Port of Newcastle (PoN) will start building a large-scale container terminal as soon as possible after the NSW Government agreed to scrap excessive fees designed to curb competition.
The Lower House this week passed a bill, conveyed by Lake Macquarie Independent MP Greg Piper, to abolish hefty costs PoN was required to pay if it developed a depot big enough to rival Port Botany and Port Kembla.
The original pact resulted from a privatisation agreement by ex-Premier Mike Baird’s government when it sold the Sydney and Wollongong ports for $5.1 billion in 2013 to a consortium of super funds.
NSW Nationals Senator Ross Cadell labelled the outcome a “game-changer” for the region.
“This new deal removes Sydney-based barriers for the Hunter, building a better future for our families,” he said.
“The Port of Newcastle is committed to developing a world-class container terminal, which will boost international trade, generate jobs and business opportunities across regional NSW.
“A diverse strong and resilient Hunter is essential for a financially strong state.”
Mr Cadell added the PoN now had the potential to entice further prospects throughout the Mid-North Coast and New England regions.
“A container terminal in Newcastle has the capacity to cut the cost of grain rail freight by $16 to $22 per tonne – putting huge dollars back in the pockets of growers and the local economy,” he said.
“I congratulate the NSW Government for working co-operatively with Greg Piper and the PoN to deliver this exciting result.”
NSW Farmers president Xavier Martin echoed Mr Cadell’s sentiments.
“There’s no point growing food and fibre if you can’t ship it to your customers,” he said.
“The Hunter is the largest regional economy in Australia, driving about 28% of regional NSW’s total economic output.
“And, the Port of Newcastle has enormous potential to help our farmers be more globally competitive.”
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