Rail maintenance equipment and service provider Loram Maintenance of Way has agreed to buy Aurizon’s rail grinding services business for an undisclosed fee.
The North American business, the original equipment manufacturer of Aurizon’s entire fleet of rail grinders, said on August 12 it would acquire all the assets of the operator’s rail grinding business.
Aurizon has reportedly been working to sell its grinding division since around October 2018.
The move effectively gives Loram four new Australian customers for its rail grinding services business.
Loram president and CEO Phil Homan said the acquisition conformed to its plan for global technology but local service.
“While drawing upon our global technical expertise, Loram will deliver its unrivalled customer service to Australian customers under the leadership of its Australia-based team from our office in Brisbane and strategic sites interstate,” Homan said.
Loram’s managing director in Australia Stephen Mannix said the company recognises “substantial opportunities” in the Australian rail market.
“The acquisition positions Loram for significant growth,” Mannix said. “In addition to expanding this rail grinding business, Loram is committed to listening to customers’ challenges throughout Australia and developing Loram’s entire suite of innovative solutions to meet their unique needs.”
Mannix said the Aurizon acquisition was a great fit for his team.
“There is a natural affinity between our people because both organizations share a commitment to safety and quality. We are pleased to offer continued employment to each affected employee and are hiring for new positions to support our growth.”