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QR National today marked its first day as a new company by announcing a $250 million contract win in its Queensland coal business.

CEO and Managing Director Lance Hockridge said the 10-year coal contract with Jellinbah Resources highlighted the growth prospects of the national transport and logistics company.

“QR National is already Australia's largest transport company with an incredibly sound platform for future growth,” he said.

“The Jellinbah contract demonstrates the strength and customer focus of our coal haulage business in what is clearly a highly-competitive market.

“QR National Coal remains a market leader in Queensland and will have secured 30% of the NSW Hunter Valley market by 2011/12 when new long-term contracts come on line.”

QR National will haul up to 5.1 million tonnes per annum (mtpa) from the Jellinbah East coal mine in Central Queensland to the Port of Gladstone from 1 July 2010.

QR National also transports 3.25 mtpa from the company’s Lake Vermont coal mine to the Dalrymple Bay Coal Terminal near Mackay and the port of Gladstone.

Tonnages may increase to 6 mtpa when the Northern Missing Link rail line is built.

Today (1 July) marks the completion of one of the biggest demergers in Australian corporate history and a major milestone with in the public float of QR National later this year.
National transport business QR Limited has been split into two new businesses – Queensland Rail and QR National.

About 6,500 staff in Queensland will stay in government hands with the state’s passenger operations and regional track. It will be called ‘Queensland Rail’ taking the name, logo and heritage of a Queensland icon that saw its first train run at Grandchester, west of Ipswich, on 31 July 1865.

The balance of the business – coal and freight train services, the export coal network in Queensland and rollingstock manufacturer and track maintenance services – has become QR National.

QR National is set for listing on the ASX later this year via an Initial Public Offering.

QR is Australia’s largest transport and logistics business hauling almost 250 million tonnes a year with revenue approaching $4 billion.

Each year more than $50 billion worth of exports and domestic produce ride on its wagons and tracks to ports and markets across the country.

Its 9,000 staff are located across the continent, from Cairns to Perth – about 7,000 kilometres apart by rail.

“For the majority of staff, it is business as usual from today July - whether you are a coal train driver or a tradesperson in the Rockhampton workshops,” Mr Hockridge said.

“There's been an enormous amount of work done since December to ensure the separation goes smoothly this week, in terms of the organisation and our people.

"We've now got two outstanding Boards in place for Queensland Rail and QR National, company structures confirmed and people in place for each business.

“It's all about setting up both companies - QR National and Queensland Rail - for future success.

“Moving forward over coming weeks and months, the two new companies will move into full swing with absolute focus on their respective customers and stakeholders.

“It's about building on the achievements of an iconic Queensland company and taking it to the next level in terms of customer service and operational performance."

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