Asciano Group
(ASX:AIO) has secured more coal haulage deals, including a ten-year $550 million contract renewal with Centennial Coal Company Ltd
(ASX:CEY).
The Centennial Coal contract will see Asciano’s subsidiary Pacific National haul 4.5 million tonnes of coal from Centennial’s mines in the Southern and Western Coalfields regions of New South Wales.
In addition, Asciano has agreed to three long term contracts with Austar, Integra Coal and Muswellbrook Coal Company.
The deals are expected to generate over $275 million in revenue and achieve Asciano’s benchmark rate of return.
Managing director Mark Rowsthorn says over the past 18 months, Pacific National has renegotiated 60 per cent of its current volumes and secured significant growth volumes as part of this process.
Asciano Group reported a loss of $975.9 million in fiscal 2010.
