Queensland: The Coal Capital
Queensland produces 60% of total Australian coal exports, and around 50% of the world seaborne trade in coking coal used in steelmaking. Total coal exports through Queensland ports reached 183 million tonnes during 2009/2010, an increase of 15% on the previous year.
Encouraged by high global prices and strong demand, coal miners are committing significant capital into capacity expansions, and both Queensland and Australian exports will continue to grow over coming years.
Queensland Rail providing for future capacity
The Queensland Government, through Queensland Rail, provides below rail infrastructure for the transport of coal from west of Brisbane to the Port of Brisbane. Queensland Rail is continuing discussions with coal customers to investigate options for increasing rail capacity on the network for the export of expanded coal volumes.
Some of this infrastructure came under scrutiny when, in early 2011, the railway line on the Toowoomba Range, managed by Queensland Rail, was badly damaged by flash flooding. In total, 261 different sites were damaged. Queensland Rail promptly reviewed the damage and commenced restoration works. The line was reopened on 28 March, with only one line operational at Rangeview. They returned to full operation, including Rangeview, on 9 May.
Queensland Rail’s Manager – Network Business Commercial, Andrew Matthews said he believed restoration of the majority of the services on the corridor in under three months reflected the organisation’s strong capabilities.
“The sooner we could restore track infrastructure, the sooner customers would be railing again, which is what we wanted to see,” Mr Matthews said.
As a result of the flooding, coal tonnages railed were down as low as 8% of usual in February 2011. However, due to a recovery plan implemented to assist customers, coal railings were above normal rates from April to June.
QBH investments paying off
In October 2010 Queensland Bulk Handling (QBH), the owner and operator of the coal export facility at the Port of Brisbane, invested $65 million in a terminal expansion to increase its stockpile capacity from 377,000 tonnes to 909,000 tonnes, the total capacity being fully committed. The expansion project included a new stacker, sampler station and ship loader improvements.
QBH Port Operations Manager, Kevin Rayfield, said the expansion had already been beneficial, especially as colliers have been increasing exports to make up for rail closure caused by the floods.
“In May 2011 we received a record 398 trains carrying 761,899 tonnes, and then in June we surpassed our monthly export record with 808,543 tonnes and 11 ships,” Mr Rayfield said.
QBH is forecasting increased volumes for 2011/2012. With this in mind, the key focus area for the company is to identify opportunities for increased coal exports through the Port of Brisbane.
Focus on the future
A number of new mines are investigating the potential for exporting coal through the Port of Brisbane, and our existing customers are all forecasting significant increases in throughput over the next three to five years.
PBPL is actively working with coal supply chain participants to ensure the Port of Brisbane can capture its share of the market. Our aim is to deliver maximum growth opportunities, while maintaining diversity and strengthening the economic trade base.
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Fast facts:
- Australia is the world’s largest coal exporter, and the fourth largest producer after China, the USA and India.
- Coal represents around 10% of Australia’s total export income.
- Australia accounts for roughly 7% of the world’s black coal production, a third of world coal trade, and half of world coking coal trade.
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