Centrex Limited’s (ASX: CXM) wholly owned subsidiary, Agriflex Pty Ltd, has signed a binding transport and logistics services agreement (Transport and Logistics Agreement) with Australia’s largest rail freight operator Aurizon (ASX: AZJ) for the provision of transport, storage and stevedoring services for Ardmore’s phosphate rock product.
Under the terms of the Transport and Logistics Agreement, Aurizon has been appointed as the sole and predominantly exclusive supplier for the containerised logistics solution from the Ardmore mine to Townsville port.
The logistics solution consists of (1) provision of containers, (2) container loading at site, (3) trucking utilising triple road trains to Mount Isa, (4) rail to Townsville, (5) storage of containers at Aurizon terminals at Townsville and (6) stevedoring services to transport and load the rock phosphate to a bulk vessel using a rotainer crane.
The Transport and Logistics Agreement replaces a short-term agreement that was executed in May 2022 with Aurizon for the commencement of operations. Securing the long-term Transport and Logistics Agreement supplies certainty around the ability for Agriflex to ship its phosphate rock volumes as it ramps up the Ardmore operation.
Aurizon will procure additional containers, truck and truck drivers, locomotives and wagons and rail access to meet Ardmore’s requirements during the ramp up period. The Transport and Logistics Agreement is an interim step towards a longer term and more cost-efficient bulk logistics solution that is being progressed concurrently.
The signing of this agreement has significantly de-risked the Ardmore Rock Phosphate Project by securing a long term logistics pathway for a significant increase in production for a period of four years,” Centrex Managing Director, Robert Mencel, said.
“We are delighted to confirm and expand on the certainty of the provision of our product to key customers in very large and strategic markets. We are equally pleased to have the assistance of an organization of the calibre of Aurizon which is considered to be one of Australia’s preeminent logistic companies.”
About Aurizon
Aurizon is Australia’s largest rail-based transport business and a top 100 ASX company. It transports more than 250 million tonnes of Australian commodities, connecting miners, primary producers, and industry with international and domestic markets. Aurizon provides customers with integrated freight and logistics solutions across an extensive national rail and road network, traversing Australia.https://www.centrexlimited.com.au/