AusRAIL, Market Sectors

Toll and Solid Energy strike deal over coal

<p>Toll NZ and Solid Energy have struck a 13-year deal to transport West Coast coal to Lyttelton.</p> <p>The agreement will see Solid Energy freight up to 3.8m tonnes of coal a year by rail from 2007&#4708.</p> <p>This year, 2.4m tonnes of coal will be transported to Lyttelton, rising to 2.7m tonnes in 2005&#4706, before reaching the planned target the following year.</p> <p>The coalminer and the rail company have been at loggerheads since only 2.1m tonnes of the 2.4m tonnes of coal ordered was carried to Lyttelton last year.</p> <p>The companies have agreed to increase the number of coal trains from seven to eight a day.</p> <p>They said they would work with the Railways Corporation over the projected NZ$200m investment to increase the capacity and reliability of the Midland railway line.</p> <p>The agreement also provides a framework for future potential deals to carry Solid Energy coal on other parts of the rail network, including Westport and Greymouth.</p> <br />