John Key’s deferral of state asset sales until his Govt’s second term may prove to be a shrewd move with some $A15bn of infrastructural assets on about to go on the block in Queensland, including the freight railway and Port of Brisbane. The Bligh Govt’s “Renewing Queensland Plan” will see assets sold over the next three years to plug a budget gap as it ramps up spending on new projects. Wellington-based Morrison & Co emerged this week as part of one of the bidding groups for the port, reportedly set to fetch $A2bn. Its partner may be the NZ Super Fund, for which it has a mandate for overseas infrastructure investments.

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On offer is a 99-year lease over what is billed as Aust’s fastest-growing port. One of the big selling points is being five days closer to Asia (by sea) than its southern rivals in Sydney and Melbourne. Morrison & Co., the manager of listed investor Infratil Ltd, has held port assets previously, including a stake in Port of Tauranga. It is up against first-round bidders including Global Infrastructure Partners, Queensland Investment Corp and a Macquarie-led group including Morgan Stanley Infrastructure Partners and Unisuper.

Queensland’s asset sale programme may be a good case study for NZ’s Govt. The commercial business of Queensland Rail is to be spun off from its public transport arm and sold via an IPO slated for the final quarter of 2010, with the prospect of an exponential increase in the coal trade. Queensland Motorways, which operates a 61km toll road system, is to be sold in 2011, and the Abbot Point Coal Terminal is to be sold on a 99-year lease starting late this year.

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