The application follows the implementation memorandum agreement to replace the current capacity balancing system (CBS) at the port, which was signed in April by Newcastle Coal Infrastructure Group and Port Waratah Coal Services on behalf of 14 Hunter Valley producers.

While the CBS has been used to reduce the queue of ships at the port, it has also been criticised by the coal industry for not providing future investment certainty.

“If approved, the application will give industry certainty over coal allocations beyond the end of each year,” Tripodi said.

“This proposal will secure growth in the coal industry well into the future by promoting local and international investment and competition in the Hunter.

“It guarantees access for new entrants and ensures the growth of the coal terminal capacity, while satisfying the concerns of existing producers.

“Coal producers have wanted this for 20 years and have been working hard to meet tough milestones set by the ACCC. They are to be commended for their focus and constructive cooperation.”

Newcastle Ports Corporation along with NCIG and PWCS are now expected to finalise lease amendments and agreements by August 31 for the new system, due to start up in January next year.

The new framework also gives PWCS the opportunity to lease additional government land and build the fourth coal terminal at the port on Kooragang Island.

Minister for the Hunter Jodi Mckay said the proposal would help underpin thousands of jobs in the region.

“This will provide for the continued growth of the Hunter coal industry by allowing exports to triple from current levels,” McKay said.

The producers that are part of the new plan include BHP Billiton’s Hunter Valley Energy Coal, Coal & Allied, Xstrata Coal, Anglo Coal Australia, Integra Coal (Vale Australia), Peabody Pacific, Centennial Coal, Austar (Yancoal Australia), Felix Resources, Gloucester Coal, Whitehaven Coal, Donaldson Coal, Bloomfield and Idemitsu.