Bundaberg Port is facing a compensation claim from an aquaculture company that asserts that it “wasted” hundreds of thousands of dollars to delays, blocks and obstacles when trying to set up a business on port grounds.
Coral Coast Mariculture’s problems began when directors tried to secure a lease at the port in 2005 to set up a soft-shell crab project, reports News Mail.
However, all was not straightforward, and lease negotiations became bogged down over clauses that would have required the aquaculture company to give back some of its land and remove infrastructure at the port’s discretion.
To make matters worse, the sending of the final lease agreement was delayed for months.
“Our lawyer wrote every two weeks for six months requesting the lease,” Coral Coast Mariculture director Dr Clive Keenan said.
The company was prepared for negotiations, which had initially looked promising as Coral Coast had already bought one leasehold on a site at the port which boasted a processing plant and offices. However, to complete the launch of the business, the company still needed the delayed, finalised lease for more land, in order to farm the crabs.
As time dragged on, the company was under pressure to start the project or pay back a State Government funding grant which had been paid under the Sustainable Regions program.
In order to start functioning, Coral Coast bought an established aquaculture farm and began operating soon after: this meant the businesses no longer needed the port facilities, but they were stuck with the site which they then put on the market.
Besides the claim, Dr Keenan has also asked the State Government to investigate “unjustified” rent increases of up to 66% at the port, which is now owned by Gladstone Ports Corporation.
