TrHE last decade has seen a reorientation within the Australian iron and steel industry, with Port Kembla replacing Newcastle as the principal producer.' Although functionally still oriented about industrial production, Newcastle has diversified its activities and, as a nodal point for instance, has been successfully competing with Sydney and Brisbane for the northern New South Wales miarket-supply area. Also, the import of products such as ores and fluxes for steel production, and petroleum products for distribution to northern New South Wales, combined with the export of coal, primary produce, and steel, has made Newcastle Australia's third cargo port, exceeded only by Sydney and MIelbourne.2 This changing emphasis of functional activity is reflected in the current pattern of rail commodity movements which, although still dominated by the raw materials necessary for industry, show a range of products typical of a multi-functional unit. The resulting combination of industry, service, and port activities, has made Newcastle 1 Australia's steel-making capacity is now approximately 4 million tons per annumi, of which Port Kembla produces 2.6 million tons and Newcastle 1.4 million tons. (See: This Changing \World, Geography, July, 1961 and November, 1961.) 2 In 1959-1960 Newcastle handled 7.9 million tons of cargo. This is 600,000 tons below the 1957-1958 peak, when Newcastle was Australia's leading cargo port. New South Wales' principal rail traffic generator (Table I). Newcastle's present position as the leading freight terminal in New South Wales has resulted from the development of three resources coal, agricultural and pastoral products, and steel. Settlement at the mouth of the Hunter was first aimed at developing local coal and limestone deposits, and, as shipping was virtually the only transport medium, it was natural that a thriving port should develop.' The advantages of the railroad as a bulk carrier quickly convinced mining companies of the advisability of constructing a rail line between the miines and the port. A rail link between West M\Iaitland and Newcastle was completed in 1858, and proved a major factor in tying together the city, the port, and the neighboring mines. The second factor responsible for Newcastle's present position was the building of developmental rail lines aimed at draining agricultural and pastoral products from the north towards the principal markets of Newcastle and Sydney. Three independent systems evolved, giving a tentacular rather than