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Major Coal Deal For Toll Rail
Major Coal Deal For Toll Rail
15 May 2008
Toll Rail has signed a two-year contract to transport coal from Eastern Coal Holdings Takitimu mine to Clandeboye, one of Fonterra's two large South Island dairy factories.
The contract will entail Toll Rail moving about 120,000 tonnes of coal per year. This is expected to be handled by five daily trains per week, with additional capacity available as required.
Toll Rail Group General Manager Joe Garbellini says the deal, which commences with the redevelopment of the Takitimu mine during the coming dairy season in September, followed Fonterra transferring its coal supply arrangements to Eastern Coal Holdings.
He said Toll Rail had been in close negotiations with Eastern over several months and after an extensive evaluation process continued rail of the coal prevailed as the most sustainable and efficient transport option.
As Toll Rail has previous experience in servicing Fonterra’s requirements in this area, he said the switchover to Eastern would create little operational change.
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