New South Wales seeks to privatise Port Kembla and Port Botany in 2012

AUSTRALIA's state-owned Port Kembla and neighbouring Port Botany are to be privatised to raise funds for infrastructure projects, according to a plan announced in the New South Wales state government.

Port Kembla Port Corporation is expected to be sold for A$500 million (US$526.3 million) on a 99-year lease. One-fifth of this amount will be spent on infrastructure in the Illawarra. The rest will be spent on other projects throughout the state of New South Wales, reports Dubai's Gulf Agency Company (GAC) Australia.

The other alternative is for the Port of Kembla to be sold in conjunction with the A$2 billion Port Botany that is located 12 nautical miles south of the entrance to Sydney harbour.

In such an event, Sydney Ports Corporation will lose responsibility for most of the Port Botany precinct but will retain control of maritime security and emergency responses.

The successful bidder should be known by December, said the report.