As part of its state of the sector report, QRC said many coal industry suppliers helped their clients reduce costs, unlike “recently privatised” Aurizon (formerly QR National).

“In a draft submission to the Queensland Competition Authority (known as the 2013 Undertaking or UT4) Aurizon submits its tariffs should rise by an average of 36 percent on a dollar per net tonne basis compared with the last year of the 2010/UT3 undertaking,” the industry group said.

“This proposed hike in prices comes at a time when coal companies are cutting their discretionary costs deeply in a bid to restore some semblance of profitability or at least minimise losses in the face of weak prices for coal.

“If approved, Aurizon’s pricing proposals would add $1.2 billion of additional costs on coal companies using the Central Queensland Coal (rail freight) Network over the four years from 2013-14.”

QRC said Aurizon was also seeking regulatory approval for “excessive returns” despite its exposure to less commercial risk and the removal of hard-won protections against monopoly power under UT3 and previous undertakings.

“UT4 is a critical document for the future of the Queensland coal industry. If Aurizon’s draft undertaking is not substantially revised through negotiation or regulation, the competitiveness of the coal industry’s current operations and future investment pipeline will be severely compromised.

“Investors will not risk an environment where monopolistic powers of a key supplier are unchecked.

“They have every right to seek a stable, certain and fair operating environment in Queensland.”

QRC is lobbying on this front to the Queensland Competition Authority and Queensland government.