SCT Logistics AUD 7.65% 24 June 2021 senior unsecured bond
SCT Logistics (‘SCT’) is Australia’s largest private rail freight operator with a 40 year operating history. SCT provides a full suite of vertically integrated, national logistics services, at the core of which is Australia’s most modern rail freight operation and national terminal footprint. The business was established in 1974 as a rail line haul service by Peter Smith, and ownership of the business has remained with the Smith family.
SCT runs 11 weekly services over three rail routes, the majority of earnings generated from the Australian East West coast corridor (40% market share) and the emerging north south corridor. Industry dynamics are favourable on long haul routes, with rail approximately four times more fuel efficient than road on the east west corridor. SCT operates Australia’s longest general freight train at 1.8km which is able to move 6,000 tonnes of freight.