The Newcastle Herald reported yesterday that businessman Nathan Tinkler was working on plans to ship coal from the site, which is partly owned by Newcastle development company Buildev.

Mr Tinkler holds a substantial stake in Buildev, which is negotiating with the state government over plans for an industrial park on 62hectares of the site fronting Industrial Highway.

Newcastle Port Corporation has the other 92hectares along the riverfront and has plans for a multi-cargo shipping terminal with seven wharves.

As things stand, most of the freight coming off the steelworks site is destined for the roads but the Herald understands the Tinkler bid could involve a spur rail line from Sandgate, connecting the Steel River industrial park and the main steelworks site to the main northern rail line.

Hunter Business Chamber chief executive Peter Shinnick said yesterday that a container terminal was the main priority because 90per cent of the containerised freight in the Hunter came from Sydney.

‘‘But if that container terminal can operate beside a coal-loader and if a coal-loader on the site meets the various social, environmental requirements then surely it’s a case of seeing whether the business case stacks up.’’

Greens candidate for the state seat of Newcastle, John Sutton, said the terminal would make Newcastle an ‘‘even worse climate offender’’ and would make it harder for the Hunter economy to diversify away from coal.

John Hayes, whose Correct Planning & Consultation for Mayfield Group was involved in a recent community dust forum hosted by Newcastle MP Jodi McKay, said the Tillegra Dam fiasco showed that governments trying to pick winners without community consultation did so ‘‘at their own peril’’.

Mr Hayes said the Mayfield group believed the Tinkler plan should not be considered without ‘‘genuine, well-informed and transparent consultation’’.