QR National had awarded a A$76-million contract to the Abigroup for the construction of the Wiggins Island rail project. The venture covers 13 kilometres loop located near Gladstone which would be the location of the Wiggins Island Coal Export Term (Wicet), the unloading point for the coal trains.

The contract is the first major one farmed out for the Wiggins Island rail project, said QR National Network Executive Vice President Michael Carter. He said Abigroup is expected to start railing by the middle of 2014.

However, Abigroup is expected to start earthworks in the coming weeks. The project is one of the six key worksites for the first stage of the Wiggins project. The five others are the Rocklands to Stanwell duplication, Dingo to Bluff duplication, Moura East upgrade, North Coast line upgrade and Bauhinia North branch upgrade.

The entire project will transport coal to the Wicet, estimated at a volume of 27 million tonnes during the initial years. It would use QR National's existing rail infrastructure to increase coal exports from the Bowen basin's southern end.

It is a key component of the QR coal infrastructure programme that aims to add 70 million tonnes of capacity to central Queensland's coal network and boost total capacity to more than 300 million tonnes by 2015.

Mr Carter said the Wicet project is on schedule to have its first coal export by the middle of 2014.

Prior to signing the contract with Abigroup, QR National inked an agreement with a consortium of coal companies to build the Wiggins Island Rail Project that would service the new export terminal at Gladstone.