NQBP to demolish 8 Louisa Creek homes for coal terminal expansion

A once tranquil coastal town in Queensland is facing ‘decimation’ as a state-owned entity buys up land to prepare for a massive expansion. Read why residents fear the worst.

Driving into the small community of Louisa Creek, a chorus of wildlife and birds greet visitors near a seemingly tranquil beachfront.

But one step onto the beach and a look to your right immediately reveals the coal terminal stretching 3.8km out to sea as ships get their fill of coal and export it around the globe.

The unnatural juxtaposition has been a way of life for Louisa Creek residents since the Dalrymple Bay Coal Terminal was established in 1983.

But the compromise in lifestyle that comes with living next to the busy Port of Hay Point could soon be a thing of the past as two residents speak out on what they say has been a slow “decimation” of their town.

What used to be 200 homes is now 39.

North Queensland Bulk Ports owns 25 of them and is making moves to demolish eight of them as part of early facility expansion works.

NQBP is a state government-owned entity running port operations at Hay Point, Mackay, Abbot Point and Weipa.

North Queensland Bulk Ports house tenant Marie Berg and private homeowner Betty Hobbs are concerned about what they fear is a 'decimation' of the Louisa Creek community. Picture: Heidi Petith

It recently called for tenders to demolish eight of its Louisa Creek properties, with those of lower market value or little return on the company investment likely to meet the wrecking ball.

“NQBP undertakes a condition assessment on properties it owns at Louisa Creek at the end of their lease agreement,” a spokeswoman said.

“The Louisa Creek property demolition works are a normal recurring activity undertaken by NQBP, with the last works conducted in mid-2018.

“Following the demolition works, the vacant sites will be maintained as part of an ongoing maintenance program, which has been in place for NQBP properties/sites at Louisa Creek and Hay Point for over 20 years.”

An aerial drone photo shows just how few houses remain at Louisa Creek where there used to be about 200. Picture: Heidi Petith

Some of the few remaining residents, including NQBP tenant Marie Berg and her neighbour Betty Hobbs, a private homeowner, fear the works will expedite the demise of the beachside suburb they call home.

Mrs Hobbs said she, her late husband, and their combined eight children moved into Louisa Creek’s Edmunds Ave 46 years ago, back when it “was a great place”.

“The people that lived here were very friendly,” she said.

“For example, if my kids were down on the beach misbehaving, any other adult would come along and send them home.

“It was like a big family.”

Now Mrs Hobbs fears time is running out for beloved community as more and more homes are demolished in what she says is a “decimation”.

“I’ll tell you where it all began and this is my part of it that I don’t know if I should be proud of but I did it.

“They built Dalrymple Bay … it covered us in coal, and I mean covered.

“When it rained, it rained black stuff coming out of the trees.

“We had a swimming pool … overnight it turned from blue to black.

“They took a test on that and it was 70 per cent coal.

“They refused to have it cleaned up for me, I had to do it myself.

“It was really, really bad that the people in charge at the time would not listen to us, would not agree there was a problem.

Louisa Creek. Picture: Heidi Petith

“A lot of people got sick.”

A 1997 parliamentary inquiry into the Dalrymple Bay Coal Terminal expansion heard coal dust was a pervasive issue in the suburb, but there was no connection to a drop in real estate prices.

“The committee inspected three houses in Louisa Creek to gain an appreciation of the level of coal dust pollution.

“Local residents spoke of how the coal dust covers their houses and gets in through closed windows, children and pets walk the coal dust into houses and the trees run with black water when it rains.

“It is clear that coal dust is a problem for the people of Louisa Creek.

“Residents told the committee they accept that there will always be some dust.

“What they want is less dust falling on the town. The (then-named) Ports Corporation Queensland does not dispute that coal dust is a problem.”

Residents told the committee they feared PCQ was buying homes to demolish them.

The inquiry noted while residents were in favour of the buy-back policy, they were “suspicious” of the purpose but at that time, there was no evidence to suggest PCQ “has any sinister motives for buying homes in the area”. The property buy-up policy has been in place since before 1997.

Mrs Hobbs said when a lady who lived beside Dalrymple Bay’s fence became a widow, she struggled to sell her home.

“So I contacted the boss of, it was PCQ at the time, and I said to him, ‘Look, this lady has to sell out, has to move, she can’t sell because of what you’ve done, you should buy this off them’ so they did.

“That started a panic.”

NQBP’s voluntary property purchase program allows Louisa Creek owners wanting to relocate to “negotiate the potential purchase of their property”.

“Market valuations are comparable to those of the surrounding beach communities, enabling the sellers to buy into the local market and relocate accordingly,” the NQBP spokeswoman said.

“The condition of these properties is then further assessed in accordance with NQBP’s policy, with the properties either leased or demolished.”

Four decades on, about 85 per cent of homes are completely gone.

“It’s pretty grim, really,” Mrs Hobbs said.

Ms Berg added the waters were frequented by migrating birds as well as playful turtles and whales.

She and Mrs Hobbs want the area designated for wildlife protection.

Dalrymple Bay Infrastructure’s long-term lease agreement with the state government means it has the ability to expand its facilities to meet the expected market growth in metallurgical coal exports “if there is demand from customers (the coal companies) and it is economically viable to do so”.

Plans are under way but not yet confirmed to increase the terminal’s current 85Mtpa capacity to 99.1Mtpa, known as the 8X Expansion.

The pre-feasibility study in December 2020 outlined $1.3bn was needed for 8X, with practical works at least a year off but expected over a four-phase roll out.

“They are currently in the full feasibility stage which won’t be completed until the end of 2022,” a spokeswoman said.

“DBI retains significant flexibility over the timing and phasing of the Expansion, but the earliest completion of the four phases of 8X is 2028.

“The 8X expansion (within footprint) is necessary to support the expansion of existing and development of new metallurgical coal mines.”

Long-term plans for the port’s expansion would result in infrastructure outside the current footprint, and likely would coincide with Dalrymple Bay Infrastructure’s 9X Expansion.

The longer-term 9X works would, however, expand from the existing footprint including into Louisa Creek despite a 2009 masterplan finding the suburb was the least desirable of three possible locations for a new stockyard that would connect to DBCT’s existing terminal.

“If the Louisa Creek option was selected, the additional stockyard area would encroach on a mangrove environment in Louisa Creek and require resumption of all of the current Louisa Creek community,” the 2009 report stated.

A DBI spokeswoman said Louisa Creek was preferred over the two alternatives – Southern Stockpile and Dudgeon Point – for a “more incremental and cost-effective expansion as the ultimate capacity of DBT is unlikely to exceed 138Mtpa”.

“The incremental development of 8X within the existing footprint then 9X at Louisa Creek is significantly less expensive than any other option,” she said.

She said each step of the expansion must meet environmental planning and regulatory approval requirements across 15 criteria.

Louisa Creek. Picture: Heidi Petith

DBI’s Master Plan 2021 reported the $3.3bn 9X Expansion would have “no detrimental impact to the mangrove environment at any stage of the expansion, should it go ahead”.

The 9X Expansion could increase terminal capacity to 135.7Mtpa and includes the addition of a new stockyard and two new berths.

“These components cannot be delivered within the existing terminal footprint,” the 2021 masterplan states.

“As a result, DBT would require additional land, in addition to capital dredging.”

Some Louisa Creek residents, including Ms Berg, say they are unaware of the 9X project, with their concerns revolving around the looming home demolitions.

NQBP maintains it works closely with its key stakeholders in planning the future of its ports.

“Louisa Creek is still considered a community area, and is home to those residents who live there, some for a long period of time,” the spokeswoman said.

“NQBP appreciates that with the port operations being within close proximity to properties in the Louisa Creek area, some residents may wish to relocate and, accordingly, has the voluntary property purchase program in place.

“NQBP has been keeping the community informed of the property demolition works via letterbox drops, emails, and its Port of Hay Point Community Reference Group meetings.”