Rail group Aurizon has raised its full-year iron ore haulage forecast by 2 million tonnes after starting a new contract with Perth-based miner Top Iron.
Aurizon expects to haul 25 million tonnes of iron ore in fiscal 2015, up from previous guidance of 23 million tonnes despite a 17 per cent drop in haulage volumes for the quarter ending in March compared with a year earlier.
The rail operator secured a new contract in Western Australia with Top Iron, which has a strategic partnership with Chinese steel manufacturer Shanxi Jianbang, in February.
Aurizon will provide and operate wagons and locomotives to transport up to 1.5 million tonnes of iron ore annually for Top Iron's Mummaloo iron ore project east of Geraldton.
The new contract, combined with "strong railings" from existing customers, enabled Aurizon to boost its full-year guidance, the company said.
Aurizon's two biggest iron ore haulage contracts are with US mining group Cliffs Natural Resources and Karara Mining, which is controlled by China's Ansteel.
Aurizon reiterated its current annual coal haulage guidance for 210 million to 220 million tonnes after quarterly volumes rose 2 per cent compared with a year earlier to 158.6 million tonnes.
Tropical Cyclone Marcia and strikes by unions due to disputes over a new enterprise bargaining agreement hurt quarterly volumes by 2 million tonnes.
Freight volumes fell 9 per cent during the quarter, and Aurizon warned that annual freight volume growth would be "marginal", in part due to rail track damage in NSW following severe storms last week.
The Hunter Valley coal rail network resumed services on Wednesday afternoon after services were suspended early last week.
Aurizon's shares, which have gained 5 per cent in the year to date, closed down 1¢ at $4.87.
Separately, engineering group Coffey International said that it would "exploit new opportunities" in transport infrastructure as the outlook improved in Australia, New Zealand and the UK.
But Coffey is pulling back from providing services to oil companies, including oil sands groups in Canada, as it restructures its business to adjust to the resources downturn.
Oil and gas services accounted for 22 per cent of Coffey's $43 million in quarterly fee revenue in its geosciences division, while mining accounted for 14 per cent.
Coffey has forecast a fiscal 2015 net loss after tax of $16 million to $18 million after taking restructuring costs of $6 million to $8 million.
Its shares, which have lost 43 per cent in the year to date, closed down 1¢ at 16¢.
source: http://www.smh.com.au