Asciano signs billion-dollar deal with Toll

Asciano signs $1 billion rail deal with Toll over five years to haul containers and cars interstate

Asciano signs billion-dollar deal with Toll
Asciano signs billion-dollar deal with Toll
By Samantha Freestone | May 12, 2010

Less than 24 hours after Asciano revealed write downs of more than $1 billion, the company has signed a billion-dollar deal with Toll Holdings over five years.

In a statement to the ASX today, Asciano says its Pacific National rail division will supply haulage services to Toll to move containers and cars interstate.

The contract includes and option to extend the initial term to 10 years.

Asciano Chief Executive Mark Rowsthorn says the contract reinforces the long-standing relationship between the two companies.

He says Pacific National has granted Toll a lease over land within its Perth freight terminal precinct and intends to develop a freight forwarding facility next to the rail terminal.

"Locating the facility at the rail terminal will introduce greater efficiencies and will reduce costs associated with the pick up and delivery of freight at the rail terminal," Rowsthorn says.

"It will also reduce truck movements and traffic congestion in the Kewdale vicinity."

Rowsthorn says the benefits of co-locating rail and freight forwarding facilities may become a model for the development of intermodal freight in Australia.

Toll declined to comment on the deal when contacted by ATN.

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