Port of Newcastle posts record coal export volumes despite state phaseout targets

Port of Newcastle recorded its highest annual coal export volume in five years in the past financial year, shipping 167 million tonnes to Asian markets — primarily South Korea, Japan, Taiwan, and India — despite the NSW government's domestic coal phase-out target and declining output from several Hunter Valley mines.

Port chief executive Craig Carmody said the record reflected a structural shift in the global coal market rather than any reversal of the domestic energy transition. Asian power generators were drawing higher volumes from Australian suppliers as they worked through the operational lifespans of existing coal-fired capacity, while Australian coal maintained premium pricing due to its thermal quality and reliability of supply relative to alternative sources.

The export performance generated approximately $180 million in port revenues — the port's best financial result — which are distributed to the NSW government as a dividend. The port is currently owned by the federal and state governments through the Port of Newcastle Investment Fund.

The coal volume record has drawn mixed responses from community and environmental groups. Hunter Valley environment campaigners noted that higher export volumes ran counter to the spirit of the state government's stated climate commitments. Port management argued that Australian coal exports were a sovereign decision for importing nations and that the port's diversification strategy — which includes bulk agriculture and container growth — would see coal's share of total volume diminish over the following decade regardless of short-term market conditions.

The port is currently negotiating with two renewable energy developers to establish a green hydrogen export terminal on surplus port land by 2030.

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