Aurizon Holdings Limited
(ASX:AZJ) says it can continue to lift productivty with fewer trains as it cuts its ore locomotives and wagons.
The rail company will take a $197 million charge against first-half profit due to the fleet reduction and the write-off expenses related to projects in the Galilee Basin that won't proceed because of the downturn in the coal market.
Aurizon terminated the Surat Basin Rail Joint Venture after resource giant Glencore put its Wandoan project on hold, accounting for an estimated half of the $47 million in project expenses to be written off in the first-half result.
The company also recently reduced planned construction work to develop the $10 billion coal project in the Galilee Basin for GVK of India and Gina Rinehart.
Aurizon generated a net profit of $446.9 million in fiscal 2013.
