Queensland premier Peter Beattie told directors of the Indonesian railway system this week iQR was well placed to take a leading role in the project.

Indonesia plans to expand its rail-to-port infrastructure to lift export capacity.

The Indonesian Government has targeted 91 infrastructure "priority projects" costing $US22.5 billion, with the first going out to tender last month. It has pledged to spend $US70 billion on infrastructure over the next five years, with an additional $US80 billion to be provided by private enterprise.

"iQR is seeking to further develop its relationship with the national rail organisation PT Kereta Api and Queensland coal companies based in Indonesia,” Beattie said.

"iQR has a successful track record in Indonesia having developed an extensive rail safety program [valued at $200,000] for PT Kereta Api in 2003.

"PT Kereta Api is in the market to purchase refurbished locomotives and QR can meet that demand with surplus decommissioned locomotives and coal wagons that can be packaged and sold or leased to Indonesia, with each coal train being worth between $6-10 million."

iQR operates in more than 20 countries, with major projects in Hong Kong and Malaysia.