Upgrades to the coal train line between Muswellbrook and Ulan - expected to be completed by late 2006 - have been delayed for the third time and are not due to start until early next year.

 

Several media outlets have reported that without them being completed Australia is missing out on potentially hundreds of millions of dollars in exports each year.

 

According to a report in The Australian, trains using the line have to stop five times in a 200km journey to manually check a signal box that gives notice of another train heading in the opposite direction.

 

It claimed the stops are costing producers up to two loads of coal a day, or potentially about 3 million tonnes in exported coal over a six-month period.

 

This adds up to $A360 million in lost exports a year at current coal prices, according to the report.

 

Marchant said any suggestions of the train line hampering exports were unfounded because producers do not use the full capacity of the train line.

 

"If the train operators actually used all the capacity ARTC provides, then over 100,000 tonnes of coal could be shipped each week," Marchant said.

 

"The simple fact is coal exports are not affected by signal and train control upgrades on the Ulan to Muswellbrook line in the Upper Hunter Valley.

 

"Rather than ARTC restricting coal exports, ARTC is laying the foundations for a massive boost in exports by spending millions upgrading signalling, train control and track all through the Hunter Valley coal rail lines, as it is on the main interstate lines.

 

"The Ulan upgrade is scheduled for completion by December this year and the delay that has occurred is due to the extreme demand ARTC is placing on signal and track contractors as we revitalise and restore rail tracks in New South Wales."

 

According to Marchant there are seven train paths available on the Ulan line per day for export coal; however, he said only two were being used for export coal, while a third train path was used only every second day - further offering scope for producers to increase their use of the tracks - and another two were used to ship domestic coal.

 

"The two unused paths could be used by train operators for 91 wagon trains, carrying 8500 tonnes each," Marchant said.

 

The upgrade program, costing $17 million, will see the 1920s rail signals along the Ulan line replaced by a modern Centralised Train Control system.