EXPRESSIONS OF INTEREST FOR THE SALE/LEASE OF THE SOUTH AUSTRALIAN PORTS CORP BUSINESS

The State Government of South Australia (“the State”) is offering the South Australian Ports Corporation business (“Ports Corp”) for sale/lease through an open tender process. Ports Corp owns and manages the following seven main State owned commercial ports in South Australia: Port Adelaide, Port Lincoln, Port Giles, Thevenard, Wallaroo, Port Pirie and Klein Point. Interested parties have the opportunity to acquire a 99 year lease of port land and ownership of other port assets including wharfs, piers, buildings, plant and equipment and Port Corp’s business contracts. For the 12 months ended 30 June 2000, Ports Corp had a record trade volume of 13.4 million tonnes, resulting in revenues of AUD$36.2 million and earnings before interest and tax of AUD$14.5 million (proforma). The sale of Ports Corp represents an unparalleled investment opportunity in the port industry in Australia. The sale/lease of Ports Corp is the first occasion whereby an Australian capital city port (Port Adelaide) has been offered for sale. An Information Brief including details on the Ports Corp business, the sale process and how to formally submit an Expression of Interest can be obtained by registering interest on-line at the South Australian Government’s Tenders & Contracts website at www.tenders.sa.gov.au or by contacting: Mr James Hatherley, Director, Arthur Andersen Corporate Finance Telephone [phone hidden] Facsimile [phone hidden] [email hidden] Interested parties should lodge their Expressions of Interest on or before 5.00pm Monday 2 April 2001, in the Department for Administrative and Information Services Tender Box located on Level 4, 50 Pirie Street, Adelaide, South Australia, or lodge electronically at www.tenders.sa.gov.au Questions and Answers regarding the Information Brief In response to generic type questions that have been asked by people as a result of reading the Information Brief, clarification answers that may be helpful to others are provided below to typical questions. Further questions and answers may be posted below up to the lodgement date of Monday, 2 April. Divestment of Ports Corp Expressions of Interest Phase Questions and Answers in respect of Information Brief Question 1 Is it necessary to have an established grain handler as a member of our bid consortium? Answer 1 No, this is not a requirement. The State is in consultation with the South Australian Farmers Federation Grains Council Executive (“SAFFGC”) for the purpose of identifying the preferred grain handler that will have the right to develop and operate the proposed Outer Harbor Grain Terminal at Port Adelaide comprising a grain receival, storage and loading facility. It is the State’s intention to require, as a condition of divestment, a contractually binding commitment from the purchaser to build the port infrastructure described on page 6 of the Information Brief, necessary to support the Outer Harbor Grain Terminal. Question 2 What is the specific interpretation of the Government##s policy position prohibiting Government Owned Port Authorities and Corporations from bidding for Ports Corp in their own right or participating as a member of a consortium bidding for Ports Corp? Answer 2 100% Government owned Port Authorities and Port Corporations are prohibited from bidding for Ports Corp in their own right. However, Government Owned Port Authorities and Port Corporations outside Australia and New Zealand will be permitted to participate as a member of a consortium bidding for Ports Corp provided the total beneficial equity interest of such entities in the bid consortium is less than 50 percent and these entities do not control the consortium/bid vehicle within the meaning of Section 50AA of the Corporations Law. Australian and New Zealand Government Owned Port Authorities and Corporations are prohibited from acquiring Ports Corp in any capacity. Question 3 Is the Port Adelaide container terminal included in the divestment? Answer 3 The existing container handler at the Outer Harbor container terminal has an operating agreement with Ports Corp that will transfer with the business. Ports Corp is not involved in the handling of containers but provides the necessary supporting port infrastructure, for which it levies charges on container cargo. Further information relevant to the divestment of Ports Corp can be obtained from the following 2 websites: DAIS Initiatives - www.dais.sa.gov.au/initiatives/ports/ports.html This web site contains information on the following: - Media Releases - Newsletters and Reports - Public Discussion Forum - Ministerial Statements - Legislation - Links to Other sites From Ports Corp - www.portscorp.sa.gov.au The Ports Corp web site includes the following: - Annual Report, 1999/2000 - Information Kit