CQ rail giant bows out of freight business

Aurizon will offload its general freight business.

Aurizon will offer voluntary redundancies to 25 Wide Bay employees. Picture: Contributed

RAIL giant Aurizon will offload its general freight business including its Acacia Ridge intermodal terminal after a $188 million loss over the past year.

The Brisbane-based company yesterday said continuing losses at its intermodal business and the impact of Cyclone Debbie on its coal network had hit profits.

Revenue flat-lined at $3.45 billion for the year after a shutdown of the Queensland coal network following the March cyclone.

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Aurizon chief executive Andrew Harding said the Queensland intermodal business would be bought by a consortium of Linfox and Pacific National for about $220 million after racking up losses over several years.

The intermodal terminal at Acacia Ridge would be sold in a separate trans- action to Pacific National, and the intermodal business outside of Queensland would be closed.

"The intermodal business was not a sustainable business for our share- holders or employees," Mr Harding said.

"Of the past 10 years, only three years have been profitable."

About 380 employees in Queensland will be transferred to the consortium, but about 250 employees will be affected by the closure of the interstate freight business.

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Mr Harding said the freight business had struggled in a competitive market where government policy favoured road transport.

Aurizon shares closed down 1.17% at $5.07.