QR has addressed predicted significant growth on the Mount Isa-Townsville rail corridor through the take over of operations by QR's wholly-owned bulk minerals subsidiary, Australian Railroad Group (ARG).

ARG began operations previously provided by QR's regional freight business on 1 September. All operations continue to be owned and operated by QR.

QR Freight Group Executive General Manager Stephen Cantwell said ARG would bring its bulk haulage expertise to the operation to capitalise on the growth in the booming north-west minerals province.

"Over the next five years, minerals production is forecast to double along this corridor and QR wants to be in the best position possible to capture this growth," Mr Cantwell said.

"QR is operating in highly competitive markets across Australia and the north-west Queensland minerals province is no exception.

"Although we have been hauling freight on this line since 1929, and retain a large share of the transport market, we know other companies have been talking to our customers about moving their business away from QR.

"Our customers want more from QR and, through ARG, they will see a more customer-oriented service. ARG has used its management expertise and innovating operating practices successfully in other states and will begin to deliver benefits for the Mount Isa corridor."

Mr Cantwell said QR had a number of different services for customers on the line: bulk freight including minerals and industrial products (the majority of traffic on the line); livestock; small and general freight; and passenger services.

"While bulk freight in particular has great growth prospects, we are not about to walk away from general freight services and livestock services into those areas either," he said.

"Changes will continue to be made to these businesses to make them more viable moving forward and to ensure we better meet the demands of customers."

Mr Cantwell said the operational change would allow ARG’s expertise to be used to explore the significant growth opportunities for the bulk commodities business on the corridor, which provided a critical link in the export and supply chain for the area.

QR has also released a draft master plan to maximise growth potential on the Mount Isa to Townsville corridor.