The New South Wales (NSW) government will proceed with the long-term lease of the Port of Newcastle, NSW, Treasurer Mike Baird and Ports Minister Duncan Gay announced yesterday.

Mr Baird said the government had received and considered the recommendations of the comprehensive scoping study, which confirmed it is in the state's interest to go ahead with the lease of the Port of Newcastle - the world's largest coal exporting port. Mr. Baird said:

"The scoping study has revealed strong initial interest from investors for this transaction, that if successful, will drive economic growth and the renewal of Newcastle by fast-tracking critical infrastructure needs in the region.

"At the same time, this transaction will unlock vital funds for the backlog of critical road, school and hospital projects across NSW."

Mr Baird said an Expressions of Interest process will be launched later this month, with the Government to shortlist qualified parties for the next round of the process. Mr Baird continued:

"As one of the largest ports in Australia, the Port of Newcastle plays a critically important role in the export of coal and the movement of other cargo. In addition, the Port has tremendous ongoing growth and development potential, and has extensive strategic port-side land available for the future growth of general cargo, dry bulk and bulk liquids."

Mr Gay said the lease will include more than 700 hectares of land owned by the Newcastle Port Corporation (NPC), as well as all road and rail infrastructure and wharves owned by NPC within the port boundary.

The NSW Government expects to finalise the long term lease of the Port of Newcastle by the middle of next year following indicative and final bid phases.

In July, NSW hired Morgan Stanley to study the commercial sale of Newcastle port. Law firm Minter Ellison and accounting firm PwC were also retained.