Freight Rail

Aurizon accepts CQCN undertaking, will work for improvements

Aurizon has formally lodged an access undertaking for the Central Queensland Coal Network (CQCN) which conforms with the final decision of the Queensland Competition Authority (QCA), but says it will continue to work with its coal miner customers on a more favourable deal.

The rail operator on Monday confirmed it would move forward with terms conforming to those set by the QCA, despite its continued insistence the terms are unreasonable.

Aurizon owns the CQCN track used by coal miners to reach export markets, but must conform to the access undertakings limiting its revenue to levels deemed fair by the QCA.

After a particularly unfavourable set of draft terms were announced by the QCA for the next undertaking, UT5, in December 2017, Aurizon spent the better part of 2018 challenging the authority in and out of court to secure better terms.

A final set of terms, released by the QCA in December 2018, was slightly more favourable for the rail operator, but still far from its ideals.

Aurizon had until February 18 to respond to the final decision, but said on Monday it would accept the terms for now. At the start of the month it applied the QCA’s revenue terms to its below rail business for its half-yearly financial reports, and conceded it will have to refund $61 million to customers as a result of the new access terms.

On Monday it said it would continue working with stakeholders on a more favourable agreement.

If such an agreement is reached, Aurizon says it can lodge a Draft Amending Access Undertaking for consideration by the QCA. “An approved Amending Access Undertaking would modify the conforming Access Undertaking to reflect any agreement reached with the industry,” Aurizon said.