BHP dumps Abbott Point port expansion in Qld

It was always on the cards and now BHP has made it official – the company has scrapped plans to develop Terminal 2 (T2) at Abbott Point in Queensland along with the proposed rail line linking the port to mine sites in the Bowen Basin.

Speaking to The Guardian, a BHP spokesperson said “Formal relinquishment of the right to develop T2 has now been agreed with North Queensland Bulk Ports and the company will formally withdraw from related regulatory applications,”

The $5 billion project to expand the existing Abbott Point port, near Bowen, was put on hold in September under the shadow of steadily falling world coal prices and BHPs new belt-tightening policy.

The Guardian reports, “A report by the Centre for Policy Development has found there is an excess of port capacity along the Queensland coast, raising concerns that the push to expand ports at Abbot Point, Gladstone and Townsville could put the state “at risk of stranded assets in the long term”.

The study found coal ports to be operating at 65% of capacity, 20% lower than the long-term industry average.

A spokesperson for North Queensland Bulk Ports, managers of Abbott Point, said the company would continue to review how to “best cater for staged and timely incremental expansion of port and terminal capacity” incorporating the development of the T2 site.

“The advancement of the site is fundamental in catering for future incremental coal export growth at Abbot Point,” the company said.