Greiner Asked To Solve Port Crisis

Sydney Morning Herald

Saturday January 5, 2008

Brian Robins

THE bottleneck at the state's largest port has become so bad the NSW Government has appointed the former Liberal premier, Nick Greiner, to find a solution.

Congestion at Newcastle port could cost the state $2 billion in coal exports this year.

The Ports Minister, Joe Tripodi, said the industry had asked for an independent arbiter with knowledge of business and government to solve the problem. Asked if he was surprised to be approached by a Labor government, Mr Greiner said "yes". He is expected to meet the parties next month.

Late last year Hunter Valley coal producers said they could sell as much as 116 million tonnes of coal abroad in 2008. But shipments are likely to reach only 95 million tonnes due to a lack of port capacity.

In 2007, the coal industry shipped 85 million tonnes of coal through Newcastle, several million tonnes less than what could have been exported.

The Australian Competition and Consumer Commission rejected a proposal from some of the large coal producers in the Hunter Valley, along with rail groups Pacific National and Queensland Railways, which would have squeezed a number of smaller miners from using the Newcastle port this year.

Hunter Valley coal producers said the state stood to lose $2 billion in export revenue if the port's export capacity did not improve. "In the initial round of [port] requests through the producer group, the total indicated was 116 million tonnes..." one coal industry adviser said.

Some miners had looked at using Port Kembla, but "getting slots through the rail system is all but impossible".

A group of the region's miners are planning a new coal loader at Newcastle, with initial 33 million tonne a year capacity, which is to operate from 2010.

© 2008 Sydney Morning Herald

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