Assignment 2 Report FInal

SRM181 - PROJECT MANAGEMENT 1
INITIATION STAGE
Selection site and function
Firstly, the Adani Company selected site of Carmichael Coal Mine located at north west of Clermont 160 km and the
coal rail network established at Abbot Point Port is 25 km north of Bowen (adani 2018). The coal rail designed up
to previous draft. It is a narrow gauge rail, the function of the coal rail is that every year the Carmichael Mine could
carry out 4000 million tonnes to make ensure the Carmichael Coal Mine yearly production rate 27.5 million tonnes
per year (adani 2018). The length of the narrow gauge rail is 200 km, it using current railway facilities for running
between Carmichael Coal Mine to Abbot Point port (adani 2018). Comparing with built a new railway between the
Galilee Basin and Abbot Point Port, this plan of using existing rail infrastructure is better value for money. The
benefit of narrow gauge rail line is can make ensure the project delivery, cost savings, moreover can satisfied with
growing energy demand in Asia countries. On the other hand, when the Carmichael Coal Mine permit construction
operation, at the first stage of produce coal is about 27.5 million tonnes per year. The Carmichael Coal Mine is lager
comparing with the coal mine in the Hunter Valley and the Bowen Basin.
The Carmichael Coal Mine will become the 125th with huge producing of coals of Australia (adani 2018). By paying
taxes and royalties of the Carmichael Coal Mine that is about billions of dollars each year which could help Australia
governments to establish the public facilities, such as new schools, hospitals even for new roads of Queensland. The
Adani company wanted to upgrade Goonyella line to support Abbot Point line so that rising production capacity of
the Carmichael Mine, this line will be carrying up to 50 million tonnes and export from the Carmichael Coal Mine 27
million tonnes per year (adani 2018).
The initiation stage of investment to the Carmichael Coal Mine
The Adani wanted to investment to the Carmichael Mine 16 billion dollars, every year could export coals up to 60
million tonnes (adani 2018). Furthermore, at the first stage, the Adani company planning to export coals from
the Carmichael Mine for 10 million to 15 million tonnes, the top of coal production achieved 27 million tonnes.
The total coal produced from 2009-2008 was 190 million tonnes, total value of coal mining production 41.5 billion
dollars, contribution to Queensland government was 26 billion, the employees of coal mine were 21575(Australia
Government Department of the Environment 2015). According to analyst’s report, the Adani company wanted to
start a plan which is called “ultra-capital light” to services the Carmichael Mine. This plan could reduce the early
stage of the capital.
Comparing with previous railway designing and new railway designing
The detail of previous railway designing with rail line for 388 km length, standard gauge for 1435 mm. The first
stage of railway capability for 40 million tonnes per year. The maximum speed for loaded of rail lines is between
80 km/hr to 100 km/hr. The service life period of railway is rail track for 50 years, drainage structures for 50 years,
bridge structures for 100 years. The train consist of 3 locos 220 wagons (Australia Government Department of the
Environment 2015).
CARMICHAEL COAL MINE AND RAIL PROJECT 8