Macmahon was selected by Queensland Rail as the preferred alliance contractor for the project.
Located near Sarina, southeast of Mackay in central Queensland, the Jilalan Yard will increase the capacity of the current Goonyella coal rail network. The network is scheduled for completion in late 2009.
Macmahon and subsidiary MVM Rail will undertake all of the civil construction work on the $A250 million project.
Work will include major earthworks associated with up to 30km of new track work; realignment of existing track work; upgrades to existing roads and construction of rail crossings; and construction of new wagon maintenance and administration facilities.
Design work on the project will commence immediately with major construction expected to start early in 2008.
Since April, Macmahon has won three major alliance contracts in Queensland with a combined value of $400 million.