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- Freight business Aurizon (AZJ) has been awarded an 11-year national contract with Team Global Express (TGE) to provide rail linehaul services through Perth, Adelaide, Melbourne, Sydney and Brisbane
- The services for TGE will begin in April 2023, with full-service offerings available by April 2024
- Aurizon Managing Director and CEO Andrew Harding says this is the company’s biggest non-coal revenue contract ever
- The contract includes five weekly national rail services east-west and two north-south, and TGE will account for approximately 70 per cent of the capacity of these services.
- Shares in Aurizon are up 0.44 per cent to 3.44 cents at 1:42 pm AEDT
Freight business Aurizon (AZJ) has been awarded an 11-year national contract with Team Global Express (TGE) to deliver rail linehaul services through Perth, Adelaide, Melbourne Sydney and Brisbane.
The services for TGE will commence in April 2023, with a ramp-up to a full-service offering by April 2024.
“This is our biggest non-coal revenue contract ever, and Aurizon is delighted to be TGE’s rail provider for its containers transported interstate,” Aurizon Managing Director & CEO Andrew Harding said.
Aurizon is aiming to double the earnings of its Bulk business over the next decade, with an ambition of delivering sustainable growth in non-coal areas of the company.
“We both share a strong commitment to helping achieve a zero emissions future and recognise the significant role rail can play in helping achieve that goal,” Mr Harding said.
The TGE contract includes five weekly rail services east-west (Melbourne-Sydney-Adelaide- Perth) and two north-south (Brisbane-Sydney-Melbourne), and TGE will account for approximately 70 per cent of the capacity of these services.
Additionally, the company said there would be an opportunity to build and increase customer growth to meet the fully installed capacity of freight services of more than 200,000 twenty-foot equivalent units (TEU).
This is in addition to Aurizon’s current containerised freight volumes of 250 million tonnes.
TGE CEO Christine Holgate said the partnership would significantly improve Australia’s rail freight capacity and choice for more greener options to deliver important freight across our country.
“Our partnership with Aurizon is game-changing for TGE customers, securing them important extra capacity and more choice in what to date has been a very limited rail market with restricted capacity and rising tariffs,” Ms Holgate said.
TGE is an Australian-owned transport and logistics business with more than 8000 staff that provides services to over 36,000 customers.
As part of its financial report for the first half of the 2023 financial year, Aurizon flagged planned capital investments of $430 million across key Bulk business opportunities
Shares in Aurizon were up 0.44 per cent to 3.44 cents at 1.42 pm AEDT.
