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Aurizon secures new coal haulage agreement with AGL Macquarie

Aurizon has secured a long-term agreement with AGL Macquarie for coal haulage to the Bayswater and Liddell Power Stations in the Hunter Valley through to December 2025.

The contract includes rail haulage of 8.7 million tonnes per annum (mtpa) as well as ancillary services associated with managing and operating AGL Macquarie’s Antiene and Newdell coal unloading facilities.

Commencing in July 2017 upon expiration of the customer’s current arrangements, the contract includes coal haulage from the Wilpinjong and Mangoola mines in the Hunter Valley region.

“We’re very pleased to form a long-term, commercially sustainable partnership with a high-calibre customer in AGL Macquarie,” said Aurizon EVP Customer & Strategy Mauro Neves.

“AGL Macquarie has a long and proud history operating in the Hunter Valley over a period of some 40 years. Aurizon is proud to be entrusted with AGL Macquarie’s business as we continue to demonstrate our ability to deliver flexible, customer-focused rail solutions in the region.”

Since commencing operations in the Hunter Valley in 2005 Aurizon has experienced significant growth and invested approximately $500 million in trains and facilities. In FY16 the Company hauled 43.8mt of coal in the Hunter Valley, and opened a $180 million Train Support Facility at Hexham in Newcastle.

“We now have a team of around 330 local employees on the ground in the Hunter and our business continues to gain momentum. This contract is further evidence of our commitment and confidence in the New South Wales coal industry,” Mr Neves said.

The Bayswater and Liddell Power Stations are located near the town of Muswellbrook, approximately 130km north-west of Newcastle. AGL Macquarie’s energy production is equivalent to around 30% of New South Wales’ entire electricity needs.

The contract with AGL Macquarie takes Aurizon’s contracted tonnages in New South Wales to approximately 55mtpa.

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