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Queensland Rail (QR) recently landed an 11-year contract from coal producer Peabody Energy Australia to transport export coal from two mines to an Australian port.

Beginning next year, QR subsidiary QRNational Coal will move up to 12 million tons of coal annually via rail from Peabody’s Wambo and Wilpinjong mines to the Port of Newcastle for export to the Asian market. QR plans to spend more than $100 million to obtain enough rolling stock to support contract volumes.

The deal “strengthens our working partnership with Peabody Energy Australia to build on our existing delivery of coal from five of Peabody’s operations in Queensland,” said QR Chief Executive Officer Lance Hockridge in a prepared statement.

QR officials expect demand for rail capacity into and out of the Newcastle port to more than double during the next decade. QRNational Coal currently provides more than 550 train services weekly throughout Queensland and New South Wales.