Aurizon to lodge 10-year network access undertaking with QCA

Aurizon Holdings Limited announced its intention to lodge a revised 10-year Access Undertaking (UT5+) for the Central Queensland Coal Network (CQCN) with the Queensland Competition Authority (QCA) today. Effective from 1 July 2027 to 30 June 2037, this agreement aims to provide commercial and operational certainty for both Aurizon Network and its customers. The proposed UT5+ is supported by customers representing 68% of contracted tonnes across the CQCN in FY2025.

The UT5+ agreement is projected to deliver an average annual revenue increase of $45m compared to the rebased UT5. This uplift is driven by updated WACC parameters, changes to depreciation, and the introduction of a volume-linked Throughput Payment, which partially replaces the negotiated WACC uplift from UT5. The Throughput Payment is linked to network performance and efficiency, CPI-indexed, and subject to a floor of 180mt.

Key customer benefits include a ten-year term for long-term certainty, five-year rolling access agreements, and streamlined (fee-free) transfer provisions. Aurizon benefits from bring-forward of future cashflows due to changes in depreciation and maintained inflation and revenue protection mechanisms, including an adjusted Take-or-Pay framework. The undertaking remains subject to QCA approval.