The expansion project plans include a fourth berth at the state government-owned R G Tanna Coal Terminal.

Speaking at a coal industry function in Japan, Queensland premier Peter Beattie said the latest approval would boost capacity at the terminal by more than 50% by the end of 2006.

He said the new berth, and increases in the scope of the expansion, would take the total project cost beyond $230 million.

For the July quarter last year, Gladstone Port export values topped $1 billion. This translated to a rise in export tonnages out of Gladstone for the three months ended July 2004 by 14.4% to almost 11.5 million tonnes.

"With simultaneous expansion under way at the nearby Barney Point terminal (also at Gladstone), the port's total capacity for coal exports will increase to more than 70 million tonnes per annum (mtpa)," Beattie said.

"The state government last November approved a redevelopment of the R G Tanna Coal Terminal to add a third rail receival station, two additional coal stockpiles and a third ship loader, as well as faster conveyor belts, to increase capacity from the current 40mtpa to 54mtpa."

Beattie said coal producers had received additional commitments from buyers since then, so the scope of the project is being expanded by another $46.5 million worth of extra infrastructure including the fourth berth.

He said this would lift capacity at the R G Tanna terminal from the 54mtpa target announced last November to 62mtpa.

Coal is worth $8 billion per year to the Queensland economy.

The R G Tanna Coal Terminal at the Port of Gladtone is operated by the Central Queensland Ports Authority.