IPART will undertake an independent review and determine the value of a one-off compensation payment to be made to the State of NSW by the lessee of the Port of Newcastle.
In 2013 and 2014, the State entered into commercial transactions granting long-term leases over the State’s port assets to private operators. The transaction deeds with the operator of Ports Botany and Kembla require the State to pay that operator an amount where certain preconditions relating to container traffic at the Port of Newcastle are met. The deed with the commercial operator of the Port of Newcastle requires it to reimburse the State for those payments.
IPART is required to determine the amount by which the financial value of the right to operate and lease the assets of the Port of Newcastle for 98 years would have been reduced because of the inclusion of the reimbursement provision in the Port of Newcastle deed.
IPART was given this role on 2 March 2023. We have 6 months to make a determination, or 9 months if we issue a draft determination. The timeframe can be extended by up to a further 6 months if necessary.