PWCS to boost annual coal exports to 133m tonnes

By Sam Collyer

The move comes as the terminal operator confirmed it would trim export allocations over the next few months after having loaded just 82% of the coal it had been scheduled to export in January.
PWCS, which is majority owned by Xstrata and Rio Tinto's Coal & Allied, approved on February 3rd a $670m expansion plan to add an additional 20m tonnes of coal export capacity annually to the port.
The work is scheduled to be completed by the end of 2011 when PWCS is required under an industry agreement to have 123.6m tonnes of capacity available to the coal industry.
It will instead have stated capacity of about 133m tonnes a year, although actual throughput will depend on below-rail upgrades and train operators bringing in more rolling-stock.
PWCS said a new capesize berth would be built between the Kooragang terminal and Newcastle Coal Infrastructure Group's rival operation, which is due to begin operating this year.
The 330-metre berth will share a shiploader with a neighbouring berth.
The full investment covers construction of the new berth, dredging work, extensions to two stockpile pads, replacement of two stackers, the addition of new conveying equipment and the dismantling of the two stackers which will be replaced.
PWCS also has two new reclaimers due for replacement in coming months as part of the completion of the $458m program of works which brought capacity to 113mtpa last year.
PWCS chairman Michael Harvey said the upgrade had stemmed from greater certainty in the contracted coal export volumes now that the producers and logistics providers were working under the industry-wide agreement signed late last year.
“PWCS played a leading role with industry participants and the New South Wales Government is seeing the long term contractual framework come to fruition,” Mr Harvey said.
"The onus is now on us to keep building new terminal infrastructure as quickly and efficiently as possible.
“Given that PWCS has signed contracts with producers, we are in a far better position to expand terminal infrastructure in a more accurate and timely manner".
PWCS had been scheduled to load a record 9.7m tonnes of coal in January, but managed only 8m tonnes because of equipment breakdowns at the terminal and external issues such as poor weather, power supply problems and vessel delay issues.
The shortfall means coal producers will have their export allocations cut on a pro-rata basis, primarily affecting shipments in February and March.
PWCS general manager Graham Davidson described the January export figures as "unusually disappointing" on the back of record exports in the last months of 2009.
“It’s regrettable that the reduction has to take place, but it is necessary to keep demurrage costs as low as possible," Mr Davidson said.
“We expect that new equipment and power-source arrangements coming on-line at PWCS over the coming months will improve reliability."

Source: Lloyd’s List Daily Commercial News – www.lloydslistdcn.com.au