The three major Hunter Valley coal producers, plus Donaldson Coal, have banded together to form the Newcastle Coal Infrastructure Group (NCIG).

The core aim of the group (NCIG) is to ensure adequate long-term capacity of port and rail infrastructure to export coal from Newcastle. Future infrastructure will need to accommodate an additional 30 million tonnes in increased production from the four companies over the next five to ten years.

“At the end of the day we want the infrastructure to be there when we need it and we want to put a producers’ view on the decisions that are going to be made about infrastructure investment over the next six or 12 months,” said Excel Coal managing director and newly appointed NCIG chairman Tony Haggarty.

Haggarty said the group was created to voice the interests of coal producers – a point of view he believed had been clouded in the past.

“While recognising important common objectives, NCIG wishes to remain independent of Port Waratah Coal Services (PWCS) and other potential infrastructure providers or operators,” he said.

“Up until now PWCS has been perceived by a lot of people to be speaking on behalf of the coal industry – and what we are saying is no, PWCS is speaking on behalf of PWCS, the coal producers can speak on behalf of themselves.”

Port of Newcastle facilities are currently managed by PWCS which introduced a Capacity Distribution System (CDS) in July this year, as infrastructure couldn’t meet strong buyer demand. CDS allocates coal supply chain capacity between coal producers which caps the tonnage producers can export. The system has been authorised by the Australian Competition and Consumer Commission until the end of this year as a short term solution only.

To work in the best interest of coal producers the NCIG said it will objectively assess all options available – including the all important proposal for new coal loading facilities at the Port of Newcastle.

The government has called for expressions of interest in regards to the development at Kooragang Island at Newcastle Port. Haggarty said he understood three submissions have been made for a coal terminal from PWCS, the Newcastle Terminal Development (NTD) and another party.

“As producers we want to understand what the various options mean in terms of having the capacity we need. We are saying to the various service providers – tell us what your plans are and we will be very keen to support it if they give us the right outcome,” said Haggarty.

“We can influence by putting a producers point of view forward in discussions with government.”

Besides options of additional coal terminal facilities at the Port and various rail investment proposals, NCIG said it would consider alternatives to improve the efficient operation of the supply chain. The chain is a complex integrated system where port, rail and track operators as well as producers must co-ordinate their activities to ensure maximum capacity and efficient operation.

Haggarty said he expected other coal operators in the Hunter would become involved with the group to extend it past its founding members.