Aur­i­zon in deal to sell freight arm to Lin­fox

The Courier-Mail - - BUSINESS - GLEN NOR­RIS

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.

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