Fortescue Metals Group has been studying the feasibility of expanding its rail network to transport 180 million tonnes a year. The expansion is being considered as part of plans to sell a stake in its WA iron ore mines, a higher transport capacity making it more interesting for potential buyers.
The completion of its fifth Port Hedland berth means Fortescue has a port capacity of 180 million tonnes per annum. But its rail infrastructure is rated to sustainably haul up to only about 165 million tonnes per annum.
The company is believed to be examining the technical feasibility of a low-cost expansion to its rail capacity. Options include lifting the load-bearing ability of ore wagons by 5 per cent and running longer trains. Fortescue will need to determine whether those options are viable while still meeting the line’s maintenance needs and without spending big on additional passing loops or double-tracking sections of the line.
Analysts have previously put the cost of upgrading Fortescue’s rail network at between USD 700 million and USD 800 million.
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