Lake Macquarie MP Greg Piper has signalled his intention to introduce a Private Members Bill to state parliament that would pave the way for the establishment of a container terminal at the Port of Newcastle.
The independent MP gave notice on Wednesday that he would introduce the 'Port of Newcastle Extinguishment of Liability Bill 2022'.
The bill would extinguish the controversial port commitment deeds that are constraining the diversification of the port and the Hunter Region's economy.
"It is essential that we disentangle the port from what are unconscionable and anti-competitive lease conditions," Mr Piper said.
"But this is not just about the port, it's about the future of the Hunter Region, the northwest, west and south.
"The Port of Newcastle is beautifully positioned for container logistics; we need to prepare a port that is presently so dependent on one main commodity (coal) for the process of diversification."
Mr Piper's comments were echoed in the recent Productivity Commission draft report into Australia's maritime logistics system. The draft report found the port commitment deeds were not only hindering the Port of Newcastle's development but also the efficiency of Australia's ports network.
The deeds, which were entered into as part of the privatisation of Port Botany and Port Kembla by the NSW government in May 2013, require the government to compensate the lessee, the NSW Ports consortium, if container traffic at the Port of Newcastle exceeds an indexed cap.
The Herald understands the compensation package could be as low as $300,000, however, some sources put it as high as $1billion.
Mr Piper said he would be seeking meetings with the leadership of the Coalition and Labor before introducing the bill in October.
"I'm hoping we can sort something out with the government. I don't need my name attached to a bill, I just want the outcome," he said.
"I'd be very surprised if I don't have all of the crossbench and Labor. It's certainly popular among many people in the government, particularly the Nats, but I know it goes beyond the Nats.
Nationals Northern Tablelands MP Adam Marshall was expected to flag his intention to introduce a bill similar to Mr Piper's on Tuesday, but he failed to do so.
NSW Treasury did not comment about Mr Piper's proposed bill.
The government has previously said it stands by the port commitment deeds.
A spokeswoman for Labor leader Chris Minns said the party was awaiting to see the proposed legislation.
"NSW Labor continues our long standing support of a container terminal at the Port of Newcastle," she said.
"We know the terminal is crucial for diversification and the creation of local jobs in Newcastle and the Hunter."
Newcastle MP Tim Crakanthorp, a long-standing supporter of the container terminal, said he was eagerly awaiting to receive the bill.
"The recent report from the Productivity Commission has confirmed what we've long known - the NSW Liberals have strangled our economy through the anti-competitive clause it inserted into the port commitment deed," he said.
It is estimated a Newcastle container terminal would attract $1.8 billion of private investment and generate more than 15,000 direct and indirect jobs in the Hunter and contribute $2.5 billion to the national economy.
A Newcastle container terminal would also ease growing pressure on the state's main container terminal at Botany and connecting roads. In 2020 the state government had already allocated an estimated $37billion over 10 years to ease congestion on key roads and freight routes leading to and from the Botany terminal.
Sensing a challenge to its monopoly, NSW Ports recently invited the region's state MPs to individual meetings where it would seek to convince them that a Newcastle container terminal was not needed.
Port of Newcastle chief executive Craig Carmody encouraged state MPs to support Mr Piper's bill.
"We applaud the Member for Lake Macquarie, Greg Piper MP, for his leadership in recognising that the current container port monopoly is causing delays and shortages across the economy, and increasing costs for NSW," he said.
"There's a growing awareness in government that NSW can't afford a further 43 years under a container monopoly - a position underlined very clearly this month by the Productivity Commission.
"We encourage other Members of Parliament to put the interests of their constituents first and join Mr Piper in calling for an end to the container embargo at Newcastle."
The Federal Court last year dismissed an Australian Competition and Consumer Commission action over the legality of the port commitment deeds.
The court ultimately disagreed with the ACCC's argument that the port commitment deeds, were "brazenly anti-competitive and illegal".
As part of its ongoing appeal the ACCC has argued that the court erred in endorsing secretive provisions contained in the long-term port lease agreements for Botany, Kembla and Newcastle in 2013 and 2014.
Director of the Institute for Regional Futures at the University of Newcastle Professor Roberta Ryan recently said that the ample amount of vacant land around the port represented a major strategic advantage for a future container terminal.
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