Newcastle could establish NSW’s 2nd container port

The Port of Newcastle is close to realising its ambition of becoming New South Wales’ second container port, bringing competition back into import export, following a determination from the Independent Pricing and Regulatory Tribunal’s (IPART).

IPART determined that the port was required to make a one-off compensation payment of $10,120,000 (approx. $13,100,000 when adjusted for CPI) to the state under the Port of Newcastle Extinguishment of Liability Act 2022 (NSW).

The Newcastle Herald reported that this meant the port was free to establish a container terminal – something previously not available because of anti-competitive measures enacted when Sydney ports were privatised.

However according to Port of Newcastle CEO Craig Carmody (pictured), the port had one final regulatory roadblock to remove before meaningful progression can occur on a container terminal.

Carmody said: “Today is a significant and historic milestone for Port of Newcastle and regional NSW, a path forward that means we will no longer be penalised for wanting to offer choice and competition in NSW container trade.”

In question is the NSW Freight Reform Review, which is a determinant of state planning decisions.

“We now need to ensure the NSW Freight Reform Review, which the NSW government has commenced, also reflects the decision by Parliament to promote competition through the Port of Newcastle Extinguishment of Liability Act.

“The current Freight and Ports Policy states that Port Kembla is the designated second port for a container terminal in NSW, which impacts Port of Newcastle’s ability to get planning approvals for its own container terminal.”

Carmody called for a level playing field for competition rather than the state trying to pick winners.

With the legislative process nearing completion and the NSW Freight Reform Review underway, Port of Newcastle will continue to focus on growing exiting container trade through its new Multipurpose Terminal.

“Our immediate focus will be the continued growth of container trade through our existing Multipurpose Terminal, which we have invested over $35 million in and currently has planning approval for 350,000 containers a year.”

Picture: Port of Newcastle CEO Craig Carmody