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West Coasters are "gutted" by the decision by Pike River Coal to shelve plans to ship coal out of Greymouth and instead use the Midland rail line to Lyttelton Port for export.
Grey District Council mayor Tony Kokshoorn said shipping coal through Greymouth to Port Taranaki would have
been worth up to $50 million for the 18-year life of the mine.
Port Taranaki has calculated it will miss out on $80 million after Pike River's "bombshell" announcement on Tuesday that it had signed an agreement with fellow coal miner Solid Energy to use rail to cart about 1.3 million tonnes a year.
Kokshoorn said the shipping plan was still live when Pike River opted for rail and there had been a sharp reaction on the Coast.
"The people of the West Coast are gutted. They see this as one more time where big businesses boot us around at will," he said.
Under the rail deal, Pike River will now transport its coal for about $39 a tonne, about $4 less than what the shipping would have cost and $1 less than forecast in its prospectus in May.
Coal will start moving in the second half of next year from the $200 million mine about 40km northeast of Greymouth.
Kokshoorn said: "We've lobbied for years to get Pike River. We've still got the cake but we've just lost the icing - the port."
Greymouth authorities are now lobbying the Government for funds to help develop the harbour, which would have needed extensive dredging.
The Midland line, under threat of closure in 2004, will from next year carry up to three trainloads of coal a day from Pike River on Solid Energy's rail service. That follows Solid Energy's trials of longer trains, increasing the usual 30-wagon capacity to 45 wagons.
Rail operator Toll moves an average six coal trains a day on the Midland Line, but there was plenty of capacity to increase that, Toll Rail group general manager Joe Garbellini said.
The Pike River coal, totalling 1.3 million tonnes a year, will initially be transported over the Southern Alps on Solid Energy's 30-wagon trains.
As a result of the agreement, Solid Energy is planning further investment on the rail line, rolling stock, an additional coal load out facility on the West Coast and increased capacity at Lyttelton.
Pike River's chief executive Gordon Ward said the company needed certainty with its transport arrangements, given delays struck by the shipping consortium, West Coast Coal Company; comprising Port Taranaki, TNL Group, Greyport Terminals Company, Wendell Group, and Jebsens International.
Ward said Pike River was providing 150 jobs and would generate $30 million a year for the Coast.
Pike River's share price yesterday closed up 2c at $1.05.
- additional reporting NZPA
