World's largest coal export port looks to 'diversify' amid demand decline for fossil fuel

SYDNEY: Port of Newcastle in Australia has announced the appointment of a new chairman on Monday who said there is an "urgent" need to diversify into new sources of growth.

As the world's largest coal export port, the prosperity of the entire Hunter Valley region, 200 km north of Sydney, has relied heavily on industry.

"Coal has been at the heart of the Hunter's economy for the better part of two centuries, and it will continue to be central to the prosperity of the region and Port of Newcastle for some time to come," new chairman Professor Roy Green acknowledged.

"However, there is also an urgent need to diversify the Hunter economy and the Port's business."

Describing the upcoming transition as a "pivotal moment" in the area's evolution, Green explained that most people in the Hunter understand that the fortunes of the Port of Newcastle and the economy of the area are "inextricably linked."

"It is impossible to have a thriving port without a thriving regional economy," he said. "Anything that is good for the Hunter economy is good for the Port of Newcastle."

With a 98 year lease, Green said, the port's management are "obliged" to think long term.

Already, operations have begun to diversify at the port, with a recent investment in a new cruise terminal and plans to construct a number of non-coal freight facilities.

"We must build significantly on this platform and create world class port facilities that are able to meet the needs of a rapidly changing Hunter and New South Wales State economy," Green said.

"Clearly the long term outlook for coal is a threat to the port and Hunter region, but it is also a huge opportunity. While the world's demand for our coal is beyond our control, our ability to invest in new sources of growth and innovation is not."