In his presentation, NCIG general manager Paul Beale said the new capacity strategy for 2008 to 2018 was due for release soon, with recent $A1 billion federal government and Australian Rail Track Corporation funding taking the rail network capacity to 200Mtpa by 2012.
Of NCIG’s $1.3 billion export terminal at the Port of Newcastle, he said construction was 50% complete for the first stage, which would have a 30Mtpa capacity.
On the second stage to lift the terminal’s exports to 66Mtpa, he said it had development consent and the feasibility study had been completed.
Beale added land was being made available for a separate future terminal, Terminal 4, which is in planning for export capacity of 90Mtpa.
Looking at other Newcastle port operator Port Waratah Coal Services, he said the Kooragang Coal Terminal had further expansion phases identified and development consent to expand to 120Mtpa.
The current $456 million expansion work is underway to lift the terminal’s export capacity by 11Mtpa to 77Mtpa.
Beale also provided an update on the negotiations involving government and industry around port operational changes and development, in the wake of the terminal access framework headed up by former NSW premier Nick Greiner.
He said new processes were evolving and it was likely that “take or pay” arrangements could come into place.
The Australian Competition & Consumer Commission has allowed the current capacity balancing system in place at the port to operate until March 31, however this could be extended, as has happened in the past.
Beale added a new independent team, the Hunter Valley Coal Chain Coordinator, was likely to be formed to carry out day-to-day scheduling, master planning and modelling of the supply chain.
This new group is expected to supersede the current coordination work undertaken by the Hunter Valley Coal Chain Logistics Team.
To demonstrate the need for a supervisory role, Beale said the challenge facing the supply chain was making sure the rail operator capacity equalled the rail network capacity as well as the coal terminal capacity.
Detailing an initiative to increase Newcastle’s port capacity, he said an increase to the available tide window would allow more cape-size vessels to depart on tide.
According to NCIG, the number of vessels visiting the port is roughly 1600 per year, with coal vessels making up over 1000 of that figure.
With regard to rail operators for the Hunter Valley chain, which include Queensland Rail and Asciano subsidiary Pacific National, Beale said there was potential for new operators to enter the market.
He added the average train size had grown from 5000 tonnes to 7000t.
The Hunter Valley coal chain currently serves 40 coal mines from 16 producers and 27 load points through track network and rail operators Queensland Rail and Pacific National, and the two PWCS coal terminals, Carrington and Kooragang, at the Port of Newcastle.
Debt-heavy Asciano has signalled it will sell off up to 100% of Pacific National.
Major producer Coal & Allied, 76%-owned by Rio Tinto, has shelved project development as it waits for the Hunter Valley coal supply chain to improve along with general market conditions.
