Plans for $2bn midwest rail and port infrastructure

<p>Yilgarn Infrastructure is confident that it has sufficient overseas backing to build $2bn of open access rail and port infrastructure in Western Australia’s iron ore rich midwest region.</p> <p>The group’s chairman, John Saunders, said the project would succeed because it could borrow at rates much lower than the prices Fortescue Metals had secured for infrastructure in the Pilbara region to the north.</p> <p>Some have doubted the viability of Yilgarn’s project because the potential users, Midwest and Murchison Metals, have already begun their own studies into operating their own rail between their iron ore mines and the planned port at Oakajee, 20 km north of Geraldton.</p> <p>Both are members of the Geraldton Iron Ore Alliance, which has backed the $650m Oakajee port development and will use part of the expected 60m tonne annual capacity. </p> <p>A consortium &#8211 involving the two miners, freight giant Toll Holdings and two overseas steel companies &#8211 has proposed to build a rail line shorter than Yilgarn’s because it would only service a selected number of mines.</p> <p>But Mr Saunders told the <em> Sydney Morning Herald</em> that this would not affect his project because it had significant Chinese backing.</p> <p>Yilgarn expects to raise up to $50m for the project and list on the Australian Stock Exchange next year. </p> <br />