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The Case to Connect Inland Rail from Toowoomba to Gladstone Key National Infrastructure: Connecting Inland Rail to Gladstone Port

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T2G: MAKING THE RIGHT CONNECTION THE CASE TO CONNECT INLAND RAIL FROM TOOWOOMBA TO GLADSTONE KEY NATIONAL INFRASTRUCTURE: CONNECTING INLAND RAIL TO GLADSTONE PORT Quicker freight times to Asia Enable $15.6B resource investment in regional Queensland 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 Australia 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 Brisbane suburban network 2 Toowoomba CONTENTS Gladstone Inland Rail ABOUT INLAND RAIL 4 THE CHALLENGE GETTING TO THE PORT OF BRISBANE 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 Melbourne to Brisbane, Brisbane to Adelaide, and Brisbane to Perth. 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 - Sydney 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 dual gauge 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 Central Queensland. 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 CORAL SEA 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 Callemondah 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 (Wandoan 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.
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