AURIZON’S $2.35-billion deal to acquire One Rail Australia was completed on Friday.
The acquisition includes two businesses. The first comprises bulk rail haulage and general freight assets in South Australia and the Northern Territory, along with the 2200-kilometre Tarcoola-to-Darwin railway line.
Aurizon said it would integrate this business into the existing Aurizon Bulk business.
The second ORA business is a coal haulage operation in New South Wales and Queensland, known as East Coast Rail (ECR).
ECR is to be divested under the terms of an undertaking given to the Australian Competition and Consumer Commission. Aurizon has commenced a dual-track process for the divestment, to be completed via a trade sale or demerger. Until divestment, ECR will be held and operated separately to Aurizon, with an independent board and management and an independent manager approved by the ACCC.
“The One Rail acquisition is aligned with Aurizon’s growth strategy and provides the platform to expand into new markets and geographies,” Aurizon managing director and CEO Andrew Harding said.
“One Rail is a leading provider of intermodal and bulk freight in South Australia and the Northern Territory. In addition, it includes the 2200-kilometre Tarcoola-to-Darwin railway line, connecting regions rich in resources and agricultural commodities with Darwin, the closest port to Asia.”