Regional Coal: Queensland to expand Gladstone coal port capacity

Australia's Queensland state is studying a US$307 million expansion of the world's fifth-largest coal export port amid rising demand in Asia, Bloomberg reported.

The Central Queensland Ports Authority is may build another coal terminal at the Port of Gladstone, with an initial capacity of 20 million tons, said Leo Zussino, the port authority's chief executive. The proposed terminal at Wiggins Island may eventually have 70 million tons of capacity, he said.

The Queensland government is already expanding capacity at Gladstone port to more than 70 million tons a year by 2010, from the 43.5 million tons it handled for the year ended June 30. Surging coal demand driven by China's consumption has caused congestion at ports and on railways in Australia, the world's biggest exporter of the fuel.

Construction could start from July 2007, with the terminal operational by December 2009, should a decision be taken to build the Wiggins Island terminal, Zussino said.

Rio Tinto Group, the world's third-largest miner, Wesfarmers Ltd., and other coal producers export through the port in central Queensland.(*)