Using Port Kembla as the location for a container terminal makes more sense than Newcastle, according to a NSW government submission.
A parliamentary inquiry into the limitations restricting the port of Newcastle from creating a container terminal started late last year.
As part of the leasing deal of Port Kembla and Port Botany, the government would pay leaseholder NSW Ports compensation if Newcastle started a container port.
The inquiry is looking into whether these restrictions place pressure on the state’s transport and freight infrastructure.
A submission from the state government reaffirms its support for Port Kembla as the location of an overflow container terminal at Port Botany.
One of the main reasons for Port Kembla getting the nod over Newcastle is one of geography.
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“Port Kembla is closer than Newcastle to the existing warehouses in Sydney and closer to the expanding populations in Western Sydney,” the submission stated.
The government submission also pointed out that developing a container terminal at Newcastle would require “large road and rail infrastructure upgrades”, the cost of which would be met by the NSW government.
“This would require the State to invest in infrastructure in Newcastle when Port Kembla is closer to container customers, distribution centres and intermodal facilities and has an existing corridor in place which supports dedicated rail freight,” the submission stated.
The distance between Newcastle and Sydney also created the potential for extensive round trips.
Containers would be trucked to Sydney and unpacked, with the high likelihood that those goods would then be put on a truck and taken back to customers in Newcastle.