Under the contract, Campbell Transport will provide minimum haulage of 1200 tonnes per day, which comprises around 60 per cent of the intended initial JWD volumes.

Campbell Transport will also provide road train loading services to the other contractors performing the remainder of the haulage.

According to a statement from Fe, the haulage rate is fixed for the first six months and then reverts to a floating rate (above a floor rate) that is based on Fe’s realised iron ore price.

“We are pleased to have secured the services of Campbell Transport as our lead haulage partner for JWD,” Fe executive chairman Tony Sage said.

“It has been well documented that road trains are in short supply at present so to secure the services of an experienced contractor in this market speaks volumes for the Fe team and the potential of the JWD project.

“The contract pricing methodology will drive alignment between the parties and assist Fe to reduce the cost of its largest cost item in the event iron ore prices decline in the future”.

“Port and offtake remain the key items for us to complete, these are well advanced and we expect to update shareholders shortly.”

Campbell Transport is an experienced haulage contractor that has been established for more than 20 years with a long history of bulk commodity haulage with a focus on iron ore.