fortescue and other port users since the commencement of operations at Port Hedland in 2019.
The boards of both companies have agreed that Fortescue’s Port Hedland towage business will benefit from having a single party managing operations.
Kotug will retain its existing head agreement with Pilbara Marine, requiring the company to supply tugs and have overall responsibility for the delivery of Port Hedland towage services.
The operation of the towage services was previously sub-contracted to Westug. However, Kotug will now assume control upon Westug exiting the business and will directly manage the towage operation at Port Hedland.
All existing Westug personnel will be transferred across to Kotug as part of the new agreement.
The recently concluded cooperation between Kotug and Westug at Port Hedland lasted nearly three years.
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