February 1, 2019
Aurizon has successfully completed the $7.3 million sale of its Queensland Intermodal business to international logistics company Linfox.
Queensland Intermodal makes deliveries to more than 300 customers across regional Queensland, including supermarkets, white goods retailers and liquor suppliers.
Aurizon has been trying to sell the loss-making freight business for some time.
A proposed sale to a joint venture of Pacific National and Linfox in 2017 was blocked by the Australian Competition and Consumer Commission (ACCC).
It was then feared that Aurizon could simply shut the business, which has 350 employees.
However, Aurizon announced on Friday the latest deal with Linfox would deliver “a seamless transition for customers and regional communities”.
The sale was completed on January 31.
“Importantly, it has also secured continued employment for more than 300 people across Queensland, mostly in regional centres,” the Aurizon statement said.
“These employees, including train drivers and freight terminal operators, have worked hard to ensure safe, reliable services have continued for customers throughout the transition.”
Linfox has secured leases and access to freight terminals across Queensland including at Rockhampton, Mackay, Townsville, Cairns, Emerald and Longreach.
It has also taken over a fleet of trucks, trailers and rail wagons for intermodal containers, together with heavy lift equipment such as forklifts and gantry cranes.
About 190 Aurizon employees have transferred to Linfox.
“Linfox is proud to be making another strategic investment in Australia,” Linfox executive chairman Peter Fox said.
“This significant acquisition will strengthen the Linfox network and increase competition in the Queensland logistics market. It will also bring certainty to Aurizon staff, regional communities and customers that would have been impacted if the Aurizon QIB business had closed.”
Under a separate 10-year commercial contract, Aurizon’s bulk business will also provide rail linehaul services and some terminal services to Linfox using Aurizon locomotives.
The ACCC said last year it would not oppose the sale of the business to Linfox.
“Linfox’s operations in Queensland are relatively limited, and the transaction will mean there will remain two intermodal rail line-haul providers in Queensland, which is a good outcome for rail competition and Queenslanders,” ACCC chairman Rod Sims said.
