Addressing delegates at the fourth annual conference in Brisbane, McKay said much of the 50 million tonne predicted growth in the northern Bowen Basin over the next four years could be exported through Abbot Point.
McKay said with Dalrymple Bay Coal Terminal (DBCT) and Hay Point approaching ultimate capacities, and with the proliferation of smaller coal exporters keen to find an alternative port, Abbot Point was the logical answer.
In 2004, Abbot Point owner Ports Corporation of Queensland (PCQ) commissioned Connell Hatch to update the master plan at the port, which determined the capacity of the terminal in its current form to be 15Mtpa with the facility stockyard constrained.
Connell Hatch put forward staged expansion options, initially to 25Mtpa before ramping up to 50Mtpa. Capital cost figures from its current capacity to the proposed 50Mtpa have been estimated at $A636 million.
A Stage 2 expansion ramping up coal terminal capacity to 21Mtpa at Abbot Point is currently underway and is expected to be completed by June 2007. The estimated cost for this expansion is $116 million.
However, McKay pointed out the construction of 69km of “missing railway” linking North Goonyella and Newlands and the upgrade of the existing line between Newlands and Abbot Point was critical for the coal terminal to expand past the 21Mtpa mark.
“This involves a very considerable investment by the Queensland Rail Network Access totalling more than $750 million,” McKay said.
He pointed out the absence of the “missing railway” was the reason behind Abbot Point being stranded and under-utilised in the first instance.
“Abbott Point Coal Terminal is ideally suited for expansion to 50Mtpa: it has a natural deep water berth; it’s closest to the markets of China, Korea and India; it’s the least environmentally sensitive location of any coal port in Australia; and it has plenty of land available,” McKay said.
He also highlighted the highly economic expansion cost of Abbot Point, which is estimated at $18.20 per tonne, adding “no other coal port in Australia can match this figure”
McKay said the average expansion cost for Hay Point was somewhere in excess of $40/t, while for DBCT, the average cost was about $45/t, but some stages were in excess of $60/t.
