During the last fifteen years there has been a marked change in the demand and supply patterns of coking coal. The world demand, predominantly Japan, has increased from 23 million tonnes of world export/import coal in 1960 to an expected total of at least 100 million tonnes by 1975. In the last ten years Australia has been the main beneficiary in the growth of the export coal trade. This has been brought about by its proximity to Japan and its large econ- omically mineable reserves of coking coal. A feature of the recent coal development in Australia has been the requirement of companies in new areas to provide massive capital for infrastructure costs. The ability of the Australian coal industry to retain a large share of the world export market depends to a large extent on reasonable costs to transport coal from mine to the market place. In some areas of Australia this means that railway lines, loading and unloading facilities, and ports will have to be up-dated at substantial costs. On the long haul to Europe the recent increases in the prices of bunker fuel have made the price of coal less competitive when compared with sources