Premier Statement: NORTHERN MISSING LINK PROJECT MOVES STEP CLOSER

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Premier and Minister for the Arts
The Honourable Anna Bligh
23/10/2009

NORTHERN MISSING LINK PROJECT MOVES STEP CLOSER

The State Government has secured the future of the Northern Missing Link project after reaching agreement with two coal companies to get the $1.1 billion project off the ground.

Premier Anna Bligh said the QR Network had agreed commercial principles with foundation coal company customers Lake Vermont and Bowen Central Coal for the Goonyella to Abbot Point (GAP) project.

"This project is the Suez Canal of the central Queensland coal industry - it will revolutionise coal transport in our State," said the Premier.

"What this deal means is that we now have certainty that both this project and up to 4,000 jobs will be delivered not only in construction but by opening up new export opportunities in the region.

"We are getting ahead of the demand for this infrastructure and the fact that two commercial companies have signed up means that what has been negotiated by QR is a reasonable and sustainable deal.

"I encourage other coal companies to get on board quickly. This project will support the $845 million expansion at the Abbot Point Coal terminal, which is underway and committed to by coal companies."

The 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.

"That means the line will have a capacity of 50 mtpa, which is the same capacity as the expanded Abbot Point Terminal," said the Premier.

"This project is essential for Queensland's economy and we will not wait - we will build now so we are ready for the growing global demand for our commodities."

Ms Bligh said pending the outcome of the final planning, the first work on site was expected on site near Moranbah to commence work by April 2010.

"By December QR will complete the final planning for the project, including detailed design and costing work and finalisation of commercial contracts," said the Premier.

"The completion date is targeted for January 2012 and approximately 500 new jobs are expected to be created in the construction industry alone."

QR Chief Executive Officer Lance Hockridge said it was a significant milestone for QR, foundation coal company partners and the Abbot Point Coal Terminal.

"Earlier this year due to the global economic crisis our customer demand for the project was lower than forecast but since then the market has bounced back and the long-term forecasts for export coal tonnages are strong," Mr Hockridge said.

"QR is working with our customers to help plan and build the transport infrastructure necessary to support this growth through projects such as GAP. This key project will support thousands of jobs in the mining and construction industry and be a key driver for economic growth in regional Queensland."

QR Network Executive General Manager Michael Carter said the rail infrastructure project was being developed using a commercial model agreed with foundation coal customers in a way that will deliver infrastructure that will support the growth of their industry.

He said pending the outcome of the final planning, work will commence immediately on building the Northern Missing Link allowing for additional customers while upgrades to the Newlands system will be undertaken progressively in line with customer requirements.

"The GAP project will increase rail capacity and allow mines from the Newlands and Goonyella rail systems to export up to 50 million tonnes of coal per annum via the Abbot Point Coal Terminal," Mr Carter said.

"The project will be built to meet the needs of the foundation coal customers. The upfront planning work has also been done in a way to enable further expansion of the project beyond the foundation customer needs should other customers wish to expand into this new corridor.

"We are strongly committed to developing and delivering rail infrastructure that supports our customers requirements, contributes to the Queensland economy and grows the QR Network business."

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