Asciano secures $500m coal haulage deal
Asciano has won a 12-year, $500 million contract to haul coal for Idemitsu from the Boggabri mine in the Gunnedah Basin.
Image courtesy of Pacific National
By Sineva Toevai – www.lloydslistdcn.com.au
The performance-based deal, which includes take or pay arrangements, was expected to lift the total volume on existing contracts by 400 per cent, Asciano said.
Pacific National's Hunter Valley operation would need to add an extra train to its fleet to meet the projected increase in volumes.
The additional train will be funded from $160 million of capital set aside for this purpose with orders already placed for three of the four trains.
More trains would be needed in the short-to-medium term as the long haul coal transport task required by Idemitsu grows, Asciano managing director Mark Rowsthorn said.
"This is a great outcome for the Pacific National Coal business as it delivers growth in volumes, superior returns on capital and high-quality earnings for the next 12 years.
"Asciano will continue to pursue performance-based partnerships with coal companies in both NSW and Queensland to meet the demands of the coal market and to grow our coal haulage business within the group."
Source: Lloyd’s List Daily Commercial News – www.lloydslistdcn.com.au
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