Aurizon Network operates that below rail network in central Queensland that serves around 30 miners and transport over 200mtpa of coal to four major coal ports. The network is regulated by the Queensland Competition Authority (QCA) and is periodically subject to review of the Access Undertaking that defines how the rail network will be operated and priced.
In August 2013, Aurizon Network released its Draft Access undertaking (2013) for the UT4 period (2012/13 – 2016/17) to the QCA.
NineSquared was engaged by the Queensland Resource Council (QRC) to review Aurizon’s proposed approach to costing its maintenance and operating expenditure which together account for a budget of around $1 billion over 4 years.
Our review included a detailed analysis of Aurizon’s consultants’ reports into its proposed activities over the period and the estimate of costs. We reassessed the key benchmarks presented and highlighted a range of material variations from previous state positions and costing estimates. The results of the analysis were summarized in QRC’s maintenance and operating cost submissions. Subsequently, the QCA’s draft decision significantly reduced Aurizon’s maintenance and operating budgets.