The future growth of Queensland’s coal mining industry has been assured with Government endorsement for QR to purchase an additional $650 million worth of rollingstock for use on the state’s coal rail systems. 

The purchase by QR’s coal freight business, QRNational, includes an extra 40 locomotives and 1190 wagons for delivery within the next three years. 

This is one of the largest single locomotive order in QR’s history and is in addition to QR’s existing five-year $1.4 billion rollingstock program for the coal industry that commenced two years ago. 

Acting CEO Stephen Cantwell said he was pleased the Government and the QR Board had made such a major long-term commitment and investment to the Queensland coal industry. 

"As well as this first stage of investment, the Queensland Government has also approved in-principal a second stage of rollingstock investment of $216 million for an additional 920 wagons to meet the demands in 2010-2011," Mr Cantwell said. 

"This contract, along with the acquisitions and upgrades already underway, means QR’s fleet locomotives and coal wagons will have increased by almost 50%, only four years from now. 

"By 2011, QRNational Coal will be able to its support customers to transport more than 260 million tonnes per annum - a massive 59% increase in Queensland alone from 06/07. 

"QR started their investment in extra rollingstock two years ago on the back of the resources boom. 

"This contract, along with acquisitions and upgrades approved in 2005 and 2007, brings QR’s total rollingstock investment to over $2.05 billion. It also helps to address the O’Donnell Review recommendation regarding the need for more rollingstock." 

Group General Manager QRNational Coal Mike Scanlan said the implementation of a business improvement program in the Goonyella system was also delivering results. 

"QR’s commitment to Queensland has never been stronger - we are actively delivering on new track and new trains and have more on order, Mr Scanlan said. 

"We continue to brief our customers on our progress and I know the news is well received. 

"We are maintaining regular high-level briefings to keep the industry informed of progress with increasing short-term throughput and the long-term rollingstock and infrastructure upgrades." 

Mr Scanlan said QR had hosted a Coal CEO Forum in September to provide coal customers with an overview of what had been achieved since the O’Donnell Review was released in late July. 

"We were able to report that the Goonyella business improvement program will deliver our target of an extra five million tonnes per annum. This is equivalent to approximately $300 million in coal export revenue for our customers based on current prices. All of this is over and above rollingstock and infrastructure upgrades which are currently underway. 

"The business improvement program is also being replicated in the Blackwater system so our coal customers in this system benefit from the identified improvements." 

Mr Scanlan said QRNational’s coal customers were aware of the recent progress made to improve the business and QR’s commitment to expansion. 

"We are determined to build and maintain the confidence of our coal customers to continue to make QR their haulier of choice into the future."