28/04/2010 - 09:14

Perdaman, WestNet sign rail agreement

28/04/2010 - 09:14

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Perdaman Chemicals and Fertilisers will finalise rail access details for its $US2.5 billion Collie urea project after it entered into an agreement with WestNet Rail.

Perdaman Chemicals and Fertilisers will finalise rail access details for its $US2.5 billion Collie urea project after it entered into an agreement with WestNet Rail.

The parties yesterday signed a heads of agreement that paves the way for negotiations for a final framework over rail access to take place.

Perdaman plans to export 2 million tonnes of urea annually from the project through the Bunbury port using WestNet Rail's network.

Last month, Perdaman was granted a major project facilitation status by the federal government, which allows it to have issues responded to promptly.

The project has the backing of South Korean conglomerate Samsung Corporation and the Indian government has signed on to buy all the fertiliser produced at the operation.

About 1,500 jobs are expected to be created during construction and 200 full-time jobs once the project comes online in 2013.

 

 

The announcement is below:

 

WestNet Rail and Perdaman Chemicals and Fertilisers (PCF) late yesterday signed a Heads of Agreement (HOA) in a deal which aims to provide rail track access for the Perdaman Collie Urea project and significant growth and revenue opportunities for WestNet Rail.

WestNet Rail Chief Executive Officer Paul Larsen described the HoA as a milestone step for the project and a win for both companies.

PCF is developing a US$2.5 billion urea manufacturing plant at Collie and it's expected the plant will produce 2 million tonnes of urea per annum which will be exported through the port of Bunbury, utilising the WNR rail network.

WNR began direct access negotiations with PCF in mid 2009.

"Significant progress has been made on the commercial terms of access", Mr Larsen said.

This early commitment to work together towards providing capacity was required to enable PCF to engage with potential financiers and to invite the rail operators to tender for PCF's rail transport operations.

PCF Chairman and Managing Director Vikas Rambal said "The HOA provides the framework for increased benefits for both parties with WNR extending the use of the rail network and increasing track access revenue and PCF securing rail access which is vital to the project's success".

"This agreement forms a significant step forward in terms of us having an important part of our project secured in the form of our track access," Mr Rambal said

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