Freight rail transport company Aurizon has received a contract from Team Global Express (TGE) to provide all linehaul services across Australia.
Under the 11-year contract, Aurizon will offer rail linehaul services that will link Perth, Adelaide, Melbourne, Sydney and Brisbane.
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The scope of the contract includes the delivery of five weekly rail services, comprising east-west (Melbourne-Sydney-Adelaide- Perth) and two north-south (Brisbane-Sydney-Melbourne).
With a boost to a full-service offering by April next year, the company will begin services for TGE in April this year.
Based on its historical volumes, TGE is said to account for around 70% of the capacity of these services.
Aurizon will also help increase volumes through additional customer growth to meet the fully installed capacity of these services of over 200,000 twenty-foot equivalent units (TEUs).
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By GlobalDataAurizon managing director and CEO Andrew Harding said: “This is our biggest non-coal revenue contract ever and Aurizon is delighted to be TGE’s rail provider for its containers transported interstate.
“It is another step in achieving our ambition to double the earnings of our Bulk business over the decade, and to deliver sustainable growth in non-coal areas of our company.
“The contract delivers to Aurizon a high-volume contract with a tier one customer, closely matched to our national footprint and our network of assets.”
In August last year, Aurizon completed the A$2.35bn ($1.75bn) acquisition of rail freight operator company One Rail Australia (ORA).
The acquisition included two businesses, ORA’s bulk rail haulage and general freight assets in South Australia and the Northern Territory, as well as the 2,200km Tarcoola-to-Darwin railway line.
