Rail T 07 3072 0781 ^pQueenslandRall 305 Edward Street F 07 3072 7201 GPO Box 1429 E [email protected] QLD 4001 www.queenslandrail.com.au Ourref: MCR-18-319

Mr Charles Millsteed Chief Executive Officer Queensland Competition Authority Level 27 145 Ann Street Brisbane QLD 4000

Dear Mr Millsteed

Queensland Rail's Access Undertaking 1 (AU1) requires that provide the Queensland Competition Authority (QCA) with details of capital expenditure for the subject year that Queensland Rail considers should be included in the Regulatory Asset Base (RAB).

Queensland Rail provided the 2013-14 to 2016-17 Capital Expenditure Report for the West Moreton Network to the QCA on 21 December 2017. The QCA's Final Decision on AU1 approved the West Moreton Network as at 1 July 2013 and the estimated capital expenditure to be included in the Capital Indicator for the period 1 July 2013 to 30 June 2020. This will be the first time the QCA considers capital expenditure for approval in the RAB since AU1 was approved.

In subsequent communication between our officers, the QCA has sought evidence that assets included in the Capital Expenditure Report have been commissioned. Queensland Rail is now providing a revised estimate for the Capital Expenditure Report reflecting commissioned assets, as included in the Fixed Asset Register by year, as opposed to capital expenditure by year. The revised estimates are included in Attachment 1.

Separately, Queensland Rail is providing the QCA with its records supporting the recognition of assets in the Fixed Asset Register.

Consistent with the requirement of Clause 1.3(c) of AU1, I can confirm that the information contained in Attachment 1 in respect of the assets commissioned on the 2013-14 to 2016-17 Capital Expenditure Report is in all material respects correct.

If your officers have any questions in relation to this matter, please do not hesitate to contact Mr Neil Buckley, General Manager Access Revenue, on (07) 3072 1145 or [email protected].

Yours sincerely

Nick Easy Chief Executive Officer

^ March 2018

Queensland Rail Limited {ABN 71 132 181 090) Page 1

429,111

554,932

533,658

2,418,391

2,194,892

3,546,963

2,228,992 5,982,003

1,178,079

1,193,398

20,260,420

2016-17

COMMERICAL-IN-CONFIDENCE

689,261

122,051

985,907

6,588,173

1,839,220

8,077,529

1,440,048 1,969,081

21,711,271

2015-16

95,101

784,608

951,264 226,893

2,524,800

4,508,760

3,977,474

6,366,533

1,478,861

20,914,294

2014-15

1,225,317

11,694,399

10,469,081

2013-14

Portion)

MORETON

- Helidon

Portion)

Replace West Moreton

Project Name

'

INCLUDE WEST

:

• •

- West Moreton System

- West Moreton System

Installations & Upgrade (WM

Bridge Replacement

Protection (WM

Jondaryan

PROJECTS —

Steel Bridge replace with RCBC

nominal, excluding interest during construction)

Ballast Undercutting

Restructure of Regional Train Control Pedestrian Crossing

Formation Strengthening Drain Renewal Corridor & Asset Relay Oakey to

Check Rail Curves Stage 2

Forest Hill Timber Steel Bridge Strengthening Relaying (rerailing) program Rosewood Check rail curves - Range and Little

Drain Upgraded West Moreton

Formation Strengthening

Western System Asset Replacement

Siemens AZ S600 Axle Counter

Timber &

Timber Bridge Upgrades - Laidley & Oakey

I

REGIONAL WIDE

MORETON PROJECTS

04060

04163

04503 04613

04471

04142

04291

04047

03656

Project Number

B.04073 B.

B.

B.04796

B.

B. B.

B.

OTHER B.04196 TOTAL B.04403

B.04045 B.04046 B. B.

B. B.04043

B.04044

100% WEST

2013-14 to 2016-17 {$

TABLE 1: COMMISSIONED ASSETS BY PROJECT — WEST MORETON SYSTEM | SYSTEM WIDE / ATTACHMENT 1 Page 2

433,207 603,923 578,225

2,478,962 6,253,198

2,418,391 3,741,619 2,393,904

1,233,264 1,237,109

21,371,803

2016-17

COMMERICAL-IN-CONFIDENCE

762,927

122,051

2,190,906

8,917,497

7,482,600 1,573,157

1,085,582

1,961,412

24,096,133

2015-16

99,222

250,487

868,464

6,955,017 2,699,833 4,299,171

5,120,880

1,017,211

1,628,374

22,938,659

2014-15

SYSTEM

1,338,578

11,315,818

12,654,396

2013-14

construction

i-V

Portion)

interest during

MORETON

System

System

PROJECT — WEST MORETON

Portion)

Capex with

INCLUDE WEST

- West Moreton

- West Moreton

Installations & Upgrade (WM

Protection (WM

Jondaryan

PROJECTS —

S600 Axle Counter Replace West Moreton

Steel Bridge replace with RCBC

Western System Asset Replacement

Formation Strengthening Relaying (rerailing) program Rosewood - Helidon Drain Renewal Forest Hill Timber Bridge Replacement Check Rail Curves Stage 2 Drain Upgraded West Moreton Relay Oakey to Restructure of Regional Train Control Check rail curves - Toowoomba Range and Little Liverpool Range Formation Strengthening Ballast Undercutting Pedestrian Crossing Corridor & Asset Timber Bridge Upgrades - Laidley & Oakey Siemens AZ

Timber & Steel Bridge Strengthening

REGIONAL WIDE

/

MORETON PROJECTS

04196 04503 04142 04060 04796 04471 04163

Project Number

B.04044 B.04047 B. B. B.04045 B.04403 B.03656 B.04613 B.04046 B. B.04043 B. B. B. B.04291 B.04073 B.

100% WEST OTHER

SYSTEM WIDE TOTAL

2013-14 to 2016-17 ($ nominal, including interest during construction)

TABLE 2: COMMISSIONED ASSETS BY