Newcomer Specialised Bulk Rail has announced its entrance into the bulk haulage rail market by securing a contract with IMX Resources.
The company will transport the miner’s iron ore produce from the Cairn Hill mine in South Australia to Port Adelaide for export.
The rail link between the mine, 55 km south-east of Coober Pedy, and Adelaide is around 900 km long.
The contract will officially commence when the first of two 8000 tonne trains departs in October.
SBR estimates the deal will generate in excess of $150 million in revenue as part of stage one, growing to $300 million with the roll out of stage two.
According to the company, it has the capability to move up to two million tonnes of iron ore per annum.
“It is an exciting development for our company,” chief executive Geoff Smith said.
“We genuinely feel that the Australian mining industry will welcome increased competition into the bulk rail haulage sector and appreciate the fresh approach that we will bring to the market.
“We have no doubt that we will bring to the table creativity and innovation particularly through design and implementation of the latest technological advancements in locomotives and rolling stock.”