Plans to expand Queensland’s Port of Abbot Point into Australia’s largest coal exporting facility have taken a severe hit with confirmation that BHP Billiton has withdrawn its interest in developing a new terminal at the port.
BHP had been identified as the preferred developer of Terminal 2 in the ambitious expansion, and had committed a sum of $5 billion to a project that included the construction of a railway line from Goonyella. The terminal, work on which was to begin in 2015, would have increased the coal export capacity of the port by an estimated 60 million tonnes per year.
Doubts over the project were raised as long ago as 2012, but it is only in November that the multinational mining corporation formally relinquished its claim as developer with North Queensland Bulk Ports (NQBP). In a statement, the company confirmed it would also “formally withdraw from related regulatory applications”.
The decision has caused NQBP to rethink the future of the development plan, but two companies remain committed – Adani and GVK Hancock, who hold the development rights to Terminal 0 and Terminal 3.
NQBP has stated that it will review the plan and assess how best to hold a “staged and timely incremental expansion” of Abbot Point as it searches for a new developer for Terminal 2.
Queensland’s port development plans have been set back by a number of events in recent months. A report from the public interest think-tank, The Centre for Policy Development, published this month, stated that port over-development along the Queensland coast would significantly weaken the state’s economy in the long run.
“Coal ports are operating at 65 per cent capacity, well below the industry average of 85 per cent,” the report claims, while its author, Laura Eadie, has stated that should Queensland develop Abbot Point, “it may all be for nothing. There is a risk of stranded assets, job losses and royalty shortfalls”.
Meanwhile in June, UNESCO warned that the Great Barrier Reef, which lies just a few miles directly east of Abbot Point and along the Queensland coast, could be added to their ‘In Danger’ list. It claims that by developing ports further, the risk of damage to the world-famous location will only increase.
At present, the Queensland government is re-examining its port and dredging policies, with Deputy Premier and State Development Minister Jeff Seeney stating the “Great Barrier Reef must not be put at risk”.
A new draft strategy is being considered, in which dredging for deep water port developments would be banned for 10 years and port authorities required to prepare master plans. The strategy is open for public comment until December 13.
