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Queensland Rail Queensland Rail T 07 3072 0781 ^pQueenslandRall 305 Edward Street F 07 3072 7201 GPO Box 1429 E [email protected] Brisbane 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 Queensland Rail 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) •: • ' ATTACHMENT 1 TABLE 1: COMMISSIONED ASSETS BY PROJECT — WEST MORETON SYSTEM 2013-14 to 2016-17 {$ nominal, excluding interest during construction) Project Number I Project Name 2013-14 2014-15 2015-16 2016-17 100% WEST MORETON PROJECTS B. 03656 Western System Asset Replacement 10,469,081 3,977,474 B.04043 Timber Bridge Upgrades - Laidley & Oakey 226,893 8,077,529 B.04044 Formation Strengthening - West Moreton System 1,225,317 6,366,533 1,440,048 B.04045 Timber & Steel Bridge replace with RCBC 1,969,081 B.04046 Drain Upgraded West Moreton 951,264 B. 04047 Check rail curves - Toowoomba Range and Little Liverpool Range 4,508,760 6,588,173 2,228,992 B. 04142 Forest Hill Timber Bridge Replacement 2,524,800 B.04196 Siemens AZ S600 Axle Counter Replace West Moreton 1,478,861 985,907 533,658 B. 04291 Relaying (rerailing) program Rosewood - Helidon 1,193,398 B.04403 Drain Renewal B. 04471 Relay Oakey to Jondaryan 5,982,003 B. 04503 Steel Bridge Strengthening 1,178,079 B. 04613 Formation Strengthening - West Moreton System 1,839,220 3,546,963 B.04796 Check Rail Curves Stage 2 429,111 | SYSTEM WIDE / REGIONAL WIDE PROJECTS — INCLUDE WEST MORETON B. 04060 Restructure of Regional Train Control 95,101 B.04073 Pedestrian Crossing Installations & Upgrade (WM Portion) 784,608 689,261 554,932 B. 04163 Corridor & Asset Protection (WM Portion) 2,194,892 OTHER Ballast Undercutting 122,051 2,418,391 TOTAL 11,694,399 20,914,294 21,711,271 20,260,420 COMMERICAL-IN-CONFIDENCE Page 1 TABLE 2: COMMISSIONED ASSETS BY PROJECT — WEST MORETON SYSTEM 2013-14 to 2016-17 ($ nominal, including interest during construction) Capex with interest during construction Project Number 2013-14 2014-15 2015-16 2016-17 100% WEST MORETON PROJECTS B.03656 Western System Asset Replacement 11,315,818 4,299,171 B.04043 Timber Bridge Upgrades - Laidley & Oakey 250,487 8,917,497 B.04044 Formation Strengthening - West Moreton System 1,338,578 6,955,017 1,573,157 B.04045 Timber & Steel Bridge replace with RCBC 2,190,906 B.04046 Drain Upgraded West Moreton 1,017,211 B.04047 Check rail curves - Toowoomba Range and Little Liverpool Range 5,120,880 7,482,600 2,478,962 B. 04142 Forest Hill Timber Bridge Replacement 2,699,833 B. 04196 Siemens AZ S600 Axle Counter Replace West Moreton 1,628,374 1,085,582 578,225 B.04291 Relaying (rerailing) program Rosewood - Helidon 1,233,264 B.04403 Drain Renewal B. 04471 Relay Oakey to Jondaryan 6,253,198 B. 04503 Steel Bridge Strengthening 1,237,109 B.04613 Formation Strengthening - West Moreton System 1,961,412 3,741,619 B. 04796 Check Rail Curves Stage 2 433,207 SYSTEM WIDE / REGIONAL WIDE PROJECTS — INCLUDE WEST MORETON B. 04060 Restructure of Regional Train Control 99,222 B.04073 Pedestrian Crossing Installations & Upgrade (WM Portion) 868,464 762,927 603,923 B. 04163 Corridor & Asset Protection (WM Portion) 2,393,904 OTHER Ballast Undercutting 122,051 2,418,391 TOTAL 12,654,396 22,938,659 24,096,133 21,371,803 COMMERICAL-IN-CONFIDENCE i-V Page 2 .
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