Port Kembla To Be Privatised

by David Sexton and Jim Wilson - last modified Jun 12, 2012 02:34 PM

Port Kembla in New South Wales could soon be in private hands.

Treasurer Mike Baird said today the Government would conduct a scoping study to determine how Port Kembla should be leased and whether it should be sold off together with Port Botany.

He said proceeds from the deal would be used for major infrastructure projects.

Shipping Australia chief executive Llew Russell expressed surprise.

“We would have thought they would have worked through Port Botany first,” Mr Russell told Lloyd’s List Australia.

Mr Russell said the NSW Government might have decided whether Port Kembla or Newcastle was going to be the next state container terminal before going down the privatisation path.

Maritime Union of Australia national secretary Paddy Crumlin said bundling two ports into one deal threatened to stifle competition.

"Bundling these two ports together and then flogging them off to one operator is a license to gouge the national economy and print money," Mr Crumlin said.

"Port Kembla and Port Botany are critical to the national interest. Unfortunately, that national interest seems to be the last thing on Treasurer Mike Baird's mind."

A senior maritime executive said governments were under pressure to sell major assets.

“We live in a different today to what we did even 20 years ago. Governments have very significant health and social costs that they didn’t have,” he said.

“Governments simply don’t have the money to invest in immature assets without selling mature assets."

Back to News