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Call for Newcastle to be a container port to stop exports being directed to Queensland

A block on building a new container port in NSW is seeing the state lose out to Queensland– costing the state’s farmers $2.8 billion over the next 30 years.

Ship returns to Port Botany

NSW is losing the trade State of Origin to Queensland – costing the state’s farmers $2.8 billion over the next 30 years.

The Port of Newcastle wants to build a new container port but says the state Government is forcing exports to “the unofficial second container port of NSW” in Brisbane.

Kate McArthur, senior business development manager at the Port of Newcastle, said: “NSW continues to lose the State of Origin doesn’t it.”

Ms McArthur said the State Government’s Port Commitment Deed stopped it from building a container port and instead diverted containers to Sydney and Melbourne at a cost to farmers alone of $2.8 billion over 30 years.

“Why does the NSW government not want you to earn more for doing what you do?” she asked the NSW Farmers conference at Luna Park in Sydney.

Calls have ignited for the Port of Newcastle to become a container port. Picture: Peter Lorimer.
Calls have ignited for the Port of Newcastle to become a container port. Picture: Peter Lorimer.

“A restriction on our trade is a restriction on your income.”

Ms McArthur said 30 per cent of all NSW container exports came from the Hunter or further north and could be shipped from Newcastle – almost halving transport times and saving $240 million a year.

Kate McArthur, senior business development manager at the Port of Newcastle and NSW Farmers Grains Committee Chair Justin Everitt. Picture: Supplied
Kate McArthur, senior business development manager at the Port of Newcastle and NSW Farmers Grains Committee Chair Justin Everitt. Picture: Supplied

“A single food processing business in Narrabri, exporting around 170,000 tonnes of pulses per annum, could save up to $5.3 million a year,” she said.

“A cotton farmer in Wee Waa or Warren could save around $1.3 million a year, while a hi-tech manufacturer could save $500,000 per annum on imported goods.”

She called for “the restriction that disadvantages us to be removed” and said that lower freight costs would see exports expand by $800 million a year by 2050.

NSW Farmers Grains Committee Chair Justin Everitt backed the call for the removal of the Port Commitment Deed. “It is clear that there are many benefits to having the Port of Newcastle fully operational to export the food and fibre our farmers grow,” he said.

“There is certainly a compelling argument for the state government to take the handbrake off the Port of Newcastle and allow it – and farmers – to maximise the economic opportunities.”

NSW Transport Minister David Elliott has been contacted for comment.

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Original URL: https://www.dailytelegraph.com.au/news/nsw/call-for-newcastle-to-be-a-container-port-to-stop-exports-being-directed-to-queensland/news-story/8adb6a077dde1d8f899f1809027d78b1