The company referred proposal of the Yarwun coal terminal project to the Department of Sustainability, Environment, Water, Population and Communities for approval on Friday, outlining the construction of a rail line, shiploading infrastructure and a coal stockyard.

The project would provide critical additional terminal capacity as current and proposed coal projects in the region created an export capacity shortfall.

A 27-month construction process is anticipated to begin in early 2015 once Commonwealth and state approvals have been obtained.

The 14km rail line will run from east of Mount Larcom to an in-loading rail loop, with capacity to accommodate trains up to 2250m long.

Offshore components of the project will include a 3.3km piled berthing jetty, out-loading conveyor, two berths and dredging to provide extended deepwater channels, additional swing basin and two berth pockets.

The project, which is located adjacent to the Great Barrier Reef world heritage area, is subject to government approval regarding a range of environmental protection legislation, including the 1975 Great Barrier Reef Marine Park Act.

The company said the consequences of not developing the terminal would include an economic impact from limiting coal exports and increased waiting times for vessels.