Transport behemoth Team Global Express (TGE) – formerly trading as Toll Global Express – plans to replace heavy-duty trucks and move more goods by rail in a new $1.8 billion deal with Aurizon.
The announcement comes just a few weeks after TGE revealed plans to roll out Australia’s largest fleet of electric trucks in Sydney.
The new partnership with Aurizon will see seven weekly train services added to the firm’s options, potentially cutting carbon emissions for both companies.
“We want to be able to offer customers proper green solutions and clearly rail is the best way to do that,” TGE chief executive Christine Holgates told AAP.
“We know there’s a lot more demand for rail services. There is arguably about 40 per cent less carbon emissions for a kilo moved on rail as opposed to road. It’s significantly better for the environment.”
TGE will operate containerised rail freight along the East-West (Sydney-Melbourne-Adelaide-Perth) and North-South (Brisbane-Sydney-Melbourne).
“Our partnership with Aurizon is game-changing for Team Global Express customers, securing them important extra capacity and more choice, in what to date has been a very limited rail market, with restricted capacity and rising tariffs,” added Holgate.
“The weather events of recent years have demonstrated how important both choice and capacity on major routes are, to ensure important freight, including food, can still be delivered at times of great need.
“These events have also evidenced the importance of leveraging rail as a greener solution for transporting freight, to help address climate change and secure our nation’s carbon ambitions.”
Aurizon managing director and CEO, Andrew Harding, said: “Together with TGE we have designed an innovative transport and logistics solution to best meet their end customer needs.
“We both share a strong commitment to helping achieve a net zero emissions future and recognise the significant role rail can play in helping achieve that goal.”