Asciano (AIO) announces today that it has executed a long term, take or pay contract with Macarthur Coal Pty Ltd (MCC) for the movement of 7 million tonnes of coal per annum from the Coppabella and Moorvale mines in Queensland commencing on 1 November 2010. The signing of this agreement will generate total revenues of approximately $250 million for Asciano and confirms Macarthur related entities as Asciano’s largest coal haulage customer in Queensland with annualised tonnes in excess of 10 million.
Asciano Managing Director and Chief Executive Officer, Mark Rowsthorn said, “Asciano’s entry into the Queensland market has immediately raised the bar on service quality and we are extremely pleased with the confidence that Macarthur Coal has shown in our performance to date. Macarthur is a dynamic organisation that is focused on delivery and performance and we look forward to continually searching for ways to contribute to their ongoing success”, Mr Rowsthorn said.
“We originally planned on securing contracts totalling 30 million tonnes by the end of 2010 and that box has well and truly been ticked and what’s more, every contract signed to date will deliver returns at or above our internal benchmarks”, Mr Rowsthorn said. “With our first ten train sets in Queensland contracted, Asciano will now proceed to purchasing further train sets to support its ongoing growth in this extremely important market”, Mr Rowsthorn said. “The coal haulage opportunities presented by the northern and southern missing link infrastructure projects, as well as the development of the Surat and Galilee basins, are clearly next on our agenda”, Mr Rowsthorn said.
