The challenges facing Aurizon

Aurizon makes a profit moving cargoes like coal and Iron ore using through large networks in Australia. This main business of transporting resources is related to the geographical characteristics. Because Queensland is the minerals rich state, Aurizon could have made the economic development and growth thanks for this advantage. Furthermore it now has one of the world’s largest coal supply chains.

In other words, this suggests that the company’s performance and future growth is linked to the supply and demand of the Australian resources. Nowadays, as Asian economies such as China and India has been growing fast, the demand of coal and iron ore has been existed continuously. However if those countries decide to import from other places, not Queensland, Australia, then the demand will be critically decreased and will occur a big loss. Also it might sounds like a long future story, if the buried resources in that region run out, it will be difficult to maintain the main business as well. Therefore to prevent these worst situations in advance, Aurizon has to improve the good relationships with exporters to maintain them as demanders using Aurizon’s services.

Besides, recently the company reduced the size of its workforce, cutting the number of total staff. This means that Aurizon is not in a very good situation. So Aurizon must now try to increase independency by expanding business projects, strengthen major product lines by creating own high-leveled technologies or value added services, and consider the least costs of operating and maintaining locomotives.