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Business Overview
Overall volumes on the ARTC network
for FY2016 were 2.5 percent above
those recorded for the corresponding
2015 financial year.
This increase was due to growth in North
South intermodal volumes and stronger
import and export freight movements.
The minerals sector (excluding coal)
continued to record volumes below the
same 2015 period due to the decline in
global iron ore prices and the closure of
the Arrium iron ore operation in South
Australia. Volumes across other freight
sectors during the period remained
generally in line with, or marginally below,
the recorded 2015 volumes. Pleasingly
some sectors in these markets signalled
a return to growth or returned to rail in
the latter half of the financial year and
this bodes well for FY2017 and beyond.
Intermodal volumes were impacted by
the Rawlinna derailments in December
2015 and April 2016, along with continued
weakening of the Western Australian
economy. Grain volumes were below
target expectations due to a later than
usual harvest and lower market rates,
which resulted in grain being held
in storage. In the Hunter Valley, the coal
chain delivered 159.3Mt of export coal
for FY2016 compared to 159.7Mt in the
corresponding 2015 financial year –
a strong result given the subdued coal
price, but also reflective of the positive
market appetite for high quality thermal
coal delivered through a high performing
network and coal supply chain.
Looking Ahead
Whilst the economic outlook for
the year ahead remains challenging, we
see opportunities to leverage our asset
base, maintain a focus on productivity
improvements and consider ways
to consolidate for future growth.
Our strength as a business lies in the
combination of our strong, nationally-
significant infrastructure network, and
our talented people – and through both
we remain committed to demonstrating
rail’s value as a sustainable solution
to supply chains across the country.
THE TOTAL DIVIDEND PAID TO
OUR SHAREHOLDERS FOR THE
YEAR WAS $91.3 MILLION, AN
INCREASE OF 59 PER CENT
OVER THE YEAR PRIOR. WE ARE
PLEASED TO DELIVER SUCH
A SATISFACTORY OUTCOME.
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