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            june 20, 2019

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Newcastle's mega boxship terminal could bring multi-billion-dollar windfall


A modern container terminal at the Australian port of Newcastle would reduce land transport costs for northern New South Wales businesses by AUD2.8 billion (US$2.01 billion) by 2050, according to a new report by economic consultancy, AlphaBeta.
The port's CEO Craig Carmody said the report entitled, "Global Gateway for NSW: the economic impact of a container terminal at the Port of Newcastle," concludes that exports from the Hunter region and northern NSW would rise by $1 billion by 2050 as a result of developing a world-class box terminal, reported Melbourne's Logistics & Materials Handling.
"Businesses in Newcastle, Singleton, Tamworth, Gunnedah, port Macquarie, Kempsey, Liverpool Plains and Narrabri can look forward to savings of more than AUD500 per standard container, if they shipped their goods through Newcastle rather than port Botany or port of Brisbane," Mr Carmody was quoted as saying.
The AlphaBeta report compared Newcastle with port Botany and port of Brisbane in terms of container transport costs and found that the savings using Newcastle ranged from AUD193 to AUD583 per TEU.
Introducing container competition would create a benefit of AUD1.2 billion to all NSW businesses by 2050, the report found.
"A Newcastle container terminal will mean more jobs, a reduction in unnecessary road and rail movements, and cheaper freight costs for regional importers and exporters," said Mr Carmody.
The report estimates a new container terminal that could handle up to 18,000 TEU containerships would create 4,600 jobs.
"Australia's east coast ports are unable to efficiently accommodate these large vessels, which are twice the size of the maximum the capital cities can handle," said Mr Carmody.
"Port of Newcastle is regional Australia's global gateway and already has the deep channel and the road and rail landside capacity to manage these super-sized container ships.
"There is strong interest in this opportunity from a number of globally significant port operators, as well as from the community, which recognises the need to transition our economy and make Australia more globally competitive."

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