No Port Jobs Under Threat

Illawarra Mercury

Saturday December 13, 2008

By BRETT COX

THE economic downturn may reduce the number of ships moving through Port Kembla but no jobs at the port corporation are at risk, says State Ports Minister Joe Tripodi.

Despite BlueScope Steel's plans to slow production for the reline of a blast furnace early next year and reports that imported cars were backing up in Sydney, Mr Tripodi told the Mercury Port Kembla was well placed to cope with tough times ahead.

"Port Kembla Port Corporation has recently restructured to remain up to date with changes at the port," he said.

"The port is in the best position it can be with a real diversification of trades coming through.

"The coal, steel and grain industries have been supplemented with the introduction of the car industry.

"As with any industry, the situation will need to be monitored."

As BlueScope was not a major revenue source for the corporation, Mr Tripodi said, the corporation would only be adversely impacted by "reduced ship movements and revenue from navigation and pilotage charges should ship visits decrease".

So far, he said, trade volumes had not been affected by the economy and in fact had increased due to the transfer of car carriers.

Sea traffic would decline during the reline of the blast furnace next year but this was expected.

"It is possible the number of car imports may decrease but the extent of this is not yet known," he said. "No jobs are under threat as the port corporation's main services have increased due to ... the car trade."

BlueScope shares fell below $3 yesterday after the market responded to its plans to raise $300 million through an equity placement to institutional investors.

Under the placement, shares were priced at $3.10, below the $4.03 when trade was halted on Tuesday.

At 3pm yesterday shares sat at $3 after diving to a low of $2.98 just after 1pm.

Due to the economic downturn, 1500 BlueScope Steel employees in the Port Kembla mill and paint line operations will take leave for Christmas. Around 200 contract positions have been axed but unions are confident there will be a net increase of jobs at BlueScope for the reline.

© 2008 Illawarra Mercury

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