Highlights
- Aurizon (AZJ) wins long-term copper logistics contracts with BHP (BHP)
- New freight terminal at Pimba and strategic infrastructure upgrades
- Integrated transport cuts 13 million km of truck travel yearly in SA
Aurizon (ASX:AZJ) has clinched a significant milestone in its logistics strategy with the announcement of new long-term contracts awarded by BHP (ASX:BHP) for its Copper South Australia operations. These contracts, set to span up to 15 years, mark a major step in Aurizon’s strategic expansion within the national bulk logistics market. The initial 10-year phase of the agreement is projected to generate approximately AU$1.5 billion in revenue, commencing from October 2025.
A Comprehensive Logistics Solution
Under the contract, Aurizon will manage a complete integrated transport solution covering rail, road, and port services. Copper concentrate and cathode will be transported from BHP’s Olympic Dam, Carrapateena, and Prominent Hill mining operations via rail lines connecting Pimba to Port Adelaide.
Aurizon will oversee all supply chain segments including rail haulage, terminal operations, and port services, drawing on its strengthened infrastructure in South Australia. Key assets include the recently acquired Port Adelaide (Berth 29) and the Gillman containerised freight terminal. Additionally, a new freight terminal will be constructed at Pimba, with an estimated investment of AU$40 million — the largest component of the total AU$100 million capital spend associated with the project.
Efficiency Gains and Sustainability Impact
The strategic shift to this multimodal transport model is poised to significantly enhance logistical efficiency. Notably, it is expected to remove around 13 million kilometres of truck journeys annually from South Australian roads. This translates into lower traffic congestion, improved road safety, and a tangible reduction in carbon emissions — a win for both operational sustainability and environmental stewardship.
Driving Forward Bulk Strategy
This development represents a defining move for Aurizon’s bulk division. The long-term nature and scale of the BHP contract not only affirm Aurizon’s capability to deliver complex logistics solutions but also highlight its competitive positioning in the national market. It reflects the foresight of prior investments in infrastructure and targeted acquisitions in South Australia and the Northern Territory.
As the demand for future-facing commodities like copper continues to rise, such initiatives underscore the importance of robust logistics in supporting mining supply chains. The copper market, driven by renewable energy technologies and electrification trends, aligns with the growing relevance of the ASX200 — a benchmark index where these industrial and infrastructure leaders shape economic momentum.
With its enhanced service capability and strategic assets, Aurizon (AZJ) is poised to play a pivotal role in Australia’s resources logistics network, catering to a sector anticipating significant global demand growth.