Construction on the development is expected to begin by the end of this year, with the port outgrowing its current capacity.

“We expect to be handling over 3 million tonnes of plantation-grown hardwood chips per annum from 2011 and currently the port can only handle one quarter of this volume,” said POPL chief executive Scott Paterson. “Therefore we needed to urgently seek ways to increase our capacity to handle the estimated A$300 million in exports.”

After expressions of interest were sought, 20 companies were asked by POPL to submit proposals.

“Nine strong proposals were received and a comprehensive evaluation was done before we selected Gunns,” said Paterson.

Gunns will fund and operate the new facility, building on existing plans from the now-defunct Great Southern and Timbercorp.

“This is a strong and positive step forward in developing the region’s growing export trade,” said Gunns chief executive Greg L’Estrange. “Gunns own almost 50,000 hectares of plantation land in the Green Triangle Region and we operate the region’s largest pine sawmill, timber treatment plant and export woodchip facility.”

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