Shifting weather patterns and a fall in the price of coal saw the total value of trade at the Port of Newcastle drop by 32 per cent last year.
The volume of coal, the port's primary export, increased by 6 per cent from 136.2 million tonnes in 2022 to 144.4 million tonnes in 2023.
Total trade volumes also increased by 5.2 per cent from 140.3 million tonnes in 2022 to 147.7 million tonnes in 2023.
But the fall in the price of coal was the main factor in the for the drop in the port's overall economic contribution, which went from $71billion in 2022 to $48billion in 2023.
The drop would have been worse if the Chinese government did not lift restrictions on the import of Australian coal in 2023. As such, coal exports to China represented a quarter of the port's coal exports last year.
Port of Newcastle chief executive Craig Carmody said the return of China to the Australian coal market was responsible for boosting the port's overall volumes.
"The port's exposure to carrying volume risk is evident, put simply, if China did not lift their restrictions, the port's volumes would have been the lowest experienced in several years.
"For Port of Newcastle and our region, we need to ensure we continue down our path of diversification. Last year's results highlight how we cannot continue to rely on a single commodity, we cannot wait and relive what occurred when the steel industry left Newcastle," he said.
The volume of diversified trade, which includes clean energy infrastructure components and containers, fell by 2.5 per cent.
Executive manager of business development Matthew Swan said the reduction in diversified trade export volumes reflected the current challenges facing the market.
"After three years of ideal harvest conditions for agribusiness, the shift to El Nino has had a direct impact on our farmers, with wheat exports down 34 percent to 1.7 million tonnes, with volumes subdued for calendar year 2024" Mr Swan said.
"It's the first-time wheat has been under two million tonnes since 2021.
"Meals and grain exports continued to perform well, with a 31 percent increase in volumes (629,006 tonnes), and mineral concentrates experienced modest growth, with a total 397,000 tonnes exported" he said
The 2023 trade figures come at a time when Port of Newcastle has been vocal in the need for the Port and region to accelerate diversification.
"2024 will be a year of consolidation and focus, one that focuses on expanding our existing container trade relationships, supporting wind and solar energy projects, along with development of the Clean Energy Precinct," Mr Carmody said.
