The Hunter's state and federal MPs have rallied across the political divide in an unprecedented show of support for the establishment of a Newcastle Container Terminal.
It comes in the wake of the former federal government's last minute decision to abandon the announcement of $250 million for the establishment of critical infrastructure for the project.
The region's nine state and four federal MPs told the Newcastle Herald this week that they considered the establishment of a multi purpose deep water port in Newcastle as essential to the region's future economic diversification.
"It's something that would benefit the Hunter Valley and the future of the region and I support it outright," Upper Hunter Nationals MP Dave Layzell said.
"There are clear benefits for future industries in our regions and that's what I'm focused on. Right now it's a coal port but in the future we need it to be a strong shipping port for all sorts of reasons and now is the time for that to start happening."
The MPs' support echoes the sentiments of at least seven government and industry reports that have highlighted the benefits of the terminal to the Hunter, state and national economies.
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.
But the Port of Newcastle's ambitions remain constrained as a result of 50-year agreements, known as port commitment deeds, which were entered into as part of the privatisation of Port Botany and Port Kembla by the NSW government in May 2013.
The secret deeds, revealed by the Herald in 2016, oblige the government to compensate the lessee, the NSW Ports consortium, if container traffic at the Port of Newcastle exceeds an indexed cap, which began at 30,000 containers annually. The cap presently sits at an estimated 57,000 containers.
The compensation would effectively double the cost of moving a container at Newcastle, giving NSW Ports a statewide monopoly.
"I am appalled by the outrageous impost that has been placed on our region by the contractual obligations that were put in place by the Baird Government. It was an outrageous impost and constraint on the future of our region," Independent Lake Macquarie MP Greg Piper said.
Former NSW Deputy Premier John Barilaro joined the region's political representatives to urge the newly elected federal government to take the lead on the project.
"Absolutely I was a supporter of it (as deputy premier). It has to happen and the feds will have to force the state's hand on it," he said.
"It (the Port of Newcastle) becomes the gateway to the world for the regions. A game changer for Regional NSW, connected to the Inland Rail network and the Special Activation Precincts."
"The only way you can future proof the bush from future droughts is to diversify the economy and a container port at Newcastle is the one major part of that puzzle."
The funding, which former Prime Minister Scott Morrison had personally fought for, had been approved by the Expenditure Review Committee and Cabinet and was listed among $787 million worth of projects that were slated for the Hunter as part of the $4 billion region's package.
But intense last minute lobbying by the project's high-powered opponents - who cited concerns about Chinese influence at the port, the impact of a container terminal on coal industry access and the state government's opposition to the project - succeeded in having the announcement ditched less than 24 hours before it was due to occur.
The Herald has been unable to contact Mr Morrison regarding why the announcement was cancelled.
Federal Shortland MP Pat Conroy moved a resolution at the 2018 Labor National Conference to overturn the Port Commitment Deeds.
He said he and other Hunter MPs were looking forward to being briefed on the status of the funding that the previous government said it allocated to the project.
"If there is an opportunity for a container terminal in Newcastle that would be wonderful. We urgently need to diversify the port and that (container terminal) is a great opportunity to do that," Mr Conroy said.
"The dirty deal the NSW Liberal Government did when it privatised the port is a disgrace and it continues to this day to harm our region. I'm very much working on how we can help."
Similarly, newly elected Lake Macquarie-based senator Ross Cadell said the project would be his top priority.
"Every person that is truly concerned about the future of the people of Newcastle and the Hunter support the container terminal and diversification of the port and the benefit that brings," he said.
"Those that don't are either protecting existing commercial interests, playing politics or just don't give a damn about our kids' futures."
Director of the Institute for Regional Futures at the University of Newcastle Professor Roberta Ryan said the ample amount of vacant land around the port represented a major strategic advantage for a future container terminal.
"One of the big pluses for the port of Newcastle is that the City of Newcastle and all the other key players are working really hard to make sure that we don't put pressure on the extensive landholdings that sit around the port," she said.
"Newcastle is in a much better position (than other locations) in terms of strategic planning opportunities to make the port really efficient as a container terminal."
This would, in turn, would help drive down cost of living pressures in Australia by reducing freight costs.
"More than 90 per cent of what comes into Australia comes in containers; you only have to speak to anyone involved in shipping and they will tell you that there has been up to a 10-fold increase in freight costs," Professor Ryan said.
"So we can see that maintaining a long term strategic focus on what happens at the port will ultimately affect the cost of living.
"The port of Newcastle has a major opportunity to become an efficient operator due to land availability and its proximity to major population centres, and that's without taking into account what will open up with the Inland Rail project."
The Federal Court last year dismissed an Australian Competition and Consumer Commission action over the legality of controversial 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.
A NSW Treasury Spokesperson said this week that the government stood by its ports agreements.
"The agreement with Newcastle Ports does not prevent them from establishing a container terminal. As there is ongoing court action we cannot comment further," he said.
On another front, the state government has called for expressions of interest for a 52 hectare parcel of land once occupied by BHP steelworks.
The Port of Newcastle had hoped to lease the area, known as the intertrade site, for a container terminal.
Swansea MP Yasmin Catley has urged NSW Planning Minister Anthony Roberts not to offload the land until all potential opportunities for it to be used for the port's diversification had been explored.
"While, I remain a strong advocate for the Newcastle container terminal and urge the government to listen to (ACCC Chairman) Rod Sims... it is clear the government has no interest in breaking up this (NSW Ports) monopoly," Ms Catley said.
"Given the $100 billion of potential investment that has been received in the registration of interest for the Hunter - Central Coast Renewable Energy Zone (REZ). I would strongly urge the government to adopt a holistic approach to evaluating any application to lease this land, that takes into consideration the aims and objectives of the Hunter - Central Coast Renewable Energy Zone."
