Major rail contracts secured

Both Asciano and Downer EDI yesterday announced the signing of key rail haulage contracts.

Rail operating company Asciano has been awarded a contract with Macarthur Coal to transport seven million tonnes of coal per year from the company’s mines in Queensland.

Commencing on 1 November, the deal is will see Asciano haul coal from Macarthur’s Coppabella and Moorvale mines and is expected to generate the rail company around $250 million in revenue.

Asciano managing director and chief executive officer Mark Rowsthorn said his company is “extremely pleased” with the contract, and that it is a stepping stone for future success.

“With our first ten train sets in Queensland contracted, Asciano will now proceed to purchasing further train sets to support its ongoing growth in this extremely important market,” he said.

“The coal haulage opportunities presented by the northern and southern missing link infrastructure projects, as well as the development of the Surat and Galilee basins, are clearly next on our agenda.”

Macarthur Coal chief executive Nicole Hollows said the new contract gives the companies a chance to replicate the success of Macarthur’s existing rail deal with Pacific National.

Meanwhile, engineering contractor Downer EDI yesterday announced $400 million worth of contracts from several mining companies.

The company will deliver both standard and narrow gauge locomotives for coal haulage in New South Wales and Queensland, as well as iron ore haulage in Western Australia’s Pilbara region.

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