Port and rail business Asciano Group
(ASX:AIO) has signed a long-term contract with freight forwarding company Toll Holdings
(ASX:TOL) for the haulage of intermodal rail freight.
Asciano says the contract is expected to generate revenues of up to $1 billion over the next five years.
The initial five year contract includes options to extend for up to another 10 years.
Under the contract, Asciano’s Pacific National Intermodal division will supply rail haulage services to Toll for the interstate movement of containers and cars.
Pacific National has also granted Toll a lease over land within its Perth Freight Terminal precinct, where it says it intends to develop a freight forwarding facility immediately adjacent to the rail terminal.
CEO Mark Rowsthorn says the benefits of co-locating rail and freight forwarding facilities are becoming increasingly important and may become a model for the development of intermodal freight in Australia.
Asciano posted a loss of $246.44 million for the 12 months to June 30, 2009
