Supply Chain Infrastructure In The Resources Sector Part II: Project Models And Structures

INTRODUCTION

Part I of this series dealt with general contracting and other considerations in developing greenfield rail and port infrastructure for resource projects. Part II will provide an overview of some of the models used in delivering this infrastructure. It will also look at the broad project structure and agreements involved in a greenfield integrated rail and port project, while the final instalment in the series will consider some of the key issues under the haulage agreements with customers and the concession arrangements with the state.

PROJECT MODELS

Historically, rail and port infrastructure for the mines was paid for, developed and owned by the state. The mining companies who used this infrastructure to export their product paid user charges and so effectively funded the development costs.