QR National to build $953 mil rail link for new Queensland coal terminal
Australian rail company QR National announced Monday it has been appointed by eight coal companies including Aquila Resources, Bandanna Energy, Yancoal, Wesfarmers and Xstrata to build a A$900 million ($953 million) rail link to a new coal export terminal at Queensland's Gladstone port, Platts reports.
The rail link will carry coal exports to the proposed Wiggins Island coal terminal from coal mines in the southern Bowen Basin coal field. Construction work on the project is scheduled to start in early 2012, with the first coal exports rolling into the terminal in mid-2014.
"The Wiggins Island rail project will be one of the largest rail expansions in Australia and represents a significant commitment to the future growth of the Queensland coal industry," QR National chief executive and managing director Lance Hockridge said in a statement.
The rail link will be built by QR National's rail infrastructure subsidiary QR Network and will support the construction of the first stage of the Wiggins Island coal terminal with an initial export capacity for coal of 27 million mt/year.
The Wiggins Island rail link project includes a 13 kilometer (8 mile) balloon loop near Gladstone port and upgrades to sections of the North Coast Line, Moura rail network for coal exports and Bauhinia branch line, and duplication of sections of track along the Blackwater rail system.
The Wiggins Island rail link is subject to approvals from the Queensland Competition Authority and financial closure of the Wiggins Island coal terminal project.
QR National vice-president and chief executive for network services, Michael Carter, said the Wiggins Island rail project was a demonstration of the company's commitment to expanding its rail network as provided for under its access undertaking agreement with the Queensland Competition Authority.
"Through consultation and negotiations with our customers, we have been able to agree commercial terms for expanding the rail network to support growing demand for coal exports," Carter said.
At the end of the Wiggins Island rail project, the Blackwater rail system to Gladstone port will be fully duplicated along the 985 km length of its track.
Costs for the Wiggins Island coal terminal have escalated to A$3.7 billion from A$2 billion in October 2010, while financing for the project was supposed to have been in place by end June, but the deadline has now been pushed back to September 30, according to a spokesman for the project last month.
Sixteen coal companies are members of the private sector consortium that is building the Wiggins Island coal terminal which is to eventually double Gladstone port's export capacity for coal to 150 million mt/year.
The rail link will carry coal exports to the proposed Wiggins Island coal terminal from coal mines in the southern Bowen Basin coal field. Construction work on the project is scheduled to start in early 2012, with the first coal exports rolling into the terminal in mid-2014.
"The Wiggins Island rail project will be one of the largest rail expansions in Australia and represents a significant commitment to the future growth of the Queensland coal industry," QR National chief executive and managing director Lance Hockridge said in a statement.
The rail link will be built by QR National's rail infrastructure subsidiary QR Network and will support the construction of the first stage of the Wiggins Island coal terminal with an initial export capacity for coal of 27 million mt/year.
The Wiggins Island rail link project includes a 13 kilometer (8 mile) balloon loop near Gladstone port and upgrades to sections of the North Coast Line, Moura rail network for coal exports and Bauhinia branch line, and duplication of sections of track along the Blackwater rail system.
The Wiggins Island rail link is subject to approvals from the Queensland Competition Authority and financial closure of the Wiggins Island coal terminal project.
QR National vice-president and chief executive for network services, Michael Carter, said the Wiggins Island rail project was a demonstration of the company's commitment to expanding its rail network as provided for under its access undertaking agreement with the Queensland Competition Authority.
"Through consultation and negotiations with our customers, we have been able to agree commercial terms for expanding the rail network to support growing demand for coal exports," Carter said.
At the end of the Wiggins Island rail project, the Blackwater rail system to Gladstone port will be fully duplicated along the 985 km length of its track.
Costs for the Wiggins Island coal terminal have escalated to A$3.7 billion from A$2 billion in October 2010, while financing for the project was supposed to have been in place by end June, but the deadline has now been pushed back to September 30, according to a spokesman for the project last month.
Sixteen coal companies are members of the private sector consortium that is building the Wiggins Island coal terminal which is to eventually double Gladstone port's export capacity for coal to 150 million mt/year.