The NSW Government has issued a call for proposals to repurpose 52 hectares of former BHP land in Mayfield North, the same land that is a missing piece of the puzzle in Port of Newcastle’s Multipurpose Deepwater Terminal plan.
In a statement released on February 14 by NSW Minister for Planning and Minister for Homes, Anthony Roberts, Registrations of Interest were being sought to transform the former steelworks site into new innovative uses to boost employment and the local economy.
Roberts said the site could be used for advanced manufacturing, cleantech and green energy.
“Newcastle has a proud industrial heritage and was once known as ‘Steel City’ due to the BHP Steelworks that sat on this land for more than 80 years,” Roberts said.
“As the seventh-largest city in Australia, with proximity to Sydney and critical infrastructure including port, rail and road networks, Newcastle has great potential to specialise in innovative markets such as clean and green technologies.
“It’s time for a new era as we transition into the next phase of job creation in emerging industries, boosting local employment and attracting new investment from domestic and international markets.”
The land in question is the Intertrade site that holds the former BHP administration building, bike shed building and technology building.
It also backs onto the site on which Port of Newcastle plans to build a large, automated container terminal.
Port of Newcastle had previously inquired about long term leasing the land from the NSW Government in 2018, with plans to transform it into a transport and distribution centre, providing purpose-built access and egress points for the proposed container terminal next door.
According to the Newcastle Herald, the NSW Government rejected the inquiry in 2019, as it did not meet the relevant “unsolicited proposal” criteria.
The Port of Newcastle developed the Multipurpose Deepwater Terminal plan to reduce double handling, decongest the freight rail network, lessen costs and delays, and create more jobs for the region.
“The Newcastle Multi-Purpose Deepwater Terminal is an estimated $1.8B development to be entirely funded by private investors,” CEO Craig Carmody said.
“It will deliver more jobs in regional NSW, a reduction in unnecessary road and rail movements in and out of Sydney, and cheaper freight costs for importers and exporters across the state.”
Carmody said the Mayfield site had the capacity for a 2 million TEU (Twenty-foot Equivalent Unit) per annum container terminal, a shipping channel that could accommodate vessels up to 10,000 TEU, and the capability of hosting larger vessels with some ancillary channel modifications.
State Member for Newcastle Tim Crakanthorp (ALP) slammed the NSW Government’s call for proposals characterising the move as a “deliberate attempt from the Liberal-National Government to protect the interests of themselves and their mates”.
“Since the NSW Government placed what the Australian Competition and Consumer Commission called an ‘anti-competitive and illegal clause’ on the contract when they sold the Port in 2014, which restricted container movement through the Port so it would not pose a competitive threat to Port Botany or Port Kembla to maximise the profits from their sale, the Government has thrown everything it can at stopping Port of Newcastle from proceeding with its development plans,” Crakanthorp said.
The provisions in the clause penalise Newcastle if it develops a large container terminal.
Port of Newcastle is currently working to overturn these provisions in the Newcastle, Port Botany and Port Kembla privatisation agreements.
Crakanthorp said the Government’s determination to block Port of Newcastle’s development was “out of control”.
“The Federal Government backs this project, Business Hunter backs it, the Conservative Advocacy Group Committee for the Hunter backs it, and the people of this region back it – the NSW Government is the only thing standing in the way,” Crakanthorp said.
“This says a lot about the state government’s attitude towards Newcastle and the Hunter, that they would prioritise a $20 million land sale over $2 billion in private investment and 19,000 jobs.”
Federal Member for Newcastle Sharon Claydon (ALP) said the NSW Government’s call for the sale of “critical Port access land” would ensure that “the development of a container terminal at the Port of Newcastle remained economically unviable”.
“This is a project that will generate more than 15,000 direct and indirect jobs, provide cheaper freight costs for importers and exporters across the state, reduce unnecessary road and rail movements in and out of Sydney, add $1.3 billion to our regional economy, and $2.5 billion to the national economy,” Claydon said.
“This is a concerted effort to block investment, entrench private monopolies and put a massive brake on regional development and employment in Newcastle.
“I call on the Prime Minister to intervene … and insist on a level playing field amongst NSW ports and access to container trade.”
NovoNews reached out to the NSW Government for further comment, seeking a response to the claims.
“It’s both false and misleading to suggest that the repurposing of the Intertrade site (former BHP site) which adjoins the Port of Newcastle land is a move by the NSW Government to stop Port of Newcastle’s plans for a container terminal,” a spokesperson from the NSW Department of Planning and Environment said.
“The Department of Planning and Environment remains open to considering any proposal for the site put forward by any party, including Port of Newcastle, but any successful proposal must demonstrate how it would best contribute to our long-term strategic objectives for Newcastle and the Hunter region – namely boosting the local economy and jobs over the long term.
“This is a fantastic opportunity to kickstart a new industrial future for the region, and we look forward to reviewing a range of innovative proposals for the Intertrade site.”
The Registrations of Interest period begin on February 28 and will run for three weeks.
For more information on the Intertrade site and the Registrations of Interest process, visit the Department of Planning and Environment website.
Hayley McMahon