Aurizon secures long-term deal with Caledon to haul 4 million mtpa of coal to WICET

Aurizon, Australia’s largest rail freight operator, has secured a new, long term, performance-based contract with Caledon Coal for haulage of up to four million tonnes per annum (mtpa) of coal from their Cook mine in Central Queensland to the new Wiggins Island Coal Export Terminal (WICET).

Caledon’s Cook Colliery  Image credit: www.caledon.com.au
Caledon’s Cook Colliery
Image credit: www.caledon.com.au

Aurizon said the new 11-year contract will deliver a modern and flexible agreement for both companies and cements their long-term relationship for the haulage of coal. Under the agreement, the coal will be transported using existing Aurizon electric trains on the Blackwater system to the new WICET, at the port of Gladstone.

The agreement takes effect on 1 May 2015, when WICET commences shipping for customers, and supersedes Aurizon’s existing contract for 500,000 tonnes per annum.

”Aurizon is delighted to renew and extend its relationship with Caledon through to 2026,” said Mauro Neves, Executive Vice President of Commercial & Marketing, Aurizon.

“With these significant expansion tonnages, Caledon is showing great confidence in the strong future of the Queensland coal sector. Aurizon is pleased to secure this contract and partner with Caledon in this growth.”

Caledon has invested a substantial amount of money to modernise the Cook Colliery underground operation to enable it to produce the four million tonnes required. The Cook Colliery is located approximately 30km south of the Blackwater township in Queensland and produces both coking and thermal coal.

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