Perdaman Chemicals and Fertilisers has reached a significant milestone for the Perdaman Collie Urea Project, finalising rail transport arrangements for the $3.5 billion urea manufacturing plant today.
The partnership between Perdaman Chemicals and Fertilisers, WestNet Rail and QR National via its bulk freight subsidiary Australia Railroad Group will enable up to 2 million tonnes of urea per annum to be transported from the plant site at Shotts Industrial Estate near Collie to Bunbury Port.
WestNet Rail will provide access to the rail network and rail infrastructure support services, while QR National will provide above rail services to transport the urea product.
The 25 year access agreement with WestNet Rail, due to commence in 2014, will see two 3,000 tonne train loads of urea per day travel on the rail network for shipment by Incitec Pivot, Perdaman’s Urea offtaker.
WestNet Rail Chief Executive Officer Paul Larsen said, “Perdaman Chemicals and Fertilisers is a substantial new customer for WestNet Rail. Not only will this partnership provide significant growth and revenue opportunities for WestNet Rail, but it supports continued investment and development in the south west of WA.”
Executive Vice President & CEO QR National Freight Ken Lewsey said a separate 20-year rail haulage agreement confirmed QR National’s strong capability in Western Australia’s resource and export sectors.
The rail access and haulage agreements are conditional upon Perdaman obtaining project finance.
“This agreement marks a significant milestone for the Perdaman Collie Urea Project”, PCF Chairman and Managing Director Vikas Rambal said. “Securing access to the rail network and finalising rail services is vital to the project’s success.”
WestNet Rail and Australian Railroad Group have concurrently executed a rail operations access agreement to give operational effect to these arrangements.
PCF is still in negotiations with Bunbury Port Authority regarding final details of agreements for Port arrangements.
