Toll NZ and Solid Energy sign 13-yr West Coast coal deal

1.00pm

Rail operator Toll NZ has struck a 13-year transport deal that will allow Solid Energy to move up to 3.8 million tonnes of West Coast coal a year from 2007/08.

The deal between Toll NZ and Solid would see 2.4 million tonnes of coal moved this year, and up to 2.7 million tonnes in 2005/06, they said in a joint statement.

The increase in tonnage would eventually see eight trains plying the route between the West Coast and Lyttleton, an increase of one a day.

Both firms would work with the Railways Corporation over investment to increase the capacity and reliability of the line, they said.

The deal also established a framework for the possible transport of Solid Energy coal on other parts of the rail network, including carrying it to the ports of Westport and Greymouth.

Solid Energy chief executive Don Elder said the deal was a "significant milestone as it secures the future of our export coal business through Lyttleton and allows us to maintain our competitiveness in international markets."

It also gave the firm the confidence and capacity to achieve increased production from current and planned mines around the Greymouth and Buller areas of the West Coast.

Toll NZ chief executive David Jackson said the deal created transparency and a new environment to enable it to deliver an extremely important export volume for New Zealand.

- NZPA