Better deal offered to Aurizon
AURIZON shares have risen after the regulator offered it a better deal on how much it can make from its monopoly coal network in Queensland.
The Queensland Competition Authority has released its longawaited final decision – a massive 460- page document – that allows Aurizon to earn $ 4.12 billion over four years. That is about $ 230 million more than previously granted but still $ 769 million short of what the rail operator had asked for originally.
It follows a 2 ½ - year battle between Aurizon and the QCA, including Supreme Court action which Aurizon lost last month.
Aurizon has 60 days to respond and yesterday declined to say if it would comply.
“We will review the final decision in detail and make a determination regarding any potential impact on operating practices,” a spokesman said.
Industry analysts commented that it was a more positive decision than expected, however they also said an appeal by Aurizon was considered likely.