NEWCASTLE'S place at the pointy end of the global surge in demand for energy has never been more obvious than now.
Frenzied efforts to push ever more coal through the port have led to the Newcastle Coal Infrastructure Group (NCIG) announcing plans for a massive expansion of its new coal-loader. This $900 million expansion will lift the loader's annual export capacity from 30 million to 55 million tonnes.
Resource economists suggest the port is likely to be exporting 180 million tonnes of coal by 2013. At the present price of about $115 a tonne, that represents more than $20 billion in product value and about $1.7 billion in royalties to the NSW government.
Around the world many countries are scrambling to buy energy assets and sign long-term supply contracts in order to ensure energy security for future economic growth. This intense international competition has led to big increases in the value of these assets, including Hunter Valley coalmines.
Shrewd and lucky investors have made millions, as the celebrated case of former electrician Nathan Tinkler - who has made more than $1 billion trading coal assets over the past three years - vividly illustrates.
Former NSW Labor treasurer Michael Egan, now chairman of NCIG, noted that his organisation's huge investment in coal-loading capacity was underwritten by unmet demand from existing mine owners wanting to sell their product on the hot market as well as by predicted demand from new mines.
A couple of questions might be asked.
The first is whether the Hunter's rail network can cope. Important recent upgrades have improved capacity but more investment will probably be needed.
The second question relates to the Hunter Valley's environment, and particularly its rivers and water resources. Farmers, water users and environmentalists are already asking where the government will draw the line on this vital issue.
In an energy rush it makes sense to maximise the benefits of high demand and high prices. But level heads are needed, in the midst of the excitement, to ensure that future generations of Hunter people aren't disadvantaged in the clamour for profits today.
Cyril Renwick
PROFESSOR Cyril Renwick, who died on Sunday, was a giant of the Hunter's intellectual landscape. His belief in the economic importance of regions remains the guiding force behind the Hunter Valley Research Foundation he created.
Even in retirement Professor Renwick never stopped working for the Hunter. In the wake of the 1989 earthquake he advocated offering a major international prize for a redesign of the city of Newcastle, but lamented that few backed his call.
In retrospect, many Novocastrians may wish that characteristically brave suggestion had been adopted.
Professor Renwick 's love of the Hunter, his credibility and his influence brought valuable dividends which deserve the gratitude of the people of the region.
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