Rail freight company Watco East West will be the new operator of cattle rail haulage on Queensland's central west line.
It's the second cattle rail service for the company, which began operating on the south west line between Morven and south east Queensland 12 months ago.
Speaking from Warwick on Tuesday, Agriculture Minister Mark Furner said the announcement that Watco East West would run the cattle rail transport services on both lines from 2022 to 2028 would help to ensure efficient logistical arrangements to support the cattle supply chain.
Aurizon is currently contracted to provide the central west service.
Mr Furner said the selection had been made following a competitive procurement process, and both contracts would begin on January 1, 2022.
Watco was awarded a short term contract for the south west line in 2020 along with the contract to operate the new Morven Freight Hub.
Watco East West director Chris Hood said the extra contract would help them bring innovative thoughts to the cattle logistics table.
"We are determined to make this operation a success and deliver better outcomes for processors and cattle producers by integrating the two services with road use," he said. "Watco East West will be concentrating on improved communications and better coordination between road and rail."
The company's aim will be to attract cattle into loading points as far north as Winton and Clermont, as well as building greater volumes from the north to the east and into the Morven Freight Hub.
Transport and Main Roads Minister Mark Bailey said transporting cattle on rail reduced wear and tear on roads and reduced traffic congestion, and so a key aim of the contract was to increase the amount of cattle transported by rail services.
"By supporting businesses like Watco to help manage the freight task, we're sharing the load between road and rail," he said.
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