Newcastle clean-up delay a problem for capesize loading hopes

Work to complete the Newcastle Coal Infrastructure Group's (NCIG) new 30mtpa terminal remains on track with the first shiploader to arrive in June ahead of the terminal's  completion in March next year.

However, crucial dredging being carried out by BHP on the southern side of the Hunter River is taking longer than anticipated.

That has delayed associated dredging which was to have enabled the terminal to load capesize ships.

BHP is a leading member of the NCIG consortium, but the work adjacent to the old steelworks site, while timed to coincide with the coal terminal work, is considered separate.

NCIG member Felix Resources told the Australian Securities Exchange that dredging around the former steelworks was behind schedule and was unlikely to be completed before March, when the terminal is due to begin operating.

This will restrict NCIG to loading panamax vessels in the early stages until its dredging work is complete.

An NCIG spokesman said the timing of the work had been adjusted and the consortium was waiting for a clearer picture from BHP about its clean-up operation.

However, the terminal work remained on schedule.

"There was always going to be a ramp-up of vessels and capacity of operation," the spokesman said, confirming that vessel sizes would be restricted initially.

Dredging for Port Waratah Coal Services' (PWCS) Kooragang Coal Terminal is also being carried out in conjunction with the other two projects.