Bloomberg reported that Australia's biggest rail transporter of coal Queensland Rail may seek partners for expansion to cope with rising export sales by mining companies and competition from Asciano Ltd.

Mr Lance Hockridge CEO of Queensland Rail in a briefing said that “The business has to re position itself for the future. The scale of the growth opportunities is enormous. It is no mean feat for anybody to come in and take us on. We have obviously followed with considerable interest, if not amusement in some respects, the position that has been taken by Asciano. We will be a fierce competitor but a very fair competitor.''

Melbourne based Asciano, Australia's largest port and rail operator, plans to enter Queensland state's AUD 20 billion coal export industry, which produces more than half of the nation's coal. Asciano, owner of Australia's second biggest coal haulage company Pacific National, in December said that it would spend AUD 529 million expanding into coal transport in Queensland. The company said it was in talks with more than one coal producer in the state to seek a share of future output.

Queensland Rail, owned by the state government, is spending AUD 3 billion to improve networks and buy more locomotives after a lack of capacity stalled coal exports from companies including BHP Billiton Ltd. and Xstrata Plc. Queensland Rail's revenue from coal operations last financial year gained to AUD 1.15 billion, helping to more than double net income for the 12 months that ended June 30 to AUD 183 million.

Bottlenecks in the rail system and at the Dalrymple Bay port in Queensland have been blamed for delays in exports to steel companies and power utilities in Asia, sending coal prices to records. An independent review into coal transport efficiency in the state last July estimated AUD 1.2 billion in lost sales and higher shipping costs as result of the congestion.