Aurizon in deal to sell freight arm to Linfox
FREIGHT giant Aurizon will sell its Queensland intermodal business to Linfox for $7.3 million, a deal that will help secure about 300 jobs across the state.
The sale will include Aurizon’s freight forwarding and pick-up-and-delivery assets, rail wagons, the transfer of customer contracts and employment of the majority of Aurizon’s intermodal employees, as well as access to terminals.
Aurizon announced last August that it was offloading the loss-making freight business, including the Acacia Ridge intermodal terminal, after announcing a $188 million loss.
Aurizon will continue to seek clearance of the $205 million sale of the Acacia Ridge terminal to Pacific National, with Federal Court proceedings scheduled to be heard next month.
The sale to Linfox will see about 190 Aurizon employees involved in terminal operations and pick up and delivery services transferred to Linfox.
Around 120 Aurizon intermodal employees will transfer to the company’s bulk operations. Aurizon said yesterday that the sale avoided a potential closure of the business with the potential loss of more than 300 jobs, many of them located in regional Queensland.
Aurizon shares fell 1¢ to $4.01 yesterday.