Introduction:
Aurizon (ASX: AZJ), Australia’s leading rail freight operator, faced a significant challenge when one of its trains derailed at Alcoa Pinjarra, disrupting the transportation of Alumina to the Port of Bunbury. This case study explores how Aurizon efficiently resolved the derailment claim by engaging local expertise to assess the damage and estimate repair costs.
Client Introduction:
Aurizon, an ASX-listed company, plays a crucial role in transporting over 250 million tonnes of Australian commodities annually. The company’s extensive rail network connects miners, primary producers, and industries with both international and domestic markets.
Problem:
A derailment incident at Alcoa Pinjarra on May 13, 2017, led to damage in Alcoa’s track assets. The derailment resulted from an Aurizon rail operations safeworking operator moving a switch during the train’s passage, causing wagons to derail. Alcoa’s track suffered a loss of function in the switch, impacting rail traffic through the Alumina load-out bin.
Solution:
Aurizon’s legal team, based in Brisbane, required a timely assessment of the damage and an estimate of repair costs without sending a representative to the site. De Leo Consulting, chosen based on expertise and availability, conducted the following:
- Inspection of Turnout 4A at the Alcoa Refinery in Pinjarra.
- Preparation of a concise report detailing the current state of rail infrastructure, appropriateness of identified repairs, cost estimates for repairs, and potential for additional repair works from a previous detailed inspection.
Results:
De Leo Consulting provided Aurizon with a comprehensive report confirming the damage, outlining the necessary work and methods, and presenting a cost estimate and schedule. This information empowered Aurizon to settle the derailment cost claim efficiently, avoiding the need for further work.
Conclusion:
The case study underscores the advantages of leveraging local expertise for technical and economic assessments. By engaging De Leo Consulting, Aurizon successfully navigated the challenges posed by the derailment incident without incurring the time and cost associated with distant travel. This approach exemplifies the efficiency and effectiveness of utilising local resources for objective and prompt resolution of complex operational issues.