Our 2017 Sustainability Report discusses how Aurizon delivers sustainable returns, while managing risks, and operating responsibly. See our highlights below.
At Aurizon, the safety of ourselves and others is our number one priority. It’s at the core of everything we do as we commit to ZEROHarm.
Total Recordable Injuries reduced to 32 in FY2017, which is 15 less than FY2016.
FY2017 Total Recordable Injuries (by body part)
We continue to reduce the number of Signals Passed at Danger (SPAD) and derailments.
SPADs and derailments per million train kilometres travelled (MTkm)
Following commencement of IVMS reporting in February 2016, there was a 97% reduction in all unsafe driving breaches.
Average speeding breaches by 10,000 kilometres
Aurizon is a significant contributor to coal, iron ore and other bulk supply chains in Australia, providing both above rail (transport) and below rail (network) capabilities to generate sustainable returns.
Our operations fit broadly into two categories:
• Rail transportation across Australia
• Management of regulated track infrastructure in Central Queensland.
To focus on customer needs and improve competitiveness, our organisation recently restructured into regional Business Units, focusing on our Coal, Bulk and Network operations.
Focus on sustainable returns
Aurizon seeks to create sustainable returns through disciplined capital allocation. Cashflow is also important to maintain our credit rating and provide resilience through the cycle or to specific events.
Capital prioritisation framework
Future of Coal
Our business is linked to the continued demand and competitiveness of Australian coal.
Aurizon's major role in delivering Australia's coal exports
More than two-thirds of Australia’s coal exports either use Aurizon’s Network or are carried by our above rail (haulage) business.
Key export destinations for Australian coal
A key consideration for coal demand is location. More than 90% of the coal that Australia exports is destined for Asia and the Indian sub-continent.
Australia's export infrastructure advantage
Australia has the lowest average transportation and port costs. This advantage is underpinned by the shorter distances between mines and ports and significant port and rail capacity to exclusively service coal exports.
Land transport, port and sea freight costs for metallurgical coal
Aurizon is committed to continuously improving our operations to reduce resource use and increase productivity for the benefit of customers and shareholders.
On track to achieve our transformation target
At Aurizon, transformation is a continuous process, delivering lower costs, increased capacity and improved productivity. We are on track to achieve our three-year target of $380 million in transformation benefits, having delivered $260 million over the past two years.
Using the internet of things to reduce costs
In FY2017, the IVMS program realised over $2m benefits through monitoring of vehicle location, utilisation and driver behaviour. Across more than thirty geographical locations the program delivered a range of benefits.
In Vehicle Monitoring System benefits
A technology roadmap ensures we deliver
Aurizon’s Technology Roadmap provides structure and visibility of priorities for the next three years. It is organised into five focus areas with two enablers, ensuring we deliver benefits before progressing further.
Helping Aurizon’s customers to prosper and grow is our priority. Indeed, it’s essential if we are to do the same.
We foster enduring partnerships and have an extensive history of servicing customers and investing in long-life assets in parallel with our customers’ mines.
Innovative customer solutions
Greater understanding of our customers and innovation in supply chain operation allow us to enhance customer experience with mutual benefits.
Response to extreme weather events
Since FY2011, outages from extreme weather events in the CQCN have not exceeded 30 days for affected parts of the network.
Regulation & Policy
We play an active role in encouraging infrastructure investment and efficient use of Australia’s supply chains.
Competition between electric and diesel locomotives
The cost of using electric locomotives relative to diesel locomotives has increased as a result of lower diesel prices and significantly higher electricity prices. If electric locomotives remain uncompetitive it is likely their utilisation in future customer contracts will decline.
Regional transport competitiveness
Upgrades to regional freight corridors are essential to maintain the viability of local communities and smaller agricultural producers.
Electric locomotives reduce Greenhouse gas (GHG) emissions
Electric locomotives achieve significant GHG emissions savings relative to diesel locomotives - consuming the equivalent electricity demand of 500,000 Tesla 3 electric vehicles per year, but at half the capital cost.
Our greatest asset is people — who work together to safely and efficiently operate complex supply chains.
We continue to progress towards our target of increasing the number of women in our workforce to 30% by the end of 2019. During FY2017, the percentage of women increased to 19.8% (up from 11.7% in FY2011).
Since Aurizon released our Reconciliation Action Plan, our Aboriginal and Torres Strait Islander representation has increased from 4.3% to 4.8%, and is representative of the communities where we operate.
Performance improvement initiatives
184 of our leaders have been provided with 360° feedback and coaching via the Aurizon Way of Leadership.
Our environment vision is to deliver sustainable value through effective management of material environmental risks and improved Enterprise environmental performance.
Despite hauling higher tonnages of coal on the CQCN, opacity exceedances have declined from an average of 10 per month when half of mines had veneering installed, to around 4 per month when all mines had veneering installed.
Average coal dust exceedances vs. tonnes hauled
We seek to understand the amount of waste we generate and increase the proportion that is reused or recycled. For example, end-of-life tyres can be processed into new playground surfaces, oil is recovered and steel recycled to make a variety of equipment.
Greenhouse gas (GHG) emissions
We are targeting a 15% reduction in the GHG emissions intensity of our locomotive fleet by FY2020, from a FY2015 baseline.
Historical and targeted GHG reduction
We aim to build sustainable positive relationships in the communities where we operate and where our people live and work.
Aurizon contributes to more than 6,100 jobs (both direct and indirect jobs) and more than $2 billion of output for Queensland’s regional economy.
Aurizon's economic contribution to regional Queensland
Community investment and giving
In collaboration with The Salvation Army, Aurizon donated 37 homes in regional areas of Queensland in late 2016 (including Emerald, Moranbah, Cloncurry and Dysart).
Understanding our impacts
In FY2017, we received a total of 250 community complaints, an increase of 15% on FY2016. Most concerns raised in FY2017 related to rail noise, rail corridor management and employee driver behaviour.
Major categories of complaints received in FY2017