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Newcastle Herald
Newcastle Herald
Politics
Matthew Kelly

"Still wondering what happened": the Newcastle container terminal media release that was never sent out

It was an announcement that would "turbo-charge" Australia's export capacity.

So said a Coalition Campaign Headquarters media release that was due to be rolled out to herald the announcement of $250 million in federal funding for a Newcastle Container terminal.

The funding, which Scott Morrison had personally fought for, had been approved by the powerful Expenditure Review Committee and Cabinet and was allocated to the $4 billion Regions Package.

Everything was in place for former Deputy Prime Minister Barnaby Joyce to make the announcement at the Port of Newcastle on May 6.

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 unissued media release obtained by the Newcastle Herald detailed how a container terminal would help transform the port into a next generation global export hub.

"When complete, the port will be able to accommodate the efficient movement of 300 metre LOA (Length overall) ships, the largest ships operating globally, and will have vastly expanded container storage area," the release said.

"Container capability will also be improved through new equipment and facilities, secure storage will be established for importers and exporters, and the speed of critical bulk cargo, such as grains and fertiliser, will massively increase from 250 tonnes per hour to 1200 tonnes per hour,"

More on this issue: NSW Labor leader Chris Minns backs calls for Newcastle container terminal

Newly elected National Party Senator Ross Cadell was employed by the Port of Newcastle for two years to lobby for the container terminal project.

Mr Cadell left his position on April 15, ahead of schedule, at the request of the government which cited a potential conflict of interest.

He told the Herald he was astounded the announcement had fallen through.

"I'm still wondering what happened. I was at the port. It was all good and it was in the budget. We were just waiting for an announcement that never came. Lots of calls I made were never answered and text messages I sent were never answered. I still don't know to this day why the announcement wasn't made," he said.

Port of Newcastle chief executive, Craig Carmody, Ross Cadell and Member for Parkes Mark Coulton.

Mr Cadell said he intended to use his senate position to ensure the $250 million was spent on the establishment of a container terminal.

"It's pretty simple, this money was fought for for the benefit of the Hunter," he said.

"The money is there, no one has spent it on anything else. Every other project from that fund (Regions Package) is going forward this one needs to as well."

Other Coalition members have told the Herald they were appalled to learn the announcement had been abandoned.

The announcement was initially due to occur in the first week of the campaign but was put back to allow for the announcement of a hydrogen hub.

A text message from a Coalition member who was privy to the announcement reveals there was discussion at one point about whether to announce the project simply via media release.

The Coalition member argued that aside from the potential political benefit of announcing the project during an election campaign, it should proceed because "the change is needed anyway".

Northern Tablelands Nationals MP Adam Marshall has previously called on the government to revamp the 2014 deeds which require the Port of Newcastle to pay compensation to the operators Port Botany and Port Kembla if Newcastle exceeds a cap on the movement of containers.

He called on the incoming federal Labor government to announce the funding for the project.

Adam Marshall

"There are plenty of farmers in my electorate who would love to save an extra $10-$12 per tonne on the cost of transporting their grain to Queensland for export. That's money that could be staying in this community and region," he said.

Mr Marshall said he had previously raised his support for the project with the Office of NSW Premier Dominic Perrottet. He also plans to discuss it during an upcoming meeting with NSW Treasurer Matt Kean.

"Hopefully this federal funding forces the government to reopen the anti-competitive deeds and allow port to reach its full economic potential," Mr Marshall said.

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