Trailer Magazine

Linfox to expand intermodal business

  • Posted on Monday 14th, August 2017.

Linfox has entered into a consortium with Pacific National to purchase the Aurizon containerised freight haulage and end-to-end freight forwarding capability on Queensland’s northern freight line.

Linfox said forming a consortium with Pacific National is the first step towards purchasing these strategically significant assets.   

If successful, this acquisition will enable Linfox to improve the scale and scope of the freight forwarding services it offers to national and large Australian freight forwarding customers, including those delivering freight to Northern Queensland.

"As an Australian-owned company we are proud to be investing within Australia and in the team that runs this successful business in Queensland," Linfox said.

"Our consortium partner, Pacific National will be working with the Australian Competition and Consumer Commission (ACCC) to gain clearance for the acquisition of other assets of Aurizon Queensland Intermodal. Linfox will support this process."

If the Pacific National transaction is cleared by the ACCC, Linfox will reportedly acquire and use the rail haulage capacity supplied by Pacific National to supply intra-state and interstate freight forwarding services to customers in Queensland and Northern Queensland.

The acquisition will also include pick-up and delivery and warehousing services, but exclude standard gauge haulage to and from Acacia Ridge and hook and pull contracts for train services.

Pacific National has purchased the Aurizon Acacia Ridge terminal, with the transactions bringing in a total of $220 million. Aurizon’s remaining intermodal business, outside of Queensland, will be closed by June 2018.

“The decision to exit Aurizon’s Intermodal business is in response to the continued losses in this business and market dynamics, with sale proceeds and future capital able to be recycled into other profitable parts of the company,” said Aurizon Chairman, Tim Poole.

“The exit will allow Aurizon to focus on creating shareholder value through its core strengths and capabilities of heavy rail haulage operations and rail infrastructure management,” he said.

Aurizon CEO, Andrew Harding, added: “Following the review of our freight business, we have made the decision to exit intermodal by closing down our interstate operations and selling Queensland Intermodal and Acacia Ridge terminal. Initiatives are in place to turn around the performance of our bulk business following significant impairments in July.

“Going forward, we will leverage our operational and commercial capability in heavy haulage operations and rail infrastructure to create value and certainty for shareholders.”

  • Latest Issue

  • Click here to join the CRT network today
  • Keep up to date on the latest news and developments in the commercial road transport industry. Sign up to CRT News today to receive a FREE weekly E-newsletter delivered straight to your inbox.

© Copyright Prime Creative Media. All rights reserved.

Find us on Google+