Transport and logistics company QR yesterday announced a long-term coal haulage contract with BHP Billiton-subsidiary Hunter Valley Energy Coal (HVEC).
Under the terms of the contract, QR’s coal business, QRNational Coal, will transport product from HVEC’s Mount Arthur thermal coal mine by rail to the Port of Newcastle.
The mine is located near Muswellbrook, around 120 km from the Port.
QRNational Coal will deliver the coal to the Port Waratah Coal Services terminal and the recently-approved Newcastle Coal Infrastructure Group terminal.
The company will also make an initial investment of up to $60 million on new locomotives and wagons.
QR chief executive Lance Hockridge said this contract, along with two recent contracts with Peabody Energy and Felix Resources, would nearly double the company’s share of the Hunter Valley market to about 30%.
“With coal volumes to the Port of Newcastle forecast to double in size over the next 10 years, we are committed to increasing our market share,” he said.
“We have already earmarked investments of more than $290 million in new rolling stock to support the Peabody and Felix contracts.”