“It was a long way short of the $48 million, or 1 per cent of the development’s $4.8 billion value, that such developments could normally attract in Newcastle,” the Newcastle Herald commented.

The project has been referred to the state’s Planning Assessment Commission, which may also revisit the funding the council will receive.

‘‘I think even PWCS was surprised,” Newcastle MP Tim Owen told the newspaper.

“But there is no doubt the company and the council need to negotiate an outcome. Port Waratah lives in this city as well and I know they want to do the right thing.

‘‘I’ll be writing a submission to the PAC myself and I’ll be saying that the contribution needs to be significantly more than what the department has recommended.”

The $A4.8 billion project is targeting 70 million tonnes per annum of export capacity, reduced from earlier plans for 120Mtpa, with first exports slated for 2017.

Development is expected to create 1500 construction jobs and 80 operational positions.

PWCS aims to have T4 operate as an open access terminal that is “available to any operator wanting to export coal”