A world-class container terminal at the Port of Newcastle which would slash transport costs for exporters in Dubbo and the Central West might not go ahead unless the ACCC is successful in its action against the State government.
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According to a new report by renowned economic data analysis firm AlphaBeta, a modern container terminal at Newcastle would boost the NSW economy and benefit exporters in Dubbo.
But exporters in Dubbo and the Central West may be stuck transporting their goods to Sydney unless the ACCC is successful in its action against the State government, NSW Ports Operations and its subsidiaries Port Botany Operations and Port Kembla Operations for entering into an allegedly anti-competitive agreement.
ACCC Chair Rod Sims said the Botany and Kembla Port Commitment Deeds oblige the State of NSW to compensate the operators of Port Botany and Port Kembla if container traffic at the Port of Newcastle is above a minimal specified cap.
“We are alleging that making these agreements containing provisions which would effectively compensate Port Kembla and Port Botany if the Port of Newcastle developed a container terminal, is anti-competitive and illegal,” he said
Dubbo Chamber of Commerce president Matt Wright said a terminal in Newcastle makes sense because getting freight to the coast is an ongoing challenge due to cost.
“Going to Newcastle would be more efficient for our fresh produce and agriculture-related exporters so we would welcome any measure that would reduce the time and cost for regional produce to get to the port,” he said.
“A major cost of doing business in the Central West is freight, so shortening the time frame to deliver would save money.”
Port of Newcastle CEO Craig Carmody said the report shows a terminal would provide a significant saving for any business trying to compete internationally.
“For Orana and the Central West, a world-class container terminal in Newcastle would reduce the cost of transporting a standard container of goods by $210 to $455,” he said.
“A Newcastle container terminal will mean more jobs and cheaper freight costs for regional importers and exporters.”
A spokesperson for Treasurer Dominic Perrottet said the Government's position in 2013 was, and remains, that no competition issue arises as a result of the arrangement which provided certainty to all parties involved.
“The Government has and will cooperate fully with the ACCC, and as the matter is ongoing no further comment will be made at this time,” he said.
Newcastle Port a long term option
Dubbo’s biggest exporter, Roger Fletcher says a world-class container terminal at the Port of Newcastle is viable, but it would take ten years to be a workable option.
Mr Fletcher owns Fletcher International Exports which exports lamb and sheep meat products and a diverse range of high-quality by-products.
“If the ACCC action is successful that wouldn’t necessarily mean it would automatically be used for exporting,” Mr Fletcher said.
“There needs to be a lot of work done before we would use the Newcastle terminal. I am not against it, we’d love to see it work, but they’d need to fix all the rail tracks to Newcastle for a start.
“They would need a 10-year program of making it a world-class standard port, not just an Australian standard port. They’d need to increase the capacity it could take; it would need multiple shipping companies to use it, it is a long-term job. In years to come getting through the city will be a problem but at the moment Sydney is still the only port that has direct rail access for us.”