Inland rail project faces uncertainty

The future of a major rail project through Queensland's southern inland is in limbo.

In 2006, a consortium of mining and infrastructure companies was given an exclusive contract to build a 204-kilometre rail line between Wandoan and Banana.

It is designed to link Surat Basin coal mines to the Port of Gladstone.

Lawyer Tom Marland says the consortium has failed to act on its notice of intention to resume the land, leaving the landholders he represents with thousands of dollars in legal fees.

"We're in limbo as to whether, if or when it's going to proceed," he said.

"They're unable to claim any of those costs under the Act until such time as the land is actually taken." Surat Basin Rail CEO Allan Miller says the rail line will be built on a slower time frame because of challenging market conditions.

The State Government says it is disappointed with the latest development.

Deputy Premier Jeff Seeney says landholders should seek compensation for expenses accrued over the discontinued notices of intention to resume.

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