NSW Government admits coal congestion will worsen

<p>Coal congestion through the port of Newcastle will cost Australia’s economy $5bn over the next few years, according to a submission made by the New South Wales Government to Infrastructure Australia.</p> <p>In the submission the federal body obtained by the <em> Sydney Morning Herald</em> , the Government said the congestion at the port of Newcastle would get worse over the coming years, despite the $1.5bn being spent on infrastructure upgrades.</p> <p>It said there was a 21m-tonne annual shortfall in coal export capacity through Newcastle, which would reach 30m tonnes during the next few years, despite the port upgrades.</p> <p>"Forecast demand for coal exports through the Newcastle port in 2012 is 175m tonnes per annum &#8211 the overall chain capacity of 95m tonnes per annum would need to increase by around 80m tonnes per annum by 2012 to meet this demand,&#8221 the submission stated.</p> <p>Ports minister Joe Tripodi blamed the shortfall on the private sector and its slow uptake of infrastructure projects, the <em> SMH</em> said.</p> <p>Port Waratah Coal Services is upgrading its facilities to handle 135m tonnes, spending almost $1.5bn on the project which is expected to be completed by 2010.</p> <br />