Pacific National commits to $800 million dollar deal with coal giant Xstrata Coal in NSW
Pacific National has signed a new ‘take or pay’ contract with coal giant Xstrata Coal, with the deal replacing a number of existing contracts the companies already share for haulage in NSW.
The $800 million deal will run from January 1, 2011 for ten years and adds to Pacific National’s market share in the Hunter Valley region.
The Asciano-owned rail operator expects to increase its share by 50 percent in the next five years.
Asicano Managing Director and Chief Executive Mark Rowsthorn says the contract is the biggest executed single customer contract for Pacific National’s coal division and demonstrates the company’s “superior” capacity to provide coal haulage to major customers.
“We believe the scale of our operations in NSW and our ability to offer performance based contracts is important to our customers in an environment where they are accepting increased ‘take or pay’ exposure to secure long term port and track capacity,” Rowsthorn says.
“PN is looking to further utilise this competitive advantage in coal haulage to continue to grow its coal business in both NSW and Queensland.”