Thursday, March 21, 2013

Is it good for Wollongong that Mr. Nick Whitlam chairs the boards of both Port Kembla and Sydney Ports?




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In late February Treasurer Mike Baird and Roads and Ports Minister Duncan Gay announced the appointment of Nicholas Whitlam as Chairman of Sydney Ports Corporation.

This was in addition to his role as Chairman of Port Kembla Port Corporation.

Mr Baird said in a statement  “I’m sure his experience will be invaluable in his new role, as the Government prepares for the long term lease of Port Botany and Port Kembla.” 

In 2003 the NSW Carr Government released a NSW Ports Growth Plan. This set the scene for moving car imports to Port Kembla and an inquiry held by a NSW Legislative Council Committee. Their 2005 Final Report into Port Infrastructure in NSW gave recommendations, including “that the NSW Government consider completion of the Maldon to Dombarton line…”

This report also states  "that a container terminal at Port Kembla could potentially contribute $400 million to the regional economy." In todays terms this is over $500 million.

However, if the NSW Government leases Port Kembla and Port Botany to the same private sector company, there would be a reduced incentive to develop Port Kembla as a container port.
Quite simply, a common owner or leaseholder of both Port Kembla and Port Botany is likely to continue to use Port Botany as a sole container port for as long as possible. In this case, development of Port Kembla to handle containers and completion of Maldon Dombarton would be delayed.
In this case, the promised contribution of $100 million to regional infrastructure should be increased to regional value of a container port at Port Kembla. That is $500 million.

1 comment:

Railuser said...

The NSW has gained a windfall with a good price at the cost of combining the two ports. Which along with reducing competition may not help
Wollongong.
All of the net proceeds, apart from $100m for the Illawarra, is assigned to roads. It would be good to see at least $200m applied to getting Maldon Dombarton completed this decade to allow more and faster passenger trains, plus more freight paths for trains - including Boral quarry trains