ASX-LISTED rail freight operator Aurizon has partnered with a family-owned competitor to support its growing containerised freight business amid disruptive rail infrastructure works in Queensland.
Aurizon’s three-year agreement with SCT Logistics will deliver customers increased frequency and faster rail services on Australia’s east coast and help overcome ongoing disruption caused by construction of the Cross River Rail project in south-east Queensland, stretching from the Brisbane CBD to the Gold Coast.
“Not only will this agreement provide improved planning and service execution resilience to mitigate closures associated with the Cross River Rail project, but it will also significantly enhance the service offering we can provide to our customers,” Aurizon group executive bulk and containerised freight George Lippiatt said.
“On the east coast between Brisbane, Sydney and Melbourne customers will have increased services from three to eight with five services to be operated by SCT and three to be operated by Aurizon.”
Under the deal, SCT will operate five weekly services (Brisbane-Sydney-Melbourne) and Aurizon will operate three weekly services between Sydney and Melbourne.
As an outcome of this agreement, Aurizon is considering an extra weekly service on the east-west corridor from Sydney or Melbourne to Perth, taking the offering from seven to eight services from mid-2026.
Mr Lippiatt said Aurizon currently used terminal facilities at the Brisbane Multimodal Terminal (BMT) at Port of Brisbane for loading and unloading of trains on the Melbourne-Brisbane route.
“We have a strong working relationship with BMT, however unfortunately access to the terminal requires our trains to cross or intersect with key interface points of the Cross River Rail construction,” Mr Lippiatt said.
“While we appreciate the importance of the Cross River Rail project it has caused significant ongoing disruption to our business with repeated closures of sections of the rail network. Construction is now not expected to be completed until 2029, and this disruption is expected to intensify in coming years.”
To mitigate this impact for customers, Aurizon has agreed with SCT Logistics to use its terminal at Bromelton, south of Brisbane and outside the construction footprint of Cross River Rail.
SCT will provide a “hook and pull” service for Aurizon trains to and from the Bromelton terminal, which will see SCT trains hauling Aurizon’s wagons on SCT’s existing Brisbane to Melbourne services for the duration of Cross River Rail disruptions.
“The agreement is limited to the movement of Aurizon’s wagons and associated terminal services for those wagons,” an Aurizon spokesperson told DCN. “Aurizon has also decided to implement additional services between Sydney and Melbourne on its own trains and is considering an additional service to Perth. SCT and Aurizon continue to compete as rail linehaul service providers, including on the Brisbane-Melbourne services the subject of the hook and pull agreement.”
“Regulatory approval is not required for this agreement,” the spokesperson added.
DCN sought comment on the arrangement from the Australian Competition and Consumer Commission but did not receive a response by time of publishing.