Port Waratah Terminal 4 Announcement
Port Waratah expect existing coal terminal capacity to be sufficient for foreseeable growth
31 May 2018
Port Waratah Coal Services have advised the Port of Newcastle that it intends to allow the Terminal 4 Agreement for Lease to lapse when it expires in August 2019, Chief Executive Officer Hennie du Plooy said today. This means that Port Waratah does not intend to proceed with the Terminal 4 development.
Mr du Plooy said Port Waratah have consulted with a full range of industry stakeholders and concluded that the capacity of the existing coal terminals, including potential expansion options, are likely to be sufficient to cater for future growth in coal exports.
Market conditions for Hunter Valley coal are strong, with Newcastle exports stable near record levels and prices are once again above US$100 per tonne. At Port Waratah’s terminals 105 million tonnes were loaded in 2017 and incremental growth is expected this year.
“With significant growth capacity available in the existing terminals, we do not expect that the conditions to support an investment of the large and long-term nature of Terminal 4 will be in place before the development approval lapses in September 2020,” Mr du Plooy said.
“We are proud of the role our Carrington and Kooragang terminals play in connecting Hunter Valley coal with the world and we are confident that with ongoing investment in the reliability and performance of these terminals, we will be well positioned and flexible enough to adjust quickly to changes in demand.”
While Port Waratah will not build a fourth terminal, coal constitutes the bulk of Newcastle port volumes and will remain a big part of Newcastle’s future. “Coal is a key component of the global energy mix and is forecast to remain so for the foreseeable future, particularly in our core markets in South East Asia,” Mr du Plooy said.
A key strength of the Hunter Valley coal chain is its reliability and efficiency, which is delivered through industry-led centralised planning and the flexibility provided by the different terminals. “For this reason, both Carrington and Kooragang terminals are central to our operations,” Mr du Plooy said. “Carrington makes a unique and important contribution by providing Port Waratah with the capability to load small vessels and cargoes efficiently.”
“We are committed to understanding and meeting the expectations of our stakeholders, particularly in limiting noise, reducing dust and water usage, and creating the smallest environmental footprint that we can. We continue to make significant investments in our terminals, to improve both operational and environmental performance.
Mr du Plooy said that as part of the company’s commitment to keep stakeholders and the community informed on the status of the T4 proposal, Port Waratah was making the statement as soon as possible.
For more information please contact Paul Chamberlin
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