Transport provider Asciano Group Ltd
(ASX:AIO) has won a $150 million rail haulage contract with Sadleirs Transport to transfer coal wagons between Melbourne and Perth.
The deal represents an expansion of an existing arrangement between Sadleir’s and Asciano’s Pacific National operation, which already sees coal transferred between Sydney and Perth.
Asciano Managing Director and CEO Mark Rowsthorn says the agreement will strengthen the company’s relationship with Pacific National, which will continue to provide all of Sadleirs interstate rail haulage needs until at least 2017.
Sadleirs Transport Managing Director Ian Cook says the deal supports the company’s growth plans.
Redevelopment of its Kewdale, Western Australian rail freight terminal and the construction of a new rail freight terminal in Spotswood, Victoria, are due for completion later this year.
The contract will generate over $150 million in revenue over the next seven years.
For the 12 months to June 30, 2009, Asciano posted a loss of $246.44 million.
