PN scores Linfox deal in wake of Asciano nod

<p>Pacific National will handle Linfox’s rail freight commitments for the next three years, generating more than $100m a year for its intermodal business, the companies said yesterday (Tuesday, May 15).</p> <p>It’s the second major contract for Toll Holdings’s rail concern, Pacific National, since the Australian Competition and Consumer Commission approved a huge company restructure on April 18.</p> <p>Last Monday (May 7), Pacific National announced a deal to handle BlueScope Steel’s rail maintenance and operation task at Port Kembla.</p> <p>Linfox managing director Michael Byrne said the companies were working to develop distribution centres at rail terminals to gain container freight efficiencies.</p> <p>&#8220This deal will assist Linfox to continue providing cost effective and efficient freight forwarding requirements as an important part of its logistics offering for all of its valued customers,&#8221 Mr Byrne said.</p> <p>Pacific National chief executive Don Telford said the partnership would see more freight on rail rather than road between Australia’s capital cities.</p> <p>&#8220With Australia’s freight task expected to grow over the next decade, this deal will ensure considerable volumes of freight on rail from one of Australia’s leading logistics companies,&#8221 he said.</p> <p>Linfox is now one of Pacific National’s largest intermodal customers.</p> <p>Linfox has the option to extend the three-year contract by a further seven years.</p> <p>Pacific National will be housed with ports business Patrick and will own assets worth more than $8bn as a result of the Toll-Asciano split.</p> <p>Asciano is expected to be listed on the Australian Stock Exchange next month, pending shareholder approval of the restructure.</p> <p>Asciano managing director-designate Mark Rowsthorn signalled his company’s intention to &#8220aggressively&#8221 pursue growth, particularly in Western Australia and Queensland.</p> <br />