The move marks a significant shift in focus for Queensland Rail (QR) who are concentrating on expanding freight services in New South Wales (NSW).

QR’s recently acquired subsidiary Interail will act as the rail operator for the Queensland company in NSW.

The 10 million tonnage was picked up by QR after a competitors contract expired.

The coal tranporter has already acquired two smaller coal contracts this year, totalling about two million tonnes.

Earlier this month QR had success with retaining a 40 million tonne contract with BHP Billiton-Mitsubishi Alliance at Goonyella and Blackwater. The company is also waiting on a decision on an eight million tonne rail link contract currently under consideration by Xstrata for the Rolleston mine.

QR is Australia's largest rail coal transporter with links to more than 30 coal mines in Central and South East Queensland to six export coal terminals on the State's eastern seaboard.

During 2001-02, QR transported 135 million tonnes of coal, 124.7 million tonnes of which was bound for the export market.