Premier Statement: GREEN LIGHT FOR GAP RAIL PROJECT

[ozbob]

Premier and Minister for the Arts
The Honourable Anna Bligh

Thursday, April 08, 2010

GREEN LIGHT FOR GAP RAIL PROJECT

Premier Anna Bligh today announced work will begin early next month on the $1.1 billion Goonyella to Abbot Point (GAP) project.

The massive new rail infrastructure project – which is expected to create up to 4,000 jobs - was given the green light after five coal companies reached commercial terms with QR.

The Goonyella to Abbot Point project includes the 69-kilometre Northern Missing Link, which connects the Goonyella coal rail system to the Newlands rail system, as well as upgrades to the Newlands system.

Ms Bligh said the five companies who have agreed to move forward on this landmark project in central Queensland are BHP Billiton, Rio Tinto, Macarthur Coal, Lake Vermont Resources and QCoal.

"Construction will begin in early May with completion of the Northern Missing Link targeted for January 2012, consistent with the timing requested by the coal companies," she said.

"The Bligh Government has backed this rail expansion project from the start and recognised the need to put it on a reasonable and sustainable commercial footing.

"With the detailed commercial negotiations now complete it is full steam ahead and the project will provide a massive boost for jobs and economic growth in the region.

"It is expected up to 4,000 jobs will be created not only in construction but by opening up new export opportunities.

"This project is going to expand the capacity of the network, and once complete will align with the expansion of the port at Abbot Point to support up to 50 million tonnes.

"It confirms that after the sale of QR National it will be carrying more coal not less - and this provides real job security for the QR National workforce.

"Ultimately what this represents is a $1 billion guarantee of more work for QR National and that means jobs.

"Last month, QR was swamped when hundreds of people came to employment workshops in Bowen and Mackay to express their desire to be involved in this great development opportunity for central Queensland. To help deliver the project QR will need workers with a wide variety of skills ranging from labourers, concreters, surveyors and plant operators to engineering and administrative staff.

"We expect this project to make a real and lasting contribution to the economic development of regional communities across Central Queensland, including the broader Isaac and Whitsundays council areas, as well as the regional centres of Bowen of Mackay.

"It is further proof that QR and the future QR National will continue to be a major contributor to the growth and development of regional Queensland post privatisation."

Ms Bligh said building the Goonyella to Abbot Point expansion and the Northern Missing Link would give Queensland the biggest and best export system for metallurgical coal in the world.

"This will open a whole new transport corridor for coal companies, giving them a huge increase in export capacity for their existing mines and for future mining developments in the region.

"This project will support the $845 million expansion at the Abbot Point Coal terminal, which is underway and committed to by coal companies."

QR Chief Executive Officer Lance Hockridge said the completion of the contracts was the final step before construction could begin, marking a great step forward for customers.

"This is an important milestone for QR as we prepare for the privatisation of our coal and freight operations. It confirms the tremendous growth potential for our business," he said.

"This project will result in significant expansion opportunities for the coal mining industry.

"QR and the future QR National will continue to work with our customers to continue to deliver outcomes that best meet their needs and drive continued growth in the Australian resources sector."

QR Network Executive General Manager Michael Carter said earthworks would start next month at three locations to prepare the new rail corridor for the Northern Missing Link. These include two sites outside Glenden at Cerito Road and near our Lancewood Camp, and a third site at the head of the Newlands rail system, about an hour from Collinsville.

He said a site office would also be established in Merinda, near Bowen and the project would be delivered through an alliance model.

"We will combine our specialist rail design and engineering capability with companies that can bring civil engineering, construction, and signaling expertise to the project.

"This alliance approach has enabled us to deliver railway expansion projects on time and on budget for the past five years."

[O_128]

So it takes 3 years to build the 4km richlands spur yet only 18 months for this 69km project

[#Metro]

So that's about 15 million per kilometre? Is that right?
And this is being paid from public funds?

[colinw]

Queensland Times: QR $600m coal deal

QRN has signed the first contract for haulage over the Goonyella to Abbot Point (GAP) rail line.

QR NATIONAL has signed a 10-year contract with Jellinbah Resources to haul up to six-million tonnes of coal a year in a contract expected to generate in excess of $600 million.

The company will take the coal from the Lake Vermont mine to Abbot Point Coal Terminal (APCT) via the Goonyella-to-Abbot Point Expansion (GAPE).

It is QR National's first coal haulage contract to use the 69 kilometres of new track known as the Northern Missing Link that will connect the Goonyella and Newlands coal systems.

QR national managing director and chief executive officer, Lance Hockridge, said the performance- based contract reflected QR's improved commercial focus and its confidence in its ability to deliver.

"These contracts QR National is offering its customers gives them assurance that we are prepared to share the risk and that we are prepared to back our performance," Mr Hockridge said.

[Golliwog]

...and their share price jumped up 15c.