Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Pike River Coal Announces New Coal Transport Route

27 November 2007


Pike River Coal Announces New Coal Transport Route

Pike River Coal Limited has today announced it will transport its premium hard coking coal by rail to Lyttelton, Christchurch for export under a new agreement signed with Solid Energy NZ Limited (Solid Energy).

The 18 year agreement to use rail, supersedes previous transport arrangements with West Coast Coal Company Limited (WCCC) which were based on coastal shipping of Pike River coal from the port at Greymouth to Port Taranaki for export.

Pike River Chief Executive Gordon Ward says “The main factors leading to the change in transport mode were a significant recent increase in rail capacity that has allowed Solid Energy and Toll Rail to transport all of Pike River’s coal by rail and the fact that the financing conditions in the transport agreement were not met.”

Following ONTRACK’s upgrade of the rail route and implementation of improved traction control on trains, Solid Energy and Toll Rail are able to introduce 45 wagon trains boosting the capacity and efficiency of the Midland line. Since the Government took back ownership of the rail network in July 2004, investing $25 million in the Midland line through ONTRACK, Solid Energy has committed more than $100 million to the line through its long term contract with Toll Rail and then spent a further $15 million on the new Cobden rail bridge over the Grey River.

The total cost to transport Pike River coal from the coal preparation plant to the point loaded on panamax vessels at Port Lyttelton under the new agreement with Solid Energy is approximately NZ$39 per tonne. Mr Ward said “This cost is at a level at least 10% less than WCCC were able to offer and slightly below the level forecast in the IPO prospectus.”

Port Taranaki Chief Executive Roy Weaver says “We worked extremely hard at WCCC to establish an innovative coastal shipping alternative transport solution for West Coast exporters with Pike River Coal providing the base load. We are very disappointed in not being able to build the transport chain for this project, but were unable to constrain construction cost increases since 2005 to match the rates offered on the newly renovated Midland Line. WCCC wishes Toll Rail, Solid Energy, Port of Lyttelton and Pike River Coal Limited all the best for a successful venture.”

Pike River has agreed with Solid Energy that it will have capacity reserved of up to 1.3 million tonnes per year on the rail network and has priority access to rail and port facilities to transport that tonnage.

Mr Ward said “One benefit of this decision will be the shorter distance Pike River coal travels by road and the consequent reduction in emissions and on traffic through the Greymouth township. Delivery by Solid Energy and Toll Rail of a proven annual capacity of more than 4 million tonnes has given us the confidence to move forward with Solid Energy’s transport supply proposal”.

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news