Aurizon boss Lance Hockridge may quit

Aurizon boss Lance Hockridge is believed to be departing, telling staff he plans to step down on Thursday.

Aurizon CEO Lance Hockridge. Pic Mark Calleja.

Aurizon (AZJ) boss Lance Hockridge is believed to be departing Australia’s largest rail-freight operator, telling staff he plans to step down on Thursday.

Mr Hockridge became managing director and chief executive of Aurizon, then known as QR National, in July 2010, leading the company through what was at the time the largest initial public offering in Australia in a decade.

His experience spans more than 30 years in the transport and heavy industrial sectors in Australia and the US, working with BHP Billiton and BlueScope Steel. Those in line to succeed him include Aurizon’s chief operating officer Mike Carter, its former executive vice-president of operations Mike Franczak, and DP World Australia managing director Paul Scurrah, as first reported online by The Australian on Friday.

Aurizon is Australia’s largest rail freight operator, moving coal, iron ore and agricultural freight.

The company has denied that Mr Hockridge is leaving.

The logistics company last week reported a sharp slide in its annual net profit to $72 million on the back of a string of writedowns.

The result was 88 per cent lower than in the previous corresponding year and came with lower profit guidance for the 12 months ahead. The shares fell almost 6 per cent on the day.

Companies servicing the resources sector have struggled in the face of weak global commodity prices, particularly coal.

Aurizon reported a $180 million reduction in freight revenue over the year, after a 9 per cent fall in volume.

Mr Hockridge said last week that the company had begun a strategic review of its intermodal and commodities freight businesses, with a focus on those parts not generating acceptable returns.

He also announced plans to cancel a share buyback to ensure the business was positioned for growth opportunities.

At its first-half results, Aurizon wrote down the value of businesses and projects by a combined $426m, which included an impairment charge of $174m against a stalled iron ore project in northwest Australia. The year’s total impairments hit $528m pre-tax.

Mr Hockridge described the past year as challenging for the company and its customers, with volume and revenue under pressure.

However, he said Aurizon’s coal customers were in much better health than they were just six months ago.