Aurizon says selling stakes in rail infrastructure won't affect freight operations
May 14, 2013
Rail operator Aurizon has assured customers that selling
stakes in its existing railways will not affect its ability to provide integrated rail solutions across Australia.
Aurizon yesterday announced
it had begun talks to sell a minority stake in its Central Queensland Coal Network.
It is believed Aurizon, which generates about half its earnings in the network business by charging competitors to use rail infrastructure, is also negotiating
with prominent Australian miners the sale of rail infrastructure
stakes in other parts of the nation.
The company
recently decided to separate debt facilities at Aurizon and its subsidiary Aurizon Network.
According to Aurizon, it will implement stand-alone debt facilities at both Aurizon and Aurizon Network to
diversify future funding sources.
The new debt facilities of $3 billion will be placed
at Aurizon Network.
$2.2 billion is expected to be drawn initially to fund expansion projects
such as
the Wiggins Island Rail Project.
But Aurizon has assured stakeholders the refinancing will not impact current freight operations.
“The refinancing does not impact Aurizon’s ability to operate its current business model of providing integrated rail solutions to customers across Australia and a key criterion of any minority equity issue will be that Aurizon continues to be able to provide integrated rail solutions to its customers,” a company statement says.
“Aurizon and Aurizon Network plan to execute a number of agreements under which they will provide each other ongoing operational services on commercial terms, ensuring that Aurizon continues to operate as it does today.”
As part of the refinancing, two divisions currently within Aurizon Network, Engineering and Project Delivery and Specialised Track Services, will move to Aurizon to establish ongoing stand-alone operating structures for Aurizon and Aurizon Network.
Aurizon says the proposed restructure will not involve a reduction in staff numbers.
Aurizon proposes to start consulting affected employees and unions today.