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Minister for Transport
The Honourable Rachel Nolan

Friday, July 31, 2009

Mount Isa rail plan looks to future growth

The ability of the north-west to reach its full potential during a forecasted minerals boom is the major focus of QR's Mount Isa System Rail Infrastructure Master Plan, unveiled by Transport Minister Rachel Nolan today.

Ms Nolan said despite the current economic climate, long-term planning scenarios for the region aimed at catering for the anticipated growth and delivering infrastructure to support that significant development.

“Our industry stakeholders and market forecasts still predict strong future growth, which is why QR has outlined a number of rail infrastructure options to provide capacity to support our customers’ opportunities for growth,” Ms Nolan said.

“We are working with industry stakeholders to develop outcomes that benefit the entire supply chain’s potential for growth.

“While the actual demand for rail services will dictate the timing of developments, we recognise this region has tremendous potential and we need to plan together now to take advantage of both economic recovery and future demand.”

Ms Nolan said the plan presented several tonnage growth scenarios based on possible increased port capacity or new mining projects.

“One such scenario is to upgrade the Townsville to Mount Isa rail line, allowing for a staggering 20 million tonnes of minerals to be hauled out of the region each year,” Ms Nolan said.

“The plan also outlines rail infrastructure options required to meet the range of future tonnage scenarios, including passing loop extensions, additional holding roads, changes to control systems, track strengthening, and motorised train points.”

Member for Mount Isa Betty Kiernan said the rail corridor played a pivotal role in helping move exports from the minerals province along the supply chain to port.

“The region surrounding the Mount Isa system possesses some of the world’s largest deposits of copper, lead-zinc-silver and phosphate rock, and substantial deposits of other minerals,” Mrs Kiernan said.

“This province is very important to Queensland – it produces 75 per cent of Queensland’s mineral production and contributed $6.6 billion to the economy in 2006/07.”

Main Roads Minister and Member for Thuringowa Craig Wallace said under all scenarios, the Master Plan identified the Port Access Road and Port development at Townsville as critical bottlenecks requiring investment in order to maximise the potential of the 1000km of rail infrastructure.

“QR Network is recommending an increase in capacity at the Port of Townsville through the construction of the Eastern Access Corridor Railway,” Mr Wallace said.

“This new rail track would enable unhindered access to new unloading facilities being planned by the port, and relieve constraints currently restricting the Townsville Jetty area.

“The Eastern Access Corridor Railway would allow longer trains and tonnages to exceed 10 million tonnes per annum.

“It would also deliver benefits to the Townsville community by diverting rail traffic from busy sections of the road network.”

The plan includes feedback from industry stakeholders, and follows QR Network’s Master Planning forums in Mount Isa and Townsville last year to progress a coordinated supply chain approach.

The plan will now be distributed to all key stakeholders and QR will continue to progress this process with supply chain participants in the coming months as business opportunities develop.

Media contact: 07 3237 1111

Background

The master plan presents options to enhance the capacity of this system to cater for low, medium and high tonnage growth scenarios. Commercial negotiations to finance the infrastructure development will underpin any growth scenario.

  • The low growth scenario sees annual net tonnage peaking at around 7.5 million tonnes per annum (Mtpa) in 2012 with $28 million of infrastructure required to achieve the scenario.
  • The medium growth scenario has annual net tonnages peaking at around 12.5 Mtpa in 2012 calling for possible investment of up to $788 million.
  • The high growth scenario assumes 20 Mtpa will be moved by 2016 requiring up to $2 billion investment to transport products from the minerals province to the port.