A GOVERNMENT fee of $100 per container would need to be charged at Newcastle port to fund compensation payments to the Port Botany leaseholder. Compensation is payable once container throughput at Newcastle port exceeds a cap, as disclosed by NSW Roads Minister Duncan Gay on October 17.
Container handling charges at Port Botany are $120 for import and $76 for export.
A compensation bill of $50 million a year would arise from container throughput of 500,000 per year at Newcastle port, should a container terminal be built.
No funds are being allocated to pay compensation because the cap will not be extended.
All $1.75 billion proceeds from the port’s lease would be spent within 35 years on compensation payments unless a fee of $100 or more is charged.
Of the lease proceeds, $340 million is allocated for removing the heavy rail line between Wickham and Newcastle stations and providing a new transport interchange at Wickham.