The former head of the stevedoring group Patrick, Chris Corrigan, is expected to be one of three prospective parties bidding to operate the Port Botany expansion, on which construction is to start in the coming months.
Other likely bidders include Hong Kong's Hutchison Port Holdings and Anglo Port, jointly with Philippine operator International Container Terminal Services. Hutchison recently entered the Brisbane market, winning the tender to operate a new container terminal.
It is unclear whether either of the existing stevedores at the port - Patrick or DP World - will bid, although industry speculation is centred on a new operator being given the nod.
Corrigan's participation in the bidding will be via long-time business associate Sam Kaplan's publicly listed KFM Diversified Infrastructure and Logistics Fund, which has taken direct stakes in several ports around Australia since its launch earlier this year.
The entry of a third operator is likely to maintain pricing pressures on existing operators, and limit prospects of price fixing and uncompetitive practices.
The NSW Minister for Ports, Joe Tripodi, said the stevedoring tender would be held early next year. The government announced last week that a joint venture of Baulderstone Hornibrook and the Belgian company Jan de Nul would be given charge of the 60-hectare expansion of the port.
The expansion includes the creation of five new berths. The capacity of the port, which handles a third of Australia's container traffic, is to be doubled.
Construction is to begin next year, with the first berth scheduled to be ready by 2012, well after 2010, which is when the port is expected to reach maximum capacity with its present number of berths.
Sydney Ports is forecasting a decline in vessels using its facilities, to 2088 in 2009, down from 2310 vessels anticipated in the 2007 to 08 financial year, although throughput at its ports is expected to rise to 32.1 million tonnes from 30.3 million tonnes over the same time frame.
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