Tuesday, 21 June 2011

The missing link !

For decades all levels of government have ducked and dodged to avoid making a decision on the Maldon-Dombarton rail link between Port Kembla and western Sydney. Money has been wasted on countless " enquiries " - all of which never seem to reach a final conclusion.

Now the world's biggest coal mining company - Shenhua - owned by the Chinese government is about to force a decision, and as a result Maldon-Dombarton could become critically important to the success or failure of a billion dollar investment.

Shenhua is developing new coal mines near Gunnedah, but it is wary of shipping it's coal back to China through the Newcastle port loader because of a plethora of other new mines in that area overloading it's capacity.

Instead it would prefer to rail coal south, by-pass the blockage of Sydney and cause an expansion of the Port Kembla coal loader to ensure that it's coal avoids shipping delays.

If that plan proceeds - completion of Maldon-Dombarton is essential because the existing Sydney/Illawarra line is beyond capacity and can not possibly handle the huge tonnage that will be involved.

There is also an additional possible spin-off. Shenhua is looking to expand it's new coal mines into southern NSW if suitable sites can be found to justify using Port Kembla in preference to Newcastle. We may be about to experience a new mining boom here.

For the first time in ages there is a real chance that Maldon-Dombarton may go to the top of the priority list, and if that happens the way will be unlocked for expanded general industries in this area.

Rail capacity has long been the stumbling block - and the half built Maldon-Dombarton was the " missing link ".

Perhaps it's day is about to arrive !

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