Australia’s largest rail freight company QR National today announced its specialist bulk freight subsidiary ARG had signed a rail haulage contract with leading Australian coal seam gas explorer and producer QGC Pty Ltd.

Under the contract ARG will transport about 260,000 tonnes of pipes from ports at Brisbane and Gladstone to central and southern Queensland over the next 10 months for QGC, a BG Group business.

ARG Group General Manager Bulk East Chris Gregg said ARG would operate four trains per week from the Port of Brisbane to Miles and seven from the Port of Gladstone to Biloela, using flat double slot-container wagons.

“This is an exciting development as it represents the first time we have tapped into the burgeoning new coal seam methane industry in Queensland which aims to supply liquefied natural gas to world markets,” Mr Gregg said.

“The pipes will be used to carry gas underground from wells in the Surat Basin to QGC’s proposed processing facility at Curtis Island near Gladstone, where it will be converted to liquid for export, and to domestic and commercial markets.

“We are delighted to sign this contract because it keeps more trucks off the road with consequent benefits for local communities as well as leveraging off rail’s advantages as a clean, safe and energy efficient transport mode.

“It also further broadens the scope of ARG’s activities across Queensland, which range from minerals and fertiliser to agricultural commodities such as sugar and grain along with livestock.”

QR National is Australia's largest rail freight company with services operating across five states. In 2009/10, QR National transported more than 260 million tonnes of freight, including coal, iron ore, other minerals, agricultural products and general freight. It also operates and manages the 2300 kilometre Central Queensland coal network that links mines to coal ports at Bowen, Mackay and Gladstone.