A tragedy of the commons within the Hunter Valley coal industry

Abstract

The global demand for export raw energy supplies has helped Hunter Valley's coal industry prosper in the current commodity boom. But as the Hunter Valley coal industry grows, so does the logistical and political complexity of the region. The current problem that the industry faces is the vessel queue off the Port of Newcastle. In short, under-investment in infrastructure by the Government and the industry can be to blame. Although solutions have been implemented to help manage demand, underlying causes have not yet been addressed. Therefore, this paper seeks to provide a greater understanding of the possible causes impeding effective supply chain management practices in the Hunter region. More specifically an identified policy variable imposed onto the Kooragang coal loading terminal will be discussed as a possible factor in growth and development within the Hunter Valley coal chain. The research methods used for this study includes semi-structured interviews with Hunter Valley coal industry members, submission reports from Australia's regulatory body, Government reports, and company documents such as media releases and conference papers