The NSW government has privatised two of Australia’s biggest ports signing over both Port Botany and Port Kembla on 99-year leases.
The two ports will be leased to the NSW Ports Consortium in a deal which will reportedly earn more than $4 billion for infrastructure projects in the state including WestConnex motorway in Sydney and Pacific Highway upgrades.
The Australian reported the Port Botany transaction netted more than $4.31 billion, while $760 million was earned from the Port Kembla package.
"This is a vote of confidence in the NSW economy and an endorsement of our fiscal strategy, but there is much work left to do," NSW Treasurer Mike Baird said.
"In order to catch up on the infrastructure backlog we have… the only way to start addressing that is to look at the capital on your balance sheet,'' he said.
"It's a great win for NSW. The infrastructure funding for this state has had a massive boost."
However, others are not so convinced that privatisation is the right move for the ports, arguing it could affect competition.
University of Wollongong transport and planning academic Associate Professor Philip Laird told the Illawarra Mercury he was concerned about the “packaging’ of the harbour.
‘‘To me, it’s there’s a lot at stake – if it’s packaged off with Port Botany, you reduce any incentive for competition between the ports, so it reduces the incentive for a container port here,’’ he said.
‘‘And in that case, why bother with Maldon Dombarton? And in that case we’ll get more trucks and it will make it harder for people to live here and commute to Sydney.
"If the two ports are leased to the same new owner, the promised contribution of $100 million to regional infrastructure should be increased to the value of a container port at Port Kembla – that is, $500 million.”
"There is no question this current Coalition government is Sydney-centric and we need to keep track of these guys. They are talking about $100 million in new projects for the Illawarra [from the lease proceeds]. I want to know where the other $400 million is going – the community and I are not going away on this," Hay said at the time.
"We have to hold the government to account on this."
After the 99-year leases end, the ports will change back to public ownership, pending further negotiations.
Baird said the government would still control maritime safety, security and regulations at both ports.
Image: kemblaport.com