T2G: MAKING THE RIGHT CONNECTION THE CASE TO CONNECT INLAND RAIL FROM TO GLADSTONE KEY NATIONAL INFRASTRUCTURE: CONNECTING INLAND RAIL TO GLADSTONE PORT

Quicker freight times to Asia Enable $15.6B resource investment in regional Bring forward Nathan Dam and pipeline project Lowering supply chain costs

Deeper port enables larger container ships Up to 18,300 extra jobs in regional Queensland Develop a 4th major container port for eastern

Reduce the cost of Up to 3 years quicker delivery of the Potential to remove coal trains from Inland Rail by $4.8 B Inland Rail vision suburban network

2 Toowoomba

CONTENTS Gladstone Inland Rail

ABOUT INLAND RAIL 4 THE CHALLENGE GETTING TO THE 6 CONNECTING TO GLADSTONE PORT IS A BETTER OPTION 8 INLAND RAIL DEVELOPMENT OPTIONS FROM TOOWOOMBA 10 GLADSTONE PORT OVERVIEW 11 SEA FREIGHT PRODUCTIVITY 12 UNLOCKING NEW RESOURCE DEVELOPMENTS 14 BUILDING DEMAND FOR NEW WATER INFRASTRUCTURE 15 ECONOMIC IMPACT ASSESSMENT - CONSTRUCTION 16 ECONOMIC IMPACT ASSESSMENT - OPERATIONS 17 ASK OF THE STATE AND FEDERAL GOVERNMENT 18

3 ABOUT INLAND RAIL

Australia’s freight task is growing, driven by a forecast increase in containerized trade.

Demand Projections for Inland Rail (Mtpa) 2.5

2.0

1.5

1.0

0.5 TEU volumes (million TEUs) 0 2025 2030 2035 2040 2045 2050 2055 2060 2065 2070 2075 SEQ-Intercapital Import/Export

Note: ARTC Demand projections highlight freight from to Brisbane, Brisbane to , and Brisbane to . Source: ARTC (2015). ARTC 2015 Inland Rail Programme Business Case.

4 Toowoomba

ABOUT INLAND RAIL Gladstone Inland Rail Gladstone Inland Rail is a visionary Gateway Mwy Port of project, aimed at future Brisbane 38 km from Acacia Ridge

Brisbane proofing Australia’s economy Airport to Port of Brisbane as the freight task grows. Currently the project spans Brisbane Fisherman Islands Line Toowoomba Brisbane 1,700km from Melbourne CBD to Brisbane, but does not connect to a port. Cleveland Line Moree The lack of port connectivity limits the project benefits Gateway Mwy

Acacia for import-export freight Ridge and will generate extreme Ipswich Line Terminal e Pacific Mwy

Gold Coast Lin congestion between the ALIGNMENT KEY

Existing rail network rail terminus and ports, Highway Logan Mwy e Parkes particularly in Brisbane. Brisbane - Lin Sydney Source: ARTC, 2015 Wagga Wagga

Albury

11 km from Tottenham to Port Melbourne Melbourne

5 THE CHALLENGE GETTING TO THE PORT OF BRISBANE

Connection Toowoomba to Brisbane poses a key challenge in the delivery of Inland Rail in five areas.

Problem 2 Crossing the Lockyer Valley Flood Plain requires 47km of new track (only half in the exist- ing corridor) and a 1km tunnel through the Little Liverpool Range. Estimated cost $1 B (ARTC).

Problem 4 Kagaru to Acacia.No cost highlighted for this component which will be high. Significant community issues with rail traffic through residential areas.

Problem 1 Descending the Toowoomba Range requires a 26lm of new dual gauge track and a 6.2km tunnel, 13 bridges and viaduct structures, and 3 Problem 3 crossing loops. Estimated cost Connecting to the Interstate Rail Problem 5 $1.45 B (ARTC). Line requires 53 km of new single-track dual-gauge line, a 1km Connecting to the Port of tunnel through the Teviot Range, 27 Brisbane requires a dedicated bridges and 4 crossing loops 38km new rail line to over- Estimated cost $1.29 B (ARTC). come a range of existing bottlenecks in metro Brisbane. Estimated cost $2.84 B (DAE).

6 Toowoomba Gladstone Inland Rail

Acacia Ridge is also constrained by adjacent residential and environmentally sensitive areas and cannot grow. Terminating Overcoming Inland Rail at Acacia Ridge will significantly increase truck movements in Brisbane’s southern suburbs between Acacia these challenges Ridge and the Port of Brisbane. represents 50% of the cost of Inland Rail (Melbourne to Port of Brisbane) for just 10% of the distance. Legends

Acacia Ridge Residential

Environmental Light Industrial

7 CONNECTING TO GLADSTONE PORT IS A BETTER OPTION

Port of Gladstone overcomes all of the challenges connecting Inland Rail to the Port of Brisbane

Saves $4.8 B in construction Closer to key import/export Environmental Impact Statement costs compared to extending markets, reducing time at sea for the Surat Basin Rail Project has Inland Rail to Brisbane and supply chain costs previously been approved

Considerable reduction in road Quicker distribution of freight for SEQ Prevent disruption to Brisbane and rail congestion in South from Toowoomba via the new second residents by avoiding heavy civil East Queensland range crossing construction in urban areas

With Inland Rail, Gladstone can enable growth in import/ export freight volumes to dominant East Asian markets without requiring significant urban disruption from port expansion in Brisbane, Sydney, or Melbourne, or adding to congestion in Australia’s largest cities.

8 Toowoomba

GLADSTONE PORT OVERVIEW Gladstone Inland Rail

Port of Gladstone is a vital economic enabler for .

Queensland’s largest Australia’s 3rd largest multi-commodity port coal export port

Port Central Fisherman’s Landing Additional three berths Fisherman’s Landing constructed at Port Reconfiguration of Port Home to Queensland’s currently has four Central, with the total berths with expansion eight berths having the plans to develop capacity to handle Central for container cargo three LNG export trains another seven, 250,000-300,000 TEUs Channel Duplication including a land base per annum. Approved EIS for port of 200 hectares. channel duplication - $750 million project. 01 Dedicated rail links to Growth plans to triple

WICET & RG Tanna Coal Terminal all port berths throughout to 2050 BRUCE HIGHWAY 04 Doubling coal export 03 capacity of WICET to 60mtpa. Plans for a 05 fifth berth at the RG Tanna terminal which Future growth secured Capable of handling would add a further 15 02 Mtpa capacity. through Gladstone State multiple Capesize ships Development Area simultaneously

Gladstone State Development Area 20,000ha of develop- Bruce Highway Boyne Island able land at GSDA to Road to Gladstone Growth capacity of 24 Dual shipping lanes support secondary warehousing and Existing Rail Network additional berths being developed logistics businesses. Inland Rail Route

9 INLAND RAIL DEVELOPMENT OPTIONS FROM TOOWOOMBA

Gladstone to Option 1: Option 2: Auckland Point (7 km) ToowoombaWooderson to Gladstone Toowoomba to Brisbane $101 m

Wooderson to Callemondah (32 km) Total cost $3.4 billion $8.1 billion Gladstone Moura $97 m Total distance 646 km 480 km Wooderson Cost per km $5.24 m/km $16.97 m/km Banana to Wooderson (129 km) Moura Banana $378 m

Southern Missing Link ( to Banana) (215 km) $1,263 m Wandoan Miles to Toowoomba/ Wandoan (65 km) Oakey to Miles (198 km) $430 m $950 m Miles Wandoan Gowrie to Helidon (28 km) Acacia Ridge to Miles to Wandoan (65 km) Toowoomba/ Oakey to Miles (198 km) $1,454 m Port of Brisbane (37 km) $430 m $950 m $2,840 m Miles Gowrie Oakey Brisbane Helidon Calvert Oakey to Toowoomba Toowoomba Acacia Ridge Range Tunnel (16 km) Kagaru to $102 m Acacia Ridge (36 km) Gowrie Kagaru $0 m Oakey Brisbane Helidon Helidon to Calvert (47 km) Calvert to Kagaru Calvert Oakey to Toowoomba Toowoomba Acacia Ridge $1,077 m (53 km) Range Tunnel (16 km) $1,292 m $102 m Kagaru Gladstone Inland Rail development

Brisbane Inland Rail development To NSW Gladstone Inland Rail development Melbourne to Toowoomba Inland Rail Brisbane Inland Rail development

Melbourne to Toowoomba Inland Rail To NSW

10 Toowoomba

INLAND RAIL DEVELOPMENT OPTIONS Gladstone FROM TOOWOOMBA Inland Rail

Project Viability Summary of Costs and Benefits, 4% Discount Rate, 2021 to 2125

Comparing the two options, it can be seen that the Inland Rail to Inland Rail to the development of Inland Railto Port of Gladstone would be far Gladstone Port Port of Brisbane more economically desirable the developing Inland Rail from Costs Toowoomba to the Port of Brisbane. Construction Costs for Rail Infrastructure $2,970 $7,174 Development Cost of Additional Port Infrastructure $502 - Additional Rail Operating and Maintenance Costs $128 $89 Coal Development Costs $4,244 $2,288 Total $7,845 $9,551 Benefits Coal Producer Margins $7,459 $4,028 Coal Labour Benefit $2,028 $1,095 Intermodal Freight Efficiency Benefits $1,364 $2,132 Social/Environmental Benefits - Land-Based Transport $1,212 $2,168 Environmental Benefits from Larger Ships $315 - Reduced Toowoomba Range Maintenance - $206 Total $12,378 $9,629

Summary Net Present Value of the Project $4,533 $78 Benefit for Every $1 Spent 1.58 1.01

Source: AEC.

11 SEA FREIGHT PRODUCTIVITY

Australia’s capacity to benefit from increased sea freight productivity is limited to the port-side capacity of our container ports and capacity to manage ever-increasing ship sizes. Improving the productivity of sea freight will improve the international competitiveness of Australia’s exports as well as reduce the cost of imported consumer goods.

Capacity to handle modern Port depth to Draft (m) TEU container ships manage ship size 10.0 2,500 Of all container ports on the east 12.5 3,400 coast of Australia, Gladstone Port and the Port Botany 12.5 4,500 (Sydney) are the only ports that can accommodate the newer 13.0 5,000 larger ship sizes. Port of Brisbane

14.5 8,000 8,000+ TEU (Twenty-Foot Equivalent Unit) Maximum container ship size

15.2 12,500 Port of Gladstone

15.5 18,000 18,000+ TEU (Twenty-Foot Equivalent Unit) Maximum container ship size

16.0 21,413

12 Toowoomba

SEA FREIGHT PRODUCTIVITY Gladstone Inland Rail

To/from Closer to key markets Shanghai, China Shanghai Gladstone’s proximity to Australia’s key import/export markets provides additional productivity benefits for the economy.

Australia Freight Costs from Shanghai to key East Coast Ports (Per TEU)

17 days, $350 5 hours $333

Gladstone + $297 10 hours $300 Appropriately 27 hours Brisbane $272 from Gladstone to $265 Melbourne on rail $250 + 2 days, 2 hours Cost per TEU

Sydney $200 Gladstone Brisbane Sydney Melbourne Ports + 4 days, 10 hours Melbourne Source: BRITE (2016). Freight rates in Australia.

13 UNLOCKING NEW RESOURCE DEVELOPMENTS

Resource Developments By developing the Surat basin rail link as part of connecting Gladstone Inland Rail to the Gladstone Port, a number of additional investments in regional Queensland are unlocked.

Banana

Surat Basin Rail link (New standard gauge) $15.6 B capital $3.5 B economic boost to Clifford investment regional Queensland per annum (including $2 B directly) Elimatta Collingwood Bundi The Range Woori Wandoan Cameby Down Miles

Columboola

New Acland 7,166 additional high paying $140 M annual mine Brisbane Toowoomba mining jobs per annum royalty payments (including 2,600 directly)

Coal mine prospect Operating coal mine Moura Rail Lines Connecting Inland Rail is a unique opportunity to West Moreton System support resource jobs in regional Queensland while Surat Basin Rail removing coal trains from suburban Brisbane. To NSW Inland Rail

14 Toowoomba

BUILDING DEMAND FOR NEW Gladstone WATER INFRASTRUCTURE Inland Rail

Water infrastrucutre Gladstone The development of resources resulting from the construction of Inland Rail to the Port of Gladstone will increase demand for water and support key additional water infrastructure projects such as the proposed Nathan Dam. Nathan Dam has the capacity to hold approximately 888,312 ML of water to support operations in the Suart Basin and the Dawson-Callide region. The dam also includes the development of a 150km pipleine, to supply customers from mining to agriculture and urban uses. NATHAN DAM SITE

Wandoan Inland Rail Connection

150km PIPELINE Miles 888 GL dam 525 construction jobs

Dalby Brisbane Toowoomba 150km long trunk pipeline $1.2b investment

15 TORRES STRAIT ISLAND REGIONAL TORRES Thursday SHIRE Island ! Bamaga ! NORTHERN PENINSULA AREAREGIONAL

MAPOON ABORIGINAL SHIRE

Mapoon !

WEIPATOWN AUTHORITY Lockhart River !

NAPRANUM LOCKHART RIVER ABORIGINAL ABORIGINAL SHIRE SHIRE Aurukun ! AURUKUN SHIRE COOK ECONOMIC IMPACT SHASSESSMENTIRE - CONSTRUCTION PORMPURAAW ABORIGINAL SHIRE HOPE VALE ABORIGINAL Pormpuraaw ! SHIRE

KOWANYAMA WUJALWUJAL Hope Vale ABORIGINAL ! ABORIGINAL SHIRE SHIRE Kowanyama ! Cooktown !

WujalWujal!

DOUGLASSHIRE Port Douglas ! YARRABAH Gununa ! ABORIGINAL SHIRE CARPENTARIA !! MAREEBA Mareeba ! MORNINGTONSHIRE SHIRE Yarrabah SHIRE Atherton ! CAIRNS REGIONAL DOOMADGEE Normanton ABORIGINAL ! SHIRE ! Burketown Doomadgee ! Tu lly ! CASSOWARY COAST CROYDON TA BLELANDS ! Croydon Georgetown REGIONAL BURKE GRP ($M) SHIRE Full! Time EquivalentREGIONAL (FTE) Jobs GRP ($M) Full Time Equivalent (FTE) Jobs SHIRE

ETHERIDGE Ingham ! Palm Island SHIRE ! HINCHINBROOK PA LM ISLAND SHIRE ABORIGINAL SHIRE TOWNSVILLE CITY $1,513.1 million 8,210 FTE To wnsville ! $6.5 million 45 FTE BURDEKIN Inland Rail ! (including $680.8 million (including 3,115 FTE Ayr SH(includingIRE $2.0 million in (including 18 FTE Charters MOUNT in direct impacts) directly impacts)CHARTERS To wers direct impacts) directly) ISACITY ! RICHMOND TOWERS SHIRE REGIONAL Proserpine MCKINLAY ! SHIRE WHITSUNDAY ! JuliaCreek ! Mount Isa ! Cloncurry Richmond ! Hughenden REGIONAL ! $303.7 million FLINDERS 1,601 FTE $1,617.0 million 7,166 FTE Coal CLONCURRY SHIRE (includingSHIRE $129.3 million (including 513 FTE (including $851.3 million (including 2,600 FTE Development1 in direct impacts) directly impacts) in direct impacts) directly impacts)

Winton ! WINTON BOULIA SHIRE Gladstone SHIRE $204.2 million 1,151 FTE Boulia ! Container Port (including $86.9 million (including 419 FTE Upgrades in direct impacts) directly)

Gladstone y

r Gladstone o

t !

i Bedourie r

r Regional

e T

DIAMANTINA n

r SHIRE

e

h

t r

o Banana Shire N

Western Downs The region consists of the following Local Government Areas (LGAs): Regional Inland Rail Connection Toowoomba LGA Western Downs LGA Banana LGA Gladstone LGA Brisbane South Toowoomba Australia Toowoomba Regional

16 Toowoomba

ECONOMIC IMPACT ASSESSMENT - OPERATIONS Gladstone Inland Rail Employment benefits of connecting Inland Rail to Gladstone 170,000

160,000

150,000

140,000

130,000 Additional 18,000 jobs in for regional Queensland 120,000

110,000

100,000 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2014-15 2015-16 2016-17 2017-18 2018-19 Indirect benefits (supply chain and consumption benefits) Direct benefits (rail, port and resource activity) Forecast employment Region historic employment

17 ASK OF THE STATE AND FEDERAL GOVERNMENT

To connect Inland Rail to Gladstone Port, unlock $15.6 billion in additional investment and 10,962 jobs in regional Queensland, as well as improve the productivity of Australia’s freight system, we need:

Ask of the Federal Government Ask of the  Designate the Port of Gladstone as the 4th major container  Reject approval of the Inland Rail connection from terminal on the east coast, as Critical Infrastructure for Toowoomba to Brisbane Australia  Re-approve the Surat basin rail project EIS  Designate the inland rail to Gladstone as Critical  Resolve issues of the corridor from Wandoan to Gowrie Infrastructure for Australia  Support the development of the Port of Gladstone  Stop the construction of the Inland rail to Brisbane, and terminate in Toowoomba  Direct ARTC to reconfigure the inland rail to connect to the Port of Brisbane, with an associated review of the route from the Queensland Boarder

18 Toowoomba Gladstone Inland Rail

19 T2G: MAKING THE RIGHT CONNECTION THE CASE TO CONNECT INLAND RAIL FROM TOOWOOMBA TO GLADSTONE

Regional Development Australia, Central and Western Queensland 66 Denham St, QLD, 4700 Executive Officer: Tony Gambling 07 4847 6503