99-year lease of state-owned ports awarded to NSW Ports Consortium
The government of New South Wales (NSW), Australia, has accepted a multi-billion bid from the NSW Ports Consortium to privatise two of the country’s biggest ports – earning the state as much as $4 billion in the process.
Following a six-month bidding process, the 99-year lease of Port Botany and Port Kembla has been awarded to the NSW Ports Consortium, comprising of Australian firms Industry Funds Management (IFM), Australian Super and QSuper, and Tawreed Investments, for $5.07 billion, with net proceeds, estimated at around $4 billion, to be invested in the NSW Government’s infrastructure fund (Restart NSW).
“This is an outstanding result for the people of NSW, which has exceeded our expectations,” said NSW treasurer, Mike Baird.
“It is the largest ever NSW government transaction, in terms of net proceeds. This is a massive boost to our delivery of our record infrastructure program across the state,” said Mr Baird.
Baird added that the funds will help to realise the much delayed $1.8 billion WesConnex motorway between the M4 and Port Botany.
The NSW Government will retain regulatory oversight of the ports as well as responsibility for a range of important maritime safety and security functions, including the role of Harbour Master and pilotage.
The transaction is expected to close on May 31st 2013.