Aurizon's Half Year Results 2018 released

 
  Sulla1 Chief Commissioner

Aurizon's half year results are out. Comparisons with 1st Half Year 2018 and 1st Half Year 2017. Earnings and tonnages are for six months.



Active Locomotives - (2018) 492 vs (2017) 455

Active Wagons - (2018) 12,963 vs (2017) 12,044



Network

Revenue - (2018) $607.5-million vs (2017) $671.1-million

EBIT - (2018) $248-million vs (2017) $292.7-million

Tonnage - (2018) 116.6-million tonnes vs (2017) 112.9-million tonnes

Operating Ratio - (2018) 59.1% vs (2017) 56.4%


Bulk

Revenue - (2018) $295.4-million vs (2017) $332.2-million

EBIT - (2018) $20.1-million vs (2017) $2.4-million

Tonnage - (2018) 28.5-million tonnes vs (2017) 30.3-million tonnes

Operating Ratio - (2018) 93.5% vs (2017) 99.2%


Coal

Revenue - (2018) $927.3-million vs (2017) $890.4-million

EBIT - (2018) $222.5-million vs (2017) $218.2-million

Tonnage - (2018) 107.8 million-tonnes vs (2017) 103.5-million tonnes

Operating Ratio - (2018) 76.0% vs (2017) 75.5%

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  Sulla1 Chief Commissioner

The additional 37 locomotives and over 900 wagons returned to service reflects most of the 3551s and several coal sets being pulled out of storage for a big Queensland coal upswing in late 2017.

Coal has signed new 10-year contracts with Baralaba Coal (2.0-million tonnes for the Moura system), MACH Energy (8-million tonnes for the Hunter system) and Q Coal's Byerwen Mine (10-million tonnes for the Newlands system). The Byerwen Mine will increase tonnages on the Newlands System by more than 25% and will require several additional coal sets. Word is the 20-ish Stuart based 4000s used on the Mt Isa line will be transferred to Callemondah's sizeable 4000 fleet, and Callemondah 4100s will be sent to Pring to make the Newlands Line 100% 4100s.

Bulk reported a $22.5-million drop in revenue due to the cessation of the daily Mt Isa freighter and poor grain harvests in Queensland and NSW. It also reported the end of the Mt Isa freighter resulted in savings of $12.2-million through the closure of the Hughenden crew depot, the Mt Isa container depot and reduced rollingstock  to maintain (close to two hundred PCZY/PCZYL container wagons plus fuel tankers). Most of the wagons stored due to the suspension of the service are now being returned to service for a new yet to be announced contract on the Mt Isa line. Bulk reported it has signed a 10-year contract to continue hauling limestone to Fisherman's Landing for Cement Australia, commenced a 7.4-year contract with MMG for the Dugald River Mine on the Mt Isa line and executed a 2+2 year contract extension with QR covering haulage of northern infrastructure trains and the Inlander.
  james.au Chief Commissioner

Location: Sydney, NSW
@Sulla1 does it make sense that Bulk comprises grain traffic and intermodal traffic?  Are they using similar locos/crew pools?  Wagons clearly not of course.
  Sulla1 Chief Commissioner

@Sulla1 does it make sense that Bulk comprises grain traffic and intermodal traffic?  Are they using similar locos/crew pools?  Wagons clearly not of course.
james.au

Probably the easiest way to explain it is that Bulk is a conglomeration of the old QR Bulk/Industrial Products group and WA's former ARG operations - and it is headquartered in Perth to reflect that. Under the Lance Hockridge administration, Aurizon didn't have split business groups (just Eastern and Western business groups), but the new Alan Harding administration reintroduced the Coal, Bulk, Network and Intermodal groups when he arrived - no doubt to pinpoint profits and assist any future spin-offs or shut downs. Bulk has traditionally been responsible for industrial and mining container traffic, as opposed to the general container traffic handled by Intermodal. Today's Bulk handles all the freight contracts that don't easily fit in the Coal group's portfolio. The increasing use of containers for traditional Bulk traffic (concentrates and grain) may see Bulk looking more and more like the Intermodal group in the future.
  bevans Site Admin

Location: Melbourne, Australia
@James.au and thanks @Sulla1 seems to suggest a loss of $22m on the Mount Isa line for a saving of $12m in direct costs which really means a loss of gross profit ahead of overhead of $10m.  hardly a cost saving, looks like a loss of operating profit.
  james.au Chief Commissioner

Location: Sydney, NSW
@Sulla1 does it make sense that Bulk comprises grain traffic and intermodal traffic?  Are they using similar locos/crew pools?  Wagons clearly not of course.

Probably the easiest way to explain it is that Bulk is a conglomeration of the old QR Bulk/Industrial Products group and WA's former ARG operations - and it is headquartered in Perth to reflect that. Under the Lance Hockridge administration, Aurizon didn't have split business groups (just Eastern and Western business groups), but the new Alan Harding administration reintroduced the Coal, Bulk, Network and Intermodal groups when he arrived - no doubt to pinpoint profits and assist any future spin-offs or shut downs. Bulk has traditionally been responsible for industrial and mining container traffic, as opposed to the general container traffic handled by Intermodal. Today's Bulk handles all the freight contracts that don't easily fit in the Coal group's portfolio. The increasing use of containers for traditional Bulk traffic (concentrates and grain) may see Bulk looking more and more like the Intermodal group in the future.
Sulla1
Ok, so bulk is still bulk goods just in containers, as opposed to general freight in containers, the customers of which would have different needs.  
Thanks

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