this could delay developments a bit (unless its sold off quickly...

this could delay developments a bit (unless its sold off quickly in which case it might speed things up)...

Sell coal terminal to 'ensure expansion'June 2, 2009 - 12:14PM
Selling North Queensland's Abbot Point coal terminal near Bowen will guarantee its expansion and growth, Queensland Premier Anna Bligh says.

The terminal is one of several major public assets the state government on Tuesday announced would be sold off to plug a $14 billion hole in its budget.

Ms Bligh said the terminal is a very important part of the coal export supply chain.

"While the coal companies are enduring a drop in demand from world markets, their medium to long term forecasts for volume have not changed," she told parliament.

Ms Bligh said Abbot Point's current expansion would lift exports from 25 million to 50 million tonnes of coal a year, at a cost to the public purse of $800 million.

"Abbot Point's long term plan... to export between 80 and 100 million tonnes a year can only be achieved with significant new investment of funds," she said.

"Those funds in my view, are best sourced from the private sector.

"The private sector is in a good position to invest in the infrastructure needed to export coal.

"That's the business the private sector should be in - the public sector should be in the business of investing in schools, and hospitals, and roads, and the services that people need," she said.

The premier said one option is to put the business up for sale as an integrated asset with a supply chain that goes across both rail and port.

Ms Bligh said this would avoid some of the delays and bottlenecks caused in the past because rail and port capacity haven't matched each other.

"If that happens we will see... Abbot Point and that supply chain system grow to be one of the most effective, efficient and strongest coal export chains in Australia and arguably the world.

"It will grow local jobs. More importantly, it will grow prosperity for the whole region and indeed the whole country," she said.