Ministerial Statement: QR JOINS FORCES WITH THE PRIVATE SECTOR TO BOOST CAPACITY

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Minister for Transport, Trade, Employment and Industrial Relations
The Honourable John Mickel
01/09/2008

QR JOINS FORCES WITH THE PRIVATE SECTOR TO BOOST CAPACITY

Minister for Transport, John Mickel today has announced two major new alliance projects to be managed by QR that will undertake widespread rail signaling work in the Goonyella and Blackwater coal systems.

Mr Mickel was at QR's Mackay Control Room this afternoon to view details of QR's latest joint ventures following the signing of alliance agreements for the delivery of rail projects throughout the two coal networks.

"This is about bringing together the best of the private sector with QR industry knowledge. It's about using QR's resources and harnessing industry capability," said Mr Mickel

"QR has signed agreements to work with three companies - Westinghouse Rail Systems Australia, Ansaldo STS and the United Group - to form two program alliances for rail projects which will have major benefits for coal transport in Queensland.

"The project work undertaken by the signaling alliances will generate approximately 200 new jobs across Goonyella and Blackwater and will improve the capacity of the network.

"The alliances will allow QR Network to respond to the demand for new rail infrastructure quickly and efficiently," he said.

QR Network Executive General Manager Mike Carter says previous signaling contract agreements have been based on project by project decisions.

"This new arrangement gives us a broader scope of available expertise across all systems and projects when works are required.

"Signaling is a critical element for the enhancement of the coal rail network, providing the means to safely and efficiently manage train operations on the QR Network. Without it, we would not be able to optimise the potential capacity of the system.

"The signaling projects over the next five years in the coal network will have a potential value of around $150 million a year.

"QR Network is undertaking the biggest program ever of new coal rail infrastructure and other network infrastructure works, so we need to get these strategic partnerships in place to deliver economically and on time," said Mr. Carter.

"With the demand for major infrastructure projects in Queensland to be delivered in tight time frames and the shortage of skilled resources, Alliance ensures the skills, talent and resources are available and the risks are shared", said Mr Carter.

QR Network's Signaling Alliance groups involve the partnership of QR Network and Westinghouse Rail Systems Australia and the collaboration of QR Network, Ansaldo STS and United Group respectively.

The Westinghouse Alliance has begun work on the Jilalan Rail Upgrade Project underway just south of Mackay with other projects to follow.

The Ansaldo STS / United Group is working on the Vermont Spur and Balloon Loop and will also have other projects to follow.

Mr Carter says the Alliance model helps QR Network to continue to build strong relationships with private sector partners and achieve considerable efficiency in time and cost to QR Network and the industry.

QR Network has already used Alliances successfully for south-east Queensland 's Citytrain network and in Central Queensland's coal supply systems. These include Coal Stream Alliance, CoalConnect, Trackstar, S2K and Horizon.

Monday 1 September 2008

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