Managing Director’s Report
“K&S Freighters rail transport operations were impacted during the busy December-January period when rail provider Aurizon withdrew its services, closing its intermodal business, less than 18 months after entering into a five-year exclusive agreement. This resulted in new arrangements being urgently negotiated with Pacific National during the busy Christmas-New Year period.
While some initial disruptions were experienced, by March this year capacity across the network had reached satisfactory levels.”
“Included in our statutory result was a $16.1 million receivable relating to compensation arising out of the closure of Aurizon’s intermodal business in December 2017. K&S’ claim has not yet been resolved. K&S is confident that it will recover at least $16.1 million.”
Events Subsequent to Balance Date
“Currently negotiations are continuing with our former rail provider, Aurizon, for the resolution of claims made against it by K&S in regards to the closure of Aurizon’s intermodal business.”
