Newcastle latest to face privatisation

State Treasurer Mike Baird confirmed the privatisation in his annual budget, saying Newcastle would be offered on a 99-year lease similar to agreements entered into by the state government earlier this year for the ports of Botany and Kembla.

The sale is expected to raise A$700m ($638m) which will mainly be used to fund infrastructure projects such as road and construction of a light rail network. The Australian Logistics Council has urged revenue from the lease of Newcastle to be used to fund critical freight logistics infrastructure.

Assuming the same formula is used as was employed with Botany and Kembla, the government may agree to meet the cost of providing a range of services required for the proper functioning of the port, including pilotage, vessel tracking and monitoring, emergency response and overseeing dangerous goods.
The government would also retain responsibility for operating a dedicated dredger to ensure navigable channels and berths.

Mr Baird has indicated a public-private partnership could take over the lease.

Meanwhile, trade unions would prefer that the port stay in public ownership, but that if it is sold, it would be better bought by union-backed superannuation funds.