Aurizon : signs agreement for new intermodal hub in Sydney

​​

Aurizon has signed a Heads of Agreement with NSW Ports to operate the Enfield Intermodal Logistics Centre (ILC) in Western Sydney and lease the land at the site, enabling the Company to accelerate growth plans for its intermodal freight business.

The Heads of Agreement is non-binding at this stage but the parties expect a binding lease and terminal operator agreement to be signed in the first quarter of 2016.

The agreement will see Aurizon begin to relocate its intermodal terminal operations from Yennora in March 2016 and provide a platform for growth into the import-export (IMEX) market with potential for services from Port Botany. The move to Enfield will be cost-neutral and offer new revenue opportunities for Aurizon's intermodal business.

'Enfield will enable the creation of a new Aurizon intermodal hub in Western Sydney with greater competitiveness, productivity and safety. The Enfield site is far superior to Yennora in terms of its location and on-site logistics, and will provide the platform for an improved service offering for new and existing customers,' EVP Commercial & Marketing, Mauro Neves said.

'It will support longer trains, improve scheduling and cycle times, and reduce train shunting. It will also allow faster transit time on the Melbourne, Brisbane and North Queensland corridors and an opportunity to target increased volumes for both north-south and east-west interstate operations.'

The 60 hectare Enfield ILC is a 'turn-key' site located 18 kilometres from Port Botany on a dedicated freight line and with direct access to the interstate mainline corridor. It is in close proximity to the M4 and M5 motorways. The site includes an intermodal terminal, warehousing and buildings with vacant land for the development of rail related warehousing, freight forwarding, IMEX, transport and distribution facilities.

The relocation to Enfield will allow Aurizon to develop an IMEX business and provide a suitable and immediate solution for the interstate business while the Moorebank Intermodal Terminal is being developed. The Moorebank terminal is a joint venture between QUBE Holdings (67%) and Aurizon (33%). Aurizon remains committed to progressing the staged development of the Moorebank terminal with its partner Qube. Progressing the Enfield opportunity is complementary to the Moorebank terminal as it provides choices for customers and services.

NSW Ports Interim CEO Marika Calfas said, 'NSW Ports is delighted to partner with a top 50 ASX Company in the Australian rail industry. Aurizon's growth aspirations align with our strategy to build and develop a sustainable container supply chain within NSW, including a focus on increasing the rail mode share of containers to and from Port Botany.'

Today's announcement comes on the back of Aurizon recently adding 175 new wagons into its national intermodal operations, a commitment for a new intermodal terminal in Townsville and the introduction of a new freight management technology to improve customer service and grow the business.

Australia's domestic freight task is expected to triple from its current size by 2050. There is a concerted industry push to increase rail's share of the growing freight transport task through productivity and customer focused initiatives.

About NSW Ports

NSW Ports is a consortium of leading institutional investors comprising; IFM Investors, Australian Super, Tawreed Investments Limited and Q Super, Cbus, Hesta and Hostplus. NSW Ports is responsible for managing Port Botany, Port Kembla, the Cooks River Intermodal Terminal and Enfield Intermodal Logistics Centre. Port Botany and Port Kembla are nationally significant infrastructure assets which serve as the primary import and export gateways to New South Wales (NSW), Australia's largest economy and home to approximately one third of the nation's population. Port Botany serves a vital role in the economy of NSW. As NSW's largest container port, Port Botany handles 99 percent of the State's container demand.

About Aurizon

Aurizon (ASX: AZJ) is Australia's largest rail-based transport company and a top 50 ASX company. Each year the Company transports more than 250 million tonnes of Australian commodities, connecting miners, primary producers, and industry with international and domestic markets. It provides customers with integrated freight and logistics solutions across an extensive national rail and road network, traversing Australia. The Company also owns and operates one of the world's largest coal rail networks, linking more than 50 mines with three major ports in Queensland.