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$670m boost for coal loader

04 Feb, 2010 04:00 AM
THE Rio Tinto-backed Port Waratah Coal Services announced yesterday a $670 million expansion of Newcastle's Kooragang coal terminal.

The program to build the new Kooragang No. 7 coal berth will create hundreds of construction jobs and add 20 million tonnes a year to PWCS's export capacity, taking it to about 130 million tonnes a year.

But PWCS also had bad news yesterday when it announced that delays to coal-loading during January gave it no choice but to cut access to the port during February.

PWCS general manager Graham Davidson said January was "an unusually disappointing" month, with various delays limiting exports to 8 million tonnes from a budgeted 9.7 million tonnes.

With 58 ships already waiting an average 16 days to tie up at the Kooragang and Carrington loaders, Mr Davidson said the access cut was "regrettable but necessary in order to keep demurrage [late-loading] costs as low as possible".

He said some of the shortfall had been PWCS's fault but other factors, including adverse weather, power supply failures and vessel delays, were out of its hands.

"We expect that new equipment and power-source arrangements coming on-line at PWCS during the coming months will improve reliability," Mr Davidson said.

PWCS chairman Michael Harvey said after a board meeting yesterday that the $670 million approved for the expansion would take the company's total spending on coal-loading infrastructure to more than $1.6 billion across 12 years.

He said the work would include a new 330-metre berth (K7), extensions to two coal stockpiling areas, the replacement of two coal stackers and the removal of redundant stackers and the building of new coal conveyers.

Mr Harvey said the expansion was part of the long-term industry expansion plan that came into force on January 1 after two years of talks with the State Government.

"PWCS played a leading role with industry participants and the State Government seeing the long-term contractual framework to fruition, and the onus is now on us to keep building new terminal infrastructure as quickly and efficiently as possible," Mr Harvey said.

"Given that PWCS has signed contracts with producers, we are in a far better position to expand terminal infrastructure in a more accurate and timely manner."

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Date: Newest first | Oldest first
Coal is a good earner for local people, and also generates wealth for NSW and the Australia.
Posted by Ben, 4/02/2010 9:19:15 AM, on The Herald
Can we expect a road upgrage along the 2-lane expanse infront of these loaders to 4 lanes to match with Tourle Street (not including the lame bridge upgrade) and Stockton Bridge? The current state of the road is appauling, bottlenecking along this section of works) and I cannot understand why PWCS haven't been required to upgrade it as other large developers are required to do when they expand????
Posted by road upgrade please, 4/02/2010 9:24:36 AM, on The Herald
Why do we need to spoil more harbour foreshore for coal loaders when the existing loaders sit there unused for much of the time. I do not think I have ever seen three ships being loaded at one time and it is rare to see two being loaded.
Posted by Bigfeller, 4/02/2010 9:36:20 AM, on The Herald
Thats Great!! How about some of the money being spend to fix the wetlands that have dried out since the expansion of PWC which has come all but within an arms reach. I have watched the expansionof the coal washing site everyweek along commerant road. When it came to be all the way up to the wetlands before Christmas it appears that something has been blocked as the wetland itself no sooner started to dry out. This is not tidal anymore...our fantastic expansion of coal loaders that will fill the pockets of power does not give a hoot .. I really do not think that the people of Newcastle knew that the coal loader area was going to run all the way it possibly can along the Hunter river to the Tourle What a disgrace!!! Just like our 47million bridge that is a joke. Speaking of the bridge are we going to get PWCS to improve the road from all the increased traffic for their expansion using heavy machinery on a main arterial road in & out to Port Stephens. Spend some money on what is needed to keep us safe & not decimate the area completely. Save the lives of the people who travel this road who cannot wait to breathe in the coal dust as they frequently travel this road.
Posted by jax, 4/02/2010 9:36:38 AM, on The Herald
Every time a grand project is announced that "will create hundreds of construction jobs" I wonder just how many will actually go to local Hunter workers. Given the specialised nature of this work I imagine many of the workers will come from intra- and interstate and overseas for the term of the project. I doubt many young Novocastrians will get a leg-up courtesy of this project.
Posted by ColT, 4/02/2010 1:57:09 PM, on The Herald
jax, i think you need to check your facts...where is the coal washing site in the island?? there will be 2 coal loading operations on kooragang when NCIG start. Also the expansion of PWCS is on the the far side of the NCIG operation. The road upgrade i believe is in the pipeline with the RTA in its 10 year upgrade plans for the area.
Posted by TT, 4/02/2010 2:12:14 PM, on The Herald
Crikey - Michael Osborne will be spoiled for choice the next time he feels like chaining himself to something! Remember hippies, the safety word is "Monckton".
Posted by Scott Hillard, 4/02/2010 4:47:50 PM, on The Herald
The road on Kooragang Island is a disgrace!! In 1970, our politicians had the foresight to build a four lane Stockton bridge; 40 years later our politicians give us a two lane bridge to conect with the Stockton bridge. Upgrading the road and Tourle Street bridge should be a priority before more expansion on Koorangang Island takes place.
Posted by Seagul, 4/02/2010 4:57:31 PM, on The Herald
Lets hope that within the $670m project there can be a few dollars for a high level tourism vantage point to give the worlds largest coal port a real tourism attraction.
Posted by Spinner, 4/02/2010 7:07:39 PM, on The Herald
can we have a hospital with that!
Posted by money trees, 4/02/2010 9:00:12 PM, on The Herald
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