Tranz Rail confirms Huntly coal delivery deal

Tranz Rail confirms Huntly coal delivery deal

From December this year Tranz Rail will start moving up to a million tonnes of imported coal annually from the Port of Tauranga to Huntly for Genesis Power.

This follows the announcement last year by the Port of Tauranga of a 10-year agreement they had signed with Genesis Power for the importation of coal for the Huntly Power Station.

Currently the tonnage is being moved by road but rail will start mid November. Each train will carry 1500 tonnes from a major new storage facility to be constructed at Mount Maunganui. The new facility will be able to handle 70,000 tonnes making it one of the largest of its kind in the world.

The 33 coal wagons needed to move the coal would be constructed at Tranz Rail's Hillside workshops in Dunedin. These are scheduled for completion in March 2005. The wagons will be covered to prevent coal dust contaminating sensitive retail and residential areas enroute.

When talks first started last year, Genesis Power Chief Executive Murray Jackson commented how rail offered the perfect option to move such a large tonnage and provided flexibility and competitive pricing for Huntly over the long term.

Tranz Rail's National Manager Bulk Freight, Steve Muir says the final confirmation of the deal is good news for the rail company and good news for motorists with the coal moving off the road and onto rail tracks.

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