Aurizon : secures foundation customers for new national Vehicle Logistics Services

About this update from Aurizon Holdings Ltd.

Tens of thousands of new and used cars are set to be delivered throughout Australia via cross-country rail for sale in metropolitan and regional areas as a result of two new customer agreements signed by Aurizon. Aurizon, Australia's largest rail freight operator, has expanded its service offering to support the distribution of motor vehicles with two new contracts and procurement of unique specialised rolling stock to help support the transport task. NYK, one of the world's leading roll-on/roll-off (RoRo) shipping companies, has become the first international logistics partner to utilise Aurizon's landbridging service via Darwin and the central Australian rail corridor following successful trials. CEVA Logistics, a global logistics leader and one of the world's largest finished vehicle providers, is also supporting the rollout of the service across key domestic corridors with a new long-term contract. The contract covers all of CEVA's domestic rail of motor vehicles as well as containerised freight. CEVA vehicles are already moving in containers using Aurizon's existing network, demonstrating the model in operation ahead of further capacity expansion in coming years. As well as utilising Aurizon's extensive freight network across Australia, this milestone also advances Aurizon's ambition to establish a rail-based landbridge linking Asia with Australia's southern and eastern markets. Aurizon Group Executive Bulk and Containerised Freight George Lippiatt said the business is now leveraging early success to scale the service. "We see the potential for our containerised freight business and landbridging to reshape how freight moves across Australia both through imports and domestic movements," Mr Lippiatt said. "As volumes build, Aurizon will introduce innovative purpose-built auto wagons to support the next phase, with the fleet currently in production and being progressed for delivery ahead of full-service rollout. These types of wagons have never been used in Australia before and will enable more efficient, higher capacity movement of vehicles across long distances. "These fully-enclosed multi-level wagons enable shipment of up to 500 vehicles per train coast-to-coast without transhipment." Mr Lippiatt said the auto wagons would support faster and more efficient scaling of Aurizon's containerised freight service and could support the delivery of up to 50,000 motor vehicles a year when fully operational. "There is a large vehicle logistics market in Australia with more than 1.2 million vehicles now imported every year and transportation by rail offers customers the potential to get them to market quicker and more reliably," he said. "For example, the innovative design of our auto wagons allows for double stacking within the confines of the wagon, facilitating the transport of more vehicles more efficiently and helping support a transition from road to rail, along with the benefits that brings to our economy in terms of emissions reduction, congestion busting and safety." Aurizon is progressively introducing capability in line with customer demand, with current services operating using existing available rolling stock ahead of deployment of the new rolling stock, targeted from mid FY2028. Aurizon first outlined its landbridging ambitions after it acquired the Darwin to Tarcoola (South Australia) railway in 2022, identifying the opportunity to connect shorter shipping routes into Darwin with efficient inland rail transport. With vehicle movements already underway and customer demand building, the landbridging model is now moving from concept to scaled execution. "As we said at the time, containerised freight including motor vehicles is predominantly shipped to Australia via a traditional 'milk run' along capital city ports. Our landbridging solution offers a more direct link and shorter freight delivery times as well as greater predictability which reduces operating and inventory costs for our customers," Mr Lippiatt said. "This is no longer a future concept - we are delivering it." Mr Lippiatt said this was about strengthening Australia's freight network and providing customers with innovative, reliable, and different long-haul transport options. You can view a map of Aurizon's national vehicle movement solution here . For more information, please contact: Corporate Affairs: [email protected]

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