Aurizon and Team Global Express have signed a landmark deal to operate major containerised rail freight services
In a landmark deal, Aurizon and Team Global Express (TGE) have signed an 11-year contract to deliver containerised rail freight services along multiple Australian networks.
The partnership, worth around $1.8 billion over the 11 years, will deliver rail linehaul services connecting the east-west (Sydney, Melbourne Adelaide and Perth) as well as the north-south (Brisbane, Sydney and Melbourne) networks.
Aurizon says TGE will be a cornerstone customer for them as they help support the expansion of its services into growing interstate containerised freight markets.
Aurizon will use seven train services for the operations with TGE.
“This is our biggest non-coal revenue contract ever and Aurizon is delighted to be TGE’s rail provider for its containers transported interstate,” Aurizon managing director and CEO Andrew Harding says.
“Together with TGE we have designed an innovative transport and logistics solution to best meet their end customer needs.
“We both share a strong commitment to helping achieve a net zero emissions future and recognise the significant role rail can play in helping achieve that goal.”
Aurizon’s services for TGE will commence in April 2023 and ramp up to a full service offering by April 2024, including five weekly rail services east-west and two north-south.
TGE will account for around 70 per cent of the capacity of these services, with TGE saying the partnership will significantly improve Australia’s rail freight capacity.
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“Our partnership with Aurizon is game-changing for Team Global Express customers, securing them important extra capacity and more choice, in what to date has been a very limited rail market, with restricted capacity and rising tariffs,” TGE CEO Christine Holgate says.
“The weather events of recent years have demonstrated how important both choice and capacity on major routes are, to ensure important freight, including food, can still be delivered at times of great need. These events have also evidenced the importance of leveraging rail as a greener solution for transporting freight, to help address climate change and secure our nation’s carbon ambitions.
“Through this partnership, we are able to offer our customers much-needed capacity along crucial routes linking major cities across our country. This presents significant opportunities for reliable deliveries, service efficiencies and less carbon intensive transport solutions for customers, whilst helping ensure regional Australians are served.”