Linfox snaps up Aurizon’s Queensland Intermodal business


Deal worth $7.3 million places Linfox in line for future inland rail growth

Linfox snaps up Aurizon’s Queensland Intermodal business
Mark Mazurek

 

Linfox has reached an agreement with Aurizon to purchase the company’s Queensland Intermodal business.

The transaction will increase the scale and scope of Linfox’s services throughout Queensland and provide greater Queensland-based pick-up, delivery and warehousing capability. 

As part of the deal, Linfox will have access to Queensland Intermodal freight depots in Queensland, including access to the Acacia Ridge terminal; will acquire trucks, trailers, rail wagons for intermodal containers and heavy lift assets; and will be transferred existing customer contracts, and about 190 existing Aurizon employees.

Under a separate 10-year commercial contract, Aurizon’s Bulk business will also provide rail linehaul services and some terminal services to Linfox using Aurizon locomotives, which significantly enhances Linfox’s intermodal network.

The agreement is subject to the lifting of an interlocutory injunction on Aurizon.

"This deal provides a new and compelling logistics option for businesses operating into and out of northern Queensland. We understand the strategic importance of this region and the entry of Linfox with our safe, secure and compliant logistics services will unlock significant value for our current and future customers," Linfox Logistics CEO Mark Mazurek says.

In a statement to the ASX, Aurizon says the deal is worth $7.3 million, while confirming it and Pacific National are seeking clearance of the $205 million sale of the Acacia Ridge terminal through Federal Court proceedings scheduled to be heard on November 19.


Aurizon announced its intended intermodal business divestment in August 2017. Read more, here


Linfox and Pacific National were previously in line for Aurizon’s intermodal operations but a Linfox spokesperson confirmed to ATN that consortium related to a "different deal" and this agreement is solely between Linfox and Aurizon.

Linfox executive chairman Peter Fox says the investment strengthens the Linfox network and increase competition in the Queensland logistics market

"It will also bring certainty to Aurizon staff, regional communities and customers that would have been impacted if the Aurizon QIB business had closed," he adds.

The ACCC did not oppose the sale, saying "Linfox’s operations in Queensland are relatively limited, and the transaction will mean there will remain two intermodal rail line-haul providers in Queensland, which is a good outcome for rail competition and Queenslanders". 

 

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