A deepwater container terminal is one step closer after the appointment of an independent valuer to determine Port of Newcastle's container reimbursement provisions.
Subscribe now for unlimited access to all our agricultural news
across the nation
$0/
(min cost $0)
or signup to continue reading
The valuation is the final step in removing the container cap imposed on the Port of Newcastle and allow the construction of the more than $2.4 billion automated deepwater container terminal to begin.
Port of Newcastle has been operating under a container cap restriction where the original long-term lease arrangements dictated that if they exceed the cap, the port was to reimburse the NSW Government.
The amount Port of Newcastle will pay to remove this liability, creating an opportunity for the development of the container terminal, will be determined by the Independent Pricing and Regulatory Tribunal under the Port of Newcastle Extinguishment of Liability Act 2022.
The legislation provides six months for the valuation to be completed, with another six months available if proven necessary.
Once the valuation is completed and agreed upon, the terminal construction can begin and will take between five to seven years to complete, all things going well.
Port of Newcastle CEO Craig Carmody said the port was pleased with the appointment of a valuer and that the announcement marks a significant milestone in securing the future of the port and the region in general.
ALSO READ:
"This announcement is momentous for the Port of Newcastle, the Hunter and Northern and Western NSW. That is why it has support from all sides of politics," Mr Carmody said.
"At the Port, we have never been shy in speaking about our need to diversify our trade in order to future-proof the Hunter and continue to drive jobs and investment in our region.
"This will create new opportunities for exporters and importers that will ultimately lead to benefits for consumers.
"Now that the treasurer has appointed the independent valuer, we look forward to seeing the process through to completion over the next six months."
The Newcastle deepwater container terminal (NDCT) will have direct ship-to-rail capability and boast a throughput of two million 20-foot equivalent units (standard 20-foot containers per year.
Treasurer Matt Kean announced the appointment of the valuer at the port and said Port of Newcastle needed more investment certainty to build a container terminal.
"Our ports are the state's gateway to the world, helping connect NSW farmers and energy producers with overseas markets to grow the economy," Mr Kean said.
"We recognise that Port of Newcastle wants further certainty around the cost to build a terminal.
"This determination will provide a pathway for Port of Newcastle to invest confidently in a container terminal if it chooses to do so, helping to keep pace with a constantly changing global market and keeping our competitive advantage."
Throughout the valuation and construction processes, the port will rely upon the two Liebherr LHM 550 mobile harbour cranes, which were part of a $28.4-million investment last year.
"The mobile cranes allow for a pathway for importer and exporter operations to continue while the construction of the deepwater terminal is completed," a port spokesperson said.
"With the removal of the cap, we now have the opportunity to create new trade deals without worrying if we will breach the limit."
