The New Hope Corporation Limited (ASX:NHC) is understood to be among the suitors looking to buy Aurizon Holdings Limited (ASX:AZJ)'s $1 billion East Coast Rail business as it prospers from surging demand for coal. It is understood that New Hope is bidding for the business as part of a consortium with Oaktree Capital Management, L.P. and Canadian private equity firm Brookfield Asset Management Inc. (TSX:BAM.A). New Hope owns Queensland Bulk Handling, which is Brisbane's dominant coal export terminal, along with the Bengalla thermal coal mine in NSW and the New Acland thermal coal mine in Queensland, among others.

East Coast Rail was previously owned by rival coal miner Glencore, which remains a customer, and its contracts stipulate that the majority owner of the business cannot be a coal producer. New Hope probably thinks coal will be in the market longer than many expect, and that it can run East Coast Rail more efficiently than it is now. However, it is likely to provide stable cash flows for years.

Most believe that New Hope is disciplined on price and will walk away if the deal does not make financial sense.