Why these assets were chosen

The five businesses were carefully selected because they already operate as commercial enterprises, compete in a commercial market and have strong growth potential in the private sector.

All of these businesses, with the exception of Queensland Motorways, service multinational companies and do not provide services to the general public. It is the Government’s role to focus on public infrastructure and services.

Below are some of the specific reasons for the sale of each business:

QR’s coal transport business

This business exclusively services mining companies such as Rio Tinto, Anglo Coal, Xstrata and others.
The business requires $7 billion over the next five years for new coal trains and new tracks. Around $1 billion of this will be spent outside Queensland.
That’s $7 billion spent on new coal trains and tracks that can’t be spent on new schools, roads and hospitals.
Asking the private sector to buy its own coal trains and tracks is more than fair.
Selling the coal business will allow the Government to focus on public passenger rail services, such as Citytrain and Traveltrain.

Abbot Point Coal Terminal

The coal terminal exclusively services mining giants such as Xstrata, QCoal and Sonoma.
The terminal requires $3.5 billion over the next five years to increase export capacity.
That’s $3.5 billion spent on new infrastructure for the benefit of coal companies, that can’t be spent on new schools, roads and hospitals for Queenslanders.
This is a commercial coal port that the private sector should invest in and manage.

Port of Brisbane

This business provides services to worldwide shipping and transport companies such as DP World, Patricks and Hutchison.
The Port is expanding to meet the needs of these and other customers.
These expansions will cost almost $1 billion over the next five years.
That’s $1 billion spent on new wharves for major shipping companies, that can’t be spent on new schools, roads and hospitals.

Forestry Plantations Queensland

This is a plantation timber business which grows and sells trees.
The business sells saw-log timber to major manufacturers such as Hyne and Laminex.
The Government will retain ownership of the Crown plantation land. We are only selling the rights to harvest and re-grow the plantation timber.
It is not Government’s role to own and operate a timber business. The Government’s role is to deliver infrastructure and services for the public – schools, roads and hospitals.
The business requires $100 million of Government investment over the next five years.

Queensland Motorways

This business collects tolls on the Gateway and Logan motorways.
The bridge and road infrastructure will still be owned by the State.
Across Australia, the operation of toll roads is predominately done by the private sector.
The Government will regulate the toll level as a condition of sale. Following the sale, tolls will only be allowed to rise with inflation.

Read more about asset sale success stories both here in Australia and abroad.

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