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Coal queue shrinks

04 May, 2011 04:00 AM
THE Newcastle coal-ship queue has plunged into single figures, with demand cut by the Japanese disaster and supply cut short with problems at key mines.

Industry figures expect demand to return in coming months but the port is in ‘‘despatch’’ – meaning ships are loaded ahead of schedule – for the first time since May 2005.

Official figures showed the queue for the Carrington and Kooragang Island loaders run by Port Waratah Coal Services stood at nine ships, having fallen as low as five last week.

The queue is predicted to rise to as high as 22 later this month before dropping back again to single figures.

A spokesman for Newcastle Coal Infrastructure Group, which runs the new Kooragang loader, said it had no queue.

‘‘Supply and demand are in balance,’’ the spokesman said.

While the smaller queue cuts expensive delays at the port, the loader companies have told regulators they need a queue of about 12 to 18 ships for the port to maximise its efficiency.

Despite predictions that damage to Japan’s nuclear power stations would lift demand for power-station coal, the disaster’s impact on Japanese industry seems to have noticeably curbed electricity demand.

‘‘Ships en route to the coal-fired stations that were damaged in the quake sold their coal elsewhere and now those stations still operating don’t need as much coal as a consequence,’’ a coal expert said.

The expert said Newcastle exports had also been cut by Chinese companies re-entering the market in pursuit of high prices of $120 a tonne or more.

Xstrata spokesman James Rickards said Blakefield South and Ulan mines remained out of action.

No one had been underground since the Blakefield fire on January 5, while Ulan underground had been flooded since late March.

Mr Rickards declined to say how much production had been lost but Blakefield has a planned output of 4million tonnes a year and Ulan can produce more than 6million.

Xstrata could have lost nearly 2million tonnes, worth $250million.

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Date: Newest first | Oldest first
my heart bleeds.... and the ads/hype/propaganda on tele suck too
Posted by judgedredd, 4/05/2011 7:52:22 AM, on The Herald
so if "the loader companies have told regulators they need a queue of about 12 to 18 ships for the port to maximise its efficiency." and some weeks there will be 20 or so and some weeks there will be single figures or so, than the average is perfectly within maximum efficiency give or take. so that means the white knight doesnt need his extra coal loader on the mayfield side of the hunter river, especially since the current existing new terminal is getting an upgraded capacity. so the people of newcastle might be able to do something constructive with the land, that will service all of the newcastle people, rather than one person??? is that correct or have i missed something..............


Posted by 3qters, 4/05/2011 8:19:45 AM, on The Herald
The loss of ships from the coastline also has a negative impact on tourism as it eliminates a vista drawcard.
Posted by bigfeller, 4/05/2011 9:03:25 AM, on The Herald
Another good question is why do the coal loaders sit idle much of the time.

Surely the loaders at the coal wharfs should be in use of a large proportion of the time before be ruin more of the foreshore to build more wharfs that will sit idle for lengthy periods?

Posted by bigfeller, 4/05/2011 9:13:14 AM, on The Herald
good'ay 3qtrs. it's not impossible the mayfield coaloader is just a red herring. i dont know why. not yet anyway.
Posted by just a thought, 4/05/2011 9:22:14 AM, on The Herald
Pity it’s not a permanent situation. I love how Australia has become a resource supermarket for foreign countries so they can undermine our own diminishing manufacturing base. One day the minerals will run out or cheaper suppliers will come along and Australia will be left with nothing.
Posted by GoodNews, 4/05/2011 11:14:56 AM, on The Herald
3qters raises the very question and line-of-thinking that caused the queue in the first place. This is about ensuring infrastructure and projected demand are matched. That external factors have contributed to a recent reduction in the queue is irrelevant in the long-term. The queue will inevitably increase in the medium to long-term unless mine, rail and port capacity line-up. The challenge for the past five to six years has been getting all the parties to sit in a room and talk about how to maximise the supply chain. That PWCS, NCIG and others have made progress is reflected, to some degree, in the current queue.

As for those who detest the coal industry and oppose expansion on that basis, it's a sad reality for the Hunter region that this is where the jobs growth is at present. While we all agree that coal isn't a long-term solution, and is very damaging to the environment when consumed, it is underpinning the local economy. Despite your best efforts, no one will switch it off overnight. Sadly, your job prospects, your HECS loan or your unemployment benefits are dependent on a strong economy currently driven by mining. We need an alternative, but it won't arrive tomorrow.

Posted by Doc, 4/05/2011 12:12:57 PM, on The Herald
@ Bigfeller, they have to wait while one ship leaves the harbour before they bring another one in. That's why the loaders sit empty.
Posted by Steve G, 4/05/2011 12:19:52 PM, on The Herald
Newcastle has become that dead and run down not even coal ships will come here anymore? I bet the seaman have to draw straws to do the Newcastle trip as there is nothing to do here while they are loading
Posted by Stephen Fry, 4/05/2011 12:41:26 PM, on The Herald
i think we should get rid of the ocean. It creates a barrier between the coal ships and the mall
Posted by flamin, 4/05/2011 12:56:49 PM, on The Herald
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GLOOM: Numbers of coal ships queuing is in single digits.
GLOOM: Numbers of coal ships queuing is in single digits.

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