GVK welcomes approvals for rail corridor project in Australia

Hyderabad-based GVK group on Wednesday welcomed the Queensland government's decision to approve the GVK rail corridor from the Galilee Basin to the port of Abbot Point in Queensland in Australia.

GVK maintained that its railway alignment was the most efficient and cost-effective option that will benefit the Galilee Basin for several decades to come.

“We welcome the state government’s decision to approve the construction of the project. This investment will deliver wider benefits as it provides both initial and additional capacity to satisfy both Galilee and Bowen Basin's rail capacity requirements in the future,” said GVK Reddy, chairman and managing director of the company.

GVK is now looking forward to further cooperation with the state and federal governments and third-party users as it continues to finalise the requisite approvals to enable the construction of the 495-km standard gauge multi-user rail system from the Abbot Point, according to a release.

The initial capacity and current approvals for the project are for a 60-million tonne per annum (mtpa), though the rail line is scalable to 120 mtpa on the single line, according to the company.

It may be recalled that the GVK's Alpha coal project had hit a road block this week with the Australian federal government stating that it would take more time to review the environmental impact on the mine, rail and port projects proposed by the company.