Oversupply of ports could hurt Australia

Enough Port Capacity Until 2017 (Australia)

Research director Laura Eadie is author of recently released CPD report Too many ports in a storm, which questions government plans to expand and create new coal ports when there is enough capacity until at least 2017.

“In a comprehensive overview of Queensland’s approach to port development, the report shows that perverse incentives, inadequate information and confused governance led to surplus capacity.”

Queensland ports only working at 65% capacity

Laura’s research indicates that Australian ports are running 20% below the industry average capacity of 85%. A predicted reduction in demand from China could mean planned ports and mines are not viable.

Queensland coal ports: shortfall or surplus?

In response to the report the Queensland Resources Council say “more port capacity is needed to avoid bottlenecks” despite the fact that BHP Billiton has withdrawn from development of Abbot point suggesting enough port capacity until 2024.

What the mixed signals about mining’s future really say

The Queensland Resources Council believes there will be growth in coal demand between 3-5% per annum in the foreseeable future. Does this justify new ports and expansion? If current port capacity will be sufficient until at least 2017, more likely 2020 according to CPD’s research, the pre-emptive decision to build ports could hurt Australia’s competitive future.

Dredging Today – ‘New Report: Enough Port Capacity Until 2017 (Australia)’

Gladstone Observer – ‘Report: Queensland ports only working at 65% capacity’

ABC News – ‘Report claims Queensland ports not needed’ | ‘BHP Billiton axes Abbot Point rail plan’

Business Review Weekly –  ‘Queensland coal ports: shortfall or surplus?’

Sunshine Coast Daily – ‘What the mixed signals about mining’s future really say’

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