QR builds NSW market share with new coal deal


Queensland Rail makes further inroads in NSW with lucrative new coal cartage deal through Peabody Energy

As Pacific National wins new business in the once-monopoly Queensland coal market, Queensland Rail is making further inroads in New South Wales with a lucrative new coal cartage deal.

The State Government-owned rail provider has signed an 11-year contract with Peabody Energy Australia to deliver up to 12 million tonnes per annum of coal from the company’s Wambo and Wilpinjong mines to the Port of Newcastle.

Queensland Rail will invest some $100 million in new rolling stock to serve the the miner, a subsidiary of the world’s largest private sector coal producer, from 2010.

The deal is an extension of an existing contract with Peabody in Queensland.

QR will deliver coal to the existing Port of Newcastle coal terminal and the new Newcastle Infrastructure Group port, of which Peabody is a shareholder.

QR Chief Executive Officer Lance Hockridge says QRNational Coal has built credibility and market share in the Hunter Valley.

"It is also pleasing to strengthen our working partnership with Peabody Energy Australia to build on our existing delivery of coal from five of Peabody’s operations in Queensland," he says.

QR’s Executive General Manager of Coal, Marcus McAuliffe, says the company is now a "strong number two player" in the market".

He says demand for rail capacity to the Port of Newcastle is expected to double over the next decade, providing QR with "strong growth prospects" in the region.

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