Asciano Ltd, Australia's largest port and rail operator, will spend A$529 million (S$674.5 million) expanding into coal transport in Queensland state as Asia's demand for the fuel surges.
Talks are being held with 'multiple' coal miners in Queensland, where annual production is forecast to rise more than 10 per cent during the next five years, the Melbourne-based company said in a statement yesterday.
The expansion comes as Asciano will spend A$50 million closing most of its rural grain freight business as the country's worst drought on record cuts volumes.
Asciano is seeking a share of the 165 million tonnes currently moved by government-owned Queensland Rail, the only coal transporter in the state that accounts for more than half of Australia's production of the fuel. First haulage is expected within two years, with volumes set to rise to 30 million tonnes by 2011.
'As we push into those monopoly markets held by QR, they've got significant growth potential for the company,' chief executive Mark Rowsthorn said yesterday on a conference call with analysts.
Shares of Asciano closed 3.26 per cent higher at A$7.93 yesterday.
The stock has fallen 27 per cent since the company was spun off from Toll Holdings Ltd on June. 7.
Asciano owns Pacific National, Australia's second-biggest coal haulage company that transports about 92 million tonnes a year of the fuel and dominates coal rail transportation in New South Wales, the nation's most-populous state. xports to steel companies and power utilities in Asia.
Talks are being held with 'multiple' coal miners in Queensland, where annual production is forecast to rise more than 10 per cent during the next five years, the Melbourne-based company said in a statement yesterday.
The expansion comes as Asciano will spend A$50 million closing most of its rural grain freight business as the country's worst drought on record cuts volumes.
Asciano is seeking a share of the 165 million tonnes currently moved by government-owned Queensland Rail, the only coal transporter in the state that accounts for more than half of Australia's production of the fuel. First haulage is expected within two years, with volumes set to rise to 30 million tonnes by 2011.
'As we push into those monopoly markets held by QR, they've got significant growth potential for the company,' chief executive Mark Rowsthorn said yesterday on a conference call with analysts.
Shares of Asciano closed 3.26 per cent higher at A$7.93 yesterday.
The stock has fallen 27 per cent since the company was spun off from Toll Holdings Ltd on June. 7.
Asciano owns Pacific National, Australia's second-biggest coal haulage company that transports about 92 million tonnes a year of the fuel and dominates coal rail transportation in New South Wales, the nation's most-populous state. xports to steel companies and power utilities in Asia.