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Home Electricity

NSW Budget: $115M for REZ logistics precinct

by Katie Livingston
June 12, 2025
in Electricity, News, Projects, Renewable Energy, Spotlight, Sustainability
Reading Time: 5 mins read
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Image: New South Wales Government

Image: New South Wales Government

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The New South Wales Government is investing $115 million to build a new logistics precinct in Newcastle, which will support the delivery of critical renewable energy projects. 

The investment in the 2025–26 New South Wales Budget will see the Newcastle Logistics Precinct developed next to the Port of Newcastle, at the former BHP Steelwork’s intertrade site. It will provide portside storage for equipment, including wind turbines and transformers, that is needed to build renewable energy projects across the state. 

A map of the Newcastle Logistics Precinct Intertrade. Image: NSW Government

Equipment will be stored on a newly paved laydown area before being loaded on to heavy vehicles. It will then be transported to energy projects using the state road network, sections of which are already being upgraded to deal with these heavy vehicle movements and build better roads for communities. 

The New South Wales Government said that this investment delivers on its commitment to ensure the build out of the renewable energy zones (REZs) has the infrastructure it needs. 

EnergyCo is working closely with the Port of Newcastle on the development, which will streamline delivery and strengthen the supply chain between the Port and the REZs. 

The State Government said that this precinct is one of several projects being delivered in the Hunter region as part of the transformation of New South Wales’ electricity system. Others include the Port to REZ road upgrades, Hunter Transmission Project and the Hunter Central Coast REZ. 

According to the New South Wales Minister for Climate Change and Energy, Penny Sharpe, the redevelopment will also recognise the heritage features of the site and will protect the Newcastle Steelworks Memorial, which adjoins the site. Some buildings on the site are being nominated for heritage recognition. 

The Precinct is subject to planning and environmental approvals and will include an environmental impact statement and a public exhibition period. 

“The Newcastle Logistics Precinct will enable the investment underpinning our once-in-a-generation upgrade of the energy system,” Ms Sharpe said. 

“With solar and wind projects being developed across the state, there’ll be many large components arriving at the Port of Newcastle – and they need to be safely stored before they can be moved to REZs. 

“The Newcastle Logistics Precinct will significantly improve our capacity to store and efficiently transport the equipment required to build the critical renewable energy projects we need to replace ageing coal-fired power stations.” 

New South Wales Minister for the Hunter, Yasmin Catley, said that delivering the Newcastle Logistics Precinct will ensure the Hunter remains at the heart of New South Wales’ energy future, opening the door to clean technology investment and new opportunities for local communities and businesses. 

“We are building better communities for New South Wales by ensuring we have the infrastructure and reliable energy needed to improve the lives of people here in the Hunter and across the state,” Ms Catley said. 

Member for Newcastle, Tim Crakanthorp, said, “Newcastle has a long history in the energy and manufacturing sector, and we are proud to continue that legacy as we transition to renewables. 

“The Newcastle Logistics Precinct will build on the strengths of our region, which include excellent renewable energy resources, electricity network infrastructure, port and transport infrastructure and a skilled workforce. 

“The BHP Intertrade site is the ideal location for this development and every effort will be made to uphold its heritage value and preservation.” 

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