NEWCASTLE'S 40-plus queue of coal ships is likely to grow dramatically after the federal competition regulator threw out the port's coal-loader quota system.
The shock decision means NSW Ports Minister Joe Tripodi could impose his own queue system using State Government laws and regulations.
The Australian Competition and Consumer Commission (ACCC) moved late yesterday after the Newcastle Coal Infrastructure Group (NCIG) the BHP Billiton-led consortium that is building the new Kooragang Island coal loader missed a midnight Monday deadline to sign a "capacity framework agreement".
The other parties, the State Government-owned Newcastle Port Corporation and the Rio Tinto-managed loader company, Port Waratah Coal Services (PWCS), confirmed they had signed the agreement.
NCIG declined to comment.
PWCS general manager Graham Davidson said he was disappointed NCIG had not signed the long-term plan and PWCS would "need to consider its position in relation to long-term Hunter Valley coal export reform".
The ACCC set the August 31 deadline when it approved the latest version of the port's long-running quota system on July 22.
ACCC chief Graeme Samuel said last night "numerous delays" to signing meant it was no longer in the public interest to maintain the Newcastle quota system.
"It is not appropriate for the authorisation process to be used as a tool to seek to force resolution of commercial negotiations," Mr Samuel said.
Mr Samuel said the industry's future was in its own hands. In the short term, the Newcastle ship queue was likely to grow again. It stood at 41 yesterday and averaged 43 during August.
Mr Samuel said one option was for Mr Tripodi to impose his own queue management system using State Government "regulatory means".
Mr Tripodi said last night he preferred an industry-wide agreement and it was disappointing "one producer is holding out on a final solution that all other coal producers have accepted".
Mr Samuel said the ACCC would accept a new application from "some of the parties" and Mr Tripodi said the port corporation and PWCS would be prepared to do this if necessary.
The Herald understands BHP Billiton's partners in NCIG Centennial, Donaldson, Peabody, Felix and Whitehaven want to sign but none would comment last night.
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