Newcastle queue growing as storms start to take effect

The Australian Rail Track Corporation (ARTC) is still assessing extensive damage to the Hunter rail network that has threatened to cost the network 2m tonnes of throughput worth more than $100m to coal producers. The coal chain had been operating on schedule in June until severe weather hit the New South Wales coast last week, crippling the rail network in several places and flooding mines and port stockpiles. The six-day shutdown caused the queue of 56 ships on Friday morning to reach 63 by Monday. The Hunter Valley Coal Chain Logistics Team expected the queue to remain above 60 until the end of June, before declining to 35-45 during July. The team had hoped to bring the queue down to almost 20 by the end of July, but is no The addition of the average 21 ships to the queue this week, which would have loaded had the network not shutdown, could push the queue back towards a record high of 78 vessels. The logistics team is not expected to give a clear indication of its predicted queue until the network ramps back to full capacity in the next fortnight. The severe weather that hit the Hunter is estimated to have caused up to $1bn of damage in that region alone. Some centres recorded more than 300 mm of rain over a four-day period, causing major flooding to river systems and sending debris floating down into the Newcastle Harbour. The gale-force winds and heavy rain have caused landslides along the crucial rail infrastructure that carries more than 86m tonnes of coal to the port of Newcastle each year. The ARTC is reporting major damage to its flooded Singleton-Whittingham tracks as well as embankment slips at Minimbah and Belford. Track repairs are also being carried out near the new Sandgate flyover, while there are problems at Maitland and on the north coast line near Tocal. ARTC acting chief executive Wayne James said the rail network would recommence operation on a limited capacity on Friday. &#8220One of these major problems would have closed the lines but, when they all came at once, ARTC, like thousands of others in the Hunter Valley and Central Coast, just had to get in and work to get this major infrastructure back in use,&#8221 Mr James said. Recovery crews were working through the night to stablise and repair track and embankments, he said. &#8220The recovery crews and indeed all our staff along with the emergency workers have done a tremendous job over the last couple of days and they’ll continue until the lines reopen and we can get the trains moving,&#8221 Mr James said. Coal ships have begun moving through the harbour, with nine vessel movements scheduled today. New coal stockpiles will be impossible until the rail network is back on line and delivering coal to the port, expected on Friday. The delay to the 86mtpa coal chain &#8211 believed to be the biggest disruption in the port’s history &#8211 will likely have a noticeable impact on dry bulk rates and coal prices in an already bullish market. The 2m tonne coal capacity loss is the equivalent of more than a week and a half of shiploading. Flooding had prevented some of the coal producers from completing assessments of their mines yesterday, but many are reporting flooding. BHP Billiton declared force majeure on its Hunter coal production earlier this week, while Rio Tinto was unsure when production would recommence at its Coal &#38 Allied operated mines. Production from C&#38A’s Mount Thorley, Warkworth and Hunter Valley operations was due to have re-commenced, but a &#8220significant influx of water&#8221 at C&#38A’s Bengalla mine will delay production there for some time. Xstrata is believed to have escaped significant flooding and has begun bringing its Hunter mines back into production.

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