Flood damages to coal hauler QR National’s rail network could reach $46 million, severely affecting the company’s earnings for the fiscal year, says analysts.

The company’s Blackwater rail network has been closed because of floods in Queensland beginning December 27, blocking coal deliveries from the mines to the Gladstone docks.

QR National said in a statement that floodwaters may recede from the rail tracks by Thursday or Friday. Until then, how much damage the rail network has incurred cannot be determined.

''This is not a precise science because these are slow-moving floodwaters,'' spokesman Mark Hairsine, said. Major mining companies in the area have already declared force majeure for coal supplies coming from Queensland citing circumstances beyond anyone’s control.
JPMorgan forecasts that that company’s pre-tax earnings will be cut by $29 million for this financial year and plunging coal volumes will be reduce the pre-tax earnings of QR Networks by $17 million.

QR National is the biggest rail freight haulage company in the country in terms of hauled tons of coal and freight annually and the world's largest rail transporter of coal from mine to port for export markets. There are about 1,600 QR National employees who live or work in Queensland communities that have been affected by the floods. Currently, of its four major coal rail systems, three are operating: the Newlands system; the Goonyella rail system and the the Moura coal rail system.