Adelaide, June 29, 2007 (ABN Newswire) - WestNet Rail will today present a proposal to develop a combined rail infrastructure solution for the various iron ore projects being developed in the Mid West region of Western Australia.

Specifically, WestNet Rail is proposing a merging of the proposed rail links from the north (Jack Hill and Weld Range), the east (Wiluna) and the south (Koolanooka, Karara and Extension Hill) at Mullewa.

The existing rail corridor controlled by WestNet Rail between Mullewa and Narngulu (Geraldton) would then be upgraded to a high axle load, double track and dual gauge configuration.

The upgraded Mullewa - Narngulu corridor would be complemented by a new dual gauge, double track line between Narngulu and Oakajee and the upgrading of the narrow gauge line from Mullewa south to Morawa and, ultimately, the construction of a new narrow gauge line from Morawa to service the various projects to the south east.

Under the WestNet Rail proposal Mullewa would become the merging point for the proposed standard gauge link from the Jack Hills and Weld Range deposits in the north of the region, the potential standard gauge link from Wiluna and the narrow gauge link from the various deposits adjacent to the existing WestNet Rail network in the south (Koolanooka, Karara and Extension Hill).

The WestNet Rail proposal offers an overall solution to the rail infrastructure requirements of the emerging Mid West iron ore industry. It has the further compelling benefit of substantially reducing land acquisition requirements for the rail link to the proposed Oakajee Port, specifically through the use of the existing Mullewa to Narngulu corridor.

The WestNet Rail proposal furthermore provides volume economy of scale benefits to all iron ore projects in the region by combining volumes from the north, south and east over a material portion of the overall journey distance.

WestNet Rail intends entering into discussions with the various companies developing projects in the Mid West region to ensure the network volume efficiencies are maximised to the benefit of all parties.

Chief Executive Officer of WestNet Rail, John Cleland, said that the company has "a desire to work with all project proponents and other potential infrastructure providers on the development of the rail infrastructure required to link projects in the north, south and east to the existing WestNet Rail network and the proposed Port of Oakajee".

WestNet Rail has appointed a Project Manager and the engineering firm GHD to oversee the development of the proposal.

WestNet Rail is an existing provider of rail access to the iron ore industry in the Mid West, with Mount Gibson Mining Limited transporting approximately three million tonnes per annum between Ruvidini (Mullewa) and Geraldton Port. Mid West Iron Ore Limited has contracted to transport up to one million tonnes per annum from Morawa to Geraldton Port commencing late 2007 or early 2008.

WestNet Rail Background

WestNet Rail operates the 5100km standard, narrow and dual gauge network in the south west of Western Australia under a 49 year lease with the State Government. WestNet Rail is responsible for access management, train control and maintenance and capital upgrading of the infrastructure, signalling and communications systems.

WestNet Rail is headquartered in Perth and employs approximately 220 people, with the majority located throughout the regional south west of Western Australia. A further 130 - 150 people are directly engaged in the maintenance of the rail network under a long term outsourced maintenance agreement with John Holland.

WestNet Rail is controlled by the ASX listed Babcock & Brown Infrastructure Limited, an infrastructure fund with a portfolio of transport and electricity distribution assets in Australia, New Zealand, Europe and the United States of America.

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