Nathan Tinkler’s coal loader plans in Newcastle will weaken the commercial framework for the Hunter Valley Coal Chain, according to Port Waratah Coal Services (PWCS).
Newly installed PWCS chief Hennie du Plooy told the Newcastle City Council that Tinkler’s T4 terminal creates a number of problems, the Newcastle Herald reported.
This comes as Tinkler announces that he will double the projected size of the coal loader.
The proposal aims to handle up to 100m tonnes of coal a year and will be built in stages at a cost over $1 billion.
The development runs contrary to agreements made within the Hunter coal industry to focus expansion plans on the other side of the river at Kooragang Island.
Du Plooy said that it will effect the long term commercial framework for the Hunter Valley Coal Chain, which attempts to address the long running issues of bottlenecks across the route.
“The [proposed Tinkler T4 terminal] doesn’t currently fit into the long-term commercial framework,” du Plooy said.
“It would need to fit with that commercial framework.”
He went on to say that a proposed coal terminal had previously been rejected at the T4’s site on the old BHP Steelworks at Mayfield.
Du Plooy added that the required upgrade of the Tourle Street bridge was also a contentious issue.