The Iron Boomerang project was initiated to do just that. Build two 22 mtpa steel mills, one in Qld and one in WA. A new rail line from Abbott Pt to Newman would see trains hauling iron ore from WA to Qld and return with coal to Newman. No empty running. PS This project is not dead. Just before Xmas surveyors for this new line were staying in a motel in Central Qld.
Project Iron Boomerang: Radical plan that could rebuild Australia (news.com.au)
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