AZJ Awarded Contracts for BHP Copper Logistics in SA
| Stock | Aurizon Holdings Ltd (AZJ.ASX) |
|---|---|
| Release Time | 16 Jun 2025, 8:57 a.m. |
| Price Sensitive | Yes |
Aurizon Awarded Contracts for BHP Copper Logistics in SA
- Aurizon awarded 15-year contracts for integrated rail, road and port logistics solution for BHP's Copper South Australia operations
- Logistics task of ~1.3 million tonnes per annum, with total anticipated revenue of ~$1.5 billion over 10 years
- Shift to rail transport to replace 13 million kilometres of annual truck movements, delivering improved road safety, reduced congestion and lower emissions
Aurizon has been awarded contracts to provide an integrated rail, road and port logistics solution for BHP's Copper South Australia operations, for a term of up to 15 years. The contracts are scheduled to begin in October 2025, and Aurizon's aggregate logistics task at commencement is approximately 1.3 million tonnes per annum. Total anticipated revenue over the initial 10 years is ~$1.5 billion. This logistics task is based on BHP's current Copper South Australia production (FY2024: 322,000 tonnes). Aurizon's integrated logistics solution is scalable and positions the company to capture additional volumes should BHP's Copper SA asset grow further in the years to come. Under the arrangements, the transport of copper concentrate and cathode from BHP's Olympic Dam, Carrapateena, and Prominent Hill mines, as well as inbound freight, will shift to rail between Pimba and Port Adelaide. Aurizon will be responsible for services across the Copper South Australia supply chain including rail haulage, road transport, terminal management, port management and stevedoring, with road transport to be sub-contracted to Symons Clark Logistics (SCL). In securing these contracts, Aurizon has leveraged its extensive South Australian footprint including recently acquired port terminal assets at Port Adelaide (Berth 29) and the Gillman containerised freight terminal. A new rail freight terminal will also be constructed by Aurizon at Pimba, South Australia in support of the logistics solution. The shift to an integrated rail, road and port solution will effectively replace an estimated 13 million kilometres of truck movements annually on South Australian roads, delivering improvements in road safety, easing congestion and lowering emissions across the region.
Aurizon's integrated logistics solution is scalable and positions the company to capture additional volumes should BHP's Copper SA asset grow further in the years to come.