'We'll be rueing Abbot Pt call in 5 yrs'

QUEENSLAND may rue the dumping of Abbot Point's grand expansion in coming years, according to a senior economist specialising in mining and energy.

BIS Shrapnel's Adrian Hart said he was unsurprised by the LNP government's chopping the development of six coal terminals and attached harbour from the Central Queensland port.

But he said that within five years the industry and government would again be feeling the pressure of infrastructure bottlenecks like those that crippled the sector in the lead-up to 2010.

"I think generally it was always going to be tough to reach the accelerated growth (the government) needed for Abbot Point," Mr Hart said.

"But the investment profile has always been to build only after it is required.

"We'll be rueing this five or six years down the track."

The plan to slash the Abbot Point expansion was revealed on Friday, with Deputy Premier Jeff Seeney confirming on Monday the $9 billion expansion was now off the table.

Mr Hart said lessons had not been learned from the blockages in the coal supply chain that cost companies $23 million a month.

By 2010, up to 51 ships were regularly queueing off Dalrymple Bay Coal Terminal near Mackay as the port struggled to handle coal demand.

"It has been a question of not being able to build things quickly enough," Mr Hart said.

"Perhaps we should use these weak periods for investing because the long-term fundamentals in coal remains strong.

"I hope it's not put on the backburner for the next three years where we begin fighting capacity constraints."



Thousands of rev heads show up to day one of Leyburn Sprints

premium_icon Thousands of rev heads show up to day one of Leyburn Sprints

Biggest Saturday turn out ever for the motor event.

Family returns home to find 20 cars engulfed in flames

premium_icon Family returns home to find 20 cars engulfed in flames

More than 20 cars consumed by fire at Leyburn property

REMEMBRANCE DAY:We are built on a nation of dreamers

premium_icon REMEMBRANCE DAY:We are built on a nation of dreamers

Warwick honours the Australian lives lost in Vietnam.

Local Partners