Aurizon and CBH sign long-term agreement for WA grain haulage
Aurizon and the CBH Group have signed a long-term rail haulage and maintenance contract covering all rail requirements for CBH's Western Australian grain harvests. The performance-based agreement has an initial term of six years, with options to extend to 10 years.
Aurizon will begin hauling for CBH later this month, delivering from regional rail receival sites that feed into export terminals at Geraldton, Kwinana, Albany and Esperance. CBH handles an average annual harvest of 14 million tonnes of grain, with approximately 60% currently on rail.
Aurizon will utilise the existing grain haulage fleet of 10 trains that is owned by CBH. In addition, Aurizon will introduce an extra three Aurizon-owned grain trains and undertake upgrades to maintenance, rail yards and operational facilities at Forrestfield, Narngulu, Merredin, Albany and Wagin. In addition, Aurizon will invest at Avon to bring the maintenance facility and yards back into operation.
The CBH contract will be delivered by the Aurizon Bulk business. Aurizon Bulk provides integrated supply chain services, including rail and road transportation, port services and material handling for a range of mining, metal, industrial and agricultural customers throughout Western Australia, Queensland and New South Wales.
"The CBH business represents one of the nation's largest and most valuable export supply chains. Aurizon understands our responsibility in delivering for CBH and the state's grain growers so they can meet their commitments with end-customers in international markets," said Clay McDonald, Group Executive of Aurizon Bulk.
"Aurizon is committed to driving improved safety and operational performance for CBH rail operations and to delivering more tonnes on rail in Western Australia. Our investment in additional trains and upgraded facilities will allow Aurizon to boost rail capacity for Western Australian grain growers, while ensuring a well-maintained and efficiently-operated fleet is available to deliver safe, reliable services for CBH, " Clay said.
General Manager Iron Ore and Central West Anna Dartnell said Aurizon was engaged earlier this year by CBH to provide additional capacity for rail haulage during the bumper Western Australian grain harvest.
"The Aurizon Bulk team mobilised quickly, drawing on the resources and fleet of Aurizon's national business, to provide the surge rail capacity that was required by CBH," Anna said.
"We are committed to safe, reliable and efficient operations for our customers and we are delighted that our performance has been now recognised with this long-term contract with a highly-valued customer."
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