Port and rail company Asciano Group
(ASX:AIO) and coal miner Whitehaven Coal Ltd
(ASX:WHC) have signed a long term contract for the provision of coal haulage services from Whitehaven’s Narrabri, Werris Creek and Gunnedah loadpoints in the Gunnedah Basin of NSW.
In a statement released by Asciano today, the company says this long haul, take or pay contract is expected to generate at least $600 million of revenue for Asciano over the term of the agreement.
Asciano says this contract will more than double the rail haulage task for Whitehaven Coal over the next two years and is expected to deliver on capital to Asciano in line with the benchmarks achieved on recent coal haulage contracts.
Asciano says the new contract requires the immediate order of one train set which will be part of the company’s $160 million capital commitment announced in June and means that all 4 trains provided for in that commitment are now ordered and underwritten by long term take or pay contracts.
Whitehaven Coal says it has already invested in one train set itself which is expected to be operational in June 2010.
Asciano Group posted a $246.44 million loss in fiscal 2009, and Whitehaven Coal’s profit for the year to June 30 came to $244.21 million.
