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Minister says choke on coal exports will be relieved
 
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In the midst of a resources boom Australian coal producers continue to struggle with the constraints of an overburdened infrastructure network.
For Queensland coalminers 2008 will represent the third successive year in which there will be a reduction of exports from the Dalrymple Bay Coal Terminal. At the same time demurrage costs are having a significant effect on exporters’ balance sheets.

Macarthur Coal Chairman Keith De Lacy summed up the situation at the Queensland coalminer’s 2007 AGM.

“The estimated lost earnings for users of DBCT, in 2007, was greater than a $1 billion and the demurrage, which is the cost to coal producers for ships that are waiting to be loaded, in this 2007 year, is greater than $400 million,” he said.

Investor TV spoke to Queensland Minster for Transport John Mickel to gauge the government’s response to the situation.

“Firstly I don’t know that anybody really predicted five years ago the extent of the boom that we’re now enjoying in coal production, but against that backdrop what we’ve done with our coal network capacity is expand that by 27 per cent and that will happen by about 2009-10,” MR Mickel said.

The minister said the government has also undertaken a major rolling stock acquisition program, to the tune of $2 billion, providing 138 new or upgraded locomotives and 2700 new coal wagons, as well as an expansion program for Queensland’s coal ports.

Mr Mickel said the issue of demurrage costs were also being addressed by the Queensland Government.

“We understand those issues and that’s why we’ve committed to these significant port expansions," he said.

"We’ve also, on the Goonyella system, recognised the work that was carried out, making sure that coal rail and port demands are aligned,” he said.

“The government is showing leadership. The O’Donnell Report is something we’re responding to. As I said the commitment, the announcement the Premier made on locomotives is the government showing leadership, but, there’s still more to be done, we recognise that and we’re getting on with the job of doing that.”
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Source: Investor TV
Release Date: Thursday, 6 December 2007 1:29 PM
Author: Lee Jenson, investorTV
Runtime: 3 minutes 17 seconds

Comments: 0 | Post Comments
Rating: Not Rated
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