Asciano (AIO) advises that its Pacific National Rail business has entered into a new agreement with BlueScope Steel Limited and Arrium Limited for the continued provision of rail linehaul services to BlueScope and Arrium. Linehaul services involve the movement of approximately 3 million tonnes per annum of a range of steel products (including the previously announced Jumbo Coil service expected to commence in the second quarter of FY13), between the major steel manufacturing sites at Port Kembla, Westernport, Whyalla and Newcastle and to steel distribution terminals in the mainland capital cities. Existing arrangements will expire on 31 December 2014 and services under the new agreement will commence from 1 January 2015 for a minimum period of seven years.
Asciano Managing Director and Chief Executive Officer, John Mullen said, “BlueScope and Arrium are longstanding and important customers of Asciano. We are delighted with the extension of this relationship which demonstrates our focus on customer service and on meeting our customers’ high expectations.” In addition, Asciano has entered into an agreement with BlueScope to continue to supply rail services within the BlueScope Port Kembla Steelworks. The new contract will have a minimum duration of seven years from 1 January 2015.