QR to be floated, ports offered on 99-year leases

The details followed Ms Bligh's announcement in June that the state planned to sell $15bn of infrastructure and avoid billions more in maintenance and capital investment over coming years.

The port of Brisbane will be offered mid-next year while Abbot Point will be available by next December

The listed QR – to be called QR National – would be a top 50 Australian Securities Exchange company and Australia's biggest coal transport and freight business, the government said.

"The journey Queensland Rail starts today is also the start of a journey toward a new, stronger Queensland," Ms Bligh said.

"And this offers an opportunity for Queenslanders to own their own piece of a Queensland icon.

"Through their investment, they will get the opportunity to watch this business grow into a truly national and international company.

"QR's coal and freight businesses have a proud history of more than 140 years.

"Now is the time for a brand new era for a true Queensland champion."

Ms Bligh confirmed the government would retain passenger services in public ownership.

She also confirmed the other assets would be leased progressively from next year.

"We have taken advice from our commercial advisors, and they firmly believe that there is a growing appetite for these businesses in the market – the time is right," she said.

Queensland’s resources sector peak body called the coal rail privatisation model as a short-term money raiser but long-term burden on the industry and taxpayers.

Queensland Resources Council chief executive Michael Roche said the proposed public float of a vertically integrated QR coal rail business would perpetuate a model that previously locked competition out of Queensland’s coal freight business.

QR's main rival, Asciano, called for a clear demarcation between above and below rail "activities and accountability".

Asciano has tackled QR already this year on a perceived below-rail bias against its Pacific Naitonal rail arm, a charge QR denied.

"A failure to do so will be detrimental to the Queensland coal export market and the efficiency of the Queensland coal supply chain," Asciano chief executive Mark Rowsthorn, who flagged an interest in a privatised QR this week, said today. 

"Coal chain players in Queensland, including Asciano, seek assurances from QR National that the required investment in rail infrastructure will be made under private ownership, such that the current bottlenecks are removed and the capacity of the supply chain does not restrict the ability of the coal export market to grow and provide the much needed jobs and revenue for the State and its people.

"They also seek comfort from the ACCC that it will closely review this proposed transaction and if allowed to proceed, will monitor the establishment and regulate the activities of the monopoly below rail division of QR National to ensure it acts fairly and provides a genuine level playing field to all above rail operators in Queensland on this critical piece of national infrastructure."

Peak infrastructure builder body Infrastructure Partnerships Australia welcomed the move.

“The sale of public assets will be critical to funding Queensland’s enormous backlog of major projects," IPA executive director Brendan Lyon said. 

"The privatisation of QR will also mean a level and competitive playing field for freight rail, meaning cheaper goods for consumers and businesses."

IPA pointed out that Canada had undertaken similar reforms to Canadian National Railways in the 1990s and had also used a public float, delivering strong value for money to taxpayers and an efficient freight network to feed its economy. 

“It was the largest privatisation in Canadian history, raising CAD $2.26bn for Canadian taxpayers," Mr Lyon said. 

"The Canada National IPO was eight-times oversubscribed, and it has grown 10-fold since privatisation." 

Also being made available by the Queensland Government were a franchise for up to 50 years for Queensland Motorways, while, Forestry Plantations Queensland, was put to market on 26 November with the process expected to be completed by June.