Tuesday, July 16, 2013

WOLLONGONG NEEDS MORE THAN $100 million



         Minister for the Illawarra the Hon Greg Pearce MLC was in Wollongong on 15 July to confirm the region would only receive $100 million for the long term lease of Port Kembla, for which some 90 applications had been received.
         There are three good reasons for increasing this amount which was on offer in 2012 when there was still an opportunity for the NSW Government to lease Port Kembla separately from Port Botany. 
Firstly, Port Kembla has been leased with Port Botany, likely delaying a container port for this region by a decade.
Secondly, an unexpectedly high amount of $760 million was received for  the long term lease of Port Kembla.
Thirdly, Newcastle is now to receive $340 million for the lease of its port, of which up to one half of this amount  will be spent on rail works.  
          The value of a container facility at Port Kembla to the Wollongong region was estimated in the year 2000 to be $400 million.
         In the meantime, there is a growing case for completion of the Maldon Dombarton rail link. This includes Boral seeking to put more quarry products on Mt Ousley and other roads because their rail freight operator, Pacific National, has been unable to secure an extra freight path on the Wollongong to Sydney train line.
         There is a good case for the NSW Government to at least double the compensation to the Illawarra and to apply the increase to help expedite the completion of the Maldon Dombarton rail link.

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