The Port of Newcastle says if it's allowed to build a new container terminal it will reduce pollution and congestion in Sydney, lower the state's freight costs and boost the NSW economy by $6 billion by 2050.
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Australia's competition watchdog on Monday instituted proceedings in the Federal Court against NSW Ports - which operates Port Botany and Port Kembla - over the $5.1 billion privatisation agreement it entered into with the state government in 2013.
The controversial deal contained provisions requiring the Port of Newcastle - which itself was privatised in 2014 - to compensate NSW Ports if it developed a rival container terminal.
The ACCC says the deeds are "anti-competitive and illegal" and make a container terminal at Newcastle "uneconomic".
It means Botany essentially has a monopoly on significant container movements for the next 50 years.
The Port of Newcastle on Tuesday released a report which suggested if it was allowed to develop a large-scale container terminal NSW's gross state product would increase by $6 billion by 2050.
Over half of that would come from lower freight costs, the analysis by economic consultancy AlphaBeta found.
"The report clarifies for us that not only will Hunter and northern NSW businesses and households benefit from a container port at Newcastle, but so will Sydney in terms of pollution, congestion and freight costs, which will come down with competition from Newcastle," Port of Newcastle chief executive Craig Carmody states in the report's foreword.
Australian Associated Press