Aurizon (ASX:AZJ) has secured a new long term contract from BM Alliance (BMA) and BHP Billiton Mitsui Coal (BMC) to haul up to 65 million tonnes per annum of coal from its operations in Queensland.
The contract renewal is for 100% of tonnes tendered by BMA/BMC for re-contracting in the Blackwater and Goonyella systems to the respective ports of RG Tanna in Gladstone, and Hay Point and Dalrymple Bay near Maca
The new contract replaces the existing 2005-2006 legacy contract with up to a 12-year term, new-form contract. It provides improved commercial returns for Aurizon based on a flexible, performance-based contract for BMA/BMC.
With the latest contract, Aurizon's conversion of old-form contracts into new-form performance based contracts for customers will increase from 38% in FY12 to about 95% of its expected rail tonnages from FY2017.
The contract includes the haulage of coal from the Blackwater, Gregory, South Walker Creek, Poitrel, Riverside, Goonyella, Saraji, Peak Downs and Daunia operations.
Aurizon is Australia's largest rail freight company with services operating across five states. In 2011-2012, Aurizon transported more than 250 million tonnes of freight, including coal, iron ore, other minerals, agricultural products and general freight.
It also operates and manages the 2,670 kilometre Central Queensland Coal Network that links mines to coal ports at Bowen, Mackay and Gladstone.
Aurizon was formerly QR National.
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