Rail group Aurizon has confirmed its interest in operating port as well as rail facilities in the Pilbara as it pushes ahead with the development of its Western Australian iron ore business.
The feasibility study Aurizon undertook with Brockman Resources and Atlas Iron to assess the merits of a multi-user railway in the Pilbara highlighted value in integrating rail and port infrastructure and operations to achieve “alignment and efficiency across the supply chain”, a company spokesperson said.
“Aurizon continues to discuss the proposal with a range of parties including the Western Australian government.” WA Premier Colin Barnett, who oversees the state development portfolio, declined to comment.
Brockman and Atlas have 50 million tonnes of annual capacity between them reserved at the yet-to-be-built South West Creek development at Port Hedland. But Atlas managing director Ken Brinsden said the onus was on Aurizon to develop rail infrastructure.
“The ball is very much in Aurizon’s court to determine whether they think there’s enough customers to justify an independent Pilbara rail solution because Atlas can’t justify that solution in its own right.”
Aurizon has already signed a “relationship agreement” with Brockman to be its exclusive supplier to develop and operate infrastructure for its Pilbara iron ore projects for the next three years.
But any rail development is contingent on Brockman securing funding for its Marillana iron ore project.
Still, Aurizon believes that securing port capacity will be valuable in helping establish a potential supply chain from mines to ports.
On the east coast, it will get access to GVK Hancock Coal's Terminal 3 port development at Queensland’s Abbot Point, which caters to miners in the Bowen Basin, after signing a tentative $6 billion deal to take a 51 percent stake in Hancock Coal Infrastructure.
