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Solid Energy and Toll sign 13 year agreement to rail more coal
2 November 2004 - Solid Energy New Zealand Ltd and rail operator Toll NZ Ltd have signed a 13-year heads of agreement for the transport of greater quantities of coal from the west coast of the South Island to the export port of Lyttleton.
The agreement will allow Solid Energy to move up to 3.8 million tonnes of coal a year from 2007/08. Over the current year 2.4 million tonnes will be moved, with up to 2.7 million tonnes in 2005/06.
The increase in tonnage will eventually see the current seven trains a day between the West Coast and Lyttelton increased to eight. The two companies are committed to working with rail track owner Railways Corporation in providing the investment to address increased capacity and reliability on the line.
The agreement also provides a framework for future potential agreements for the transport of Solid Energy coal on other parts of the rail network including carrying coal to the West Coast ports of Westport and Greymouth.
Solid Energy chief executive officer, Dr Don Elder, said that the company was extremely pleased to have agreed terms with Toll and had developed a very positive relationship with the rail operator over the last year.
"The agreement is a significant milestone as it secures the future of our export coal business through the Port of Lyttleton and allows us to maintain our competitiveness in international markets," Dr Elder said.
"It gives us the confidence and capacity to achieve increased production volumes from our current and planned mines around the Greymouth and Buller areas of the West Coast. We look forward to using this capacity in the near future."
Toll NZ chief executive officer David Jackson said the relationship between Solid Energy and Toll is extremely important to both parties and through a very co-operative and open approach they have reached an agreement.
