Costello approves third Newcastle terminal

<p>Treasurer Peter Costello yesterday (Thursday, September 27) announced foreign investment approval for the third coal terminal at the port of Newcastle. </p> <p>The Newcastle Coal Infrastructure Group (NCIG) plans to begin building a 33mtpa terminal adjacent to the existing 77mtpa Kooragang Island terminal by 2009.</p> <p>NCIG &#8211 including members BHP Billiton, Centennial Coal, Donaldson Coal, Peabody Energy, Felix Resources and Whitehaven Coal &#8211 wants to expand the facility to 66mtpa in later stages.</p> <p>The initial $933m development was given approval by New South Wales planning minister Frank Sartor in April, signalling the possibility that the port would double its size within a decade.</p> <p>The state approval came with more than 90 conditions, mostly environmental restrictions.</p> <p>Mr Costello said the development had now received a tick under the Federal Government’s foreign investment policy.</p> <p>The development includes new shiploaders, an extension of existing rail lines and new stockpiles.</p> <p>The Hunter River will also be dredged as part of work planned to be carried out in cooperation with Port Waratah Coal Services, which operates the existing coal facilities.</p> <p>NCIG hopes its project will create up to 1,000 Hunter jobs, boost coal exports by $1bn and generate 5,000 jobs across New South Wales.</p> <p>Mr Costello flagged the need to reduce Australia’s coal port congestion, which had plagued the industry and was detrimental to Australia’s international image.</p> <p>&#8220Overcoming infrastructure bottlenecks, including in the coal export sector in NSW and Queensland, is a key economic priority for Australia,&#8221 Mr Costello said.</p> <p>&#8220The current bottlenecks have resulted in delays and unnecessary costs for exporters.</p> <p>&#8220Earlier this year, there were lengthy queues of empty ships off the major east coast coal ports waiting to load cargoes bound for the thriving north Asian markets.</p> <p>&#8220I welcome the massive investment being undertaken by NCIG to help overcome the bottlenecks that have unnecessarily cost Australia jobs and growth.&#8221 </p> <br />