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Brisbane, Australia — August 2025
Aurizon Holdings Ltd (ASX: AZJ), Australia’s largest rail freight operator, has confirmed it is exploring strategic options for its Central Queensland Coal Network (CQCN), including the potential sale of up to 49% of the network for an estimated A$4 billion.
📈 Strategic Review and Investor Outreach
Aurizon’s announcement follows a report in the Australian Financial Review that the company has invited private infrastructure investors, hedge funds, and insurers to conduct a confidential review of the CQCN. The company has opened a data room containing limited due diligence materials, with Goldman Sachs leading the investor search.
At its February 2025 half-year results, Aurizon disclosed that the future of the 2,670-kilometre CQCN was under review, with a decision expected by the end of the calendar year. A company spokesperson stated:
“We always remain open to exploring genuine opportunities — strategic, operational or structural — that can unlock further value for shareholders while preserving the service quality and reliability our customers depend on.”
🛤️ About the Central Queensland Coal Network
- Scope: 2,670 km of multi-user track across four major coal systems — Newlands, Goonyella, Blackwater, and Moura — plus a connecting system.
- Function: Links over 50 coal mines to five export terminals at three ports: Abbot Point, Hay Point, and Gladstone.
- Significance: The CQCN is Australia’s largest export coal rail network and a critical component of the national supply chain.
Aurizon operates the CQCN under a 99-year lease from the Queensland Government and manages access through a regulated framework overseen by the Queensland Competition Authority.
💼 Ownership Structure and Historical Context
Aurizon was formerly known as QR National, a freight division of Queensland Rail. It was privatised in 2010 through a public float that raised A$4.6 billion, marking one of the largest infrastructure divestments in Australian history. The Queensland Government initially retained a 34% stake post-privatisation.
The proposed stake sale or demerger of CQCN would be the most significant structural change since that privatisation. Sources cited by AFR suggest Aurizon prefers to retain control but is open to demerging the asset to shareholders.
💰 Market Reaction and Financials
- Share Price: Aurizon shares rose 1.58% to $3.21 following the news.
- Market Capitalisation: Approximately $5.62 billion.
🌐 Broader Implications
The potential sale reflects a broader trend of infrastructure monetization in Australia’s transport sector. Analysts suggest that a partial divestment could:
- Unlock capital for Aurizon’s expansion and modernization
- Attract long-term institutional investors seeking stable returns
- Reshape the governance and operational model of the CQCN
🔍 What’s Next?
Aurizon is expected to announce the outcome of its strategic review later this year. The company has emphasized its commitment to maintaining service reliability and stakeholder engagement throughout the process.
Sources:
- Azzet Business News Coverage
- Aurizon’s CQCN Overview
- Public Float of QR National – Wikipedia
- Central Queensland Coal Chain Case Study
Coal trains network picture by Center for Land Use Interpretation
