Port Kembla’s chances of becoming the state’s second container port servicing Sydney are slipping away because of delays in the approval of the Maldon-Dombarton rail line, Australia’s peak shipping group has said.
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Shipping Australia chief executive Llew Russell said the longer it took for a decision to be made on the rail link, the more likely it was that Newcastle would win the race to become Sydney’s overflow port.
‘‘We think any delay in the completion of this railway is of concern,’’ Mr Russell said.
‘‘We would be worried with any undue delay.’’
His comments came a day after Prime Minister Julia Gillard identified the the rail project as one of the Federal Government’s major infrastructure initiatives.
The NSW Government has yet to decide whether it will use Newcastle or Port Kembla to handle freight once the state’s primary container port, Port Botany, reaches capacity.
Port Botany handles virtually all of NSW’s container trade. In 2007-08 the port handled 1.78 million containers and is projected to grow at 5-6 per cent per year, exceeding three million containers by 2025.
It is unclear when Port Botany will run out of room.
Mr Russell said work needed to start soon on the Maldon-Dombarton line to be ready when Port Botany reached capacity.
He said it could take up to 20 years to receive approvals and then build the infrastructure needed to accommodate such a major increase in freight.
Port Botany is already showing signs of stress. During a seven-week period in 2011, 12 container carriers incurred $12.12 million in additional fuel costs either waiting to berth or being forced to speed up to meet their scheduled arrival time, according to Shipping Australia.
A spokeswoman for Transport NSW said the Government was still developing its freight and ports strategies.
She said the Government would work with the Federal Government to assess future infrastructure needs, ‘‘including the possible development of the Maldon-Dombarton line”.
Port Kembla Port Corporation chief executive Dom Figliomeni said a freight rail line was critical to the region’s chances of being chosen over Newcastle.
‘‘There are a lot of potential opportunities and having that rail capacity and capability is critical ... Port Kembla is also strategically located close to the growth areas of south-west Sydney and to the intermodal terminals of Moorebank and Enfield, and others,’’ he said.
‘‘It is important that there is serious consideration being given and that there really is progress made on the Maldon-Dombarton project.’’
The proposed 35km rail line would link the network at Maldon, near Picton, to an existing 15km track between Dombarton and Port Kembla.
The project will have to compete for a share of the Government’s $36.4 billion Nation Building Program.
Last October, Ms Gillard came to the Illawarra to announce $25.5 million in funding for pre-construction work.
The money will not be available until the budget is passed in June, and the work will then take two years to complete.
