A proof of concept to help mining operators get better value out of the Mount Isa rail line is now set to expand to 12 months.
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Amid criticism that too much commercial traffic was using the roads instead of rail, the state government announced the $1.8 million project in January.
They hired the company TransBulk Logistics to carry out a freight coordinator service trial aiming to reduce costs and increase efficiencies for commercial freight users on the Mount Isa Line rail corridor, initially for a six month proof of concept.
Now the CEO of TransBulk Logistics, Paddy Byrne, says the project is likely to expand to 12 months.
Mr Byrne will update audiences on the status of the trial at next week's MPX in Mount Isa, and he is one of the speakers MC Andrew Barger said he was most looking forward to hearing from.
The North West Star caught up with Mr Byrne this week to hear how the project was developing.
Mr Byrne said TransBulk was part of TransCoal which had been working in the Queensland resources sector in the Bowen Basin for many years and they would use their proven technology and business model to establish the logistics coordination trial.
He said it was challenging to overcome the high costs of transporting bulk commodities long distances by rail, like the 900km distance from Mount Isa to Townsville.
"Part of the reason the supply chain hasn't been optimal so far is that everyone has a different perspective, everyone has different challenges, and everyone has different views on what needs to be done, which leads to a whole sense of frustration," Mr Byrne said.
This led companies to go off in their own direction to fix their own problems, which they were entirely entitled to do, he said, leaving governments struggling to deal with the larger issue as a whole.
"The challenge is in finding the right model for participants to work together, given the differing objectives and inherent competition," he said.
Mr Byrne said his company has spent the last few months talking to stakeholders, analysing and modelling the current state of play and would put together a best-fit coordination platform.
"Over the next couple of months we'll be putting together a document about how we will run a detailed trial," he said.
"We've got to demonstrate to participants it adds value to their operation.
"The aim is to support prosperity and growth for the region well into the future."
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