“The Jilalan Rail Yard upgrade is a key part of the state's coal infrastructure plans and will combine with expansions of Hay Point and Dalrymple Bay coal terminals to lift exports by 40 percent," Bligh said.

Construction on the project will start next month and be finished by the end of next year.

It will employ 300 workers during construction and deliver another 100 jobs when operational.

The current rail yard can only cope with 92Mt per annum, whilst the new yard will be capable of handling 130Mtpa.

Site earthworks will involve moving more than a million cubic metres of rock and soil while 50km of track, as well as new administration, maintenance and employee buildings, will also be constructed.

The new 6km long service and maintenance facility is to be built next to the existing yards and will be able to handle 80 coal trains per day instead of 60.

By the end of 2009, the Jilalan yard will have two new bypass rail tracks, two provisioning tracks and maintenance tracks plus provisioning and wagon maintenance facilities.

“The Coordinator-General worked closely with Queensland Rail and Sarina Shire Council on this issue because the financial burdens associated with delays to the start of construction would have been considerable," Bligh said.

“For the first time the Coordinator-General used his power under the State Development and Public Works Organisation Act to issue a 'notice to decide' which instructed council to deal with the application within 20 days.

“A 20-business-day timeframe for consideration was no different from the Integrated Planning Act, but with an IPA assessment there could have been further extensions.”

Environmental conditions imposed by the Coordinator-General include noise and dust monitoring, environmental management plans and road infrastructure improvements.