“We can dig up the coal and put it into our load-out bins but we simply can’t get enough rail wagons to the port and onto ships,” he told shareholders at the company’s annual meeting.

With more than 70 ships now queuing off Newcastle, Renwick recognised the need for short-term solutions like the modified capacity balancing system, but said a longer-term solution is required.

“Although global demand continues to strengthen and the outlook is positive, Australia’s coal producers are unable to meet this demand,” he said.

“Make no mistake about this. I am not talking just about a diminution in the wealth created by the coal industry but about our failure as a nation to capitalise on the growth opportunities and the need to remove constraints which are preventing us from maximising these opportunities generated by strong demand.”

As a shareholder in Port Waratah Coal Services, Renwick said Coal & Allied would be encouraging the establishment of long-term contracts with port users to provide certainty for producers and support the future expansion of the PWCS facility.

He said the support and commitment of the State and Federal governments would be critical to the success of this transition.

“Specifically, the lease conditions must be addressed by the New South Wales Government, and PWCS should be allowed to develop an access regime and operating rules which will deliver a better outcome than the current situation,” he said.

“We need to design and implement a system for the longer term that prevents queues from forming in the first place.

“What is required is a transparent demand management system that determines coal chain entitlements based on production, rail capacity and port allocation.”

Earlier this month, the Newcastle Coal Infrastructure Group (NCIG) received government approval to progress with development of a new coal loading facility at the Port of Newcastle.

The new terminal will initially process up to 33 million tonnes of coal per annum, expanding to a maximum capacity of 66Mtpa.

Renwick said the project was a step forward in addressing infrastructure constraints, but said it would need to be fast-tracked to be of significant benefit to the booming coal industry in the Hunter Valley.

“It is vital to the provision of a more sustainable demand management system and will complement the operations of PWCS,” he said.