Aurizon Holdings has secured a major long-term coal haulage contract with BMA, the BHP Mitsubishi Alliance, representing a significant win in what the company describes as a competitive environment. The new contract covers rail transport of coal from BMA’s five metallurgical mines in Queensland’s Bowen Basin (Goonyella Riverside, Broadmeadow, Peak Downs, Saraji, and Caval Ridge) and is set to commence on 1 July 2028. With a potential duration of up to 12 years and performance-based extension arrangements, the contract could run through to 2040, providing Aurizon with substantial revenue visibility across a decade-long horizon.
The contract’s scale underscores BMA’s importance to Aurizon’s Queensland operations. The company carries close to a quarter of all coal tonnes transported in the state for BMA, making this a cornerstone relationship within Aurizon’s portfolio. The agreement allows for annual volumes of up to 37 million tonnes per annum, with built-in flexibility provisions that recognise the cyclical nature of mining operations. By replacing Aurizon’s existing 2015 contract with BMA, this award extends an already long-standing partnership that has operated successfully for over a decade.
What makes this announcement particularly noteworthy is the context in which it sits within Aurizon’s broader recontracting cycle. The company reports that since July 2025, it has recontracted more than 60 million tonnes of annual coal haulage capacity. Significantly, Managing Director Andrew Harding stated that this volume represents all customer contracts tendered over the period, indicating Aurizon has successfully defended and renewed its entire contract portfolio as renewals have come due. In a sector facing transition pressures and subject to ongoing debate around coal’s future, this outcome suggests customers continue to value Aurizon’s operational reliability and service delivery.
For investors, the agreement delivers several positives. Long-term revenue contracts with volume commitments provide earnings stability and support capital investment decisions for rail infrastructure. The extension of the BMA relationship to 2040 offers protection against contract volatility and demonstrates customer confidence in Aurizon’s ability to meet their needs. The performance-based structure also aligns incentives between Aurizon and BMA, rewarding operational excellence.
The timing of the announcement warrants attention. The contract does not commence until mid-2028, so near-term revenue impact will be limited as the transition from the existing arrangement occurs. Investors should monitor how Aurizon manages the transition period and whether the company can maintain operational consistency through the changeover. Additionally, broader coal market dynamics, including demand from BMA’s key customer base and any shifts in global metallurgical coal pricing, will influence the contract’s value over its extended term.
Aurizon’s success in renewing its coal haulage portfolio during a period of energy transition scrutiny underscores the resilience of metallurgical coal demand and the company’s competitive positioning in the logistics chain. This announcement is price sensitive and has been flagged as material by the ASX.
View the full ASX announcement (PDF)
About Aurizon Holdings Limited (ASX: AZJ)
Aurizon Holdings Limited is an Australian rail freight operator that transports more than 250 million tonnes of commodities annually, connecting miners, primary producers and industry with domestic and international markets. The company operates and manages two major rail networks: the Central Queensland Coal Network (2,670 kilometers) and the South Australia and Northern Territory Network (2,100 kilometers). Its operations span coal, bulk commodities and other freight services.
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