Subscribe to RSS feedAsciano to concentrate on bulk rail
Asciano will rely on Pacific National's bulk rail haulage operations to bolster earnings over the rest of the financial year, chairman Tim Poole said at the company's annual general meeting last week.
Bulking up: Asciano to concentrate investment on its Pacific National coal division
This would be crucial in the face of "a continued subdued environment for our non-bulk operations", Mr Poole said.
Despite non-bulk weakness, the company reiterated its annual net earnings before significant items forecast of $675m-$700m.
Mr Poole said the company's significant investment in the Queensland and Hunter Valley coal supply chains was the reason Asciano had not paid a dividend for the last financial year, though it would do this time around.
Coal haulage will receive the bulk of the company's investment budget over the next three quarters.
He also confirmed that there were two issues in particular which were exercising the minds of management — the entry of a third container ports operator and the privatisation of Queensland Rail.
"While it remains too early to have a clear view on what impact there may be on Asciano’s business, management and the board are actively engaged with key stakeholders and will continue to vigorously represent the interests of security holders in terms of these issues," Mr Poole said.
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