The Port of Newcastle bill that will enable the world’s largest coal port to become a container terminal has passed the final hurdle.
The NSW Government has appointed the Independent Pricing and Regulatory Tribunal (IPART) as the independent assessor to work out how much the Port of Newcastle needs to pay to get itself out of the restrictions imposed by a deed signed with the NSW Government.
Independent Lake Macquarie MP Greg Piper successfully had the Port of Newcastle (Extinguishment of Liability) Bill 2022 passed through both houses of parliament late last year.
The bill effectively unshackles the Port from a crippling compensation deal signed off by the NSW Government and NSW Ports back in 2013, which imposes financial penalties on Newcastle Port, if it exceeds 50,000 movements per year.
The deal created a monopoly of container handling in the state for Port Botany and Port Kembla.
“The independent pricing watchdog is a good choice and is well equipped to determine what the Port of Newcastle would have paid for an unrestricted lease on the port,” Greg Piper said.
“My Bill is now doing what it was intended to do for the Hunter Region – remove the Sydney monopoly on containers and provide a fair and equitable pathway for Port of Newcastle to compete on a level playing field.
“The Port of Newcastle has made its intentions very clear and is ready to invest more than $1.4 billion in diversifying the port and creating thousands of new jobs. I continue to meet with the port executive team and I know they’re keen to get things moving.”
IPART will have six months to deliver a final figure.
NSW Treasurer and Energy Minister Matt Kean was in Newcastle to confirm the news today.
“Those provisions are about getting a fair deal for taxpayers but also giving certainty to the Port of Newcastle and the broader Hunter community.
“Our ports are the gateways to the world and they are critically important to our farmers and our energy producers.
“Today’s decision is about providing certainty.”