A "secret deal" between the New South Wales (NSW) government and port owners is stopping the Port of Newcastle from developing a container terminal and pushing up consumer prices, according to Australia’s NSW state government opposition.
Referring to Newcastle’s obligation to pay NSW Ports - which owns the Botany and Kembla leases - for loss of container business if it handles more than 30,000 shipping containers a year, the Labor opposition have claimed the coalition's "scandalous" deal is resulting in higher prices for consumers, according to Australian Associated Press.
Speaking about New South Wales Minister for Roads, Maritime and Freight Melinda Pavey in a statement, opposition roads and freight spokeswoman Jodi McKay said: “"Minister Melinda Pavey has to explain why her government is imposing high transport costs on businesses that import and export from northern NSW.”
Not cost effective
Industry sources have told the opposition it costs about AUS$1500 for a truck to make a return trip from Port Botany to Newcastle, which was privatised in 2013.
"The easy way to cut transport costs and help make businesses more competitive would be to let them move their products through Newcastle - instead of travelling a further 180 kilometres south to Port Botany," Ms McKay said.
In April, the Australian Competition and Consumer Commission (ACCC) said it was investigating whether the privatisation of the Port Botany and Port Kembla leases in 2012 was potentially anti-competitive.
The ACCC investigation is anticipated to be completed by the end of 2018.
Earlier this month Newcastle said it would continue its bid for funding.
