National transport and logistics company QR has announced an 11 year contract with Peabody Energy Australia to deliver up to 12 million tonnes per annum (mtpa) of coal from the Company’s Wambo and Wilpinjong mines in the Hunter Valley.
Peabody Energy Australia is a subsidiary of the world’s largest private sector coal producer, Peabody Energy.
QR currently delivers coal from five of Peabody’s operations in Queensland.
QR will support the contract with an investment of more than $100 million in rolling stock.
Peabody Energy Australia Managing Director Julian Thornton said, “Peabody Energy Australia is excited about extending its partnership with QR into NSW to ensure efficient and effective transfer of its coal to both the existing coal port in Newcastle and the new Newcastle Infrastructure Group port of which Peabody is a shareholder.”
QR Chief Executive Officer Lance Hockridge said QRNational Coal had been building credibility and market share in the Hunter Valley by demonstrating to customers that it understood their market needs.
QR’s Executive General Manager Coal Marcus McAuliffe said QRNational Coal aimed to repay Peabody’s faith by performing strongly and safely.
“With this contract we are increasing our minority share of the Hunter Valley market and cementing our position as a strong number two player in the market — evidence of our quality of service offering,” McAuliffe said.
“The strong growth prospects of this market are underlined by the fact that we expect demand for rail capacity to the Port of Newcastle to more than double in the next decade.”