Aurizon Lands $1.5B BHP Copper Logistics Deal, Builds New Rail Terminal
Aurizon has landed a major 15-year contract to manage BHP’s Copper South Australia logistics, investing $100 million in new infrastructure and promising a greener, safer transport solution.
- 15-year integrated rail, road, and port logistics contract with BHP
- Initial 10-year revenue forecast of approximately $1.5 billion
- Capital investment of around $100 million including new Pimba rail terminal
- Shift from road to rail reduces truck movements by 13 million kilometres annually
- Partnership leverages Aurizon’s South Australian assets and Symons Clark Logistics subcontract
A Landmark Contract for Aurizon
Aurizon Holdings Limited has secured a significant logistics contract with mining giant BHP, marking a major milestone in the company’s expansion into South Australia’s copper sector. The agreement, effective from October 2025, spans up to 15 years and covers an integrated rail, road, and port logistics solution for BHP’s Copper South Australia operations. This contract is expected to generate around $1.5 billion in revenue over the initial decade.
Transforming Copper Logistics
The logistics task involves transporting approximately 1.3 million tonnes of copper concentrate and cathode annually from BHP’s Olympic Dam, Carrapateena, and Prominent Hill mines to Port Adelaide. Aurizon will manage the entire supply chain, including rail haulage, road transport, terminal and port management, and stevedoring. Road transport will be subcontracted to Symons Clark Logistics, a trusted BHP partner, ensuring continuity and expertise in last-mile delivery.
Strategic Infrastructure Investment
To support this large-scale operation, Aurizon plans to invest approximately $100 million in capital expenditure, with the centerpiece being a new rail freight terminal at Pimba, South Australia, costing around $40 million. This terminal will serve as a critical hub, facilitating the transfer of freight between rail and road and is designed to be scalable to accommodate future growth in BHP’s copper production.
Environmental and Community Benefits
One of the most compelling aspects of this contract is the environmental impact. By shifting freight from road to rail, Aurizon expects to eliminate an estimated 13 million kilometres of truck movements annually on South Australian roads. This modal shift promises to enhance road safety, reduce congestion, and significantly lower carbon emissions, aligning with broader sustainability goals and benefiting local communities.
Positioning for Growth
Aurizon’s Managing Director Andrew Harding highlighted the contract as a validation of the company’s strategic investments in South Australia and the Northern Territory. The deal not only strengthens Aurizon’s presence in the bulk logistics market but also positions it to capitalize on the growing global demand for copper, driven by population growth and the energy transition. BHP’s Copper South Australia operations, which produced 322,000 tonnes of copper in FY2024, could expand further, offering Aurizon additional volume opportunities.
Bottom Line?
Aurizon’s new contract with BHP signals a transformative shift in copper logistics, blending infrastructure investment with sustainability gains.
Questions in the middle?
- How will Aurizon manage operational risks tied to meeting BHP’s performance KPIs?
- What are the prospects and timelines for BHP’s Copper South Australia production growth?
- Could Aurizon’s investment in Pimba catalyse further logistics contracts in the region?
