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Aurizon

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Aurizon Holdings Limited
FormerlyQR National Limited
Company typeGovernment-owned company then
publicly traded company
ASX: AZJ
IndustryRail transport
Founded2004; 20 years ago (2004)
Headquarters
Brisbane
,
Australia
Area served
Key people
  • Chairman: Tim Poole
  • CEO: Andrew Harding
ProductsCoal, bulk, and containerised freight
ServicesLogistics, supply chain management, line haul, and terminal operations
RevenueA$3.179 billion (June 2018)
Number of employees
4,883 (2020)[1]
DivisionsNetwork, Coal, Bulk, Intermodal (pre 2018)
Websiteaurizon.com.au

Aurizon Holdings Limited (/əˈraɪzən/ ə-RY-zən)[2][3] is a freight rail transport company in Australia, formerly named QR National Limited and branded QR National. In 2015, it was the world's largest rail transporter of coal from mine to port.[4] Formerly a Queensland Government-owned company, it was privatised and floated on the Australian Securities Exchange (ASX) in November 2010. The company was originally established in 2004–05 when the coal, bulk, and container transport divisions from Queensland Rail were brought under one banner as QR National.

In 2019, the company operated in five Australian states; on an average day it moved more than 700,000 metric tons (690,000 long tons) of coal, iron ore, other minerals, agricultural products and general freight – equating to more than 250 million tonnes annually. Aurizon also managed the 2670 kilometres (1660 miles) Central Queensland coal network that links mines to coal ports at Bowen, Gladstone and Mackay; it was the largest haulier of iron ore outside the Pilbara.[5]

In 2021, a major corporate change was foreshadowed when Aurizon sought to acquire rail operator One Rail Australia. The corporate regulator, the Australian Competition and Consumer Commission, approved the sale subject to One Rail Australia's coal-haulage business in New South Wales and Queensland being divested.[6] Aurizon's purchase of One Rail Australia's assets not subject to divestiture occurred in July 2022.[7] Divestiture of the remaining assets occurred on sale to Magnetic Rail Group on 17 February 2023.[8]

QR National

QR National logo (2004–2010)

The QR National brand was established in the 2004–05 financial year when Queensland Rail's coal, bulk and containerised business units were brought under one banner.

The company's major traffic at the time was coal, both for export and domestic power generation, in Queensland.[9] In 2005, QR National started to operate export coal services in the New South Wales Hunter Valley.[10] By 2008, its operations extended across the entire mainland other than the Northern Territory when their first Melbourne–Perth intermodal container service started.[11] In August 2008, QR National took over the operation of Melbourne–Horsham container service for Wimmera Container Line, after Pacific National withdrew its service.[12]

Public float

Main article: Public float of QR National
QR National logo (2010–2012)

In 2009, the Queensland Government announced that Queensland Rail's commercial activities were to be separated from the government's core passenger service responsibilities, formed into a new company named QR National Limited, and privatised.[13][14][15] The new company was incorporated the following year, taking:

  • the coal business in Queensland and New South Wales
  • regional freight business in Queensland
  • bulk mineral and grain haulage in Queensland and Western Australia
  • containerised freight between Cairns, Brisbane, Sydney, Melbourne, Adelaide and Perth.[16]

QR National obtained a 99-year lease over the 2300 kilometres (1400 miles) Queensland coal network, comprising:[17]

On acquiring the lease, QR National became responsible for the maintenance of the coal lines.

The rolling stock workshops at Redbank, Rockhampton and Townsville were included in the privatisation.[18]

The float took place in November 2010.[19]

In August 2021, Aurizon signed a six year agreement with CBH Group (with two options to extend for a further two years) to provide rail haulage services for their grain trains.[20][21] Although scheduled to transition in May 2022, all parties agreed to bring the handover date forward to September 2021.[22][23] Aurizon had already been informally providing rail haulage services in the Geraldton region since mid-2021.

In February 2022, Aurizon commenced a five-year contract to haul mineral sands from Broken Hill to Kwinana for Tronox, to be extended 320 km east to Ivanhoe, where a new loading facility has been constructed.[24]

Re-branding as Aurizon

Following a vote by its shareholders, in 2012 QR National was rebranded as Aurizon.[25][26] The CEO at the time, Lance Hockridge, said the new name derived from the words Australia and horizon. Marketers opined that the name was "a nearly perfect example of all that can go wrong with a rebranding" and that it was "a classic case of people making a weird hybrid name to try and make it unique and interesting so that people will remember it. This is not true: people don’t remember made-up words."[27]

Company sales and purchases

In 2005, QR National incorporated a subsidiary, Interail, which had been acquired in 2002 and operated in New South Wales.[28][29]

In the same year, QR National acquired logistics company CRT Group, for which it already provided line haulage.[30][31]

In 2006, QR National acquired Australian Railroad Group (ARG), which operated in New South Wales, South Australia and Western Australia.[32][33][34] ARG remained a separate subsidiary operation until it was rebranded as QR National in 2011.

In 2007, the company acquired the Golden Bros Group.[35]

In 2019, after a Federal Court judgement, Aurizon's intermodal and trucking business was acquired by Linfox for A$7.3 million.[36][37]

Purchase of One Rail Australia non-coal assets

In October 2021, Aurizon agreed terms to purchase One Rail Australia.[38] The transaction was approved in July 2022 by the Australian Competition and Consumer Commission (ACCC) after the commission accepted Aurizon's court-enforceable undertaking to dispose of the seller's Hunter Valley coal haulage and Queensland coal haulage business to maintain competition levels. The ACCC Chair, Gina Cass-Gottlieb, said: "We are also satisfied that the divestment of One Rail’s east coast business would preserve it as a potential competitor to Aurizon for the supply of non-coal bulk rail haulage in the future, and Aurizon would continue to be constrained by a number of existing bulk rail haulage competitors.”[39][40][41] The sale was completed on 29 July 2022,[42][43]: 7  and Aurizon took over One Rail Australia's South Australian, Northern Territory and interstate operations the following day under the brand, "Aurizon Bulk Central".[44]

In December 2022, Aurizon agreed to an offer by Magnetic Rail Group Pty Ltd to purchase the divested assets.[45] The buyer was to pay about $A425 million ($US284.3 million) – the equity value of the east coast business – and assume existing debt facilities, which originally totalled $A500 million. Proceeds$, A125 million of which was to be deferred for 12 months, would be used initially to reduce Aurizon's debt and would form part of Aurizon's available capital.[46] After the ACCC gave regulatory approval, the sale was completed on 17 February 2023.[47]

Price regulation

As Aurizon's infrastructure was a monopoly, it was subject in 2018 to regulation by government organisations including the Queensland Competition Authority. Aurizon disputed the price that it should be allowed to charge its clients – for example when the Authority used a lower weighted average cost of capital that did not account for the risk that clean energy poses to fossil fuel.[48]

Events after purchase of ORA non-coal assets

On 20 February 2023, Aurizon announced it had re-entered the interstate intermodal market on being awarded a A$1.8 billion 11-year contract with Team Global Express (formerly Toll Global Express) – the largest non-coal contract in the history of the company. The company stated that services would begin in April 2023 and that by April 2024, five weekly services would run east–west (Melbourne–Sydney–Adelaide–Perth); two would run north–south (Brisbane–Sydney–Melbourne).[49][50] The first revenue service of this contract departed Melbourne for Perth on 8 April.

In March 2023, Aurizon and Viterra proposed that the Australian federal government supply A$220 million in funding to repair and upgrade the Eyre Peninsula Railway lines. The proposal included re-opening the Port Lincoln–Wudinna and Cummins-Kimba lines and upgrading the outloading facilities at Viterra's Lock, Wudinna, Cummins, Kimba and Rudall sites. An annual target of at least 1.3 million tonnes of grain haulage was estimated. Aurizon and Viterra planned to have the network reopened within 12 months if funding were approved.[51][52]

Locomotive fleet

Class Image Type Top speed
(km/h) 		Built Number Business unit Use and area of operation Notes
1435 mm (4 ft 8+1⁄2 in) Standard gauge fleet
5000 Diesel-electric 80 2005–2007 12 Aurizon Hunter Valley coal
5020 Diesel-electric 80 2010–2014 25 Aurizon Hunter Valley coal Improved version of 5000 class
6000 Diesel-electric 115 2009 12 Aurizon Hunter Valley coal Ex QR National.
6020 Diesel-electric 115 2012 9 Aurizon Hunter Valley coal
6040 Diesel-electric 115 2017–2018 5 Aurizon Hunter valley coal
CF Diesel-electric 115 2012–2013 2 Aurizon Hunter Valley coal Ex CFCL Australia
422 Diesel-electric 115 1969–1970 4 Aurizon Bulk Central South Australia/Northern Territory Ex One Rail Australia
CLF Diesel-electric 115 1970 2 Aurizon Bulk Central South Australia/Northern Territory Ex One Rail Australia
ALF/ ALZ Diesel-electric 115 1976 8 Aurizon Bulk Central South Australia/Northern Territory 1 Ex Australian Railroad Group, Scrapped.

7 Ex One Rail Australia

CLP Diesel-electric 115 1970 4 Aurizon Bulk Central South Australia/Northern Territory Ex One Rail Australia
WAGR J class (diesel) Diesel-electric 62 1966 2 Aurizon Bulk Central Northern Territory - Alice Springs Ex One Rail Australia Former Alice Springs Shunt Locos, now stored in Dry Creek with mechanical troubles and vandalism damage from Alice Springs
AC Diesel-electric 115 2009 8 Aurizon Bulk Freight West Western Australia Ex Australian Railroad Group
ACB Diesel-electric 115 2011 6 Aurizon Bulk Freight West Western Australia Ex Australian Railroad Group
ACC Diesel-electric 115 2013 3 Aurizon Bulk Freight West Western Australia
ACD Diesel-electric 115 2022-2023 10 Aurizon Bulk Central NSW, Interstate mineral sands
G Diesel-electric 115 1981-1989 2 Aurizon Bulk Central South Australia/Northern Territory Ex One Rail Australia
GM Diesel-electric 115 1965-1967 8 Aurizon Bulk Central South Australia/Northern Territory Ex One Rail Australia
GWA Diesel-electric 115 2011-2012 9 Aurizon Bulk Central South Australia/Northern Territory Ex One Rail Australia
GWB Diesel-electric 115 2019-2022 6 Aurizon Bulk Central South Australia/Northern Territory 3 ex One Rail Australia, 3 delivered to Aurizon.
GWU Diesel-electric 115 2020-2021 4 Aurizon Bulk Central South Australia/Northern Territory Ex One Rail Australia
L Diesel-electric 115 1967 1 Aurizon Bulk Freight West Western Australia Ex Australian Railroad Group, 1 stored
LQ Diesel-electric 115 1967 2 Aurizon Bulk Freight West Western Australia 1 Ex Australian Railroad Group, 1 ex Interail, stored at Avon Yard
LZ Diesel-electric 115 1967 6 Aurizon Bulk Freight West Western Australia Ex Australian Railroad Group
Q Diesel-electric 115 1997 23 Aurizon Bulk Freight West Western Australia Ex Australian Railroad Group

4 Ex One Rail Australia (FQ Class)

3200 Diesel-electric 100 1995–1998 3 Aurizon New South Wales Regauged from 3 ft 6 in (1,067 mm) gauge
Queensland 1067 mm (3 ft 6 in) narrow-gauge fleet
1720 Diesel-electric 80 1966–1970 28 Aurizon General freight and shunting 16 other units sold to South Africa in 2012, 8 stored
2000 Railmotor 80 1960–1970 2 Aurizon Network Queensland network track inspections Nos. 2004 and 2032
2100 Diesel-electric 80 1970–1984 53 Aurizon General freight and minerals 5 other units transferred to Western Australia as the DD class (see below), 4 other units sold to TasRail in 2011, 3 to South Africa in 2012, 2 stored for parts
2300 Diesel-electric 100 1997–2002 51 Aurizon General freight and minerals, 7 other units in Western Australia as DFZ class (see below) Rebuilt from 1550 class
2400 Diesel-electric 100 1977–1980 38 Aurizon General freight and minerals 18 converted to 2300 class 1 stored
2700 Diesel-electric 110 2019–present 6 in service Aurizon General freight and minerals These locomotives are dubbed the Super Clyde. These are rebuilt from older locomotives.
2800 Diesel-electric 100 1995–1998 46 Aurizon General freight and minerals 3 other units on standard gauge (see above), 1 other unit in Western Australia as PA class (see below)
4000 Diesel-electric 100 2000–2005 49 Aurizon Coal Blackwater and Moura coal networks 4020 scrapped
4100 Diesel-electric 100 2007–2012 56 Aurizon Coal Blackwater, Moura and Newlands coal networks Originally 75 units, 19 units transferred to Western Australia as ACN class
3100/3200 Electric 80 1986–1989 15 Aurizon Coal Bowen Basin 63 rebuilt as 3700 class (see below), 4 other units sold to South Africa in 2012–2013, Remaining units scrapped during May and June 2016
3300/3400 Electric 80 1994–1995 13 Aurizon Coal Blackwater coal network Stored
3500/3600 Electric 80 1986–1988 68 Aurizon Coal Goonyella coal network 15 stored
3551 Electric 80 2003–2004 14 Aurizon Coal Blackwater coal network Rebuilt from 3900 class
3700 Electric 80 2005–2007 63 Aurizon Coal Goonyella and Blackwater coal networks Rebuilt from 3100/3200 class
3800 Electric 80 2008–2010 45 Aurizon Coal Goonyella and Blackwater coal networks
3900 Electric 100 1988-90 11 Aurizon Coal Blackwater coal network Stored
Western Australia 1067 mm (3 ft 6 in) narrow-gauge fleet
A Diesel-electric 100 1960 1 Aurizon Bulk Freight West Western Australia Ex Australian Railroad Group, 1 other unit exported to South Africa in January 2015.
AB Diesel-electric 100 1970 2 Aurizon Bulk Freight West Western Australia Ex Australian Railroad Group. 2 other units exported to South Africa in January 2015.
ACN Diesel-electric 100 2011–2012 19 Aurizon Bulk Freight West Western Australia Originally part of 4100 class, transferred to Western Australia and retained their original numbers
D Diesel-electric 100 1971 1 Aurizon Bulk Freight West Western Australia Ex Australian Railroad Group, 1 other unit exported to South Africa in January 2015.
DA Diesel-electric 100 1971 3 Aurizon Bulk Freight West Western Australia Ex Australian Railroad Group
DAZ Diesel-electric 100 1971 1 Aurizon Bulk Freight West Western Australia Ex Australian Railroad Group, 5 other units exported to South Africa in January 2015.
DB Diesel-electric 100 1982 5 Aurizon Bulk Freight West Western Australia Ex Australian Railroad Group
DBZ Diesel-electric 100 1982 5 Aurizon Bulk Freight West Western Australia Ex Australian Railroad Group
DD Diesel-electric 100 1970–1984 5 Aurizon Bulk Freight West Western Australia Converted from 2100 class
DFZ Diesel-electric 100 1971 7 Aurizon Bulk Freight West Western Australia Converted from 2300 class
P Diesel-electric 100 1989–1991 13 Aurizon Bulk Freight West Western Australia Ex Australian Railroad Group
PA Diesel-electric 100 1996 1 Aurizon Bulk Freight West Western Australia Converted from 2800 class
S Diesel-electric 90 1996 11 Aurizon Bulk Freight West Western Australia Ex Australian Railroad Group
South Australia 1067 mm (3 ft 6 in) narrow-gauge fleet
830 Diesel-electric 121 1960-1966 5 Aurizon Bulk Central Thevenard, South Australia Ex One Rail Australia, all stored. Last 2 operational units placed into storage April 2023 with the arrival of two 2300 class from Queensland
900 Diesel-electric 121 1960-1966 7 Aurizon Bulk Central Thevenard, South Australia Ex One Rail Australia, all stored. Rebuilt from 830 and NSW 48 class locomotives. Last 3 operational units placed into storage April 2023 with the arrival of two 2300 class from Queensland
1200 Diesel-electric 100 1960-1967 2 Aurizon Bulk Central Thevenard, South Australia Ex One Rail Australia, ex WAGR A class. Stored serviceable as backup units for the Gypsum train
1300 Diesel-electric Unknown 1956-1965 4 Aurizon Bulk Central Whyalla, South Australia Ex One Rail Australia, ex BHP Whyalla DE Class
1600 Diesel-electric Unknown 1971 3 Aurizon Bulk Central Thevenard, South Australia Ex One Rail Australia, formerly the NJ class.

3 stored, 2 stored serviceable as backup locos for the 2300 class in Thevenard.

2250 Diesel-electric 100 2004 5 Aurizon Bulk Central Whyalla, South Australia Ex One Rail Australia, repatriated from South Africa in 2019 and owned by Aurizon beforehand.
2300 Diesel-electric 100 1997–2002 2 Aurizon Bulk Central Thevenard, South Australia 2332 and 2364 trucked to Thevenard in March 2023. Both entered service on 13/04/2023.
CK Diesel-electric 100 1967-1968 4 Aurizon Bulk Central Whyalla, South Australia Ex One Rail Australia, former Victorian Railways T class

Former fleet

Details of Aurizon's former[when?] fleet are as follows:

Class Image Type Gauge Top speed
(km/h) 		Built Number Business unit Use and area of operation Notes
421 Diesel-electric Standard 115 1965–1966 5 Aurizon Intermodal freight, grain Ex Interail, 4 stored
423 Diesel-electric Standard 112 1967–1969 6 Aurizon Intermodal freight, Hunter Valley Coal, Grain Renumber QR 1502 NSW.
500 Diesel-electric Standard 80 1964 1 Aurizon Shunting, South Australia Ex Australian Railroad Group; donated to SteamRanger in October 2010
830 Diesel-electric Narrow 115 1963 1 Aurizon Bulk Freight West Western Australia Ex Australian Railroad Group; sold to Junee Railway Workshop in 2012
1600 Diesel-electric Narrow 80 1971 2 Aurizon Bulk Freight West Western Australia Ex Australian Railroad Group; exported to South Africa in 2015
422 Diesel-electric Standard 115 1969–1970 11 Aurizon
Aurizon Bulk Freight East
Aurizon Bulk Freight West 		Intermodal freight. 11 ex Australian Railroad Group, 2 ex Interail, some numbered as the 22 class or DC class, 3 stored. 1 other unit exported to South Africa in January 2015.
2600 Diesel-electric Narrow 100 1983 13 Aurizon Queensland coal and minerals Exported to South Africa in 2012
LDP Diesel-electric Standard 115 2009 9 Aurizon Interstate intermodal Leased from Downer EDI Rail' later returned
2250 Diesel-electric Narrow 100 2004–2007 25 Aurizon General freight and minerals Rebuilt from 2100 class and 1550 class. All sold to South Africa 2014–2015; five bought back by GWA to operate in South Australia in 2019 - these are now owned by Aurizon again.

References

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