National transport and logistics company QR has announced a new long term coal haulage contract with BHP Billiton subsidiary Hunter Valley Energy Coal Pty Ltd (HVEC).
Under the contract, QR’s coal business, QRNational Coal, will transport from HVEC’s Mount Arthur thermal coal mine (near Muswellbrook) to the Port of Newcastle, in line with the expansion of the mine, which is about 120 kilometres by rail from the port.
To support the expanded contract QRNational Coal will initially invest up to $60 million on new locomotives and wagons.
QRNational Coal will deliver the coal to the Port Waratah Coal Services terminal and to the new Newcastle Coal Infrastructure Group terminal, in which BHP Billiton is a shareholder.
QR Chief Executive Officer Lance Hockridge says QR is pleased to continue its relationship with BHP Billiton.
“With this contract and two contracts recently announced with Peabody Energy and Felix Resources we will almost double our share of the Hunter Valley market to about 30%,” Mr Hockridge says.
“Our continuing success in winning new business in a market we entered only in 2005 demonstrates we are bolstering our reputation as a safe, reliable and efficient service provider against a competitor with an established position in the Hunter Valley.
“With coal volumes to the Port of Newcastle forecast to double in size over the next 10 years we are committed to further extending our position by increasing our share of the market and capturing market growth.
”These attractive fundamentals explain why the Hunter Valley is one of the key areas we have targeted for growth as we continue our national expansion and pursue our vision of being a truly great Australian company and a world leader in rail and transport."
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