yilgarn lodge $2b bid to start midwest railway, page-2

$2 billion rail network proposed for the Mid-West
Posted Sat Feb 7, 2009 11:25am AEDT
Updated 10 hours 43 minutes ago
http://www.abc.net.au/news/stories/2009/02/07/2485020.htm


The proposed rail network would run to the site of the new deep water port north of Geraldton. (DPI)

Map: Geraldton 6530
A Chinese-backed company is proposing to build a $2 billion rail network to connect the iron ore mines in the Mid West with the new port at Oakajee.

Yilgarn Infrastructure submitted its proposal to the State Government yesterday.

Japanese-backed company, Oakajee Port and Rail, last year won the right to negotiate with the government over the development of the new port, which is due for completion in 2014.

Yilgarn's proposal includes an option for interim export facilities, which would allow ore to be transported as early as 2011.

The Opposition's state development spokesman Mark McGowan says the proposal is worth investigating.

"If a company wants to invest billions of dollars into Western Australia, particularly at a time of economic downturn, that's something the State Government should talk to them about," he said.

"The condition would be that it should not inhibit the development of a port at Oakajee."

Yilgarn's chairman John Saunders says the project would employ more than 2000 people during construction alone.

He is urging the Premier Colin Barnett to seriously consider the proposal given the earlier timeframe for completion.

"So that's bringing a very significant royalty flow into the State Government about three years earlier than Oakajee would otherwise do it," he said.