Aurizon expands footprint

AURIZON will pay $2.35bn to acquire Macquarie Asset Management’s One Rail Australia haulage business, with the company to use its existing debt facilities to fund the deal.

The deal will see the Brisbane-based rail group expand its business in Central Australia, with Aurizon saying it will divest One Rail’s Hunter Valley and Queensland coal haulage operations to allay any potential concerns from the competition regulator.

It will keep its South Australian and Northern Territory operations – Tarcoola-to-Darwin rail infrastructure, South Australian regional infrastructure, five rail yards, 68 active locomotives, more than 1000 active wagons and approximately 400 employees.

Aurizon said One Rail booked earnings before interest, tax, depreciation and amortisation of $220m last financial year.

Managing director Andrew Harding (pictured) said the acquisition offered a “unique” chance to grow Aurizon’s national footprint. “The One Rail acquisition is highly strategic and transformative for Aurizon,” he said. “It is fully aligned with Aurizon’s strategy to grow our bulk freight business into new markets and new geographies in Australia.”

Aurizon has been looking to diversify beyond its coal haulage business for some time.

Aurizon shares slumped 6.2 per cent to $3.65.