Asciano signs new $500 million deal as it officially waves goodbye to Tasmania
December 1, 2009
Asciano has signed a 12 year $500 million contract with Idemitsu to haul coal from its Boggabri mine in the Gunnedah basin.
The contract will require one additional train set to be added to Asciano subsidiary company Pacific National’s Hunter Valley fleet as well as further investment in locomotives in the short to medium term.
Asciano Chief Executive Mark Rowsthorn says the contract is a “great outcome” for Pacific National.
“It [the contract] delivers growth in volumes, superior returns on capital and high quality earnings for the next 12 years,” Rowsthorn says.
“At the same time we are providing the haulage certainty required by Idemitsu and our other customers to support their long term port and track capacity contracts.”
Today also marks the official completion of Pacific National Tasmania by Asciano to the Tasmanian Government.
The business sale agreement involving the company was signed in September but from today the Government will assume responsibility for all business aspects including employees and assets.