It's full steam ahead in the expansion planning department at the Port Kembla Coal Terminal - thanks to the coal boom.Expansion at the terminal could include taking over its bulk products berth, dredging part of Port Kembla harbour and developing a new berth and ship loader.The increased capacity could allow it to handle more than $1 billion worth of extra coal a year, as demand and prices for hard coking coal continue to soar.Port Kembla Coal Terminal (PKCT) general manager Peter Green said existing machinery would be refurbished to optimise capacity. But further "upgrades" may be necessary, including at the new berth."The expected increase in demand on our infrastructure is inevitable based on the forecast coal production from the southern and western coalfields," he said. "In anticipation of this outcome, PKCT, together with the support of its employees, has commenced studies and modelling of the existing infrastructure and what might be needed to ensure a safe plant, reliability and to increase capacity."Mr Green would not comment on when the work would occur, or by how much the capacity would be expanded.He said the work would take place on land within PKCT's existing lease.PKCT said the work could be done "without significant environmental or community impact".The plans are proof that while some of Australia's largest industries brace themselves for the impact of a carbon tax, coal exporters are at full steam ahead, capitalising on soaring prices and strong demand, particularly from India and China.Contracts for metallurgical or coking coal are being settled for more than $283 a tonne, while thermal (brown) coal is reaching more than $113 a tonne. Both types are shifted through Port Kembla.The extra capacity is expected to easily reach 10 million tonnes per annum as Illawarra mines seek to boost production.Gujarat NRE Coking Coal on its own will be asking for another four million tonnes per annum if its plans to expand from 1.5 million to six million tonnes of coal per annum are approved.Managing director Arun Jagatramka recently told the Sydney Mining Club that Indian steelmakers' need for coal from reliable, stable countries meant Australia was invaluable."Australia has all the coking coal that India needs," he said.But he said there were some "bottlenecks" restricting the speedy export of coal.BHP Billiton subsidiary Illawarra Coal is also seeking to expand its Appin and West Cliff mines.The process will officially begin tomorrow when the PKCT will call for expressions of interest from its users to see how much extra capacity is needed.Only companies interested in moving half a million tonnes or more are asked to apply.PKCT is an unlisted company owned by six partners, each with a 16.7 per cent share - BHP Billiton, Gujarat NRE Minerals, Peabody Energy, Centennial Coal, Tahmoor Coal and Oakbridge Coal. Tahmoor and Oakbridge are both owned by Swiss mining giant Xstrata.BHP Billiton manages the terminal on behalf of the other partners. BUSY TIMES FOR THE LOADER