Aurizon

Australian rail freight company From Wikipedia, the free encyclopedia

Aurizon Holdings Limited (/əˈrzən/ ə-RY-zən)[2][3] is a freight rail transport company in Australia, formerly named QR National Limited and branded QR National. In 2015, it was the world's largest rail transporter of coal from mine to port.[4] Formerly a Queensland Government-owned corporation, it was privatised and floated on the Australian Securities Exchange (ASX) in November 2010.[5] The company was originally established in 2004-05 when the coal, bulk and container transport divisions of Queensland Rail were brought under one banner as QR National.

FormerlyQR National Limited
Company typeGovernment-owned corporation
(2004-2010)
Publicly traded company
(2010-present)
Quick facts Formerly, Company type ...
Aurizon Holdings Limited
FormerlyQR National Limited
Company typeGovernment-owned corporation
(2004-2010)
Publicly traded company
(2010-present)
ASX: AZJ
IndustryRail transport
Founded2004; 22 years ago (2004)
Headquarters,
Australia
Area served
Key people
  • Chairman: Tim Poole
  • CEO: Andrew Harding
ProductsCoal, bulk, and containerised freight
ServicesLogistics, supply chain management, line haul, and terminal operations
RevenueAUD$3.844 billion (2024)
AUD$406 (2024)
Number of employees
4,883 (2020)[1]
DivisionsNetwork, Coal, Bulk, Containerised Freight
Websiteaurizon.com.au
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In 2019, the company operated in five Australian states. On an average day, it moved more than 700,000 metric tons (690,000 long tons) of coal, iron ore, other minerals, agricultural products and general freight, equating to more than 250 million tonnes annually. Aurizon also managed the 2670 kilometre (1660 mi)-long Central Queensland coal network that links mines to coal ports at Bowen, Gladstone and Mackay. It was the largest haulier of iron ore outside the Pilbara.[6]

In 2021, a major corporate change was foreshadowed when Aurizon sought to acquire rail operator One Rail Australia. The corporate regulator, the Australian Competition and Consumer Commission, approved the sale subject to One Rail Australia's coal-haulage business in New South Wales and Queensland being divested.[7] Aurizon's purchase of One Rail Australia's assets not subject to divestiture occurred in July 2022.[8] Divestiture of the remaining assets occurred on sale to Magnetic Rail Group on 17 February 2023.[9]

The company in 2023 was Australia's largest rail-based transport business, transporting more than 250 million tonnes (246 million long tons) of commodities per year.[10]

QR National

QR National logo (2004–2010)

The QR National brand was established in the 2004-05 financial year when Queensland Rail's coal, bulk and containerised business units were brought under one banner.[citation needed]

The company's major traffic at the time was coal, both for export and domestic power generation, in Queensland.[11] In 2005, QR National started to operate export coal services in the New South Wales Hunter Valley.[12] By 2008, its operations extended across the entire mainland other than the Northern Territory when their first MelbournePerth intermodal container service started.[13] In August 2008, QR National took over the operation of Melbourne–Horsham container service for Wimmera Container Line, after Pacific National withdrew its service.[14]

Public float

QR National logo (2010–2012)

In 2009, the Queensland Government announced that Queensland Rail's commercial activities were to be separated from the government's core passenger service responsibilities, formed into a new company named QR National Limited, and privatised.[15][16][17] The new company was incorporated the following year, taking:

  • the coal business in Queensland and New South Wales
  • regional freight business in Queensland
  • bulk mineral and grain haulage in Queensland and Western Australia
  • containerised freight between Cairns, Brisbane, Sydney, Melbourne, Adelaide and Perth.[18]

QR National obtained a 99-year lease over the 2300 kilometres (1400 miles) Queensland coal network, comprising:[19]

On acquiring the lease, QR National became responsible for the maintenance of the coal lines.[citation needed]

The rolling stock workshops at Redbank, Rockhampton and Townsville were included in the privatisation.[20]

The float took place in November 2010.[21]

In August 2021, Aurizon signed a six year agreement with CBH Group (with two options to extend for a further two years) to provide rail haulage services for their grain trains.[22][23] Although scheduled to transition in May 2022, all parties agreed to bring the handover date forward to September 2021.[24][25] Aurizon had already been informally providing rail haulage services in the Geraldton region since mid-2021.[citation needed] .[citation needed]

In February 2022, Aurizon commenced a five-year contract to haul mineral sands from Broken Hill to Kwinana for Tronox, to be extended 320 km east to Ivanhoe, where a new loading facility has been constructed.[26]

Re-branding as Aurizon

Following a vote by its shareholders, in 2012 QR National was rebranded as Aurizon.[27][28] The CEO at the time, Lance Hockridge, said the new name derived from the words Australia and horizon. Marketers opined that the name was "a nearly perfect example of all that can go wrong with a rebranding" and that it was "a classic case of people making a weird hybrid name to try and make it unique and interesting so that people will remember it. This is not true: people don't remember made-up words."[29]

Company sales and purchases

In 2005, QR National incorporated a subsidiary, Interail, which had been acquired in 2002 and operated in New South Wales.[30][31]

In the same year, QR National acquired logistics company CRT Group, for which it already provided line haulage.[32][33]

In 2006, QR National acquired Australian Railroad Group (ARG), which operated in New South Wales, South Australia and Western Australia.[34][35][36] ARG remained a separate subsidiary operation until it was rebranded as QR National in 2011.[citation needed]

In 2007, the company acquired the Golden Bros Group.[37]

In 2019, after a Federal Court judgement, Aurizon's intermodal and trucking business was acquired by Linfox for A$7.3 million.[38][39]

Purchase of One Rail Australia non-coal assets

In October 2021, Aurizon agreed terms to purchase One Rail Australia.[40] The transaction was approved in July 2022 by the Australian Competition and Consumer Commission (ACCC) after the commission accepted Aurizon's court-enforceable undertaking to dispose of the seller's Hunter Valley coal haulage and Queensland coal haulage business to maintain competition levels. The ACCC Chair, Gina Cass-Gottlieb, said: "We are also satisfied that the divestment of One Rail's east coast business would preserve it as a potential competitor to Aurizon for the supply of non-coal bulk rail haulage in the future, and Aurizon would continue to be constrained by a number of existing bulk rail haulage competitors.”[41][42][43] The sale was completed on 29 July 2022,[44][45]:7 and Aurizon took over One Rail Australia's South Australian, Northern Territory and interstate operations the following day under the brand, "Aurizon Bulk Central".[46]

In December 2022, Aurizon agreed to an offer by Magnetic Rail Group Pty Ltd to purchase the divested assets.[47] The buyer was to pay about $A425 million ($US284.3 million) – the equity value of the east coast business – and assume existing debt facilities, which originally totalled $A500 million. Proceeds$, A125 million of which was to be deferred for 12 months, would be used initially to reduce Aurizon's debt and would form part of Aurizon's available capital.[48] After the ACCC gave regulatory approval, the sale was completed on 17 February 2023.[49]

Price regulation

As Aurizon's infrastructure was a monopoly, it was subject in 2018 to regulation by government organisations including the Queensland Competition Authority. Aurizon disputed the price that it should be allowed to charge its clients – for example when the Authority used a lower weighted average cost of capital that did not account for the risk that clean energy poses to fossil fuel.[50]

Events after purchase of ORA non-coal assets

On 20 February 2023, Aurizon announced it had re-entered the interstate intermodal market on being awarded a A$1.8 billion 11-year contract with Team Global Express (formerly Toll Global Express) – the largest non-coal contract in the history of the company. The company stated that services would begin in April 2023 and that by April 2024, five weekly services would run east–west (Melbourne–Sydney–Adelaide–Perth); two would run north–south (Brisbane–Sydney–Melbourne).[51][52] The first revenue service of this contract departed Melbourne for Perth on 8 April.[citation needed]

In March 2023, Aurizon and Viterra proposed that the Australian federal government supply A$220 million in funding to repair and upgrade the Eyre Peninsula Railway lines. The proposal included re-opening the Port Lincoln–Wudinna and Cummins-Kimba lines and upgrading the outloading facilities at Viterra's Lock, Wudinna, Cummins, Kimba and Rudall sites. An annual target of at least 1.3 million tonnes of grain haulage was estimated. Aurizon and Viterra planned to have the network reopened within 12 months if funding were approved.[53][54]

East coast container service

In February 2023, Aurizon inaugurated two Melbourne–Perth containerised freight services and in September 2023 a weekly return container service on the Melbourne-SydneyBrisbane corridor in collaboration with its customer, Team Global Express.[55]

Accidents

Freight train Y279

On 23 February 2022, as part of the 2022 eastern Australia floods, freight train Y279 derailed at approximately 3:30am due to flash flooding that had resulted in a track washout at the 149.020km point just south of Traveston.[56]

Locomotive fleet

More information Class, Image ...
Class Image Type Top speed
(km/h)
Built Number Business unit Use and area of operation Notes
1435 mm (4 ft 8+12 in) Standard gauge fleet
AC class Diesel-electric 115 2009 8 Aurizon Bulk West Western Australia Ex Australian Railroad Group
ACB class Diesel-electric 115 2011 6 Aurizon Bulk West Western Australia Ex Australian Railroad Group
ACC class Diesel-electric 115 2013 3 Aurizon Bulk West Western Australia ACC6032 Allocated to Bulk Central/Intermodal
ACD class Diesel-electric 115 2022-2023 15 Aurizon Bulk Central/East NSW, Interstate mineral sands ACD6050 - ACD6055 allocated to Intermodal
GWU class Diesel-electric 115 2020-2021 4 Aurizon Bulk Central South Australia/Northern Territory Ex One Rail Australia
5000 class Diesel-electric 80 2005–2007 12 Aurizon Coal Hunter Valley coal
5020 class Diesel-electric 80 2010–2014 25 Aurizon Coal Hunter Valley coal Improved version of 5000 class
6000 class Diesel-electric 115 2009 12 Aurizon Coal Hunter Valley coal Ex QR National.
6020 class Diesel-electric 115 2012 9 Aurizon Coal Hunter Valley coal 6022, 6023 & 6025 allocated to Bulk Central/Intermodal
6040 class Diesel-electric 115 2017–2018 5 Aurizon Coal Hunter valley coal
CF class Diesel-electric 115 2012–2013 2 Aurizon Coal Hunter Valley coal Ex CFCL Australia
GWA class Diesel-electric 115 2011-2012 9 Aurizon Bulk Central South Australia/Northern Territory Ex One Rail Australia
GWB class Diesel-electric 115 2019-2022 6 Aurizon Bulk Central South Australia/Northern Territory 3 ex One Rail Australia, 3 delivered to Aurizon.
Q class Diesel-electric 115 1997-1998 19 Aurizon Bulk West Western Australia Ex Australian Railroad Group
V class Diesel-electric 115 2002 1 Aurizon Bulk Central South Australia/Northern Territory Ex One Rail Australia
FQ class Diesel-electric 115 2003 4 Aurizon Bulk Central South Australia/Northern Territory Ex One Rail Australia
CLF class Diesel-electric 115 1970 2 Aurizon Bulk Central South Australia/Northern Territory Ex One Rail Australia
CLP class Diesel-electric 115 1970 4 Aurizon Bulk Central South Australia/Northern Territory Ex One Rail Australia
GM class Diesel-electric 115 1965-1967 9 Aurizon Bulk Central South Australia/Northern Territory Ex One Rail Australia
J class Diesel-electric 62 1966 3 Aurizon Bulk Central Northern Territory - Alice Springs Ex One Rail Australia 2x Former Alice Springs Shunt Locos, now stored in Dry Creek with mechanical troubles and vandalism damage from Alice Springs
G class Diesel-electric 115 1981-1989 2 Aurizon Bulk Central South Australia/Northern Territory Ex One Rail Australia
422 class Diesel-electric 115 1969–1970 7 Aurizon Bulk Central/West South Australia/Northern Territory/Western Australia 4 Ex One Rail Australia

3 Stored at Forrestfield

ALF/ ALZ class Diesel-electric 115 1976 8 Aurizon Bulk Central South Australia/Northern Territory 1 Ex Australian Railroad Group, Scrapped.

7 Ex One Rail Australia

L class Diesel-electric 115 1967 1 Aurizon Bulk West Western Australia Ex Australian Railroad Group, 1 stored
LQ class Diesel-electric 115 1967 1 Aurizon Bulk West Western Australia 1 Ex Australian Railroad Group stored at Avon Yard. 1 Ex Interail scrapped in 2016 due to an accident.
LZ class Diesel-electric 115 1967 6 Aurizon Bulk West Western Australia Ex Australian Railroad Group
3200 class Diesel-electric 100 1995–1998 3 Aurizon Bulk East New South Wales Regauged from 3 ft 6 in (1,067 mm) gauge
Queensland 1067 mm (3 ft 6 in) narrow-gauge fleet
1720 class Diesel-electric 80 1966–1970 28 Aurizon Bulk East General freight and shunting 16 other units sold to South Africa in 2012, 8 stored
2000 class Railmotor 80 1960–1970 2 Aurizon Network Queensland network track inspections Nos. 2004 and 2032
2100 class Diesel-electric 80 1970–1984 53 Aurizon Bulk East General freight and minerals 5 other units transferred to Western Australia as the DD class (see below), 4 other units sold to TasRail in 2011, 3 to South Africa in 2012, 2 stored for parts
2300 class Diesel-electric 100 1997–2002 51 Aurizon Bulk East General freight and minerals, 7 other units in Western Australia as DFZ class (see below) Rebuilt from 1550 class
2400 class Diesel-electric 100 1977–1980 38 Aurizon Bulk East General freight and minerals 18 converted to 2300 class 1 stored
2700 class Diesel-electric 110 2019–present 6 in service Aurizon Bulk East General freight and minerals These locomotives are dubbed the Super Clyde. These are rebuilt from older locomotives.
2800 class Diesel-electric 100 1995–1998 46 Aurizon Bulk East General freight and minerals 3 other units on standard gauge [see above], 1 other unit in Western Australia as PA class [see below]
4000 class Diesel-electric 100 2000–2005 49 Aurizon Coal Blackwater and Moura coal networks 4020 scrapped
4100 class Diesel-electric 100 2007–2012 56 Aurizon Coal Blackwater, Moura and Newlands coal networks Originally 75 units, 19 units transferred to Western Australia as ACN class
3100/3200 class Electric 80 1986–1989 15 Aurizon Coal Bowen Basin 63 rebuilt as 3700 class (see below), 4 other units sold to South Africa in 2012–2013, Remaining units scrapped during May and June 2016
3300/3400 class Electric 80 1994–1995 13 Aurizon Coal Blackwater coal network All Stored
3500/3600 class Electric 80 1986–1988 68 Aurizon Coal Goonyella coal network 15 stored
3551 class Electric 80 2003–2004 14 Aurizon Coal Blackwater coal network Rebuilt from 3900 class
3700 class Electric 80 2005–2007 63 Aurizon Coal Goonyella and Blackwater coal networks Rebuilt from 3100/3200 class
3800 class Electric 80 2008–2010 45 Aurizon Coal Goonyella and Blackwater coal networks
3900 class Electric 100 1988-90 11 Aurizon Coal Blackwater coal network All Stored
Western Australia 1067 mm (3 ft 6 in) narrow-gauge fleet
A class Diesel-electric 100 1960 1 Aurizon Bulk West Western Australia Ex Australian Railroad Group, 1 other unit exported to South Africa in January 2015.
AB class Diesel-electric 100 1970 2 Aurizon Bulk West Western Australia Ex Australian Railroad Group. 2 other units exported to South Africa in January 2015.
ACN class Diesel-electric 100 2011–2012 19 Aurizon Bulk West Western Australia Originally part of 4100 class, transferred to Western Australia and retained their original numbers
DAZ Class Diesel-electric 100 1972 1 Aurizon Bulk West Western Australia Stored at Forrestfield. 5 other locomotives exported to South Africa in 2015. 1 other unit converted into 1900 class and used on the iron ore narrow gauge Railways on South Australia. All converted from WAGR D Class diesel locomotives.
DBZ class Diesel-electric 100 1982 3 Aurizon Bulk West Western Australia Ex Australian Railroad Group converted from DB class 10 sold to CBH group in 2017 (later sold to Watco Auatralia).
DFZ class Diesel-electric 100 1971 7 Aurizon Bulk West Western Australia Converted from Queensland Railways 2300 Class [see above].
P class Diesel-electric 100 1989–1991 17 Aurizon Bulk West Western Australia Ex Australian Railroad Group
PA class Diesel-electric 100 1996 1 Aurizon Bulk West Western Australia Converted from Queensland Railways 2800 Class
S class Diesel-electric 90 1996 11 Aurizon Bulk West Western Australia Ex Australian Railroad Group
South Australia 1067 mm (3 ft 6 in) narrow-gauge fleet
830 class Diesel-electric 121 1960-1966 5 Aurizon Bulk Central Thevenard, South Australia Ex One Rail Australia, all stored. Last 2 operational units placed into storage April 2023 with the arrival of two 2300 class from Queensland.
900 class Diesel-electric 121 1960-1966 7 Aurizon Bulk Central Thevenard, South Australia Ex One Rail Australia, all stored. Rebuilt from 830 and NSW 48 class locomotives. Last 3 operational units placed into storage April 2023 with the arrival of two 2300 class from Queensland
1200 class Diesel-electric 100 1960-1967 2 Aurizon Bulk Central Thevenard, South Australia Ex One Rail Australia, ex WAGR A Class. Stored serviceable as backup units for the Gypsum train
1300 class Diesel-electric Unknown 1956-1965 4 Aurizon Bulk Central Whyalla, South Australia Ex One Rail Australia, ex BHP Whyalla DE Class
1600 class Diesel-electric Unknown 1971 3 Aurizon Bulk Central Thevenard, South Australia Ex One Rail Australia, formerly the NJ class.

3 stored, 2 stored serviceable as backup locos for the 2300 class in Thevenard.

2250 class Diesel-electric 100 2004 5 Aurizon Bulk Central Whyalla, South Australia Ex One Rail Australia, repatriated from South Africa in 2019 and owned by Aurizon beforehand.
2300 class Diesel-electric 100 1997–2002 2 Aurizon Bulk Central Thevenard, South Australia 2332 and 2364 trucked to Thevenard in March 2023. Both entered service on 13/04/2023.
CK class Diesel-electric 100 1967-1968 4 Aurizon Bulk Central Whyalla, South Australia Ex One Rail Australia, former Victorian Railways T class
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Former fleet

Details of Aurizon's former fleet are as follows:

Class Image Type Gauge Top speed
(km/h)
Built Number Business unit Use and area of operation Notes
421 class Diesel-electric Standard 115 1965–1966 5 Aurizon Intermodal freight, grain Ex Interail, 4 stored
423 class Diesel-electric Standard 112 1967–1969 6 Aurizon Intermodal freight, Hunter Valley Coal, Grain Renumber QR 1502 NSW.
500 class Diesel-electric Standard 80 1964 1 Aurizon Shunting, South Australia Ex Australian Railroad Group; donated to SteamRanger in October 2010
830 class Diesel-electric Narrow 115 1963 1 Aurizon Bulk Freight West Western Australia Ex Australian Railroad Group; sold to Junee Railway Workshop in 2012
2250 class Diesel-electric Narrow 100 2004–2007 25 Aurizon General freight and minerals Rebuilt from 2100 class and 1550 class. All sold to South Africa 2014–2015; five bought back by GWA to operate in South Australia in 2019 - these are now owned by Aurizon again.
2600 class Diesel-electric Narrow 100 1983 13 Aurizon Queensland coal and minerals Exported to South Africa in 2012

References

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