Queensland Rail increases its Hunter share

National transport and logistics company QR has signed a long-term coal haulage contract with BHP Billiton subsidiary Hunter Valley Energy Coal PTY LTD (HEVC).

QR National Coal will transport thermal coal 120 km from HVEC’s Mount Arthur mine near Muswellbrook to Port Waratah Coal Services’ two terminals and the new Newcastle Coal Infrastructure Group terminal, in which BHP is a shareholder, in line with the expansion of the mine.

QR CEO Lance Hockridge said QR was pleased to continue its relationship with BHP Billiton.

“With this contract and two contracts recently announced with Peabody Energy and Felix Resources we will almost double our chare of the Hunter Valley market to about 30%,” Mr Hockridge said.

“With coal volumes to the Port of Newcastle forecast to double in size over the next 10 years we are committed to further extending our position by increasing our share of the market and capturing market growth.

“These attractive fundamentals explain why the Hunter Valley is one of the key areas we have targeted for growth.”

QR plans to spend $290m in new rolling stock to support the contracts.