Following last year's $80 million facelift – which included construction of a third wharf, an additional stockpile and an upgraded train loading system – $167.5 million has been allocated over three years to upgrade the RG Tanna Coal Terminal.

New additions will include a third rail unloading station, a third shiploader, a fourth berth and two additional coal stockpiles.

The upgrades come on the back of record coal sales of $127.7 million in fiscal 2003, and strong growth predicted for Queensland's coal mining industry until 2010.

Construction will begin in January 2005, with more than 250 construction jobs expected to be created during peak activity periods.

Gladstone Port Authority chairman Ross Dunning said the upgrades would maintain Gladstone's standing as one of the region's premier economic centres.

"It marks the largest capital works program undertaken by GPA and will assist to continual development of the Central Queensland coal mining industry," he said.

"The expansion will mean Gladstone can continue to play an important role in the economic development of this region and the state."

Coal output would be boosted from 40 million tonnes per annum to 48Mtpa by the end of 2006, with an additional increase of 6Mtpa to be added by the end of 2007.

Gladstone will also be able to accommodate vessels of up to 220,000 dead weight tonnage.

The upgraded coal handling facility will also come under the jurisdiction of a single power, after the creation of the Central Queensland Ports Authority. The new authority will link the Gladstone and Rockhampton ports under single management.