Companies Unite In Bid To Double Output
Newcastle Herald
Tuesday July 29, 2008
THE Hunter's 14 coalmining companies will work together to double the output of coal from the Port of Newcastle over the next five years.
The arrangement is likely to result in at least $2.5 billion being invested in rail and port infrastructure to lift the capacity of the Hunter Valley coal chain to more than 210 million tonnes by 2013.Ports Minister Joe Tripodi said yesterday the industry had agreed to a plan of coal-loader access worked out after months of talks with former premier Nick Greiner.The State Government unveiling of the Greiner plan represents the formal announcement of a capacity-doubling strategy revealed earlier this month by The Herald.Under the plan, a Hunter Valley Coal Chain co-ordinator will be appointed to oversee the industry.With demand still far outstripping capacity, the coal and transport companies have agreed to a new method of allocating access to the overworked Port Waratah Coal Services coal loaders at Kooragang and Carrington.The agreement will eventually end decades of "common user" access to the main Kooragang coal terminal, replacing this with long-term "take or pay" contracts for companies wanting to use the facility.The sole sticking point to the agreement has been the treatment of new players in the industry, with Mr Tripodi saying he will take the issue to the Australian Competition and Consumer Commission if necessary.
© 2008 Newcastle Herald