Rail freight operator Aurizon Holdings has secured a series of logistical contracts at BHP’s Copper South Australia operations.
Rail freight operator Aurizon Holdings has secured a series of logistical contracts at BHP’s Copper South Australia operations.
Work within the contracts – including integrated rail, road and port logistics solutions – will begin in October, with the term lasting up to 15 years.
Aurizon told the market on Monday it was expecting to generate $1.5 billion in revenue over the first 10 years, with 1.3 million tonnes per annum the current aggregate logistics task for the company.
The company said although it would need around $100 million of capital to deliver the services under the contracts, it was confident it would be able to capitalise on its existing capital and resources within South Australia.
“These contracts represent a major milestone in the delivery of Aurizon’s Bulk strategy,” managing director and chief executive Andrew Harding said.
"It validates the company's decision to invest ahead of earnings through targeted acquisitions and infrastructure development, particularly in South Australia and the Northern Territory.
"This investment has built the capability needed to be able to provide a complex logistics solution of this scale and demonstrates Aurizon’s readiness and competitiveness in the national
bulk market.
“It also demonstrates the growth opportunities available for our Aurizon Bulk business moving into new geographies and expanding markets for future-facing commodities such as copper, where the global demand is projected to increase significantly."
Last month, Aurizon told the market it was planning to cut 200 jobs across its rail business, primarily due to a sizeable fall in WA-based baulk haulage volumes.
As of 9.11am AWST, Aurizon shares were up 1 per cent to $3.10.
