Rail company Aurizon is set to shed dozens of jobs in the North West after they lost a key maintenance contract with Glencore.
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An Aurizon spokesperson told the North West Star Glencore will not renew its existing contract with Aurizon to haul mine inputs and outputs for Glencore’s mines in Mount Isa. The contract ends January 31, 2017.
“On 1 February the company will cease to operate this service between Townsville and Mount Isa. Aurizon is considering options for other customers including a transfer to road haulage,” the spokesperson said.
“The decision will affect Aurizon employees and contractors in Mount Isa, Cloncurry, Hughenden and Townsville, and means a number of roles are surplus to business requirements.”
Aurizon said consultation with employees commenced on Monday with a proposed 76 roles “surplus to requirements”. The jobs affected are eight in Townsville, 29 in Hughenden, one in Cloncurry and 38 in Mount Isa.
In addition to Glencore’s products, the daily freight service also carries a range of mixed freight for other customers. It is the only mixed freight train that Aurizon operates between Townsville and Mount Isa, and without the major Glencore contract, the volumes are too small to support the costs of the daily rail freight service.
“Aurizon is seeking, in the first instance, to provide redeployment opportunities for employees to regions where there is demand,” the spokesperson said.
However this redeployment would mean moving away from the region.
“There are a number of train crew opportunities, for example, in Central Queensland and in NSW in the coal business,” the spokesperson said. “Employees will be offered retraining and voluntary redundancies.”
Aurizon said no final decisions would be made until they have completed consultation with employees.
“Aurizon has also commenced briefing community representatives and other stakeholders in the region on the changes,” they said.
A Mount Isa Mines spokesperson said their below track costs for rail transportation had increased significantly against a backdrop of prolonged low commodity prices over the past five years
“Mount Isa Mines has made a decision to better utilise the capacity of trains transporting our products to Townsville, in line with the conditions of a long-term take or pay contract we have in place with Pacific National,” the spokesperson said.
“This solution improves efficiency and the long-term sustainability of our business.
“Mount Isa Mines participated in discussions with both QR and Aurizon but unfortunately could not reach an acceptable or competitive outcome.”
The Aurizon news comes on top of job losses in Cloncurry and Hughenden announced in July after an “operations review”.
Aurizon was also one of the bidders for the $1 billion Glencore Hunter Valley coal train network but lost out to Genesee & Wyoming.
Derek Barry
Editor of the North West Star Mount Isa since January 2016. Prior to that, an editor at several regional southern Queensland newspapers. Passionate about telling local stories. Comes with a strange accent to due an Irish accident of birth.
Editor of the North West Star Mount Isa since January 2016. Prior to that, an editor at several regional southern Queensland newspapers. Passionate about telling local stories. Comes with a strange accent to due an Irish accident of birth.
