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aio see coal haulage contract delivering $600m

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    Asciano sees coal haulage contract delivering $600m
    December 23, 2009 - 10:48AM
    Asciano Group has signed a contract with Whitehaven Coal to provide coal haulage services that will deliver it at least $600 million in revenue over the term of the agreement.

    The contract covers coal haulage services by its Pacific National business from Whitehaven's Narrabri, Werris Creek and Gunnedah loadpoints in the Gunnedah Basin of New South Wales.

    "This long haul, take or pay contract is expected to generate at least $600 million of revenue for Asciano over the term of the agreement," Asciano said in statement on Wednesday.

    "The new contract includes more than a doubling of the rail haulage task for Whitehaven Coal over the next two years and is expected to deliver a return on capital to Asciano in line with the benchmarks achieved on recent coal haulage contracts."

    Asciano said new contract requires one new train set to be ordered immediately.

    The additional train set will form part of Asciano's $160 million capital commitment announced in June.

    Whitehaven Coal has already invested in one train set itself that is expected to be operational in June 2010.

    Pacific National will lease and operate that train set from Whitehaven as part of the contract.

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