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Newcastle Herald
Newcastle Herald
Matthew Kelly

Container exports begin from Port of Newcastle

The Port of Newcastle has initiated a container export service that it hopes will become a catalyst for the establishment of a fully-fledged container terminal.

The container ship Capitaine Dampier typically travels between Auckland, Fiji, Brisbane, Sydney and Melbourne on a fortnightly basis.

But as a result of a request from the Port of Newcastle, the ship's owner Neptune Pacific has agreed to visit Newcastle on a monthly basis for the rest of the year.

"As we grow trade we are hopeful that it will convert to a fortnightly or weekly service," Port of Newcastle Senior Manager Business Development Kate McArthur said.

"Our goal at the moment is to fill the vessel."

The ship is using the port's temporary container facilities at Mayfield 4 Berth, which is serviced by two Liebherr mobile harbour cranes.

A Hunter agricultural product producer was among the first businesses to take advantage of the opportunity to export directly from Newcastle.

"From now, it's really about growing the trade and the customer base," Ms McArthur said.

"Economies of scale come with a larger exchange, that comes with absorbing the stevedoring and terminal costs. The greater throughput there is the greater the productivity there is on the cranes and the terminal itself."

The port is presently developing a multi-purpose terminal which will allow larger vessels to be serviced. This, in turn, will open up future opportunities in the wider Asian market.

The NSW Parliament passed legislation in November 2022 that extinguished controversial penalties on the Port of Newcastle that prevented it from developing a rival container terminal to Port Botany and Port Kembla.

The secret container penalties were introduced when the Coalition government privatised the Botany, Kembla and Newcastle ports in 2013 and 2014.

The legislative change, which was the result of concerted lobbying from across the political spectrum, was the first step in allowing the port to progress its plans for a large-scale container terminal, helping Newcastle to attract manufacturers and lowering freight costs for businesses and farmers across the Hunter and the state's north and west.

As part of the change, the previous government also asked the Independent Pricing and Regulatory Authority to advise how much compensation taxpayers would have to pay Botany and Kembla operator NSW Ports for removing the restrictions on Newcastle.

It was initially hoped that the review would be completed within six months, however IPART recently advised the Port of Newcastle and the NSW Treasurer that additional time would be required.

IPART is now required to complete its determination by March 2 next year, or by June 2, 2024, if it issues a draft determination.

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