LISTEN | $27m row between Aurizon, Gladstone coal terminal
AURIZON has taken a battle between Wiggins Island Coal Export Terminal owners to court over future pay disputes which could see the rail company up to $27 million worse off each year.
Aurizon has told investors it received notices from seven of the eight WICET owners seeking to reduce the financial exposure from Aurizon in regards to the coal terminal project.
In an announcement in October, Aurizon said the changes "would substantially reduce" the return the company would get from constructing the $900 million rail infrastructure for the terminal.
WICET'S DAYS IN COURT
It claims it met the deadlines and commitments under the contract signed on September 2011 with it delivering the first railings for the project in April 2015 before coal shipments began in May.
"Aurizon Network was to receive certain payments, which would deliver an above regulatory return on its investment in the (rail project), in return for Aurizon agreeing to develop the project on time and for a lower than forecast cost," the announcement read.
"Both were achieved."
Aurizon claimed the change of contract would see it be up to $27 million worse off each year for 20 years.
"Aurizon has continued discussions with the customers to resolve the dispute commercially," a statement to investors this month read.
"Regrettably, these discussions have not produced a resolution.
"Aurizon today issued proceedings in the Supreme Court of Queensland to assert its contractual rights under the Project Deeds."
MORE WICET COURT STORIES