Ports and rail operator Asciano Group
(ASX:AIO) says its subsidiary Pacific National has signed a 10 year haulage contract with its largest coal customer Xstrata Coal.
The contract is expected to generate revenue in excess of $800 million for Asciano over the ten year period.
The contract, which is to commence in January 2011, covers the significant majority of Xstrata’s current coal haulage volumes across the Hunter Valley and Port Kembla regions in NSW.
Asciano CEO Mark Rowsthorn says this contract is the largest executed single customer contract for Pacific National’s Coal Division.
Asciano says the contract enhances Pacific National’s significant footprint in coal haulage in NSW, which is expected to increase in scale by more than 50 per cent in the next five years.
Asciano’s 2008 net profit was $197.4 million.
