Australia's Port of Newcastle, located in the south-eastern state of New South Wales, has been privatised following the issuing of a 98-year lease to consortium Port of Newcastle Investments.
The asset sale was announced by New South Wales Premier Mike Baird and State Treasurer Andrew Constance after a five-month bidding process. Proceeds of the lease are estimated to be approximately A$1.75 billion (US$1.62 billion).
Premier Baird said a portion of the proceeds will be used for the revitalisation of the Newcastle CBD, as well as a new light rail service. The remainder would be invested in a state infrastructure fund.
The Port of Newcastle Investments consortium comprises two companies, Hastings Funds Management and China Merchants, in an equal 50-50 partnership.
Hastings Fund Management has been involved in several government privatisations, including the Sydney Desalination Plant and the Cairns and Mackay airports in the state of Queensland.
The NSW Government will continue to retain regulatory oversight of the Port of Newcastle as well as responsibility for a range of maritime safety and security functions, including emergency response, Harbour Master, Port Safety Operating Licence and pilotage functions.
