Asciano announced Thursday that it has secured a ten year, A$320 million contract with Middlemount Coal for the movement of up to 3 million tons of coal per year in Queensland beginning in January 2012.
Middlemount Coal is an incorporated joint venture between Macarthur Coal and Noble Group. This contract is the first to be announced in Queensland where the operation will be via the Northern Missing Link railway line to Abbot Point, Asciano said in a statement to the Australian Securities Exchange.
Asciano Managing Director and Chief Executive Officer Mark Rowsthorn said, “This is a significant step in Asciano’s growth strategy as it demonstrates our ability to meet our customers’ needs in Queensland and places us in prime position to take advantage of further growth tonnages from coal producers who have committed to port capacity at Abbot Point.”
“We are pleased that Middlemount Coal has recognized the value of the service offering that Asciano has presented to the Queensland market and we look forward to servicing them for many years to come.
Rowsthorn added that the company has exceeded its first year operations target by hauling over 14 million tons of coal in Queensland.
“Asciano has now secured over 45 million tons of coal haulage contracts in Queensland which further reinforces our ability to deliver our Queensland coal strategy in the medium term,” Rowsthorn said.
Asciano secured the contract prior to the privatization program in Queensland set to privatize Queensland Rail. The Abbott Point coal port is also for sale as part of the program and its capacity is being upgraded through the construction of the Northern Missing Link.
