Aurizon flags building 'open-access' rail network in Pilbara
Iron ore producer Fortescue Metals continues to negotiate over a stake in its $US3 billion port and rail infrastructure, but it is yet to reach a deal it deems favourable.
Still, Aurizon chief executive Lance Hockridge says his company, formerly known as QR National, could opt to build its own greenfield rail network.
"The concept is essentially around the heart of being open-access," he told ABC television. "It would be open to all comers as opposed to being dedicated to individual miners."
But Mr Hockridge said more worked needed to be done to advance the idea.
"I emphasise, again, it's at concept phase and we need to do a good deal more work," he said.
Iron ore miners Brockman and Atlas have previously approached Aurizon about the idea of a new rail network, but Mr Hockridge declined to confirm if mining magnate Gina Rinehart had made overtures about her Roy Hill project.
"We're talking to a wide range of people," he said.
Atlas Iron managing director Ken Brinsden told the same program that a potential Aurizon line would need multiple customers to get up.
Meanwhile, Aurizon is expecting iron ore prices to moderate, amid forecasts of a China slowdown.
"It's clearly not the kind of growth rates that we might be experiencing or indeed expecting a year or two ago," Mr Hockridge said.
But he was convinced that China still had stable growth potential, which bodes well for iron ore.
"Our view is that fundamentally this is and will remain a good business for a long time yet to come."
Mr Brinsden said he expected iron ore prices to hold above $US100 a tonne.
Frequently Asked Questions about this Article…
Aurizon, Australia’s largest freight rail operator, has flagged the possibility of building its own greenfield rail network in the Pilbara. CEO Lance Hockridge said the idea is at a concept stage and would be an open‑access line rather than being dedicated to a single miner.
According to Aurizon’s CEO, an open‑access network would be available to all comers rather than tied to individual miners. Atlas Iron’s managing director also said a new line would need multiple customers to be commercially viable.
The article says iron ore miners Brockman and Atlas have previously approached Aurizon about the idea. Lance Hockridge also confirmed they are talking to a wide range of people but declined to confirm whether Gina Rinehart’s Roy Hill project had made overtures.
No. Aurizon’s CEO emphasised the plan is still at the concept phase and that more work is needed to advance the idea. The article does not provide a construction timeline or firm next steps.
Fortescue Metals is separately negotiating over a stake in a US$3 billion port and rail infrastructure project, but has yet to reach a deal it considers favourable. The article reports this ongoing negotiation alongside Aurizon’s rail concept.
Aurizon expects iron ore prices to moderate amid forecasts of a China slowdown, but CEO Lance Hockridge said he still believes China has stable growth potential and that iron ore remains a good long‑term business.
Aurizon says the open‑access concept is worth exploring but needs more work. Atlas Iron’s managing director, Ken Brinsden, noted that a potential Aurizon line would require multiple customers to get off the ground. Overall, executives see potential but stress commercial viability questions.
Investors should look for updates on Aurizon’s feasibility work, any commitments from multiple miners, outcomes of Fortescue’s stake negotiations, and trends in iron ore prices and Chinese demand — all of which the article highlights as relevant to the project’s prospects.
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