Government support for a container terminal at Port Kembla should be dropped, an interim policy reform paper on freight movements in NSW has suggested.
The reform paper, released in the last few days by state government agency Transport for NSW, notes that the current and near future for trade at Newcastle and Kembla is somewhat uncertain.
It noted that the decline in coal volumes at Newcastle had not been a fast as previously thought, while also adding that renewable energy equipment is being imported “en masse” and it is a future clean energy export location that includes hydrogen and green ammonia. The report also noted that the activities at Kembla are expected to change in the future as a gas receival facility is being constructed and a hydrogen hub is planned.
“Given all this change is currently underway, the [Freight Reform Panel] is of the view that the Government should not impose restrictions on the activities at any of the ports at present beyond the usual planning and development approval processes. The future directions of industry that impact all three ports will be known with more certainty in coming years and until that time, it is premature to impose policies to restrict port activities. While these matters develop, the Panel is of the view that Government should not provide additional infrastructure to assist the development of container terminals at the ports at Newcastle and Port Kembla. Developments they propose must, for the time being, make use of the infrastructure available. Time is needed. In future it may be suitable for government to make a decision to support one second container port location over another, or to support particular freight activity at one port rather than another,” the report reads.
In the interim, the report recommends that Government expenditure to improve port efficiency in relation to containers ought to focus on Port Botany for the foreseeable future.
Current government policy is that Port Botany will be the key container port for NSW until it reaches capacity and Port Kembla handles 99.6 per cent of box trade for the State, about 2.62 million TEU, according to NSW Ports data. It is not anticipated that Port Botany will reach capacity for 20 years.
The Freight Reform Panel consists of Dr Kerry Schott AO, Mr Lucio Di Bartolomeo, and Dr Hermione Parsons.
Details of the Freight Policy Reform Program can be found here – https://www.transport.nsw.gov.au/operations/freight-hub/freight-policy-reform-program
Read the Interim Freight Reform Paper here – https://www.transport.nsw.gov.au/system/files/media/documents/2024/Freight-Policy-Reform-Paper-August-2024-v5.pdf
