Regional Coal: Australia's coal export capacity may rise 39% by 2010

Australia's east coast coal export port capacity could increase by 100 mln metric tons a year, or nearly 39 pct, by 2010 from its current capacity of 259.6 mln tons annually, following expansion at key export terminals, Energy Economics said in a report as quoted by AFX.

The private coal industry watchdog said the rise in capacity will largely be driven by expansions of the Haypoint and Dalrymple Bay export terminals which service the state of Queensland's world class Bowen Basin coal province along with expansion at the Port of Newcastle in the state of New South Wales, the world's largest coal export port.

Last month the BHP Billion Mitsubishi Alliance, which owns the Hay Point facility near the city of Mackay, approved phase two of its expansion program, which will lift capacity by four mln tons a year to 44 mln tons.

BMA also announced a detailed assessment study for the proposed phase three and phase four expansions, which would increase capacity to an estimated 55-57 mln tons a year.

Energy Economics said the nearby Dalrymple Bay terminal, owned by Babcock & Brown Infrastructure, is expected to add one mln tons a year annual capacity from November 2006, taking capacity to 60 mln tons a year.

It said Babcock & Brown Infrastructure is also investigating numerous expansion options to further increase capacity to levels ranging from 72-90.5 mln tons a year.

Energy Economics said the preferred expansion path is to increase Dalrymple Bay terminal capacity to 65-68 mln tons a year by July 2007 and then to 80-85 mln tons by August 2008.

At Newcastle, it said coal export terminal operator, Port Warratah Coal Services (WPCS) has unveiled plans to boost overall capacity to 120 mln tons a year after formally approving expenditure of 170 mln aud in April to expand throughput capacity from 89 mln tons to 102 mln.

The firm said some early benefits of PWCS's expansion will start to flow

through next year, with planned port throughput being around 90 mln tons in 2006 and "in the low 90s" in 2007.

As well, Energy Economics said, the Queensland State Government has approved a capacity expansion of the RG Tanna coal terminal at the Port of Gladstone, from 40 mln tons a year to potentially over 60 mln tons annually by early 2007 as part of a staged expansion which will see capacity lifted to around 54 mln tons by May next year.

The firm said the Barney Point coal terminal, also at Gladstone, is to be upgraded with a rise in capacity to 6-7 mln tons annually by the end of 2005 from the current 4-5 mln tons.

Energy Economics said the Ports Corporation of Queensland is also currently studying a potential new 60 mln tons a year coal port at Wiggins Island to service the potential new thermal coal mines to the south of Gladstone.

The firm said there is also potential to double the capacity of the state-owned Abbot Point coal terminal over the long term through the construction of a second berth with a second ship loader.

Abbot Point, the northern most coal export terminal on Australia's east coast, has a current capacity of 17.5 mln tons a year.(*)