Adani has set up an Indian subsidiary to focus on rail projects and reportedly applied for accreditation to operate rollingstock in Queensland, raising the idea it may plan to freight its own coal from its Australian mine.
According to India Times, Adani told the Indian stock exchange on Thursday: “The company has incorporated a wholly own subsidiary for the business of building, construction of transportation facilities like the metro and monorail segment, rapid rail transit system, and engineering, procurement and construction, thereof.”
Meanwhile, ABC on Thursday reported on documents from the Queensland Office of State Development which show that the company has applied for accreditation as a licensed Rail Infrastructure Manager and Rolling Stock Operator.
The company is also yet to put out a tender for rail haulage from its mine site despite its deadline for exporting coal from the Carmichael mine site in 20 months’ time.
The ABC spoke to an analyst who believes Adani will not undergo conducting its own freight operations due to the upfront capital costs.
“You’re talking $100 million plus for locomotives and wagons, plus maintenance costs and staffing — maybe up to $200 million,” one analyst told reporters, arguing that Adani will use the threat of conducting its own operations as “a bargaining chip to use in negotiations” with providers.
Adani is looking to build a narrow-gauge spur line to link to Aurizon’s Central Queensland Coal Network (which links mines to Queensland’s major coal ports).