Following the slowdown in coal demand due to the global economic crisis, infrastructure constraints have eased, including in the former bottlenecks of the Hunter Valley in NSW and the Goonyella coal chain in Queensland. While a number of new infrastructure projects are underway, some others have been delayed pending an upturn in the market and a preparedness of companies to enter into haulage contracts and new mine investments.
A number of new coal terminal and expansion projects are underway. These projects were initiated when coal demand was booming but were sufficiently advanced to continue despite the slowdown in coal demand in 2008-09. At this stage there is an additional 90 million tonnes per annum (Mtpa) of new coal terminal port capacity coming on line by 2014. In addition it is possible that the Wiggins Island Coal Terminal project at Gladstone could come on stream in 2013 with a capacity of 25 Mtpa (though exact timing is yet to be determined for this project).
In New South Wales at Newcastle, Port Waratah Coal Services has expanded its Kooragang Terminal capacity by 13 million tonnes (Mt) a year at Newcastle to 102 Mtpa. A new 30 Mtpa third terminal (Newcastle Infrastructure Group) is also planned to be operational in 2010. In Queensland, the Dalrymple Bay Coal Terminal has completed an expansion to 85 Mtpa in mid 2009 and the Abbot Point Coal Terminal is scheduled to expand to 50 Mtpa in mid 2011. Table 1 indicates annual port capacity of 448 million tonnes by 2014.
Table 1- Coal Terminal Capacity in 2008 and Planned Capacity by 2014
Coal Terminal | Capacity at 31 December 2008 (Mtpa) | Planned Capacity by 2014 (Mtpa) |
Port Waratah Coal Service – NSW (Kooragang Island and Carrington terminals) | 102 | 113 (2009) |
Newcastle Coal Infrastructure Group – NSW | - | 30 (2010) |
Port Kembla – NSW | 18 | 18 |
Abbot Point – Queensland | 21 | 50 (mid 2011) |
Brisbane – Queensland | 5 | 8 (2009) |
Dalrymple Bay – Queensland | 68 | 85 (mid 2009) |
Hay Point – Queensland | 44 | 44 |
Gladstone – Queensland (RG Tanna and Barney Point terminals) | 75 | 75 |
Wiggins Island – Queensland | - | 25 (mid 2013) |
Total | 333 | 448 |
A number of investments in rail infrastructure capacity are either underway or planned to complement these coal terminal projects. In Queensland, investments which total over $2.5 billion include a $500 million investment program in the Goonyella rail system servicing both the Dalrymple Bay and Hay Point coal terminals, a $440 million investment program in the Blackwater rail system servicing the coal terminals at Gladstone and a $374 million investment program for new coal wagons to be used in the Goonyella system.
In New South Wales, the Australian Rail and Track Corporation (a Commonwealth Government owned corporation that leases and operates the Hunter Valley coal rail system) will be undertaking a $1 billion investment to upgrade the Hunter Valley coal rail network following a $580 million capital injection into the corporation by the Australian Government in December 2008. This investment will increase Hunter Valley rail capacity to 250 million tonnes in 2012.