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Queensland spends big on rail

ABOUT $A3.5 billion is being spent over the next five years to extend and upgrade Australia’s most extensive coal rail system in a move to ensure the national coal industry continues to ride the global commodities boom.

Angie Tomlinson
Queensland spends big on rail

The number of rail-related coal projects on the drawing board or underway in Queensland is now at an unprecedented level.

The Queensland coal industry is forecasting strong growth with coal exports expected to soar by more than 40% over the next four years, to more than 210 million tonnes per annum.

QR’s track access business, Network Access, is currently working on more than 30 major coal-related projects to increase capacity on the state’s coal transport systems.

Projects include mainline duplications and upgrading works; additional passing and terminal loops; improved signalling; electric power feeder stations and possible new corridors.

QR said the improvements are being made in consultation with industry.

QR Network Access is developing the first ever Coal Rail Infrastructure Master Plan for Queensland. The plan, due for completion mid this year, will address longer-term expansion options including the assessment of alternative corridors, priorities concerning capacity management and related capital investment paths.

It is envisaged that QR’s Coal Infrastructure Master Plan will form a key part of a statewide infrastructure plan for coal.

Input from industry stakeholders is also being sought for building a “Northern Missing Link” to connect the existing Newlands and Goonyella systems. While it is not the first time this proposal has been raised for discussion, an almost completed detailed feasibility study signals that it is now being given serious consideration.

The corporation’s freight business, QRNational, is also thriving in the fiercely competitive national freight market. It currently has 100% of the Queensland coal haulage market and about 13% of the New South Wales market.

QR chief Bob Scheuber said QR was committed to a collaborative model for the supply chain with mines, ports and rail transport working together.

“It is about partnerships, innovation and flexibility. We strongly support the supply chain partnership philosophy and consider ourselves a strategic partner with the coal industry,” he said.

“We play a crucial role in the entire supply chain as the link between the mines and the ports, and work very hard with both parties to meet the massive increase in demand for rail capacity.”

Scheuber said QR had actively encouraged and supported the formation of stakeholder groups on each of the coal corridors, involving coal companies, ports and QR.

“We have been able to improve corridor efficiency and throughput and address common issues,” he said.

In 2005, QR had – together with its industry partners – not only improved the overall network performance but had also delivered an increased transport task and had record low levels of derailments and speed restrictions, Scheuber said.

He acknowledged that resourcing the demand and investment required by the commodities boom would be a major challenge.

“One of the key challenges we face is to expand the network without impacting negatively on existing operations,” he said.

“This is a big ask considering that last financial year these lines carried a record 156.3Mt of coal or 12.8Mt more than in the previous year.”

In April, QR representatives joined mining company Xstrata at the official launch of the Bauhinia Regional Rail Project, a 110km rail spur to the new opencut Rolleston Coal Mine. At this mine alone, coal trains will haul about 6Mt of low ash thermal coal a year for export, and 2Mt a year for the domestic market.

The spur links to the existing Blackwater system at Kinrola, and is fundamental to the operation of the remotely located mine. It cost $240 million to build and represents the longest single rail line to be built in Queensland for two decades.

QR Network Access Group general manager Mike Carter said the success of the Bauhinia Regional Rail Project was a good example of QR and the private sector working well together.

“QR bid and won the contract with Xstrata to design, construct and commission the line. It was our first major test in a competitive rail environment, and together with the private sector partners we had on board, we brought the project in ahead of schedule and on budget. This was in spite of unseasonally heavy rain during construction,” Carter said.

“Xstrata commented that this performance was almost unprecedented in the present mining industry.”

The Bauhinia Regional Rail Project was just one part of an enhancement program for the Blackwater system. Other elements included constructing a balloon loop on the Springsure branch (part of the Minerva Coal Development Project), improving the Kinrola branch line, duplicating some 30km of track on the main line to Gladstone, and constructing a third balloon loop at the RG Tanna Coal Terminal.

Improvements earmarked for the Goonyella system include a third loop at Dalrymple Bay Port, strengthening of the overhead power system, duplication between Broadlea and Wotonga, an upgrading of the Jilalan and Coppabella station yards and several crossing loops.

The Newlands system is also to undergo some significant improvement works, including crossing loops and 26km of track structure improvements.

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