IPART and the Port of Newcastle

Today’s decision of the Independent Pricing and Regulatory Tribunal (IPART) on the Port of Newcastle compensation creates a tremendous opportunity for the Hunter region and provides an affordable path to undo the outrageous restrictions placed on them by the previous government.

Indeed, it’s a fantastic result for the port, the region and communities extending right through and to the state’s north-western areas. Manufacturers and farmers will be huge beneficiaries of a new and world class container terminal when completed by the Port of Newcastle.

For too long our region has been constrained by commercial lease arrangements signed off by the then Government in 2013 and 2014. These arrangements required the State to pay the operators of Port Botany and Port Kembla when certain preconditions relating to container traffic at the Port of Newcastle are met. They also require the operator of the Port of Newcastle reimburse the State for those payments.

Effectively these lease terms operate as a cap on the amount of container shipments that can pass through the Port of Newcastle. In 2022 I introduced the Port of Newcastle (Extinguishment of Liability) Bill 2022 to create a legal pathway to remove this cap and put the Hunter region on a level playing field.

Historically the Port of Newcastle has primarily been used for coal exports but the coal industry has a limited lifespan. The decline of the coal industry will be a difficult transition for the Hunter. The diversification of the Port of Newcastle and the creation of a deepwater container terminal has the potential to create thousands of jobs and will help to future proof our region’s economy.

There will always be a need to transport and goods and services by sea. Having a deepwater container terminal based in the Hunter will be a win for local industries, local jobs and the local economy.

Image - Concept design for deepwater container terminal in Mayfield.