Adani and QR National to study $6bn coal rail line in Australia

3 July 2012 (Last Updated July 3rd, 2012 18:30)

India-based Adani Enterprises and Australian rail operator QR National will carry out a feasibility study to build a $6bn rail line servicing the Carmichael coal mine in the Galilee Basin of Australia.

India-based Adani Enterprises and Australian rail operator QR National will carry out a feasibility study to build a $6bn rail line servicing the Carmichael coal mine in the Galilee Basin of Australia.

The companies will work together in a bid to build the line from Adani's Queensland coal project to the Pacific Ocean.

The study will assess rail infrastructure and services for transportation of 60 to 80 million tonnes of coal each year from Carmichael Mine to Abbot Point Coal Terminal.

The companies won approval last month from the Queensland state for separate rail routes and, according to the new proposal, both will work on the east-west rail line connecting Galilee Basin.

Adani Enterprises chairman Gautam Adani said a vertically integrated solution where both companies work across the mine, rail and port interfaces will result in a very efficient and cost-effective supply chain.

"The joint evaluation will draw on the significant work done to date by both parties on logistics solutions - Adani with its mine and port developments, and QR National through its Central Queensland Integrated Rail Project," Adani said.

"It became clear that there was an alignment of interests in developing an integrated rail solution for Carmichael Mine"

QR National Managing Director & CEO Lance Hockridge said that through preliminary work with Adani, it became clear that there was an alignment of interests in developing an integrated rail solution for Carmichael Mine.

"The decision by the Queensland Government declaring a common rail corridor means that we can now accelerate work on the feasibility of the rail solution required," Hockridge said.

In June 2012, Adani had looked for potential partners to help finance a $2bn coal rail line from Galilee Basin, Australia, to the Pacific Ocean, after receiving state authorisation for the proposed route.

Adani had previously unveiled a proposal to invest $6bn, which would mainly be spent on developing the Adani Abbott Point Coal Terminal and the Galilee Basin coal mines, as well as the construction of a 500km rail line connecting coal mines and the port.

Queensland deputy premier and minister for state development, infrastructure and planning Jeff Seeney said that this co-operative approach was exactly what the state government had sought, following extensive negotiations with all proponents of mine and rail developments in the region.

"We agree with both companies that an integrated solution could provide an efficient and effective supply chain," Seeney said.