Friday, July 24, 2009

QR signs new contract with global coal giant Peabody

National transport and logistics company QR today announced an 11 year contract with Peabody Energy Australia, a subsidiary of the world’s largest private sector coal producer Peabody Energy.

QR will support the contract with an investment of more than $100 million in rolling stock.

Under the contract, QR’s coal business QRNational Coal will deliver up to 12 million tonnes per annum (mtpa) of coal from Peabody’s Wambo and Wilpinjong mines to the Port of Newcastle for export to the Asian market from 2010.

"Peabody Energy Australia is excited about extending its partnership with QR into NSW to ensure efficient and effective transfer of its coal to both the existing coal port in Newcastle and the new Newcastle Infrastructure Group port of which Peabody is a shareholder," said Peabody Energy Australia Managing Director Julian Thornton.

QR Chief Executive Officer Lance Hockridge said QRNational Coal had been building credibility and market share in the Hunter Valley by demonstrating to customers that it understood their market needs.

“It is also pleasing to strengthen our working partnership with Peabody Energy Australia to build on our existing delivery of coal from five of Peabody’s operations in Queensland,” Mr Hockridge said.

QR’s Executive General Manager Coal Marcus McAuliffe said QRNational Coal aimed to repay Peabody’s faith by performing strongly and safely.

“With this contract we are increasing our minority share of the Hunter Valley market and cementing our position as a strong number two player in the market – evidence of our quality of service offering,” Mr McAuliffe said.

“The strong growth prospects of this market are underlined by the fact that we expect demand for rail capacity to the Port of Newcastle to more than double in the next decade.”

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