He believes the Fed may tighten when WIRP, now at 28% for the Sept.
But by trying to show that it is independent from WIRP, the Fed may risk "blowing itself up," Gundlach said.
The Wiggins Island Rail Project (WIRP) Agreement was reached by Bandanna Energy and other Stage 1 WICET shippers with QR Network Pty Ltd, a wholly owned subsidiary of QR National (ASX:QRN).
The WIRP agreement will see the construction of necessary rail infrastructure to ensure the rail connections of source mines of Stage 1 Wiggins Island Coal Export Terminal (WICET) shippers to the new port facilities to be constructed at Gladstone.
Under the WIRP agreement the rail solution will be synchronised with completion of WICET Stage 1 in order that first coal is at port ready for export by mid 2014.
Bandanna Energy Managing Director Dr Ray Shaw said the WIRP agreement was a very significant milestone both for Bandanna and other Stage 1 shippers of WICET.