Aurizon (ASX:AZJ) announced that, with support from major customers, it is lodging a proposed revised access undertaking for the Central Queensland Coal Network with the Queensland Competition Authority.
The draft undertaking, following months of negotiations, is set to apply from July 1, 2027 to June 30, 2027, providing long-term certainty for both Aurizon Network and its users.
Known as the 2025 UT5 draft amending access undertaking, the proposal extends and updates the current access framework, balancing revenue increases for Aurizon Network with performance-based incentives, including a volume-linked throughput payment.
Under the new agreement, customers will benefit from a ten-year term, five-year rolling access agreements, streamlined fee-free transfer provisions, enhanced rail capacity planning, and continued oversight of network procurement and maintenance strategies.
Aurizon stands to gain an uplift in revenue compared with the current undertaking, updated WACC parameters, changes to depreciation to bring forward future cash flows, and continued inflation and revenue protection mechanisms.
"This agreement has been reached after many months of constructive engagement with our Network customers and the proposed UT5+ is being lodged eighteen months prior to the expiry of the current undertaking," said Andrew Harding, Aurizon Managing Director and CEO.
The proposed UT5+ remains subject to QCA approval. Customers supporting the revised access undertaking represent 68% of contracted tonnes across the CQCN in FY25, including major operators such as Anglo American, Glencore, Peabody, and Stanmore.