Thursday 16 August 2018

Talks Dissolve, but Hope Still for Container Terminal

BY LAUREN FREEMANTLE

The Port of Newcastle says they have received a couple of unsolicited offers from companies interested in building a container terminal here.

It comes as negotiations with terminal operator DP World come to a close, with the parties unable to agree on a proposal which they both felt was viable and competitive.

Port of Newcastle Chairman Roy Green is remaining optimistic, saying it represents an opportunity to forge new partnerships.

"I'm absolutely confident," he said, "the impression may have been given by the breakdown of talks that the discussions were over for a container terminal - that is far from being the case...

"We believe there is an economic case to be made for the terminal and the proponent would not have entered into that discussion unless there was one.

"We've now concluded that discussion," Professor Green continued, "and we'll move on because we do have one or more unsolicited proposals, including one from a very major global operator."

There's speculation DP World could now link up with Port Botany bosses to work on a rival terminal at Wollongong.

However Port of Newcastle Chairman Roy Green says that's not the issue at hand.

"There's every possibility they will want to do that," he said, "we have no objection to that, they're entitled to do so as a private company like us.

"All we require is that, as a private company, we are free from competition restrictions and are able to operate on a level playing field."

Professor Green is referring to an ACCC investigation currently underway into a 2013 NSW Government deal preventing Newcastle from building a container terminal to the detriment of Port Botany.

The so-called secret deal has been slammed by state Labor as a "port rort" which reportedly has seen $75,000 of public money spent on bankers, lawyers accountants and PR experts to make it happen.

Maritime and Freight Minister Melinda Pavey told Newcastle MP and the parliament in June that 85% of containers which come into NSW are distributed within a 40km radius of Port Botany, and it's the industry that decides where those are distributed.

It's expected the ACCC will release their findings by the end of this year.