Shares in rail group Aurizon have dived more than 15 per cent after the company lowered its profit guidance, warned of up to $240 million of write-downs and announced it will cease development work on its controversial West Pilbara Iron Ore project.

The company said on Wednesday that coal haulage volumes would be 3-4 per cent lower than expected for the first half of the 2015-16 year, and that earnings before interest and tax for the half year would be in the range of $390 million to $410 million. The consensus of analysts' forecasts provided by Bloomberg was for EBIT of $510 million.