It follows last week's announcement by Sapex that partner Linc Energy was looking for a suitable site in the Arckaringa for a trial underground coal gasification field.

The MOU with logistics company Freightlink provided for the future freight services required for Altona's Arckaringa coal-to-liquids (CTL) and 560MW power project.

These services would include the import of goods and materials required to build and maintain the plant, as well as transporting liquid fuels from the facility.

Altona managing director Chris Schrape said the MOU was the first step towards establishing a commercial relationship.

"Importantly a rail link will provide Altona with a strong marketing advantage for the Arckaringa Project," he said.

"The Altona Directors and FreightLink believe that the regional market for distillate fuel is growing, mainly due to new mining and resource processing projects within the area, whilst South Australia and most of the Northern Territory are totally dependent on high cost imports of liquid fuels."

The Adelaide-to-Darwin rail corridor runs directly through the area covered by Altona's coal leases in the Arckaringa Basin and lies 60km from the Wintinna deposit, which will provide the coal feedstock for the CTL and power plant.

Aimed at producing 10 million barrels of liquids fuel per annum, the Arckaringa CTL plant would require the services of one fully laden train per day.