“Currently the Gunnedah Basin produces 6 million tonnes of coal, which is transported over the Liverpool Ranges for export through Newcastle,” ARTC chief executive officer John Fullerton said.

“With industry and export projections forecast to grow to around 50 million tonnes by 2020, the current track configuration over the Liverpool Ranges just can’t meet demand.

“A pinch point in one section of the export coal chain inhibits overall capacity of the entire chain.

“If the pinch point remains, capacity can’t grow and market demands can’t be met.”

The rail over the Liverpool Plains consists of a single track over steep grades, limiting tonnage-carrying capacity, plus there is a short tunnel at the peak at Ardglen.

Duplication of this track will help spur further development of future coal mines in the Gunnedah Basin, which houses Aston Resources’ Maules Creek project, Shenhua’s Watermark project, Coalwork’s Vickery South project and BHP Billiton’s Caroona project.

The Liverpool Ranges track duplication is a critical element to unlock the NSW coal chain and the ARTC decision to proceed with the project is a milestone event for the Gunnedah coal basin, Aston chief executive Todd Hannigan said.

“Aston Resources welcomes the investment decision and notes that it will result in a significant increase of higher value metallurgical coal being exported from NSW - leading to higher royalties for the state,” he told ILN.

“John Fullerton, the new CEO of ARTC, has quickly made his mark with this investment decision and confirms Aston's view that the ARTC is successfully building the requisite rail capacity ahead of demand from mining companies. It also confirms to investors what we have been saying - that future rail capacity will be sufficient for the full ramp of the Maules Creek project.”

Expansions are also planned for Idemitsu’s Boggabri mine and Whitehaven Coal’s Tarrawong mine in the region.

“By constructing a parallel track in stages, ARTC will meet all confirmed and likely demand for the next 10 to 15 years from the Gunnedah Basin,” Fullerton said.

The planned duplication of the track is expected to cost $250 million while building two independent passing loops is estimated at $34 million.

ARTC is also building a third track between Whittingham, near Singleton, and Maitland, plus a third track on the Nundah Bank near Camberwell along with passing loops and signal upgrades across the network.

From consultation within the coal industry, Fullerton noted that two of the six alternative track alignments would be retaining, should long-term demand require them to be reconsidered.

“This really sets up development in the Gunnedah Basin and ARTC is in a position where some work will commence immediately,” he said.