Joint Aurizon and Lend Lease bid shortlisted for Abbot Point coal expansion
Aurizon today welcomed the shortlisting by the Queensland Government of the NorthHub consortium, comprised of Aurizon and Lend Lease, for the potential staged expansion of new export coal capacity at the Abbot Point Coal Terminal in North Queensland.
The NorthHub proposal includes the staged development of a new multi-user coal terminal and associated rail infrastructure to service long-term growth in metallurgical and thermal coal exports.
In December 2012, the Queensland Government sought registrations of interest for the AP-X Project to develop expanded port infrastructure in the Abbot Point State Development Area. Today the Queensland Government announced that it had invited two proponents, NorthHub and Anglo Coal, to move into Stage 2 of the process.
The NorthHub proposal offers rail and terminal capacity to coal producers on a multi-party basis tapping into the Bowen and Galilee coal basins. It is separate to the recently-announced proposal by Aurizon and GVK Hancock to develop multi-user rail and port infrastructure at Abbot Point using GVK Hancock’s existing T3 terminal.
Aurizon Managing Director & CEO Lance Hockridge said the proposal provides for delivery of staged tranches of export capacity according to market demand and underpinned by long-term take or pay contracts.
“Given the extent of long-term growth forecasts for Queensland coal exports, Aurizon is committed to exploring all opportunities to capitalise on industry expansion over coming decades,” he said.
“Aurizon has significant scope to deliver more efficient transport and export arrangements for customers by integrating across the supply chain.
“The extension into portside, coal terminal operations in this joint venture arrangement with experienced industry player Lend Lease is a logical step in realising these benefits.”
The NorthHub consortium will enter into negotiations with the Queensland Government over coming weeks around Preferred Proponent Agreements. The agreements will be the basis for preparation of terminal development proposals during the remainder of 2013. This will include options for the staged development according to customer and market demand.