Cyclone Debbie hits QLD coal distributor Aurizon

coal

The Australian rail freight operator Aurizon has re-opened three of its four Queensland coal networks – although is expecting a drop in earnings amid devastation caused by Cyclone Debbie.

The company has lowered its earnings forecast for FY17 by between $100 million and $115 million due to the shutdown last month, it has been reported by Rail Express.

Of the networks back on track, the Blackwater System was re-opened on April 10, Moura was re-opened on April 12, and Newlands was re-opened April 13.

The Goonyella System will remain closed due to “significant damage” although is expected to re-open on April 26 with “speed restrictions” and “reduced capacity”.

In total, Aurizon estimates “a $70 million to $80 million bite out of its below rail revenue” and also has to pay between $40 million and $50 million in flood repair costs.

According to the report, the incident would trigger take-or-pay provisions of roughly $30 million, “reducing the overall impact to between $40 million and $50 million”.