Aurizon Holdings Limited (/əˈraɪzən/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 company, 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 from Queensland Rail were brought under one banner as QR National.
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 kilometres (1660 miles) 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.
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 WalesHunter Valley.[12] By 2008, its operations extended across the entire mainland other than the Northern Territory when their first Melbourne–Perthintermodal 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]
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]
the West Moreton coal line, which transports coal to the Port of Brisbane from New Acland coal mine (loaded at Jondaryan and the Cameby Downs coal mine (loaded at Columboola, utilising in part the QR Western Railway Line.
On acquiring the lease, QR National became responsible for the maintenance of the coal lines.
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.
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 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.
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-Sydney-Brisbane 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]
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
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
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.
References
^"AZJ.AX". Yahoo! Finance. Archived from the original on 5 December 2021. Retrieved 23 August 2020.
^"About us". One Rail Australia. 2022. Archived from the original on 30 July 2022. Retrieved 1 August 2022.
^Wenck, David (20 February 2023). "Divestment of East Coast Rail"(PDF). ASX. Australian Securities Exchange. Archived(PDF) from the original on 20 February 2023. Retrieved 20 February 2023.
^Attenborough, Peter (February 2006). "Colin Rees Transport (CRT)". Today's Railway Scene. Australian Model Railway Magazine. Vol. 22, no. 256. p. 36. Archived from the original on 17 May 2022. Retrieved 29 September 2019.
^"QR Annual Report 2006 - 2007"(PDF). Annual Reports. Queensland Rail. September 2007. Archived(PDF) from the original on 16 May 2013. Retrieved 29 September 2019.
^"QR Limited annual report 2008/09"(PDF). Parliament of Queensland. QR Limited. 2009. p. 24. Archived(PDF) from the original on 21 February 2023. Retrieved 21 February 2023.
^Wenck, David (20 February 2023). "Divestment of East Coast Rail"(PDF). ASX. Australian Securities Exchange. Archived(PDF) from the original on 20 February 2023. Retrieved 20 February 2023.
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