How will BBI (DBCT) Management manage the large increase of road traffic that will be generated on the Haypoint Road, which is already congested by current terminal users and expansion contractors?

A traffic management strategy has been developed and is currently being implemented having considered the issues and concerns identified by both the local community and the various regional stakeholders (including Police). Information advising of impending significant traffic disturbances will be distributed to residential addresses by letterbox prior to events. Local residents will also be able to monitor a new website that will detail construction activity and register to receive electronic advice of impending construction events that may impact on local residents. It is our intent to limit major load movements to particular hours that avoid the peak hour traffic periods.

How will BBI (DBCT) Management manage the expansion development of Rows 7 and 8 both from a dust and noise point of view?

BBI (DBCT) Management is sensitive to the concerns of the local community and will closely monitor the environmental compliance of the contractors. Hours of work, noise and dust mitigation strategies will be implemented to minimise adverse impacts associated with the expansion. BBI (DBCT) Management is also working with the contractors and specialist consultants (like John Planner) to identify possible impacts prior to the development of an issue. Contractors are required under their contracts to manage dust and must use water trucks. This requirement will be regularly monitored to ensure compliance. There will be no night shift, and only limited work at weekends, except in emergencies.

Will the local community have an opportunity to get employment during the expansion?

The project contract companies will be encouraged to consider the employment of local and regional personnel wherever possible and practical. This website is regularly updated with a list of Contractors that have been engaged to commence work on the project. Their names and contact numbers can be found under the "Expansion" tab in the "Employment" section.

Are there going to be employment opportunities at the terminal after the expansion is complete?

The operating company (DBCT Pty Ltd) has the responsibility to operate and manage the terminal and determines the number of personnel required to do so. It is anticipated that extra personnel may be required across a broad range of operational roles although it should be noted that DBCT is a highly automated terminal.

How long will the coal in the Bowen Basin last ?

There are vast quantities of coal in the Bowen Basin. Existing and future coal mines have coal resources that will last into the forseeable future. For more information on coal mining in the Bowen Basin please visit:

http://www.nrm.qld.gov.au/mines/statistics/coal_stats.html or

http://www.abareconomics.com/data_services/minerals.html

Will an alternative energy source replace coal in the near or long term future ?

Coal is the major source of energy world-wide as well as being used as a base raw material for steel production. Because of its low production costs and relative abundant supply compared to other alternatives, coal is seen as a long term solution for power production and steel making. Nuclear energy is the other major source of energy available followed by oil, hydro, wind and solar. Most of the coal exported through DBCT is used in the steel making industry and while alternative technology exists, blast furnaces are still the preferred methodology, with most new steel plants building new blast furnaces as opposed to alternative architecture.

Where will BBI (DBCT) Management get the contractors from to carry out the work when there is a large skill shortage in Australia ?

This will be the biggest challenge for the project. Contractors will initially be sourced within Australia and if necessary from overseas depending on Immigration policies at the time. There are various types of work involved in the expansion of varying contract sizes. Some packages will be designed to suit local contractors who are familiar with the terminal, and others will be drawn from other regions. Many packages are large and will only be suited to National contractors.

What benefits will the local community get out of the expansion of the terminal to be the largest in the world?

BBI (DBCT) Management is seeking opportunities that result in mutual advantages for the community and the terminal. Because of the scope of the expansion and the economic benefits afforded to Queensland residents from coal royalties, there is already a significant economic advantage associated with the Queensland Coal Industry that flows to all Queensland residents. Further specific economic advantages associated with DBCT are employment and support of local business (Coal Port Stores, accommodation). BBI (DBCT) Management is committed to working with the community to identify and develop both short and long term benefits for the region.

Who is Babcock & Brown Infrastructure and why are they interested in DBCT?

Babcock & Brown Infrastructure is a diversified infrastructure investment vehicle listed on the Australian Stock Exchange. Since listing on the ASX (as Prime Infrastructure) in 2002, Babcock & Brown Infrastructure has grown and further diversified its portfolio both geographically and in terms of asset class. Today Babcock & Brown Infrastructure manages a portfolio of quality infrastructure assets with an enterprise value of over A$8 billion.

Babcock & Brown Infrastructure will consider infrastructure investment opportunities that arise both in Australia and internationally. All investments will be subject to rigorous due diligence and analysis, with each investment opportunity examined on its merits against the following key investment criteria:

• Strategic - the investment should be consistent with the type and nature of assets or investments sought.
• Accretive - the acquisition price, earnings and funding structure of the investment should result in a positive impact on Babcock & Brown Infrastructure's ability to continue paying attractive distributions.
• Appropriate Risk/Return - including strong asset quality and condition, proven management, acceptable market risks, sound contractual arrangements and attractive returns with prospects for growth, commensurate with the risks accepted.
• Ability to Optimise Capital Structure - ensuring appropriate leverage to accommodate the investment risk profile and optimise returns to security holders.

In September 2001, a Babcock & Brown led consortium purchased a 99-year lease of DBCT from the Queensland Government following a competitive bidding process. This gave effective ownership of DBCT to DBCT Trust and DBCT Management. Prime Infrastructure was then listed in June 2002 and held a 100% interest in DBCT Trust and DBCT Management and in turn, the leasehold interest in DBCT.

BBI (DBCT) Management is the operating company that controls the management and expansion of the terminal.

What is the difference between Hay Point and Dalrymple Bay coal terminals?

DBCT was designed as an open access coal export facility by the Queensland Government on behalf of four original customers who were unable to access nearby Hay Point Coal Terminal ("HPCT"). In the late 1970s a number of new coal mine developments, not associated with Utah, were being planned but were unable to access port facilities. These mines included Blair Athol, Riverside, German Creek and Oaky Creek. The Queensland Government then made the decision to develop a common-user coal export facility immediately adjacent to the existing HPCT facility to service these new mines. The new facility, DBCT, was constructed by the then Harbours Corporation of Queensland on behalf of the Queensland Government.

HPCT is owned by the Central Queensland Coal Associates ("CQCA") joint venture and is operated by Hay Point Services Pty Ltd, a wholly owned subsidiary of BHP Coal Pty Ltd. HPCT was developed by Utah Development Company in the early 1970s and further expanded in 1975-76 by the addition of the second berth. An expansion is currently underway to expand the stockyard which will increase the terminal's capacity to 40Mtpa. The terminal was constructed to service mines associated with Utah.

Why was there a large queue of ships off the port last year?

Due to surging world demand for coal produced from Queensland's Bowen Basin region, coal buyers overloaded the supply chain's capability earlier this year resulting in a queue of vessels waiting to berth at DBCT. There were many forces that combined to create the queue, some of which were:

• increased requests for additional terminal capacity - BBI (DBCT) Management Pty Ltd has received a number of firm requests for increased terminal capacity (above current contracts), which exceed the current capacity of the terminal. These requests were evidenced by the heavy shipping arrivals in February, March and April 2005, which, at that time, stressed the capacity of the supply chain causing port congestion (resulting when ship arrivals exceed the contracted port capacity);
• a shortage of ships due to heavy demand and port congestions not only at Hay Point but also in the global Iron Ore ports and coal discharge ports in China and India;
• the regulatory process; and
• market dynamics between the sellers and buyers of coal.

Because of the continued heavy demand for terminal services, BBI (DBCT) Management does not consider that the additional capacity requirements of the existing terminal Users and New Access seekers can be handled by the terminal with its current capacity rated at 56Mtpa (excluding the loss of RL1) without increasing demurrage costs. Accordingly, and so as to avoid future excessive vessel queuing, BBI (DBCT) Management has decided to expand the capacity of the terminal to accommodate the increase in demand for terminal capacity.

What is the level of experience amongst the 7X Expansion Project Team?

The expansion team comprises effectively three layers. The first is the BBI (DBCT) Management Owner's team which develops the exeuction strategy, essentially directs the work, co-ordinates all the Stakeholders, and ensures the Owner's best interests are being served. This management team comprises around 16 people all of whom are either highly experienced in working at the Terminal, or have vast project management knowledge and experience. The team has something like 40 man years of working experience at Dalrymple Bay.

The second layer is the project management company selected by the Owner to undertake all the engineering, procurement and construction management. Connell Hatch has been selected for this role, which is a joint venture between Connell Wagner and Hatch Associates. Connell Wagner is a leading Australian consulting engineer and has been involved in all of the terminal expansions, and the original design and construction. Hatch is an international project management organisation with a vast track record in delivery of major projects. Together they bring an unparralleled depth of experience and capability to the project.

The third layer is the contractors and suppliers who will actually carry out the work. It is our intention to carefully pre-qualify all contractors to ensure only those with a sound track record in the type of work proposed have an opportunity to be involved.