It is expected the NSW government will release the tender by the end of next week and a final decision on the allocation of the 140-hectare site on Kooragang Island is expected during August.
Construction is expected to begin in 2008, with completion within two years. The cost of a new loader will be up to $500 million.
The winning tenderer will construct a major facility to receive, blend and load coal onto bulk carriers, construct a rail facility to service the new loader and dredge for new berthing facilities. BHP Billiton will also be required to remove contaminated sediment in the south arm of the Hunter River.
Currently, the two existing coal loaders in the Hunter have approval to move around 102 million tonnes of a coal a year. The new loader will substantially increase this capacity.
Port of Newcastle facilities are currently managed by Port Waratah Coal Services (PWCS), 49% owned by majors Rio Tinto and Xstrata. One of its facilities, with a capacity of 64Mtpa, is already on Kooragang Island.
The Newcastle Coal Infrastructure Group (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, White Mining and AMCI.
NCIG chairman Tony Haggarty said together the members had reserves and projects to materially increase coal output by 30 million tonnes in five to 10 years.
“Like all Hunter coal producers, the group relies on shared rail and port facilities to export coal from Newcastle. At present this supply chain is unable to keep up with strong buyer demand,” Haggarty said.
