The tender was fiercely contended by short-listed groups NCIG and current Newcastle Port operator Port Waratah Coal Services, 49%-owned by majors Rio Tinto and Xstrata.

NCIG was formed last year to address rail and port capacity issues in the Hunter Valley. Group members include BHP Billiton, Centennial Coal, Donaldson Coal, Excel Coal, Felix Resources (formerly White Mining), AMCI and Whitehaven Coal.

NCIG chairman and Excel chief Tony Haggarty said he was pleased with the government’s decision, which would introduce competition at the port and would address the long-term capacity of the Hunter Valley coal export supply chain.

The new load loader will lift port export capability by at least 30 million tonnes per annum.

The project includes construction of new rail receival facilities, stockyards and shiploading facilities. The shiploading facilities will be to the west of the existing Kooragang shiploaders, with the stockyards and rail facilities to the south-west of the existing Kooragang Coal Terminal.

The Hunter River will also need to be deepened to allow ships to reach the planned berths west of the existing Kooragang loader.

Following the signing of the Deed of Agreement for lease of the 136-hectare Kooragang site today, NCIG will complete detailed project planning, followed by preparation of a comprehensive environmental impact statement and consultation with the Hunter community.

NCIG has already secured financial backing for the project through members of its consortium, with the final cost of the project expected to be $A500 million.

NCIG said it expected the first ship to be loaded at the new berth in 2009.

The new port facilities will allow NCIG members to increase coal production substantially during the next five to ten years, with expansion or development of projects including Anvil Hill, Mount Arthur underground, Ashton, Wambo, Tasman, Wilpinjong and Moolarben all scheduled for the near future.