Aurizon misses 2023-24 Australian coal haulage target

Australian rail firm Aurizon expects to increase its coal haulage volumes in the 2024-25 fiscal year ending 30 June after it missed its 2023-24 target.

The firm hauled 189mn t of coal in 2023-24, up from 185mn t in a weather-affected 2022-23 but below the 194mn t hauled in 2021-22. The firm revised its guidance to 5pc year-on-year growth when it announced its half-year results on 12 February, down from 10pc indicated in August 2023 but only achieved a 2pc growth. Aurizon expects further growth in 2024-25, with its coal haulage contracted volumes rising to 235mn t from 228mn t in 2023-24.

Aurizon's coal throughput was lower on the Central Queensland Coal Network (CQCN), particularly the Goonyella and Newlands mine that connect into the ports of Hay Point, Dalrymple Bay and Abbot Point. Mining firms, including Coronado, have noted that maintenance on the Blackwater line, which connects into Gladstone, affected deliveries into that port during July-August. Gladstone coal shipments dropped by 14pc to 5mn t in July compared with both year-earlier and month-earlier comparisons.

The fall in CQCN throughput was offset by a 10pc increase in throughput in New South Wales (NSW) and South East Queensland (SEQ).

Planned and unplanned maintenance across the supply chain, including at the mine, port and rail affected throughput in CQCN, according to Aurizon chief executive Andrew Harding.

Aurizon's coal division made earnings before interest, tax, amortisation and depreciation (ebitda) of A$528mn ($348mn) in 2023-24, up by 16pc on a year earlier, with higher revenue yield offsetting rising costs. The firm expects similar editda in 2024-25, with higher volumes offsetting higher costs.

Aurizon is operated at around 83pc utilisation rates in 2023-24, up from 78pc during the Covid-19 pandemic and is aiming to return to 90pc. But it is facing competition from BMA Rail in Queensland and Magnetic Rail in NSW, as well as Pacific National in both states.

By Jo Clarke