BHP Billiton has scrapped plans to build a major new coal port near Bowen on the Queensland coast

The company has announced that it will not go ahead with plans to develop terminal two at the Abbot Point port as well as an accompanying rail line that would have taken coal from mines to the port. The project was expected to cost $5 billion.

Laura Eadie, in a comprehensive report on Queensland's port failities for the Centre for Policy Development, commented that “The (Queensland) government seems to expect quite significant exports, which is opposed to the view of rational listed coal investors. China is capping coal consumption by 2015, which is significant as it has been the main driver of coal export growth."

The report noted that investment banks such as Goldman Sachs were “losing confidence” in Australian coal investments.