A NSW parliamentary committee says a secret deal essentially giving Port Botany a 50-year monopoly as the state's sole container terminal "was not disclosed to the public or the parliament" ahead of the 2013 privatisation and should be investigated further.
The upper house's public works committee has been investigating the so-called port commitment deeds which the government agreed with NSW Ports when it privatised Port Botany and Port Kembla on a 98-year lease for $5.1 billion.
Another deed struck with the Port of Newcastle when it was sold in 2014 effectively meant it couldn't operate a rival container terminal for 50 years as compensation provisions made it "uneconomical".
"The port commitment deeds including the conditions of sale and the levy were not disclosed to the public or the parliament," the committee stated in its final report released on Monday.
The report went on to state, however, that the "limitations" imposed on Newcastle had "not significantly impacted expenditure required on transport infrastructure projects in Sydney".
Australia's competition watchdog in December instituted proceedings in the Federal Court against NSW Ports over the agreements it entered into with the coalition government in 2013.
"We are alleging that making these agreements ... is anti-competitive and illegal," ACCC chair Rod Sims said in a statement at the time.
The Port of Newcastle says having an additional container terminal would better serve the Hunter and regional NSW, ease congestion in Sydney and reduce freight costs through increased competition.
The public works committee on Monday recommended the upper house establish another inquiry at the conclusion of the Federal Court case.
The report also recommended the government conduct a detailed investigation of freight rail options between the ports of Botany, Newcastle and Kembla and, after the ACCC case, review the state's ports policy "including the potential for a container terminal at the Port of Newcastle".
