The jockeying by four different groups to position themselves as the preferred developer of new rail and port infrastructure in the Mid West has taken a new turn, with Murchison Metals Ltd linking with Babcock & Brown Ltd subsidiary WestNet Rail.
The jockeying by four different groups to position themselves as the preferred developer of new rail and port infrastructure in the Mid West has taken a new turn, with Murchison Metals Ltd linking with Babcock & Brown Ltd subsidiary WestNet Rail.
The two companies have signed a Memorandum of Understanding to investigate integration of WestNet's existing rail network with Murchison's proposed rail link to planned iron ore mines.
WestNet operates 5,100 kilometres of standard, narrow and dual gauge rail network across Western Australia, while Murchison owns the Jack Hills iron ore project and recently signed an agreement with Japan's Mitsubishi Development Pty Ltd to develop new rail and port infrastructure in the Mid West.
The agreement will include examination of a number of detailed rail network integration issues including a proposal for the network to access the propsoed Oakajee port along a common rail corridor.
Murchison managing director Trevor Matthews said the State Government had made it clear that any plans to develop new rail and port infrastructure in the Mid West region needed to meet the needs of multiple users and provide benefits for the Mid West region as a whole.
News of the agreement comes just over three weeks after iron ore developer Gindalbie Metals Ltd announced the signing of MOU's with both WestNet Rail and competing infrastructure developer Yilgarn Infrastructure Ltd, to explore opportunities for the longer-term needs of its Mid West operations.
Yilgarn has also allied itself with another iron ore miner, Midwest Corporation Ltd: both groups have been working with Chinese companies on the possible construction of a rail network and new port at Oakajee, north of Geraldton.
However Midwest's plans hit a snag last week when the state government said it considered a 1973 state agreement authorising the construction of a port and railway north of Geraldton "very dated and unworkable in its current form."
Midwest announced on July 19 that it would consult with Minister for State Development Eric Ripper to develop mutually acceptable improvements.
The full text of a Westnet/Murchison Metals announcement is pasted below
WestNet Rail and Murchison Metals Limited ("Murchison") are pleased to announce the signing of a Memorandum of Understanding (the "MOU") to examine areas of common interest in relation to the proposed expansion of the existing Mid West rail network.
WestNet Rail, part of Babcock & Brown Infrastructure Limited, operates 5,100 kilometres of standard, narrow and dual gauge rail network in Western Australia. Murchison owns the Jack Hills iron ore project and recently signed an agreement with Mitsubishi Development Pty Ltd to develop new rail and port infrastructure in the Mid West region of Western Australia.
Under the MOU, WestNet Rail and Murchison will jointly investigate the integration of the existing narrow gauge rail network from Geraldton to Mullewa with the new northern corridor standard gauge rail line proposed to be constructed between Oakajee and Jack Hills and Weld Range.
This work will include examination of a number of detailed rail network integration issues including a proposal for the network to access Oakajee along a common rail corridor.
Murchison Managing Director Trevor Matthews said that Murchison was delighted to agree to work with WestNet Rail to ensure the seamless integration of the proposed new northern corridor rail line into the existing Mid West rail network.
"As the State Government have made clear to industry, any plans to develop new rail and port infrastructure in the Mid West region must meet the needs of multiple users and provide benefits for the Mid West region as a whole," Mr Matthews said.
"We believe that by working closely with WestNet Rail, the existing Mid West rail owner, we can ensure the development of a first class integrated infrastructure network for the Mid West."
"Importantly, we believe there are significant operational synergies between the existing WestNet Rail network and our proposal to develop a new northern corridor rail line to serve the bulk tonnage requirements of the new mines being developed at Jack Hills, Weld Range and elsewhere to the north east of Geraldton."
"By working closely with WestNet Rail, we believe we will avoid duplicating infrastructure that is already in existence and provide a superior regional rail infrastructure solution for the benefit of all Mid West rail users."
"We look forward to working with WestNet Rail to develop this integrated proposal for the Mid West region."
WestNet Rail Chief Executive Officer John Cleland said that the signing of the MOU with Murchison was consistent with WestNet Rail's desire to link all projects in the Mid West region to the existing WestNet Rail network and the proposed Port of Oakajee.
"We are delighted to sign this MOU to agree to work with Murchison on the rail network integration," Mr Cleland said.
"WestNet Rail has been a strong advocate of merging the proposed rail links from Jack Hills and Weld Range and further east with the existing rail link from the south through an integrated Mid West rail network that will meet the transport requirements of the projects in the region. Integral to the proposed WestNet Rail infrastructure solution is the volume economies achieved through the merging of iron ore volumes from throughout the region on a single rail corridor and a substantially reduced land acquisition requirement."
"WestNet Rail views this MOU with Murchison as an important step towards realising our ambition of an integrated rail network for the Mid West region in the shortest time frame."
The MOU provides that Murchison and WestNet Rail will work together to consider a wide range of detailed rail integration issues. The issues covered by this work will include environmental approvals, heritage and Native Title issues, land acquisition, the rail route, rail gauge, tonnage capacity, axle load options, rolling stock configuration, rail construction approvals (including land access), capital and operating costs, design standards, loading/unloading rates and commercial models for track ownership and access.
