Aurizon has completed the sale of its Queensland Intermodal business to Linfox, nearly four months after the competition watchdog said it wouldn’t block the move.
The ASX-listed operator said on February 1 it had successfully completed the deal, which was initially with a partnership of Pacific National and Linfox. The Australian Competition & Consumer Commission stepped in last year and said it wasn’t happy with Pacific National buying the business, so the deal was trimmed down to feature only Linfox as buyer.
Aurizon said the Queensland Intermodal business had roughly 300 customers across the state, including supermarkets and retailers. The sale price was reported in October as $7.3 million.
“The sale provides certainty for Aurizon customers and local communities in regional Queensland, ensuring the supply of goods continues with Linfox as the new business owner,” Aurizon said. “Importantly, it has also secured continued employment for more than 300 people across Queensland, mostly in regional centres.”
As part of the sale Linfox acquires leases and access to freight terminals in Rockhampton, Mackay, Townsville, Cairns, Emerald and Longreach. The company has also taken ownership of a fleet of trucks, trailers and rail wagons for intermodal containers, along with heavy lift equipment like forklifts and gantry cranes.
Aurizon’s bulk business will provide Linfox with rail linehaul services between Brisbane and Cairns under a separate 10-year hook and pull contract, and Aurizon transferred roughly 120 employees from Queensland Intermodal into its Bulk business to deliver this.
Linfox Logistics Australia and New Zealand chief executive Mark Mazurek said the company had taken onboard around 200 former Aurizon employees and launched a recruitment campaign to allow the company to expand on existing services.
“The acquisition is the culmination of two decades of effort by Linfox to expand its rail network in Far North Queensland,” Mazurek said.