Aussie freight major Aurizon keen on business with Indian railways

KOLKATA: Aurizon, Australia's largest railway freight operator, is on a recce of the Indian railways, drawn towards it by the Modi government's thrust on a transformational improvement in railway infrastructure.
The company, which was born out of the privatisation of Queensland Rail's bulk commodity business around five years ago, is looking at possibilities to engage in the country's railway sector.A team led by Aurizon chief executive Lance Hockridge was in Delhi and Kolkata in the past week to meet railway ministry officials and executives at top state-run companies, including power major NTPC and Coal India.

The A$3.8-billion (18,578 crore) company owns and operates one of the world's largest coal rail networks in Australia, linking nearly 50 such mines to three major ports in Queensland. It handles more than 250 million tonnes (mt) of commodities every year. Aurizon has brought about a 40% jump in efficiency in the last five years through different business practices and through technology.

The company is looking at India as part of a long term strategy. “From what the company officials saw in India, they were very impressed. Aurizon is likely to send a more focused team of officials later this year to deep dive and explore possibilities of doing business in India," Patrick Suckling, Australia's high commissioner to India, said during a visit to the city.

The Aussie firm that has four product lines coal, iron ore, freight and network is looking at an entire gamut of possible businesses to participate, ranging from special purpose vehicles (SPV) for the upcoming freight corridor, multi-modal infrastructure, private railway sidings to rail links between mines and ports, as well as technology.

Indian companies like Coal India, the world's largest coal producer, are keen to acquire expertise in transporting large volumes of commodities.

“Better technology and investment in bulk transportation is always welcome. But the solution lies in building critical train links that would connect coal-producing regions in eastern India with the market.The coal ministry has identified 50 such rail projects and these projects are being developed in collaboration between the railways, Coal India and the respective state governments," said Debasish Mishra, senior director, consulting, at Deloitte in India.

While Aurizon is present in other countries, including South Africa, it would like to expand its global footprint into markets like India where the railway business is on a growth mode. On its website, Aurizon claims it is “well placed to benefit from the continued long-term growth in demand for coal and iron ore, particularly from fast-growing Asian economies such as China and India."