But a new Whitehaven Coal contract in New South Wales helped it increase its coal business in that state by 6% to 10.9Mt.

Net Tonne Kilometres (NTK) increased 18% in NSW, reflecting the longer haulage distances associated with the Whitehaven volumes from the Gunnedah Basin.

NTK in Queensland declined by 3% compared with the previous corresponding period, which is consistent with the volume decline offset by longer hauls for the Newlands corridor, according to Aurizon.

FY2016 tonnage guidance remains at 210-220Mt, the company said.

Earlier this month Aurizon revealed that a dispute between the company and coal mine owners over the cost of a rail link to the Wiggins Island Coal Export Terminal in Queensland could bite into the rail group’s earnings by up to $27 million.

Aurizon Network has received notices, the validity of which it disputes, from seven of the eight Wiggins Island Rail project coal mine customers.

Those notices purport to exercise a right under the relevant agreements to reduce the financial exposure of those customers to Aurizon Network in respect of the Wiggins Island Rail project.

Aurizon Network and eight coal companies are parties to Wiggins Island Rail Project Deeds, which Aurizon announced on 5 September 2011.