Port of Newcastle has told the NSW Farmers' annual conference that a full-scale container terminal in Newcastle would save producers $2.8 billion over 30 years.
The port's business development manager, Kate McArthur, told the federation's conference at Luna Park in Sydney on Wednesday morning that the NSW government's controversial Newcastle container penalty was preventing farmers "earning more for what you do".
Port of Newcastle has fought a long campaign against agreements arising from the privatisation of the Botany, Port Kembla and Newcastle ports which penalise Newcastle if it develops a rival container terminal.
The container fees are the subject of an ongoing Australian Competition and Consumer Commission legal appeal after the Federal Court ruled last year that competition laws did not apply to the privatisation deals because Botany lessee NSW Ports enjoyed "derivative crown immunity" from prosecution.
The court also ruled the privatisation deals did not have an anti-competitive purpose or effect because the prospect of a container terminal being developed at Newcastle was "fanciful".
"It's no secret that NSW Farmers supports Port of Newcastle in its quest to construct a container terminal, and we understand why: A restriction on our trade is a restriction on your income," Ms McArthur said in her speech.
"The economic benefits for famers are savings in the order of $2.8 billion over 30 years. More money in your pockets."
NSW Farmers grains committee chair Justin Everitt told the Newcastle Herald that "issues" with the supply chain through Port Botany had created a backlog of produce to be exported.
"They're operating at maximum capacity now, and we've still got plenty of product up country that needs to get to port," he said.
"There's a shortage of grain throughout the world and we're not getting it out the country. There's obviously a backlog somewhere.
"Port capacity is one of the issues."
Mr Everitt said transporting goods involved "huge sums of money" for producers.
"Any savings or gains that we can make in the agricultural industry would be fantastic," he said.
Ms McArthur said almost 30 per cent of NSW container exports came from northern NSW and the Hunter but "stock and produce is sent to Sydney at a higher cost, or to Brisbane, the unofficial second container port of NSW".
"More recently, we are seeing at times both ports bypassed to Melbourne," she said.
She said a container terminal in Newcastle would save farmers at least $240 million a year in freight costs by 2050 and cut average freight journeys in the port catchment by 40 per cent.
"For example, a single food processing business in Narrabri, exporting around 170,000 tonnes of pulses per annum, could save up to $5.3 million a year.
"A cotton farmer in Wee Waa or Warren could save around $1.3 million a year, while a high-tech manufacturer could save $500,000 per annum on imported goods.
"Lower freight costs would see export activity in the manufacturing, agriculture and food processing sectors expand by around $800 million a year by 2050."
Ms McArthur said the port would take delivery of two new mobile harbour cranes worth $28 million in the next fortnight, allowing it to move cargo and containers "within the limits the PCD [port commitment deed] binds us".
