Abbot Point Coal Terminal on Track to be World's Largest

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Researched by Industrial Info Resources (Sugar Land, Texas)--The expansion of the Abbot Point Coal Terminal, which is in development, would see it overtake the Newcastle Coal Terminal and become the largest coal export terminal in the world. Construction of the latest expansion at Abbot Point, which will double annual throughput from 25 million metric tons to 50 million metric tons, is nearing completion. The commissioning of some sections, including a $50 million shiploader supplied by John Holland Group (Melbourne, Australia), is under way.

The expansion is on schedule to be completed by March 2011, but this is just the tip of the iceberg. Plans are in place to increase the total capacity of the terminal to 230 million metric tons per year. When complete, this would make it the largest coal terminal in the world by a large margin. An expansion of Newcastle Terminal, which is currently the worlds largest, that is due for completion at the end of this year would take its capacity to 133 million metric tons. This means that the Newcastle terminal will be able to hold onto its crown as world's largest for some time, but with the amount of interest in Abbot Point from some of Australia's largest coal producers, it is only a matter of time before we see the Queensland terminal take over this title.

BHP Billiton (NYSE:BHP) (Melbourne) and Hancock Coal Pty. Limited (Brisbane, Queensland) already have been selected as preferred developers by the current owner of Abbot Point, which is North Queensland Bulk Ports Corporation Limited (NQBP) (Brisbane, Queensland), for the next series of expansions. The current plan is to allow both BHP and Hancock to develop two separate coal terminals, adjacent to the current terminal, which will have an initial export capacity of 30 million metric tons each, although both companies have expressed interest in increasing the eventual capacities to 50 million and 60 million metric tons, respectively.

The new Multi User Cargo Facility, as it has been named by NQBP, will include a sheltered harbor capable of accommodating up to 12 cape-size berths, plus a tug harbor. Both BHP and Hancock are in the process of finalizing their portions of the design for the terminals before they can be submitted to NQBP for approval. NQBP also intends to offer a 99-year lease over the existing terminal, with the sale hopefully being completed later this year.

Waratah Coal Incorporated (Brisbane), which was initially left out in the cold by not being selected as one of the preferred developers at Abbot Point, also has been given approval to develop a separate terminal a few kilometers to the North. Waratah's plans include the construction of a wharf with a two-berth jetty, which will be capable of accommodating cape-size vessels, with a total capacity of approximately 40 million metric tons annually.

Industrial Info Resources is tracking 35 above-ground and underground coal mining projects in Queensland, with a total investment value of more than $43 billion. The majority of the projects are due for completion between 2013 and 2015, which will greatly increase the amount of coal available for export from this region. These coal terminal upgrades are going to be vitally important for the future if Australia wishes to continue its massive coal mining expansion in the region and maintain its position as the world's largest exporter of black coal. Australia is poised to be able to profit from the continually increasing demand from both China and India; as these two countries continue to grow, so will their demand for Australia's largest export commodity.

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.