Aurizon responds to QCA draft ruling

.

Rail freight operator Aurizon (ASX:AZJ) has provided a response to the Queensland Competition Authority’s (QCA) draft ruling.

The QCA draft released in December last year, reduced what the Aurizon can charge to users of the Central Queensland Coal Network.

Aurizon says under the proposed changes the network would earn the lowest regulated return for any major infrastructure asset in Australia.

The company says that the proposed rate of return of 5.41 per cent doesn’t promote the economically efficient operation of the coal network, or recognize the commercial and regulatory risks that Aurizon undertakes in operating in the Central Queensland coal network.

The rail company says it’s identified fundamental errors made by the QCA in forming its ruling.

Shares in Aurizon (ASX:AZJ) are trading  1.57 per cent lower to $4.40.