2006 Access Undertaking Amendments + Activities
QR's CAPITAL EXPENDITURE 2005-06
The Queensland Competition Authority assessed the prudency of Queensland Rail's (QR's) 2005-06 capital expenditure in the central Queensland coal network on the basis of the assessment criteria set out in the undertaking, namely:
- the prudency of the scope of the works - are the works reasonably required;
- the prudency of the standard of the works - are the works of a reasonable standard to meet the scope requirements and not over designed; and
- the prudency of the cost of the works - are the costs reasonable for the scope and standard of the works done.
The Authority has also had regard for whether the projects were:
- below-rail infrastructure;
- commissioned in 2005-06;
- capital expenditure and not maintenance; and
- fully funded by QR and, if not, what proportion of the works were funded by QR.
While the Authority relied heavily on the claims that QR made in support of its application, it also sought to test the veracity of these claims. The Authority did this by assessing the material provided to the Authority by QR. In particular, the Authority examined in detail all the major projects and a selection of the smaller projects commissioned in 2005-06. For example, in its analysis of QR's costs, the Authority aimed to determine whether QR had achieved efficient costs in implementing the projects commissioned during 2005-06. To do this, the Authority examined the manner in which the projects were managed and whether the end cost was in line with efficient cost for similar rail infrastructure projects.
The Authority also engaged GHD Pty Ltd to provide a technical analysis of QR's application and supporting material. A copy of their report is available below.
Following its consideration of these matters, on 17 December 2007, the Authority approved QR's application for the approval of $134.6 million of capital expenditure commissioned in the central Queensland coal region during 2005-06.
Decision/Recommendation
Interim Reports/Papers
