Most of the groundwork for the 35km Maldon-Dombarton line – estimated to cost up to $660 million – had been constructed in the mid-1980s but the expensive elements – a major bridge, part of another major bridge and a 4km tunnel – are the subject of a planning and preconstruction design stage by the federal government costing $25.5 million.

The investigations are being managed by the New South Wales government.

In the 2011 feasibility study for the rail link by ACIL Tasman, BHP set out why it would not have use for the rail link.

“It is neither economically feasible nor environmentally sound to consider a rail connection to the Maldon to Dombarton rail link at this time,” BHP said in its submission.

“We cannot make a commitment to the use of such facilities since Illawarra Coal's existing operations are geographically remote from the proposed alignment of the rail link and there is no economic (or other) case to move from our existing logistics arrangements.”

BHP said it produced approximately 7 million tonnes per annum of saleable product and approximately 4Mtpa was exported, with the balance being sold to the Australian steel industry at Port Kembla and Whyalla.

It is proposing to increase production from 7.5Mtpa to a peak production of 10.5Mtpa.

“There is no likelihood that Illawarra Coal's existing operations will utilise the Maldon-Dombarton link,” BHP said.

“The washery [at West Cliff] is currently undergoing a $150 million upgrade ... these coal processing facilities will handle the Illawarra Coal’s Bulli coal seam production for approximately the next 30 years.”

A Transport for NSW spokesperson told ILN the NSW government was aware of BHP’s position and was investigating whether the route would pass over planned mining operations.

“Major infrastructure works would be required to complete the Maldon to Dombarton rail link,” the spokesperson told ILN.

“Comprehensive and detailed engineering, operational and environmental investigations and stakeholder consultations are being carried out now to understand the complexities and scope of works required should the project proceed to construction.

“The investigations will include an analysis of existing land uses and geotechnical conditions in and around the project corridor, including the impact of current and prospective mining activities within the project area.”

A decision to proceed to construct the freight rail line would rely on obtaining planning and environmental approvals and a funding commitment, the spokesperson said.

Feasibility

In October 1982 the project received concept approval from the then-NSW premier Neville Wran.

Construction was undertaken from 1983 to 1988 during which time many of the Burragorang Valley coal mines closed.

Following a change in state government in 1988, when Nick Greiner was elected, the project was cancelled.

The feasibility study of a potential freight rail link between Maldon (near Picton on the Main South railway line south of Sydney) and Dombarton (near Port Kembla) was announced by the federal infrastructure and transport minister on July 8, 2009.

It followed a prefeasibility study which found that a Maldon-Dombarton line was not economically viable but might have long-term economic merit.

Another plunge in coal prices could also impact the viability of the proposed link, according to the FS.

“Scenarios with less demand are also possible – in particular if favourable world coal prices did not continue through the study period (to 2030) output could decline, removing any need for a Maldon-Dombarton line,” the FS states.

“While the Maldon-Dombarton line is technically feasible there is insufficient demand to warrant its construction in the near future.”

Construction would take around three to four years for a financial cost of $624-667 million, according to the FS.

The feasibility of the project is contingent on bulk freight relevant to a Maldon-Dombarton line growing from 11.6Mtpa in 2010 to 15.5Mtpa in 2030, with coal growing from 10.4Mtpa and 12.3Mtpa.

Initial growth is expected from the Lithgow area as mines expand, followed by decline as other mines close.

The route of a potential Maldon-Dombarton rail line would mainly follow the contour lines of the hills in the region. A line would include up to three passing loops, allowing up to 60 trains per day.

Along the approximate 35km route length of the rail line there are two significant bridge structures and a 4km long tunnel.

About 70% of the earthworks, track formation, drainage and bottom ballast have been constructed, including the approaches to the mid span of the Nepean River bridge.

A section of approximately 5km length, the Avon tunnel and the Cordeaux River bridge have not been constructed.

Led by US-based consultants Parsons Brinckerhoff and GHD, the planning stage involves working through the safety, design, operational and environmental issues of the project before it can be considered for possible federal funding.

The task has been divided in two, with Parsons set to look after the engineering side of the planning stage while GHD will investigate environmental issues in the rail corridor and surrounding areas.

Although the value of contracts hasn't been revealed, federal Infrastructure and Transport Minister Anthony Albanese said the government had set aside $25.5 million to fully fund the planning and preconstruction design stage of the project.

The NSW government said the next stage of the project would involve the appointment of a specialist cost planner.