The Queensland Government in Australia has announced that the A$988m ($709m) Moreton Bay Rail Link (MBRL) project will not open on schedule due to issues with the signalling system.

Moreton Bay Rail Link is set to deliver a 12.6km dual-track passenger rail line between Petrie and Kippa-Ring, including six new rail stations at Kallangur, Murrumba Downs, Mango Hill, Kinsellas Road, Rothwell and Kippa-Ring.

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The Australian Government provided A$583m ($418m) funding for the project, while A$300m ($215m) was provided by the Queensland Government and Moreton Bay Regional Council provided A$105m ($76m).

Australia Minister for Transport and the Commonwealth Games Stirling Hinchliffe said that the rail line will not be commissioned until Queensland Rail assesses it as entirely safe.

"The signalling will not allow for more than three trains to pass through Petrie Station without the system failing and hence needs to undergo inspection, the minister said."

Hinchliffe said: "To determine what’s gone wrong, I will be appointing an independent audit investigation into the project, for example, how the signalling system was selected and the costs associated with it.

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"The former Newman Government brought delivery of this project under a single entity, and since 2012 the Queensland Department of Transport and Main Roads has been the Principal for the contract and charged with delivery of the project."

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Hinchliffe added that rail signals are the traffic light system of the network and are critical to the safety and running of trains.

Post testing, it has been determined that the current MBRL-installed signalling system does not meet the operational and safety standards.

The signalling will not allow for more than three trains to pass through Petrie Station without the system failing and hence needs to undergo inspection, the minister said.

The government is entrusting Queensland Rail to initiate and take the lead in finalising the commercial and technical arrangements required for the project commissioning.