Qld sells off Abbot Point coal terminal

May 3, 2011 - 4:24PM | Jessica Marszalek

The Queensland government has completed the last plank in its asset sales plan, earning $1.829 billion that will be funnelled into the state's disaster recovery.

Premier Anna Bligh on Tuesday announced that the government had agreed to a 99-year lease of the Abbot Point Coal Terminal to Mundra Port Pty Ltd for a sum above the expected price of $1.5 billion.

Under the deal, the state retains ownership of the port land, its jetty and wharves. The terminal will continue to be operated privately by Xstrata.
Advertisement: Story continues below

Abbot Point is the last asset to be sold off under the government's controversial privatisation plan.

Ms Bligh said the difficult decision to go ahead with the privatisation program was now paying off.

"Following the catastrophic impact of the floods and Cyclone Yasi, the government announced the proceeds from the lease of the Abbot Point Coal Terminal would help pay Queensland's share of the recovery costs," the premier said in a statement.

She said the port existed purely for coal companies and should now be operated privately.

"Taxpayers have done their bit to establish the terminal and entice investment, now it's time for the private sector to take over," Ms Bligh said.

Representatives of Mundra Port signed the documents in Brisbane on Tuesday afternoon.

Mundra Port is the Australian subsidiary of Mundra Port and Special Economic Zone Ltd, which developed and manages the largest privately-developed port in India and forms part of the Adani Group.

The Adani Group is based in India and has substantial global interests in power generation, mining, oil, and gas exploration, development and operations.

The government has already publicly floated a portion of rail freight company QR National, and sold its forestry business and the Port of Brisbane under its privatisation program, earning $7.3 billion.

It's also been announced that Queensland Motorways will be transferred to the government's investment arm - Queensland Investment Corporation (QIC) - for an expected $3 billion.

The government proposes to sell off the remainder of its stake in QR National in the future.

Brought to you by AAP through SMH