INTERNATIONAL COAL NEWS

Weather prolongs Newcastle’s bottleneck woes

BEFORE the severe weather and flooding in Newcastle and the Hunter Valley, the queues of 67 vesse...

Staff Reporter

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“The severe weather has impacted vessel movements in the Port of Newcastle and flooding has caused significant issues across the rail track network,” PWCS general manager Graham Davidson said yesterday.

“Whilst PWCS operations have been restored, it is expected to take some time until Hunter Valley Coal Chain operations are returned to normal service.”

He said the opportunity to bring two empty vessels into berth where cargoes are assembled ready for loading is being assessed and limited rail services would begin today, if possible.

Davidson said current estimates are that in excess of 2 million tonnes of coal throughput will be lost, which will have a significant queuing impact.

“On average PWCS loads three vessels per day. Since Friday, June 8, only the five vessels already berthed have completed loading, with port restrictions limiting the further movement of vessels,” he said.

The effects of the weather also prompted BHP Billiton, Xstrata and Rio Tinto subsidiary Coal and Allied to declare force majeure this week, which removes them from liability if circumstances beyond their control prevent them from complying with a contract.

“Xstrata Coal has declared force majeure against vessels queuing at PWCS and not presently on demurrage. This will also progressively include newly arriving vessels,” Xstrata spokesman James Rickards told International Longwall News yesterday.

BHP media relations officer Samantha Evans told ILN Tuesday that the company would continue to monitor the situation closely to return services back to normal as soon as possible.

Coal & Allied yesterday declared force majeure on a number of its coal sales contracts but was unable to estimate the duration of the force majeure and its total impact.

The company is also assessing the impact of the weather conditions at its three Hunter Valley mines, which have scaled back production since last week.

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