Ministerial Statement - Rail Wandoan Banana

[ozbob]

Premier and Minister for Trade
The Honourable Peter Beattie
12/07/2007

SOUTHERN MISSING LINK ANOTHER VITAL STEP CLOSER: BEATTIE

The Queensland Government's goal of further opening up the Surat Basin's vast coal reserves moved a step closer today after it made unconditional an exclusive mandate for a consortium to build the Surat Basin Railway.

Premier Peter Beattie said the Government is satisfied that the proposed 207-km railway linking Wandoan and Banana meets it Public Private Partnership Value for Money criteria.

"Today's decision will enable the consortium to develop the project through to financial close," he said.

The consortium comprises the Australian Transport and Energy Corridor; Dawson Valley Railway Pty Ltd; Industry Funds Management; Queensland Rail and miners Xstrata Coal and Anglo Coal.

"This is a great day for not only the Consortium, but also the State's economy and the coal industry.

"As I said in Toowoomba in December this project will lead to the single biggest economic injection ever for the Darling Downs and the south west.

"Today's announcement is an example of how the private sector and the Government can work together to deliver major infrastructure at no cost to the taxpayer, but with great benefit to the State's economy through the creation of new jobs and additional royalties.

"I congratulate the Consortium on the initiative they've shown in developing the concept to this stage and look forward to working with them as they continue through to financial close", Mr Beattie said.

Transport Minister Paul Lucas said that the railway proposal, should it proceed, will involve construction of a 207-kilometre rail link between Wandoan and Banana and upgrades to the existing rail infrastructure from Toowoomba to Wandoan and Banana to Gladstone.

"This will open up the production and export of thermal coal from the currently under utilised but coal-rich Surat Basin," he said.

Key milestones which the Consortium must meet under the Mandate include:
? the awarding of preliminary engineering and environmental consultancies by the end of July 2007;
? finalisation of a preferred route by November 2007;
? submission to the Coordinator-General by December 2008 of an environmental impact statement prepared under the State Development and Public Works Organisation Act 1971;
? completion of a business case, including a financial model by September 2009;
? agreement with the State on the principles for a development agreement; and
? achievement of financial close by June 2010.

The Government also confirmed today that Queensland Rail will retain ownership of the rail infrastructure from Wandoan to Toowoomba and from Banana to Gladstone and that the State will retain ownership of the new rail corridor between Wandoan and Banana.

"Once constructed, the railway will be an open access line with sufficient capacity to meet demand from coal and other freight users well into the future," he said.

Thursday July 12, 2007

[ozbob]

The Sunday Mail (Brisbane) today (July 22) has a piece on this proposed rail link, p. 54-55, appropriately titled 'Back on track'

Rail is the real solution.