Aurizon and GVK Hancock will work on new rail and port infrastructure for Galilee Basin coal exports
March 11, 2013
Aurizon and GVK Hancock will work together on new rail and port infrastructure to support 60 million tonnes a year of coal exports from Queensland’s Galilee Basin.
Rail freight company Aurizon today announced it will work with GVK Coal Infrastructure to unlock Galilee Basin coal reserves including GVK Hancock’s Alpha, Kevin’s Corner and Alpha West coal mines.
Aurizon Managing CEO Lance Hockridge says the proposed arrangement brings together two large players in the mine-rail-port space for the Galilee Basin.
“Aurizon has always believed that realizing Galilee Basin coal exports would require a consolidated rail and port solution that delivers a staged, commercially-sensible solution for producers,”
Hockridge says.
“This solution could also provide significant opportunity for new and existing Bowen Basin producers to utilize elements of this infrastructure.”
According to Aurizon, the two companies are seeking development of a 60mtpa port and rail project that will underpin the opening of reserves in the Galilee Basin and continued growth in
the Bowen Basin.
Aurizon and GVK Hancock will jointly manage the proposed rail and port projects.
The projects comprise a greenfield rail project and a development right
for a coal terminal at Abbot Point.
GVK Hancock received the primary State and Commonwealth environmental approvals for its greenfield rail project in May and August 2012, respectively.
GVK Hancock’s port project received Commonwealth environmental approval in October 2012.
About $6 billion is expected to be invested in Queensland as part of the development.
Under the agreement Aurizon will acquire a 51 percent interest in Hancock Coal Infrastructure, which owns GVK Hancock’s rail and port projects.
Following completion of the transaction, Aurizon will gain the rights to operate and jointly manage with GVK the rail infrastructure and exclusively provide rail haulage from GVK Hancock’s Alpha and Kevin’s Corner mines for up to 60mtpa of coal.
Aurizon and GVK Hancock will also determine the
best rail solution, which
could include a combination of GVK Hancock’s rail project and Aurizon’s Central Queensland Integrated Rail Project (CQIRP) to connect with the proposed T3 coal terminal at Abbot Point.
Both Aurizon’s and GVK Hancock’s existing rail projects have been declared significant projects by the Queensland Coordinator-General.
State Development Infrastructure Minister Jeff Seeney says the government encouraged the corporations to work together.
“By coming together the companies could deliver the optimum rail solution for all parties,” he says.