Queensland Rail float full steam ahead despite new bid from big coal

Queensland's Transport Minister, Rachel Nolan, said yesterday there was no variation to earlier plans to see Queensland Rail floated, with no one group allowed to hold more than a 15 per cent stake.

The stance of the government followed a meeting in Brisbane of the big coal producers including BHP Billiton, Anglo, Rio Tinto and Xstrata - which ended up with a commitment "to work together and bid for ownership of QR's coal rail network in central Queensland", according to the industry lobby group, the Queensland Resources Council.

The chief executive of the council, Michael Roche, said that the coal producers were "unanimous in their view that the QR coal business privatisation model being pursued by the state government was in the interests of neither the coal industry nor Queensland taxpayers".

The coal producers object fiercely to a privatised QR controlling the coal railway track network while also operating a rail haulage business in competition with other haulage operators using the tracks.

"Of particular concern is that the government's existing proposal to float a vertically integrated coal business will severely limit investment in the new rail capacity needed for industry growth and new job creation," Mr Roche said. "By contrast, coal producers - as owners of the coal track network - [would] have a very strong incentive to ensure a high-performing network."

Meanwhile, BHP Billiton has formally confirmed a market-leading coking coal price settlement of $US200 ($219) a tonne based on short-term contracts rather than the historic practice of an annual price settlement. The price increase was about 54 per cent higher than last year's annual contract price settlement and means the coking coal industry is in line for a $US10.5 billion ($12 billion) revenue boost, if the higher price is maintained over the next 12 months.