AusRAIL, Market Sectors

Asciano wins $1.1bn rail haul contract with Toll

<span class="" id="parent-fieldname-description"> Asciano’s rail division has signed a long-term contract worth $1bn to haul freight for Toll Holdings. </span> <p>By Sineva Toevai and Jennifer Perry</p><p>Pacific National Intermodal will transport containers and cars interstate for Toll with scope to extend the deal for up to 10 more years at the end of the initial term.<br />Subject to approval by Australia’s competition regulator, PN has also granted Toll a lease over land within its Perth freight terminal precinct, where it intends to develop a freight forwarding facility immediately adjacent to the rail terminal.<br />Asciano managing director Mark Rowsthorn said the facility would introduce greater efficiencies and reduce costs associated with the pick up and delivery of freight at the rail terminal.<br />“It will also reduce truck movements and traffic congestion in the Kewdale vicinity,” Rowsthorn said.<br />“The benefits of co-locating rail and freight forwarding facilities are becoming increasingly important and may become a model for the development of intermodal freight in Australia.”<br />Meanwhile, Moody’s Investors and Standard &amp Poor’s announced that Asciano’s decision to write down $1.1bn of goodwill in the second half had no impact on its respective credit ratings of Baa3 and BBB-.<br />&nbsp</p>