Monday, April 12, 2010

QRF Wins Karara Iron Ore Rail Freight Contract

Appointed Exclusive Rail Haulier For Two Billion Dollar Project
Shipping News Feature

AUSTRALIA – QR Freight (QRF) and Perth-based Gindalbie Metals have agreed a deal that will see QRF become the exclusive provider of bulk rail haulage services from Gindalbie’s Karara Iron Ore Project in Western Australia.

The contract will make QRF responsible for hauling Karara’s product, which is expected to reach up to thirty million tonnes per annum when fully online, from the mine to Geraldton, a distance of 225 kilometers.

According to industry watchers the deal, to last for ten years, could provide an income of around A$1.2 billion to QRF, who’s Executive General Manager, Ken Lewsey, said: “Karara is a significant project for [Western Australia]. It represents the first phase of developing the Mid West as the State’s second iron ore province.

“ARG (QRF’s Western Australia subsidiary) is the largest haulier of iron ore in Australia outside the Pilbara region, and we welcome a long-term partnership with Karara Mining Limited as an important component of our future operations.”

Mr. Garret Dixon, Gindalbie’s Managing Director, stated that: “We are very pleased to have on board one of the largest and most experienced bulk rail freight operators in the country. We have now established a strong framework agreement and a relationship that will form a key part of the Karara Project development and operations for many years into the future.”

(pic: © QR Freight)