QRNATIONAL 4140

Aurizon ( ) is a freight rail transport company in Australia, formerly named QR National. it was the world’s largest rail transporter of coal from mine to port. Formerly a Queensland Government-owned company, it was privatised and floated on the ASX in November 2010. The company was originally established in 200405 when the coal, bulk, and container transport divisions from Queensland Rail were brought under one banner, as QR National. The new name, Aurizon, comes from the words Australia and Horizon according to the then-CEO Lance Hockridge.

On an average day, Aurizon moves more than of coal, iron ore and other minerals, as well as agricultural products and general freight across the nation. The company transports more than 250 million tonnes of Australian commodities each year, with operations in five Australian states. Aurizon also manages the Central Queensland coal network that links mines to coal ports at Bowen, Gladstone and Mackay, and is the largest haulier of iron ore outside the Pilbara.

In February 2019, after permission from the Federal Court, Aurizon's intermodal and trucking business was acquired by Linfox for A$7.3 million. Their leased LDP class locomotives were returned to Progress Rail, SCT Logistics now operate former Aurizon routes, such as Perth-Melbourne and Melbourne-Brisbane.

History

The QR National brand was established in the 2004/05 financial year when Queensland Rail's coal, bulk and containerised business units were brought under one banner.

It also incorporated subsidiaries Interail, which had been acquired in March 2002 and operated services in New South Wales, and logistics company CRT Group, for which QR National already provided line haulage and purchased outright in June 2005.

In June 2006, QR National acquired Australian Railroad Group (ARG) which had operations in New South Wales, South Australia and Western Australia. ARG remained a separate subsidiary operation until it was rebranded as QR National in July 2011.

In Queensland, the major traffic is coal, both for export and domestic power generation. In 2005, QR National commenced running export coal services in the New South Wales Hunter Valley and by November 2007, the QR National network covered the entire mainland (except the Northern Territory) with the operation of their first Melbourne to Perth intermodal container service. In August 2008, QR National took over the operation of Melbourne - Horsham container service for Wimmera Container Line, after Pacific National withdrew its service.

Following a vote by its shareholders, QR National was rebranded as Aurizon in December 2012.

In February 2022, Aurizon commenced a five-year contract to haul mineral sands from Broken Hill to Kwinana for Tronox, to be extended 320 km east to Ivanhoe, where a new loading facility has been constructed.

In October 2021, Aurizon agreed terms to purchase One Rail Australia (ORA). The transaction was approved by the Australian Competition & Consumer Commission with a requirement to dispose of ORA's Hunter Valley coal haulage and Queensland coal haulage business within an agreed timeframe to maintain competition levels. The sale was completed on 29 July 2022. Aurizon took over ORA's South Australian and Northern Territory operations the following day.

In December 2022 Aurizon agreed terms with Magnetic Rail Group, a 50:50 joint venture between M Infrastructure Group and PT Asian Bulk Logistics to purchase East Coast Rail. Subject to being granted regulatory approval, the transaction is scheduled to be completed in early 2023.

Public float

In June 2009, the Queensland Government announced the ''Renewing Queensland Plan'', with Queensland Rail's commercial activities to be separated from the Government's core passenger service responsibilities, formed into a new company named QR National Limited and privatised. The company was split into two from July 2010 with QR National taking the coal business in Queensland and New South Wales, regional freight business in Queensland, bulk mineral and grain haulage in Queensland and Western Australia, and containerised freight between Cairns, Brisbane, Sydney, Melbourne, Adelaide and Perth.

QR National received a 99-year lease over the 2,300 km Queensland coal network:
* Blackwater system based around the Port of Gladstone
* Goonyella system based around the Port of Hay Point and Dalrymple Bay
* Moura line to the Port of Gladstone
* Newlands line to Port of Abbot Point
It is responsible for the maintenance of these lines.

The rollingstock workshops at Redbank, Rockhampton and Townsville were also included.

QR National was floated in November 2010. From July 2011 all subsidiary operations were rebranded as QR National and then rebranded again to Aurizon in 2012.

Current fleet

Details of Aurizon's current fleet are as follows:

Former fleet

Details of Aurizon's former fleet are as follows:

Queensland coal networks

Blackwater

The Blackwater coal network is situated in Central Queensland. This networks runs from the dual ports of Clinton Coal (Gladstone Port Authority operated) and Barney Point (BMA operated) to the mines in the southern section of the Bowen Basin coal area. This rail network transports coal from Gregory coal mine, Oaky Creek Mine, German Creek coal mine, Jellinbah coal mine, Lake Vermont Mine, Yarrabee Mine, Curragh coal mine, Boorgoon Mine, Kinrola Mine, Rolleston coal mine, Cook Colliery, Ensham Mine, Kestrel coal mine and Minerva Mines. Both the Blackwater and Goonyella coal networks are linked at Gregory Mine. At different times during the year coal may be transported from one network to the other depending on coal demand, coal blending requirements or due to network disruptions.

In 1985, the network was electrified with a 25 kV overhead traction system. The network has been extended on several occasions as more mines come online. Two recent new mines were not initially electrified. These are Rolleston and Minerva Mines. The cost involved for the electrification of these two mines was considered too high as they are a considerable distance to join onto the current electrified network. However the electrification of the rail to Rolleston Mine was completed in December 2014. The rail to Minerva Mine is not electrified.

There are both export and domestic customers served by this network. Domestic customers include Stanwell and Gladstone power stations. There are two rail operations in the network, Aurizon being the biggest operator and Pacific National being a newcomer to the network.

Goonyella

The Goonyella coal network is situated in Central Queensland. Running from the dual ports of Hay Point (BMA operated) and Dalrymple Bay (BBI operated) to the mines in the northern section of the Bowen Basin coal area. This rail network transports coal from Gregory Mine, Oaky Creek coal mine, German Creek coal mine, Foxleigh coal mine, Norwich Park coal mine, Lake Vermont Mine, Saraji coal mine, Peak Downs Mine, Millennium Mine, Poitrel Mine, Moorvale Mine, Burton Downs Mine, Carborough Downs Mine, Issac Plains Mine, Moranbah North coal mine, Goonyella Riverside Mine, Hail Creek coal mine, Clermont Mine, Riverside Mine, North Goonyella coal mine, South Walker Creek coal mine, and Blair Athol coal mine. Both the Goonyella and Blackwater coal networks are linked at Gregory Mine. At different times during the year, coal may be transported from one network to the other depending on coal demand, coal blending requirements or due to network disruptions.

In 1985, the network was electrified with a 25 kV overhead traction system. The network has been extended on several occasions as more mines come online. With each extension the electrified network has also been extended to accommodate the new mines. This line serves Anglo American Metallurgical Coal, BHP Mitsubishi Alliance (BMA) Jellinbah Resources, Peabody Energy Australia, Rio Tinto Coal Australia, Vale Australia, Bowen Central Coal, Xstrata Coal Queensland, McCarthur Coal.

There are two rail operations in the network, Aurizon being the biggest operator and Pacific National being a newcomer to the network.
Xstrata has bought a number of locomotives and assures a part of its coal freight independently.

There is actually a project for the "Norther Missing Line" GAP (Goonyella to Abbot Point) railway whose objective is to link the Goonyella line to the Abbot Point Coal Terminal. With growing orders from Asian countries (mostly China & India who have huge energetic needs), the GAP is a vital project as Abbot Point has the advantage of being 2–3 days closer to Asia than other ports, reducing tonnage price. There has been no press release regarding the electrification of this line.

Moura

The Moura coal network is situated in Central Queensland. This networks runs from the dual ports of Clinton Coal (Gladstone Port Authority operated) and Barney Point (BMA operated) to the mines in the southern section of the Bowen Basin coal area. This rail network transports coal from Moura Mine and Boundary Hill Mine.

Newlands

The Newlands coal network is situated in Central Queensland. This networks runs from the Abbott Point to the mines in the northern section of the Bowen Basin coal area. This rail network transports coal from Newlands coal mine, Sonoma Mine and Collinsville coal mine.

West Moreton

The West Moreton coal network is situated in Southern Queensland. This networks utilizes part of QR's Western Railway Line. This rail network transports coal from New Acland coal mine (which is loaded at Jondaryan, 17 kilometres (10.5 mi) west of Oakey) and the Cameby Downs coal mine (which is loaded at Columboola (24.3 kilometres (15 mi) north-east of Miles) to the Port of Brisbane. Coal was also loaded from the Wilkie Creek coal mine until 2013 and was loaded at Macalister (27.1 kilometres (16.8 mi) west of Dalby)

Price regulation

As Aurizon's infrastructure is a monopoly, it is subject to regulation by government organisations such as the Queensland Competition Authority. Aurizon has disagreed with the QCA concerning the price that it should be allowed to charge its clients, for example when the QCA used a lower weighted average cost of capital that does not account for the risk that clean energy poses to fossil fuel.

References

{{S&P/ASX 50

Interstate rail in Australia
Privatisation in Australia
Freight railway companies of Australia
Railway companies established in 2004
Railway infrastructure companies of Australia
Transport in Queensland
Companies listed on the Australian Securities Exchange
Australian companies established in 2004
Companies based in Brisbane