Advisory firms appointed for Port of Newcastle sale

Mike Baird, the NSW Treasurer is working towards an expeditious $700 million plus sale of the Port of Newcastle, appointing advisors to sell the port after foregoing a wider tender process.

The latest addition to Premier Barry O’Farrell’s privatisation plans was announced in the June 18 state budget with legislation passing through the upper house late last Wednesday.

Mike Baird has appointed Morgan Stanley, accountants PwC and law firm Minter Ellison to prepare the scoping study for its  sale.

The move suggests that Baird wants a sale by next June’s state budget, the Australian Financial Review is reporting.

Due to the port’s world number one steaming coal trade status and its potential for further growth, there are suggestions the sale could be as high as $1 billion.

The AFR's Street Talk column says Mike Baird's decision surprised rival investment banks, accountancy and law firms.

But the trio had all previously handled the $5.1 billion Port Botany and Port Kembla sales.

The Port of Newcastle is expected to be offered as a 99-year lease, similar to the terms of Kembla and Botany.

Members of the coal industry, such as Asciano and Adani, may battle with the group of infrastructure investors who fought over Kembla and Botany for the lease to Australia’s largest coal port.

As previously reported in Property Observer, about $340 million of the funds raised will be directed towards revitalising central Newcastle.