Queensland wants private operator for Abbot Point terminal

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31 Oct 2010

Queensland Treasurer Andrew Fraser on Friday invited expressions of interest from potential bidders for a 99-year lease of the X50 Abbot Point coal terminal. The terminal was currently being expanded from 21-million tons a year to 50-million tons a year, more than doubling the current capacity.
Fraser said on Friday that the lease would offer investors a fully contracted business with long-term take-or-pay contracts.
"The Abbot Point coal terminal services the engine room of Australia's coal producing region, the Bowen basin, and is the most accessible port for the, as yet, largely un-tapped Galilee basin," Fraser said.
He noted that the port was a nationally significant piece of commercial infrastructure that would be best developed and expanded by the private sector.
"Running coal terminals is a job for the private sector. Our reforms will allow that to happen."
The 99-year lease would ensure the Port land and the existing jetty and wharves would remain owned by the state, which would also retain ownership of all future expansions on site.
The bidding process would involve three stages, with the first seeing expressions of interest being sought from suitably qualified parties.
During the second stage, bidders would then be shortlisted and asked to provide indicative bids, after which they would then undertake detailed due diligence assessments before providing the state with their final binding bids.
Fraser said, in accordance with the state government’s timetable, he expected to finalise the lease and announce the winning bid next year, subject to market conditions.
"Our market soundings show we can expect strong interest from both specialist trade buyers linked to the coal-mining industry and infrastructure and pension funds," he stated.

Source: Miningweekly.com