IPART has determined the value of a one-off compensation payment that can be made by the Port of Newcastle to the State of NSW. We have determined the value of this payment is $10.12 million (in 2014 dollars). After adjusting for inflation to December 2023, this is $13 million.
We determined the value of the payment under the Port of Newcastle (Extinguishment of Liability) Act 2022 (the Act). The Act required us to consider only information that would have been available to a reasonable person bidding for the Port of Newcastle as of 2014.
From the date on which the operator of the Port of Newcastle makes this payment to the State, it will have no future liability to reimburse the State for compensation payments owed to NSW Ports if the Port of Newcastle handles container traffic above a specified level.
We have also published an Information Paper that details:
- what we were required to do for this review
- the information we used
- the methodology we developed to calculate the relevant compensation, and
- the impact of the payment of the relevant compensation.