Aurizon profit dips amid fight with QCA

RAIL giant Aurizon has reported a 19 per cent slump in interim profit as it battles the competition watchdog over how much it can earn from its coal network in Queensland.

Brisbane-based Aurizon said net profit was $227 million in the six months to December 31 while revenue slipped 7 per cent to $1.45 billion.

Aurizon has been locked in a bitter fight with the Queensland Competition Authority over maximum returns on its central Queensland rail network, which hauls coal to ports in the region. Aurizon claims a decision by the QCA could punch a billion-dollar hole in its bottom line.

Aurizon managing director Andrew Harding said the company had made the decision to book revenue based on QCA’S final decision. He said coal shipments also had been affected by weather and industrial action.

“We forecast last year that we would see headwinds this financial year,” he said.

He said Aurizon would not launch any further legal challenge to the QCA’S decision but would make its final submission to the authority by February 18.

The company last year lost a legal battle to block the QCA decision, warning the revenue shortfall would necessitate a cut in maintenance.

He said the North Queensland floods had affected the company’s business but no staff had been injured and there had been no serious damage to company assets.

Mr Harding said demand for Australian coal overseas was driving Aurizon’s national growth plan. Over the last two years, the company had invested $110 million on its network in NSW to support shipments of the fuel.

“We are investing a further $60 million in capital and operational expenditure in Queensland over the next two years,” Mr Harding said.