Describing the move as "the first signs of a breakthrough towards a competitive rail industry in Queensland", the QMC said its members' intention was to stimulate competition on rail in a bid to drive QR's charges down to world competitive levels.

"We look for a repeat of what happened in the electricity industry, where the introduction of competition a year ago led to lower costs for industry from improved efficiencies," the QMC said.

"It may well be that QR retains most of its business, but it will need competition to ensure it responds to market pricing."

QMC chief executive Michael Pinnock said the council "warmly welcomed" the appearance of FreightCorp in Queensland. "Government monopoly services remain one of the biggest cost imposts on mining companies which face declining commodity prices on a long term basis," he said.