The State Government has revealed it will privatise the Port of Newcastle, with some of the money to be spent on revitalising of the city.
The 99 year lease will raise $700 million which will pay for new infrastructure across the state.
The Government expects to spend $340-million on Newcastle itself.
“It will be the reinvention of Newcastle as a modern city,” Treasurer Mike Baird said.
“This will now go beyond a mere revitalisation: it will effectively be the rebirth of Newcastle as a modern city,”
Last year the Government announced changes to the city, including the removal of the rail line between Wickham and Civic.
The Government says the additional funds will make it possible to deliver light rail in the CBD.
The announcement has raised concerns about workers at the Port who may find their jobs affected under the leasing arrangements.
However, Mr Baird said any transaction would include protections for current employees and Port of Newcastle users.
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Watch video of Treasurer Mike Baird delivering the announcement below
This government reminds of a parachutist who discovers half way down they forgot the parachute.