Botany and Kembla privatised
The Australian state owned ports of Botany and Kembla have been privatised in a deal worth AUS$5.07bn, says the government of New South Wales (NSW).
Following a six month bidding process, a 99 year concession was awarded to the NSW Ports Consortium.
This deal will earn the state over AUS$4bn and the government sees the move as a “massive boost to its delivery of its infrastructure programme across the state.” Mike Baird, MP, NSW Treasurer and Minister for Industrial Relations, say that it’s the largest ever NSW government transaction, in terms of net proceeds.
The money will be invested in the Government’s infrastructure fund, Restart NSW, with 30% of funds reserved for project in regional areas and a further AUS$100m dedicated for infrastructure projects in the Illawarra.
Mr Baird sees this as a positive first step in the state sorting out its money troubles.
He said: “While this win is a great start, it doesn’t solve our problems. Releasing mature assets so that we can re-invest in new ones is the responsible approach.”
NSW Ports Consortium comprises Industry Funds Management (IFM), Australian Super, QSuper and Tawreed Investments Limited, a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA). QSuper’s investment in Port Botany and Port Kembla will be managed by Global Infrastructure Partners (GIP).
DEspite the privatisation, the NSW Government will retain regulatory oversight of the ports as well as responsibility for a range of important maritime safety and security functions, including the role of Harbour Master, the dangerous goods function and pilotage.
Mr Baird said a small number of Sydney Ports Corporation and Port Kembla Port Corporation employees will be kept on under the new arrangements.
