On Thursday 15 July 2021, the Federal Government announced a $260-million investment to expand Australia’s diesel storage capacity as part of its commitment to boost long-term fuel security, create jobs and keep prices low.
With two applications supported by Port of Newcastle to benefit from the Federal package, the announcement represents a significant vote of confidence in the Port of Newcastle and the importance it plays in Australia’s economic strength.
Below, Port of Newcastle CEO Craig Carmody shares his thoughts and reactions to the announcement.
Port of Newcastle is thrilled it will play a vital role in boosting Australia’s fuel reserves following the Federal Government’s announcement of a $260 million package to boost long-term fuel security across the country.
Port of Newcastle welcomes the Federal Government’s funding investment in the fuel storage capability of the region, the creation of jobs in Newcastle, the strengthening of Australia’s fuel security and the increase of fuel trade through the Port of Newcastle.
The Federal Government announcement will support critical infrastructure investment at the Port and see current tankage capacity across the Port’s three bulk fuel terminals grow from 266 Megalitres to 624 Megalitres at the completion of the construction phase.
Today’s announcement is further proof in the value Port of Newcastle’s resources offer in keeping Australia’s economy running.
The awarding of grants to two projects in the Hunter is recognition of the importance the Hunter, and the Port of Newcastle, plays in supporting NSW and Australia’s economic strength and performance.
The Port of Newcastle is thrilled to be in a position to strengthen Australia’s fuel security by investing in the expansion of diesel, petrol and aviation jet fuel reserves at our dedicated bulk-liquids facilities operated by Stolthaven and Park Fuels.
Port of Newcastle received the largest allocation of these grants from the Federal Government – a clear vote of confidence in our region and the Port of Newcastle’s capability and ability to diversify.
Through these grants, Port of Newcastle will play a significant part in increasing the volume of diesel stock we can keep onshore, create 130 local jobs during the construction phase and help keep fuel prices low for consumers.
The awarding of these funding packages to these Port of Newcastle based companies is another critical step forward in diversifying trade to create a safe, sustainable and environmentally and socially responsible port for generations to come.
- The grants will cover up to 50 per cent of total eligible project expenditure. Projects are expected to commence construction from mid-2021 and be completed within three years.
- Port of Newcastle has three bulk liquid import terminals, Stolthaven, Park Fuels and ATOM (Australian Terminals Operations Management). Stolthaven and ATOM operate dedicated bulk fuels terminals at Mayfield 7 and Dyke 1 berths respectively, whilst Park Fuels operates from Port of Newcastle’s Bulk Precinct at Walsh Point.
- The Boosting Australia’s Diesel Storage program is a key part of the Government’s comprehensive fuel security package, announced in the 2020-21 Budget, to secure Australia’s long term fuel supply by increasing onshore stockholdings and our sovereign refining capability that meets our needs during an emergency and into the future.
- Port of Newcastle is Australia’s deepwater global gateway, the largest on the nation’s East Coast. Port of Newcastle is more than a port. It exists to build Australia’s prosperity with responsible, integrated and innovative supply chain solutions. With trade worth about $26 billion to the national economy each year, Port of Newcastle enables Australian businesses to successfully compete in international markets. The port currently handles 4,400 ship movements and 164 million tonnes of cargo annually, including dry bulk, bulk liquids, ro-ro, general and project cargoes and containers. With a deepwater shipping channel operating at 50% of its capacity, significant port land available and enviable access to national rail and road infrastructure, Port of Newcastle is positioned to further underpin the future prosperity of the Hunter, NSW and Australia. As custodians of the region’s critical asset, Port of Newcastle is diversifying its trade as it strives to create a safe, sustainable and environmentally and socially responsible future.
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