<span class="" id="parent-fieldname-description"> Aurizon has secured the largest contestable haulage contract in the Australian coal market in a decade which represents about a quarter of the entire Queensland coal haulage market, in securing 100% of tonnes tendered by BHP Mitsubishi Alliance (BMA) and BHP Billiton Mitsui (BMC) in the Blackwater and Goonyella systems. </span> <p>Arch rival Pacific National Coal has been left out in the cold on the contracts, which are for the haulage of up to 65mtpa of coal from BMA and BMC’s mine operations in Queensland.</p><p>The performance-based contracts come into effect from 1 July 2015 for the Blackwater system and 1 July 2016 for the Goonyella system.</p><p>The business represents BMA and BMC’s re-contracting of haulage in the Blackwater and Goonyella systems to the respective ports of Gladstone, and Hay Point/Dalrymple Bay near Mackay.</p><p>According to Aurizon, the new contract replaces the existing 2005/6 legacy contract, struck when QR National was a state-owned entity, with up to a 12-year term, new-form contract.</p><p>The company says it provides it with improved commercial returns based on a flexible, performance-based contract for BMA/BMC.</p><p>Aurizon managing director and CEO Lance Hockridge said that with the inclusion of the renewed BMA/BMC contract, Aurizon’s conversion of old-form contracts into new-form performance-based contracts for customers will increase from 38% at FY12 to approximately 95% of the company’s expected railed tonnages from FY17.</p><p>Aurizon has had a long term relationship with BMA and BMC, beginning with BHP in Queensland in the 1970s. That relationship likely helped it succeed in negotiations over Pacific National, adding fuel to a rivalry which has been heating up in recent years.</p><p>“This is the largest contestable haulage contract in the Australian coal market in a decade,” Hockridge said. “It represents about a quarter of the entire Queensland coal haulage market.”</p><p>“We’ve worked extremely hard to deliver a service package that is large-scale, flexible and performance-based.”</p><p>The contract adds to a number of key wins achieved by Aurizon since July last year, which include a 16mtpa deal with Whitehaven in NSW and a 12mtpa contract for Rio Tinto in Queensland.</p><p>Aurizon executive vice president commercial and marketing Paul Scurrah said the agreement included supply chain performance monitoring and productivity sharing initiatives.</p><p>The contract includes the haulage of coal from the Blackwater, Gregory, South Walker Creek, Poitrel, Riverside, Goonyella, Saraji, Peak Downs and Daunia operations.</p><p>Aurizon is Australia’s largest rail freight company with services operating across five states. In 2011/12, Aurizon transported more than 250 million tonnes of freight, including coal, iron ore, other minerals, agricultural products and general freight.</p><p>The company also operates and manages the 2,670 kilometre Central Queensland Coal Network that links mines to coal ports at Bowen, Mackay and Gladstone.</p>
