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4-Traders Homepage  >  Equities  >  AUSTRALIAN SECURITIES EXCHANGE LIMITED  >  Aurizon Holdings Ltd       AU000000QRN6

AURIZON HOLDINGS LTD
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QR National : and Vale collaborate on Galilee and Bowen Basin rail solutions

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05/17/2012 | 04:03am CET

QR National today announced it has signed a Memorandum of Understanding (MOU) with global miner Vale to evaluate and scope integrated rail proposals for rail infrastructure and coal haulage services from new mines proposed by Vale in the Galilee and Bowen Basins.

Preliminary commercial discussions will be progressed under the MOU on the identification of opportunities to optimise the design, configuration and operations of the coal supply chain.

The mine and rail development timelines are aligned to match the creation of terminal capacity currently being developed at Central Queensland ports.

QR National currently hauls coal from Vale's Carborough Downs mine near Moranbah to Dalrymple Bay Coal Terminal.

Executive Vice President for Strategy and Business Development Ken Lewsey said by leveraging the expandability of the existing rail network, Vale and QR National could efficiently match rail capacity upgrades with planned mine production ramp-ups.

"Expansions of the existing coal chain offers producers efficient and low cost rail solutions to support the development of new resources in a competitive global coal market," he said.

"Substantial use of existing rail corridors also minimises the impact on communities and the environment, while leveraging QR National's established capability in integrated heavy-haul infrastructure and coal haulage services in Queensland.

"We are committed to growth in Queensland and we see our collaboration with Vale as an exciting growth opportunity for both companies in the Galilee and Bowen Basins."

QR National is currently progressing environmental and engineering studies for the Central

Queensland Integrated Rail Project (CQIRP) which provides for an integrated rail network running from the Galilee Basin in the west to Central Queensland ports in the east.

In January 2012, CQIRP was declared a Project of State Significance by the Queensland Government.

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EBIT 2018 930 M
Net income 2018 466 M
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Yield 2018 5,75%
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Mean consensus HOLD
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Average target price 4,75  AUD
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