Aurizon flags coal freight slump


Aurizon has recorded no significant impact to its operations in the 2020 financial year due to COVID-19, but expects a slump in the near future.

The company’s coal business Aurizon Coal delivered 214 million tonnes of coal for customers during the 2020 financial year, with a one per cent decrease to its earnings before interest and tax (EBIT) to $411 million.

Aurizon also expects coal volumes to reduce further in the 2021 financial year, ranging between 210–220 million tonnes due to COVID-19’s impact on steel demand.

Aurizon managing director and chief executive Andrew Harding said despite the emergence of COVID-19 in the second half of the 2020 financial year, the company had delivered a solid operational and financial performance.

“Aurizon’s response to COVID-19 is anchored to our value of safety, with the health and well-being of employees our top priority. I am proud of the outstanding efforts of our employees during this very challenging time,” Harding said.

“As an essential transport provider to the Australian economy we have provided safe, reliable services to our customers and continued to support regional communities where our people live and work.”

In December, Aurizon received approval from the Queensland Competition Authority (QCA) for the 10-year UT5 access undertaking with coal customers for the Central Queensland Coal Network (CQCN). The company transported 227 million tonnes across the CQCN in the 2020 financial year.

During the same period, Aurizon secured a contract extension with Peabody for all its existing volumes and new business on the CQCN; and a contract variation and extension for Coronado Global Resources’ Curragh Mine in Queensland.

Leave a Reply

Send this to a friend