Lin­fox, Pacic Na­tional snap up Aur­i­zon arm

Australian Transport News - - Contents -

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.

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