Newcastle congestion put Australian coal exports at risk
Saturday, 07 Nov 2009
Mr Tom Albanese CEO of Rio Tinto has warned that continued congestion at the Port of Newcastle is a danger to the future of Australia's coal exports to Asia.
He said that his company’s Australian coal production was not running at its full capacity because of logistical hurdles in getting the coal exported. He added that "We should remind ourselves that Australia is not the only source of supply for the Asian seaborne market, so if the coal chain does not pick up, others will find their way to that market."
According to Mr Albanese, unless Australia does a better job of easing congestion and streamlining coal exports it risks losing market share to coal from Mongolia and China. He added that "Coal from Mongolia to China is happening. It is expanding, probably doubling every two years. Will that coal get to the seaborne markets? I suspect it will. Will it get to the seaborne markets at a lower delivered cost than Australian coal? I suspect it will too."
