December 02, 2008

Newcastle cuts coal Q4 export quota by 2.2 million tonnes

It is reported that Australia's Newcastle port will cut 2.2 million tonnes from producers' total shipping allocations in the fourth quarter to reduce vessel queues. The two coal terminals operated by Port Waratah Coal Services Ltd would reduce exporter’s loading limits for a second time in six months,

Mr Graham Davidson GM of Port Waratah Coal Services told Reuters that "The decision was made based on several issues, including underperformance at the port and a derailment of the rail transport system last week."

Mr Davidson said that exporters would be asked to make voluntary cuts, failing which the reductions will be imposed based on their current allocations.

The terminals will manage an estimated 84.5 million tonnes of coal this year, less than its capacity of 90.5 million tonnes. In March 2007, coal producers had their export quota cut by 3.3 million tonnes. The capacity balancing system was reinstated this year after being voted out in 2006. Last year, Port Waratah had a throughput of 79.8 million tonnes.