DP World Ends Container Terminal Talks with Port of Newcastle

DP WorldImage Courtesy: DP World

Dubai-based port operator DP World has terminated negotiations with the Port of Newcastle on the construction of a container terminal at the Australian giant coal port.

“We can confirm that we have ceased engagement with the Port of Newcastle,” a DP World Australia spokesperson confirmed to World Maritime News, without specifying the reasons behind the decision.

The exclusivity agreement between the duo expired in July.

The plan was launched as part of the port’s intentions to diversify, as indicated by the new CEO of the port, Craig Carmody.

Based on the port’concept, the container terminal would be developed in stages at the Mayfield site — the largest vacant port land site on the eastern seaboard of Australia.

The site has the capacity for a 2 million TEU per annum container terminal, coupled with a shipping channel that can accommodate vessels up to 10,000 TEU, with the capability for even larger vessels with some ancillary channel modifications.

However, the New South Wales Government has opposed the construction of the terminal by imposing a restriction on port competition. The Australian Competition and Consumer Commission (ACCC) is currently investigating the artificial constraint on the Port of Newcastle by the NSW government restricting the development of the container terminal.

Responding to media reports that DP World had engaged in talks with the owner of Port Botany and Port Kembla about a rival terminal at Wollongong, the company’s spokesperson said the following:

“As Australia’s biggest container stevedore, DP World Australia is in regular dialogue with its stakeholders and interested parties across the country, and is continually assessing options, on how to serve its customers, regionally as well, and how to deliver them the best outcome for the import and export of goods. That is good corporate practice and planning.”

World Maritime News Staff

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