newcastle port

This article was in the Australian today by Lenore Taylor,while it is not about DBCT what is going on at Newcastle port is of interest

"
AUSTRALIA'S largest coal export port risks descending into chaos - and the queues of coal ships off Newcastle to grow - after the collapse of five years of negotiations between the industry and the NSW government over port sharing.

The last-minute breakdown saw the competition regulator finally pull the plug on an interim agreement that had allowed competing coal companies to share the Hunter Valley port's limited loading capacity.

With the queue of 41 ships waiting off Newcastle now certain to grow, NSW Ports Minister Joe Tripodi and the existing port operator - Rio Tinto-backed Port Waratah Coal Services - blamed the new BHP-backed coal loader for reneging on the long-term port and railway deal.

But sources close to BHP's Newcastle Coal Infrastructure Group claimed the agreement to end bottlenecks at the crucial coal port - hailed earlier in the year as a landmark breakthrough - had been significantly changed by the other parties in the lead-up to the weekend deadline for a final signing-off.

NCIG is building the first stage of its new coal-loading facility, but sources said that among the alleged changes was a requirement that it commit to a second stage, for which it has not yet completed a feasibility study.

Whatever the cause of the last-minute collapse over the weekend in the negotiations, it was the final straw for the Australian Competition & Consumer Commission.

The ACCC has been warning the parties for years that it would not continue to extend approval for the interim infrastructure-sharing agreement, which would have otherwise breached federal competition laws.

"We told them again and again in the strongest possible terms that time was running out, that they could not continue to use us as a comfort blanket," ACCC chairman Graeme Samuel told The Australian last night.

"We hope this might hasten an agreement."

Mr Tripodi said it was "disappointing one producer was holding out on a final solution that all other coal producers have accepted as necessary for the future of the Hunter coal industry".

It is understood he is seeking to meet the parties today.

But he said last night that if a three-way deal could not be reached he would impose a short-term infrastructure-sharing solution through regulation and eventually cut a bilateral deal between the government-owned Newcastle Port Corporation and Port Waratah Coal.

Port Waratah general manager Graham Davis said he was disappointed NCIG had failed to sign the agreement and indicated he was also heading for a bilateral arrangement.

"There is still enormous scope to make progress with the NSW government and this is where PWC's efforts will be focused from now on," he said.

Mr Samuel said he would consider approving a bilateral deal, which could still deliver the "bulk of the benefits".

NCIG - a six-company consortium that, as well as BHP, includes Centennial Coal and Peabody Energy - refused to comment.

The interim arrangement now banned by the ACCC had imposed quotas for the many coal exporters trying to use the port.

The long-term agreement that has now collapsed involved clear contractual arrangements requiring exporters to pay for an agreed amount of port capacity. This would give port and rail operators the necessary certainty for the billions of dollars in investment that could ease the capacity constraints at the port."


Melua, hopefully your drip feed of Beppas will maximise your return.It is all about risk/reward ,i have always found your posts informative and honest,i hope you continue to post on BBI ,even if you have no Beppas or BBI.

I hold Beppa