Millions of dollars in demurrage are paid by coal mining companies each year because of delays at ports. The detention of a vessel beyond an allotted cargo load or discharge time leads to a penalty fee being charged, according to the NSW Minerals Council.

“Demurrage is an unnecessary impost that the industry incurs. Furthermore, the demurrage impost is not reflective or representative of the industry’s efficiency levels,” NSWMC said in a submission to the state government.

The Port Kembla stockyard currently holds about 215,000t of coal, or roughly a third of its total capacity. It was out of action for five days earlier this month due to maintenance, which reduced its loading and receival capacity.

Inadequate rail and road connections are also a contributor to replenishing the terminal’s inadequate stockpile.

Due to the geographical nature of the Illawarra region, constraints are placed on the carrying capacity and length of the coal trains. These trains are typically 45 wagons in length and carrying about 3300 tonnes. Consequently, trains that service Port Kembla are significantly smaller than those that service Newcastle.

The NSWMC has recommended that bulk rail access on the Moss Vale and Illawarra lines must be reviewed to consider the current limitations faced by the coal industry and the future needs of both the industry and any future bulk user of the rail network.

Future planning must also take into consideration the probability of congestion at the access/departure point of the Illawarra line and Inner Harbour loop at Port Kembla, it said.