AusRAIL, Market Sectors

Brakes put on Surat Basin Rail project

The proposed multi-user, open access 204-kilometre rail line, sometimes referred to as ‘The Southern Missing Link’, would connect the existing narrow gauge Queensland Rail western railway system near Wandoan (230km northwest of Toowoomba) with Aurizon’s Moura railway network at Banana (130km west of Gladstone).

The consortium, which includes Everald Compton’s ATEC Rail Group Limited, Xstrata and Aurizon, has designed the SBR to link planned coal mines in the Surat Basin with the Wiggins Island Coal Export Terminal at Gladstone.

Lawyer Tom Marland told the ABC that the consortium has failed to act on its notice of intention to resume the land, leaving the landholders he represents with thousands of dollars in legal fees.

&quotWe’re in limbo as to whether, if or when it’s going to proceed,&quot he said.

&quotThey’re unable to claim any of those costs under the Act until such time as the land is actually taken.&quot

Surat Basin Rail CEO Allan Miller says the rail line will be built on a slower time frame because of challenging market conditions.

The State Government says it is disappointed with the latest development.
Queensland Deputy Premier Jeff Seeney says landholders should seek compensation for expenses accrued over the discontinued notices of intention to resume.

The SBR Joint Venture own web site says it has endeavoured to develop, and will continue to foster, a strong connection with the local community and affected landowners.

“The project team has applied a ‘neighbourly’ approach to their liaison with landowners, which has helped to identify possible property impacts and mitigation strategies for construction and operation.”

The Surat Basin Infrastructure Corridor State Development Area (SDA) was declared on 24 November 2011 by a regulation made under the State Development and Public Works Organisation Act 1971. This means the Queensland Coordinator-General can regulate land uses in the corridor and acquire the land, or an interest in land, within the SDA to establish the infrastructure corridor.

“The Office of the Coordinator-General will consult directly with all affected landowners on a case-by-case basis to assess fair and reasonable compensation in accordance with the provisions of the Acquisition of Land Act 1967,” says the SBR web site.

Two consortia, Thiess John Holland Joint Venture and Abigroup/Laing O’Rourke’s JV ‘Access Surat’ were shortlisted in November 2011 to construct the line and were expected to submit competitive contractor tenders to SBR at the end of April with the winning bid announcement originally scheduled to have been made in Q3 2012.