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Coal Infrastructure Program of Actions Identifying the needs of Queensland’s coal industry, including rail, ports, rollingstock, water, skills, energy and housing and planning
Coal Infrastructure Program of ActionsIdentifying the needs of Queensland’s coal industry, including rail, ports, rollingstock, water, skills, energy and housing and planning
© The State of Queensland (Department of Infrastructure and Planning) 2008.
Published by the Queensland Government, June 2008, 100 George Street, Brisbane 4000.
The Queensland Government supports and encourages the dissemination and exchange of information. However, copyright protects this document. The State of Queensland has no objection to this material being reproduced, made available online or electronically but only if it is recognised as the owner of the copyright and this material remains unaltered. Copyright enquiries about this publication should be directed to the Crown Copyright Administrator via email, [email protected] or in writing to PO Box 15168, City East, Queensland 4002.
Disclaimer This document is produced to convey general information. While every care has been taken in preparing this document, the State of Queensland accepts no responsibility for decisions or actions taken as a result of any data, information, statement or advice, express or implied, contained within. The contents of this document were correct to the best of our knowledge at the time of publishing. Any reference to legislation contained within is not an interpretation of the law. It is to be used as a guide only. The information contained within does not take into consideration any reference to individual circumstances or situations. Where appropriate independent legal advice should be sought.
#0152 04/08
Coal Infrastructure Program of Actions 1
Maintaining Queensland’s position as the world’s leading coal exporter depends on its ability to deliver timely and cost effective coal infrastructure.
In 2005 the Queensland Government, with the support of the Queensland Resources Council, developed the Coal Infrastructure Program of Actions to ensure timely delivery of infrastructure to meet the short- and medium-term demands of the Queensland coal industry.
Coal is Queensland’s most important export commodity. In 2006–07, 164 million tonnes (Mt) of coal were railed in Queensland with 153.5 Mt exported to markets including Japan, China, Korea and India.
Recently, global demand for Queensland coal has increased substantially and export growth is forecast to remain strong. Queensland Government and the coal industry are investing heavily in providing the infrastructure needed to capitalise on this growth and to meet customers’ expectations.
The figures provided are current as at December 2007.
Introduction
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Coal Infrastructure Program of Actions 2005The Coal Infrastructure Program of Actions 2005 identified infrastructure needs of the coal industry to 2009-10. The program was based on an annual growth rate of 8.5 per cent to 215 million tonnes per annum (Mtpa) by 2010. The endorsed program comprised:
$1.8 billion of coal infrastructure projects already committed
$2.4 billion of projects to expand coal production to 215 Mtpa
strategic infrastructure planning to cater for coal demand increasing to 235 Mtpa.
While coal transport infrastructure was the focus of the Coal Infrastructure Program of Actions, it also recognised that continued growth relied on the availability of adequate water and power, an appropriately skilled workforce and social and housing infrastructure to support the workforce.
In 2007 Queensland Government audited progress on implementation of the program and identified the infrastructure required to meet future global demand. The audit was conducted by the Coal Infrastructure Taskforce within the Department of Infrastructure and Planning. Information was provided by key stakeholder agencies involved in the provision of coal-related infrastructure and was current as at December 2007.
Coal Infrastructure Program of Actions 3
Coal Infrastructure Program of Actions 2008Audit findings indicate that the value of committed and planned coal-related infrastructure under the Coal Infrastructure Program of Actions increased from $4.2 billion in 2005 to $19.3 billion in early 2008. This infrastructure includes:
rail—$1 billion committed and $4.6 billion planned
additional rollingstock—$2.1 billion
ports—$2.5 billion committed and $7.2 billion planned
water—$445 million
energy—$1.3 billion
skills—$25 million
housing and planning—$31 million.
Of the $19.3 billion in infrastructure projects identified in the program of actions, approximately:
$2.8 billion has been completed
$3.4 billion has been committed
$13.1 billion is planned or under consideration.
Under the 2008 program significant planning work has been undertaken for major infrastructure projects including:
Goonyella to Abbot Point Expansion Project (including the Northern Missing Rail Link)
Abbot Point Coal Terminal Stage 3 expansion to 50 Mtpa
Wiggins Island Coal Terminal at Gladstone
Surat Basin Railway (previously known as the Southern Missing Link)
Moura Link – Aldoga Rail project.
Recent expansion of existing coal transport infrastructure has provided a marked increase in Queensland’s coal export capabilities. This, combined with other planned major infrastructure projects, will see the state well positioned to meet current and future global demand for Queensland coal.
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Coal system capacityQueensland’s four major coal infrastructure systems are the Newlands, Goonyella, Blackwater/Moura and the Western systems. The table below details:
capacity at the commencement of the program in 2005
current capacity delivered to date under the program in 2008
expected capacity resulting from projects planned for or under consideration in 2008.
The nominal capacities listed below represent the maximum achievable throughput. Queensland Government is working with key stakeholders and has already made significant improvements to ensure industry can utilise the full extent of the available capacity.
Qualifications The table below describes balanced system capacities which represent the lowest nominal capacity of either the port or rail infrastructure in a system.
Some of the possible capacities listed below incorporate projects which have been identified since completion of the program of actions audit.
BELOW-RAIL AND PORT INFRASTRUCTURE 2005 CAPACITY (Mtpa) 2008 CAPACITY (Mtpa) POSSIBLE CAPACITY (Mtpa)
Newlands Coal System capacity 15 19 100
Newlands Rail System 15 19 100#
Abbot Point Coal Terminal 16 21 100#
Goonyella Coal System capacity 88 100 160
Goonyella Rail System 93 100 160#
Dalrymple Bay Coal Terminal 54 68 105#
Hay Point Services Coal Terminal 34 44 55
Blackwater/Moura Coal System capacity 45 64 147
Blackwater/Moura Rail Systems 60 64 147*
RG Tanna Coal Terminal 40 68 73
Barney Point Coal Terminal 5 7 0
Wiggins Island Coal Terminal 0 0 85
Western Coal System capacity 4 5 9
Western Rail System 4 6 9
Fisherman’s Island Coal Terminal 5 5 10#
Total balanced capacity for all systems 152 188 416
*Includes proposed Surat Basin Railway
# Incorporates additional projects not known at the time of the audit which have been identified in the Coal Infrastructure in Queensland: Overview of Future Expansion, 2008 document (see page 12 for details on accessing this document).
Rollingstock, as with below-rail and port infrastructure, can be a constraint to achieving the nominal capacities of a given system. Detail of how rollingstock is being addressed is provided on page 14.
The map opposite features all four coal systems.
Coal Infrastructure Program of Actions 5
Port of Abbot Point
Mackay Port of Hay Point
Port of Gladstone
Port of Brisbane
Proposed Northern Missing Rail Link
Blair Athol
JilalanHail Creek
Coppabella
Emerald
Minerva
RollestonMoura
Monto
Maryborough
Chinchilla
Dalby
Toowoomba
Ipswich
Theodore
Banana
Tieri
Clermont
DysartMiddlemount
Biloela
Callide
Roma
Wandoan
BowenABBOT POINT COAL TERMINALPorts Corporation of Queensland (PCQ)
Collinsville
DALRYMPLE BAY COAL TERMINALBabcock and Brown Infrastructure (BBI)
HAY POINT SERVICES COAL TERMINALBHP Billiton Mitsubishi Alliance (BMA)
Proposed WIGGINS ISLAND COAL TERMINAL
MORANBAH PIPELINE
R.G. TANNA COAL TERMINALGladstone Ports Corporation (GPC)
BARNEY POINT COAL TERMINALGladstone Ports Corporation (GPC)
FISHERMAN ISLANDS COAL TERMINALQueensland Bulk Handling (QBH)
Gregory
Blackwater
Gladstone
Bundaberg
Kingaroy
Proposed Surat Basin
Railway
North Goonyella
Newlands
Proposed NATHAN DAM
Moranbah
Miles
Proposed Moura Link
– Aldoga Rail project
BRISBANE
Rockhampton
Proposed CONNORS RIVER DAM
Coal haul track
Non-electri�ed track
Future coal haul track
Electri�ed track
Cities, towns and mines
Proposed dams
Galilee Basin
Bowen Basin
Ipswich Basin
Clarence-Moreton Basin
Callide Basin
Tarong Basin
Mulgildie Basin
Surat Basin
Maryborough Basin
Water pipeline
Queensland coal systems
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Significant completed projects
PROJECTADDITIONAL CAPACITY GAINED (Mtpa) COMPLETED CAPITAL EXPENDITURE
Track upgrades 4 Mtpa N/A N/A
APCT Expansion—X21 (21 Mtpa) 6 Mtpa November 2007 $116 million
Significant planned projects
PROJECTADDITIONAL CAPACITY GAINED (Mtpa) POSSIBLE COMPLETION
ESTIMATED CAPITAL EXPENDITURE
Goonyella to Abbot Point Expansion project—(including the Northern Missing Rail Link) will allow coal trains from Central Queensland to go to APCT, freeing capacity on the Goonyella Rail System.
56 Mtpa
Construction will be aligned with further expansion at the APCT.
35 Mtpa by early 2010
75 Mtpa by 2012
$1.5 billion
APCT X25 (25 Mtpa) 4 Mtpa June 2009 $95 million
APCT X50 (50 Mtpa) 29 MtpaEarliest delivery February 2011
$750 million
APCT X75 (75 Mtpa) 25 MtpaEarliest delivery June 2012
$1.3 billion
Newlands Coal Supply System
Details of significant projects
More than $4.1 billion committed and plannedThe Newlands System links mines in the Northern Bowen Basin to the Abbot Point Coal Terminal (APCT) at the Port of Abbot Point, north of Bowen.
The following sections provide highlights of some of the significant projects from the Coal Infrastructure Program of Actions that support future growth in each coal system.
Coal Infrastructure Program of Actions 7
Port of Abbot Point
BowenABBOT POINT COAL TERMINALPorts Corporation of Queensland (PCQ)
Mackay Port of Hay PointDALRYMPLE BAY COAL TERMINALBabcock and Brown Infrastructure (BBI)
HAY POINT SERVICES COAL TERMINALBHP Billiton Mitsubishi Alliance (BMA)
Proposed CONNORS RIVER DAM
Hail Creek
Coppabella
Collinsville
MORANBAH PIPELINE
North Goonyella
Newlands
Moranbah
Proposed Northern Missing Rail Link
Coal haul track
Non-electri�ed track
Future coal haul track
Cities, towns and mines
Proposed dams
Bowen Basin
Water pipeline
Newlands System map
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Significant completed projects
PROJECTADDITIONAL CAPACITY GAINED (Mtpa) COMPLETED CAPITAL EXPENDITURE
Signalling—Connors Range 5 July 2007 $3 million
Third rail loop—DBCT 16 November 2007 $110 million
Channel dredging—Port of Hay Point 2 December 2006 $60 million
DBCT (54–68 Mtpa)* 14 March 2008 $565 million
HPSCT (34–44 Mtpa)# 10 August 2007 $300 million
*Babcock and Brown Infrastructure #BHP Billiton Mitsubishi Alliance
Significant planned projects
PROJECTADDITIONAL CAPACITY GAINED (Mtpa) POSSIBLE COMPLETION
ESTIMATED CAPITAL EXPENDITURE
Jilalan Rail Yard upgrade—to facilitate 130 Mtpa capacity on the Goonyella Rail System.
38 December 2009 $500 million
DBCT 7X project—Phase 2/3 (68 - 85 Mtpa)* 17 December 2008 $679 million
HPSCT (55 Mtpa)# 11 December 2013 $500 million
*Babcock and Brown Infrastructure #BHP Billiton Mitsubishi Alliance
Goonyella Coal Supply SystemApproximately $3 billion committed and plannedThe Goonyella System links coal mines in the Central Bowen Basin to the Dalrymple Bay Coal Terminal (DBCT) and the Hay Point Services Coal Terminal (HPSCT) at the Port of Hay Point, south of Mackay.
Coal Infrastructure Program of Actions 9
Mackay Port of Hay Point
Jilalan
Proposed CONNORS RIVER DAM
Hail Creek
Coppabella
MORANBAH PIPELINE
North Goonyella
Newlands
Moranbah
Blair Athol
Clermont
Dysart
Middlemount
Emerald
Tieri
Gregory
Blackwater
Rockhampton
DALRYMPLE BAY COAL TERMINALBabcock and Brown Infrastructure (BBI)
HAY POINT SERVICES COAL TERMINALBHP Billiton Mitsubishi Alliance (BMA)
Proposed Northern Missing Rail Link
Electri�ed track
Coal haul track
Future coal haul track
Cities, towns and mines
Proposed dams
Bowen Basin
Water pipeline
Goonyella System map
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Significant completed projects
PROJECTADDITIONAL CAPACITY GAINED (Mtpa) COMPLETED CAPITAL EXPENDITURE
Windah—Grantleigh duplication 6 May 2006 $26 million
Bluff–Blackwater duplication 4 June 2007 $53 million
RG Tanna Coal Terminal (40–68 Mtpa) 28 December 2007 $774 million
Barney Point Coal Terminal (5–7 Mtpa) 2 October 2006 $3 million
Significant planned projects
PROJECTADDITIONAL CAPACITY GAINED (Mtpa) POSSIBLE COMPLETION
ESTIMATED CAPITAL EXPENDITURE
Moura Link—Aldoga Rail project 19 No estimate available $ 500 million
Surat Basin Railway—207 kms of new rail line linking Wandoan to Banana. Enables delivery of coal from existing and proposed coal mines in the Surat Basin to the Port of Gladstone^.
30Operational by 2012
30 Mtpa by 2015$1.6 billion
Wiggins Island Coal Terminal—development of a new coal terminal at the Port of Gladstone.
85
Expansion beyond 70 Mtpa is subject to further feasibility analysis and market conditions
First shipments expected mid 2012
Final completion 2023
$4.3 billion
RG Tanna Coal Terminal (73 Mtpa) 5 2016 $200 million
^Private sector project
Approximately $8.4 billion committed and plannedThe Blackwater/Moura System links coal mines in the south east and south west Bowen Basins to the Port of Gladstone. The proposed Surat Basin Railway will link Surat Basin mines to the Port of Gladstone via the Moura System.
Blackwater/Moura Coal Supply System
Coal Infrastructure Program of Actions 11
Gregory
Rolleston
Moura
MontoTheodore
BananaBiloela
Callide
Gladstone
Proposed NATHAN DAM
Emerald
Minerva
Tieri
Clermont
Dysart
Middlemount
Blackwater
Rockhampton
Port of Gladstone
Proposed WIGGINS ISLAND COAL TERMINAL
R.G. TANNA COAL TERMINALGladstone Ports Corporation (GPC)
BARNEY POINT COAL TERMINALGladstone Ports Corporation (GPC)
Proposed Moura Link
– Aldoga Rail project
Coal haul track
Non-electri�ed track
Electri�ed track
Future coal haul track
Cities, towns and mines
Proposed dams
Galilee Basin
Bowen Basin
Callide Basin
Mulgildie Basin
Surat Basin
Blackwater/Moura System map
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Significant completed projects
PROJECTADDITIONAL CAPACITY GAINED (Mtpa) COMPLETED CAPITAL EXPENDITURE
Track upgrades 2 June 2007 $30 million
Western Coal Supply SystemApproximately $195 million committed and plannedThe Western System links mines in the Surat and Clarence-Moreton Basins to the Port of Brisbane. Capacity on this system is constrained due to the Brisbane suburban rail network.
Note: More information on Queensland coal transport (port and rail) infrastructure is available in Coal Infrastructure in Queensland: Overview of Future Expansion at www.transport.qld.gov.au
Significant planned projects
PROJECTADDITIONAL CAPACITY GAINED (Mtpa) POSSIBLE COMPLETION
ESTIMATED CAPITAL EXPENDITURE
Capacity and track strengthening works 1.5 No estimate available $ 105 million
Fisherman’s Island Coal Terminal (5–8 Mtpa)^
3 June 2009 $60 million^
^Private sector project
Coal Infrastructure Program of Actions 13
Port of Brisbane
Maryborough
Chinchilla
Dalby
Toowoomba
Ipswich
Wandoan
Kingaroy
Miles
FISHERMAN ISLANDS COAL TERMINALQueensland Bulk Handling (QBH)
BRISBANE
Coal Haul Track
Non-electri�ed Track
Future Coal Haul Track
Cities, Towns and Mines
Proposed Dams
Ipswich Basin
Clarence-Moreton Basin
Tarong Basin
Maryborough Basin
Surat Basin
Western System map
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More than $2.1 billion committed and plannedThe Coal Infrastructure Program of Actions identifies rollingstock programs valued at almost $2.1 billion incorporating more than 180 new and rebuilt locomotives and 2500 new wagons, as well as additional complementary investments, such as minor maintenance and minor upgrade programs.
Queensland Rail (QR) has recently taken delivery of approximately 30 new and rebuilt electric locomotives, 30 new and rebuilt diesel locomotives and more than 850 new wagons, with commitments for the progressive delivery of new wagons and locomotives through to 2011.
The rollingstock programs have been delivering additional capacity since 2006. QR plans to increase its capacity to approximately 250 million tonnes by 2011 reflecting an increase of 60 per cent above the 2005/06 railing level.
Significant completed projects
PROJECTADDITIONAL CAPACITY GAINED (Mtpa) COMPLETED CAPITAL EXPENDITURE
Moranbah pipeline projects—delivering water to new and existing coal mines and industry in the Bowen Basin. Includes eastern and southern extensions.
17 000 ML per annum, can be augmented to provide 23 000 ML per annum if required in the future
August 2007 $300 million
Rail rollingstockApproximately $445 million committed and plannedThe Queensland Government is providing new infrastructure and investigating new water sources to support the growing coal industry.
As outlined in the Queensland Government’s Statewide Water Policy, proposed projects such as Connors River Dam and Nathan Dam will lay the foundation for future coal industry growth by securing additional water for the coalfields and mining towns in the Bowen Basin and providing a secure water supply for developing the vast thermal coal resources of the Surat Basin.
Water infrastructure projects
Significant planned projects
PROJECTADDITIONAL CAPACITY GAINED (Mtpa) POSSIBLE COMPLETION
ESTIMATED CAPITAL EXPENDITURE
Nathan Dam feasibility project—new dam on the Dawson River in Taroom Shire to serve industrial, mining and agricultural interests.
Capacity—880 000 ML
Estimated yield — 190 000 ML per annum
If approved, 2013
Government commitment— $120 million
Estimated cost— $326 million
Connors River Dam and pipelines feasibility project—new dam on the Connors River to serve Northern Bowen Basin coal mines and communities.
Capacity—150 000 to 336 000 ML
Estimated yield—40 000 ML per annum
If approved, 2013
Government commitment $117 million
Estimated cost— $195 million
Coal Infrastructure Program of Actions 15
Skills developmentApproximately $25 million committed and plannedThe Queensland coal industry employs more than 18 000 workers. Due to the strong growth in the coal industry, and the Queensland economy generally, skills shortages are being experienced across the mining, construction and infrastructure industries. Queensland Government is working closely with industry to develop skills and training solutions to ensure skills shortages do not restrict future growth.
Skills and training initiatives delivered under the program of actions include:
Mining Industry Skills Centre (MISC) established June 2005 to address medium- to long-term training and skills issues. $18 million was committed to establish MISC, fund three years training delivery and for the purchase of 18 mining simulators
$1.4 million to establish the Queensland Minerals and Energy Academy to increase the number of students pursuing trades in the mining and energy sectors through apprenticeships, traineeships and work experience.
Queensland Government has also committed $240 000 for the Central Queensland Coal Regional Skills Formation Strategy to assist the industry to develop solutions to skills shortages.
Energy infrastructureApproximately $1.3 billion committed and plannedApproximately $325 million of projects and works are committed as part of Ergon Energy’s work program to 2010. A further $960 million of coal-related energy requests has been identified.
Housing and planningApproximately $31 million committed and plannedQueensland Government has recognised the cumulative pressure that increased mining activity will place on housing supply and social infrastructure. The Coal Infrastructure Program of Actions incorporates initiatives to address this within dormitory towns and larger regional centres. Significant initiatives include:
Sustainable Futures Framework for Queensland Mining Towns, July 2007 (based on the Moranbah Growth Management Strategy December 2006) to assist local governments to respond to increased growth as a result of expanding mining activity
publication of two editions of the Bowen Basin Population Report providing full-time-equivalent population estimates for all local governments in the Bowen Basin to assist with planning
Bowen Basin Housing Issues Report 2007
$21.75 million spent on additional housing in the Bowen Basin, Mackay/Whitsunday and the Rockhampton/Livingstone regions.
Queensland Government is addressing housing and planning issues by:
providing ongoing growth planning assistance to the Moranbah Growth Management Group and local governments
developing the Moranbah Strategic Plan to consider short-, medium- and long-term options for sustainable growth at Moranbah
reviewing the scope of the Environmental Impact Statement process to improve use of mechanisms to address social impacts of rapidly expanding mining projects.
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The Coal Infrastructure Program of Actions identified the need to undertake industry-wide strategic planning for future growth in coal demand and production. To this end, the Coal Infrastructure Taskforce is developing the Queensland Coal Infrastructure Strategic Plan, a medium- to long-term strategic plan to 2028 for the provision of infrastructure to meet the coal industry’s needs.
The strategic plan will take a holistic view of the coal supply chain from mine to port, and include details of future transport, water, energy and social infrastructure needs. This plan will inform the future planning processes of both public and private sector infrastructure and service providers.
The strategic plan is being developed in close consultation with key stakeholders including mining companies, the Queensland Resources Council, key government agencies and Government Owned Corporations. It is anticipated the strategic plan will be completed in 2008 and will become an important whole-of-government planning activity undertaken annually.
Queensland Coal Infrastructure Strategic Plan
For further information contact:
Department of Infrastructure and PlanningCoal Infrastructure Taskforce PO Box 15009 City East Qld 4002 Australiatel +61 7 3404 3474fax +61 7 3229 [email protected]
www.dip.qld.gov.au
