AGREEMENT SIGNED FOR SOUTHERN MISSING LINK

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Premier and Minister for Trade
The Honourable Peter Beattie
04/12/2006

AGREEMENT SIGNED FOR SOUTHERN MISSING LINK

'Single biggest economic injection ever for the Downs'- Beattie

Toowoomba: The Beattie Government has granted a conditional exclusive mandate to a new consortium investigating the development of the $1 billion plus Surat Basin Railway --- formerly know as the Dawson Valley Railway.

Premier Peter Beattie said the Surat Basin Railway has come another step closer with formal signing today of a joint venture agreement between Australian Transport and Energy Corridor (Dawson Valley Railway) Pty Ltd (ATEC), Industry Funds Management (IFM), Queensland Rail, Xstrata Coal and Anglo Coal and the granting by the Government of a Conditional Exclusive Mandate to the consortium.

New member Anglo Coal joined the consortium in recent weeks.

Mr Beattie said the mandate and the new consortium were significant moves in progressing the project which will open the coal rich Surat Basin with a new 207 km rail line from Wandoan to Banana allowing access to the Port of Gladstone.

"This will lead to the single biggest economic injection ever for the Darling Downs and the south west," Mr Beattie said.

"This exclusive mandate will give both the Government and the consortium benefits to progress the new rail line - also known as the Southern Missing Link," he said.

"In return the consortium will have exclusivity to thoroughly investigate developing the link to join the Moura Rail system at Wandoan."

The Deputy Premier and Minister for Infrastructure Anna Bligh said the signing of the exclusive mandate brought this project, which has been on the drawing board for years, closer to fruition.

Ms Bligh said the project would employ about 600 people during the construction phase.

"This project, should it proceed, will open up an estimated 4 billion tonnes of thermal coal in the Surat Basin for development and export," she said.

"What coal development has done for Central Queensland from the 1960s and 1970s onwards is set to happen again here on the Downs," said Ms Bligh.

"The coal industry has long been one of the state's financial mainstays and this development will not only open up opportunities for the resources industry but will provide future economic benefits with employment for the state.

"The Government has already outlined substantial upgrade of port facilities at Gladstone and the Surat Basin Railway could well become part of a greater export coal push."

Ms Bligh said that the importance of the Surat Basin Railway to the Queensland coal industry cannot be understated.

Ms Bligh said the Port of Gladstone was gearing up to handle increased coal tonnages.

"I was recently in Gladstone to release the Environmental Impact Statement (EIS) for the proposed Wiggins Island Coal Terminal and announce the completion of the $92 million third rail unloading station at the Port's primary coal handling facility, RG Tanna Coal Terminal," she said.

"The first stage of the Wiggins Island Coal Terminal, set for completion in 2010-11 at an estimated cost of $1 billion, would have an initial throughput capacity of more than 25 Mt of coal a year, with a projected end capacity of 60-70 million tonnes. Coal transported to Gladstone via the proposed Surat Basin Railway will be exported through the Wiggins Island Terminal.

"On completion of Wiggins Island and the expansion of the RG Tanna facility, coal exports from Gladstone could hit 140Mt a year, making Gladstone one of the largest coal exporting ports in the world."

Attorney General and Member for Toowoomba North Kerry Shine said the benefits for the region were substantial with Toowoomba potentially gaining access to a world-class port for bulk grain and produce.

"This linkage, should it proceed, will enable Toowoomba to become a focal hub for intermodal transport on the Downs allowing the further development of the region and local economies,'' he said.

Everald Compton, Chairman of ATEC and of the Consortium Company, Surat Basin Railway Pty Ltd, said that the significant leadership of the Premier and Deputy Premier in making the historic and visionary decision to grant this Mandate.

"It will ensure the future economic development of Regional Australia as it will be the first step in creating an Inland Railway from Melbourne to Gladstone within a decade and will be the catalyst for considerable growth in rural population and prosperity," Mr Compton said.

4 December, 2006
Media contact: Office of the Premier (07) 3224 4500
Office of the Deputy Premier - Steve Keating 0408 720 081