Linfox, Pacic National snap up Aurizon arm
Qld Intermodal business to be sold to local consortium, Acacia Ridge to be sold to PN
LINFOX AND PACIFIC NATIONAL (PN) are to be the beneficiaries of Aurizon’s departure from intermodal operations.
The Queensland Intermodal business is to be sold to a consortium of the two local giants, while the Acacia Ridge terminal is to be sold to PN.
Total consideration for the two transactions is $220 million but the deal is subject to Australian Competition and Consumer Commission (ACCC) and, due to PN’s ownership structure, Foreign Investment & Review Board approval.
The remaining Intermodal business, outside of Queensland, will be closed, Aurizon says.
The Linfox-PN consortium will take up the containerised freight haulage and end-to-end freight forwarding capability on Queensland’s northern freight line.
“Forming a consortium with PN is the first step towards purchasing these strategically significant assets which are currently owned by Aurizon Queensland Intermodal,” Linfox says.
“If successful, this acquisition will enable Linfox to improve the scale and scope of the freight forwarding services it offers to national and large Australian freight forwarding customers, including those delivering freight to northern Qld.”
If the PN transaction is cleared by the ACCC, Linfox will acquire and use the rail haulage capacity supplied by Pacific National for intra- and interstate freight forwarding services to customers in Qld.
The acquisition also includes pick-up and delivery and warehousing services, but exclude standard gauge haulage to and from Acacia Ridge, and hook and pull contracts for train services.
The Aurizon move follows a boardinitiated 12-month review that “examined future commercial opportunities including divestment, joint venture, retention of the business, or closure of parts that did not offer a sustainable commercial future”.
“In making the decision to exit, we considered the significant financial losses that have been sustained year on year by Aurizon Intermodal,” MD and CEO Andrew Harding says.
“Exiting the business will allow the company to focus on core, profitable parts of the Aurizon portfolio, including the ability to recycle capital into other growing parts of our business.”
Queensland Intermodal sees the transfer of some 350 positions as well as assets, commercial and operational arrangements to the consortium.