SYDNEY Ports Corporation is facing a shortage of expected funds for the $1 billion expansion of Port Botany.
While work is reported to be advanced on the 60 hectare reclamation, which will provide five new berths stretching 1850 metres, the economic downturn has caused a marked fall in cargo volumes moving through the port.
This had led to a significant drop in shipping and wharfage revenue.
The project was predicated on continued growth in container throughput that was to have seen the new terminal come online about the time the existing facilities reached capacity.
New South Wales ports minister Joe Tripodi confirmed yesterday that with trade below expectation, the revenue needed for the expansion of the port was also below where it needed to be.
Sydney Ports considered increasing its charges to make up the difference, instead the NSW Government will absorb the cost, according to Tripodi.
Tripodi said the State Government had authorised the suspension of dividends to be paid to the government over the next few years.
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