A fresh investment in Port Hedland will create 200 jobs, BHP said.
Around US$240 million will be spent on construction of a new eight-pen tug harbour at Hunt Point, as well as an additional six tugboats to meet projected increasing demand for the iron ore port.
The project will also include upgrade of workshop facilities, operational and service berths, and two small boat moorings at the Nelson Point tug harbour.
BHP iron ore president Jimmy Wilson said would ensure continued safe escort of vessels to and from Inner Harbour.
“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,” he said.
Works will begin in the December quarter, to be completed in the September quarter 2016.
The new harbour will improve on previous designs and require minimal dredging and marine infrastructure.