Flexible rail contracts and fresh assets promise to put miners back in control of logistics and keep tonnes moving with fewer headaches

In a sector where “take-or-pay” contracts have long dictated how miners move their commodities, one new entrant is promising a more flexible model that puts the needs of producers first.

Speaking to The Rock Wrangler, Lee Morrissey, national business development manager of the haulage team at Martinus, outlined how the company is challenging long-standing norms in bulk rail freight. While Martinus has built its reputation in rail construction and infrastructure, its expansion into haulage signals a new strategy designed to give mining companies more choice and control.

“We’re a new player, which means we’re not tied to legacy systems or old ways of doing business,” Lee explained. “That allows us to build bespoke solutions that genuinely solve problems miners have been dealing with for decades.”

Challenging the take-or-pay paradigm

For many miners, logistics contracts structured around take-or-pay terms have been a persistent pain point. These agreements require producers to pay for rail capacity whether or not they use it, forcing mining schedules to bend around the transport deal instead of the other way around.

Lee believes this misalignment has long stifled efficiency and added unnecessary cost. “The take-or-pay model means you end up running a mining business to suit a logistics contract, when it should be logistics serving the miner,” he said.

“We’re offering alternatives. If a customer doesn’t want take-or-pay, we’ll sit down and explore flexible agreements that work for both sides.”

The company has already introduced Martinus Flex, a contract structure that removes the take-or-pay element.

“Of course, there are still rules about how we need to work together to keep the system efficient, but fundamentally it’s about giving miners freedom,” Lee added.

Vendor financing and fresh assets

Cost pressures are another reality miners face when considering large-scale logistics upgrades. The capital required to develop rail connections, procure rolling stock, and operate reliable services can be prohibitive.

Lee outlined how Martinus is addressing this barrier with a vendor financing model, likening it to a home loan. “We do a thorough due diligence process on each customer to assess risk. If the appetite is right, we can fund the infrastructure and rolling stock ourselves, then amortise those costs across the life of the contract. It means the miner doesn’t need to raise that capital upfront,” he said.

Every solution also comes with brand-new locomotives and wagons – a significant differentiator in a market where ageing rolling stock is common. “Unplanned failure events aren’t often factored into contract discussions, but they cost miners dearly,” Lee said. “When you’re running new assets, the reliability improves and that translates directly into more revenue for the customer.”

Productivity gains from road-to-rail

Productivity in mining logistics is under the spotlight across Australia, with national debates underway about how to ease bottlenecks. While road haulage remains critical for first- and last-mile operations, Lee sees clear opportunities for shifting high-volume loads to rail.

“Road and rail both have their place, but when volumes grow to the point that trucks are clogging up networks, adding maintenance costs, and creating social license issues, that’s where rail comes in,” he said. “Rail can take pressure off communities and deliver miners a more efficient supply chain. The key is designing contracts and operations that align with production, not constrain it.”

ESG as standard, not an afterthought

Environmental, social and governance (ESG) expectations are reshaping procurement decisions across the mining sector. Here again, Martinus sees its greenfield status as an advantage.

“All of the locomotives we’re looking to introduce are new builds,” Lee said. “Even the least advanced new build far outperforms a 30- or 40-year-old locomotive on emissions. But some of the technology we’re seeing out of Europe is really next level – hybrids with diesel-battery systems, tri-modal locomotives that can run on overhead wires, diesel or batteries. They exceed Australian standards by a long way.”

The challenge, Lee noted, is finding customers ready to invest in cutting-edge technology. “There’s still a strong push in Australia for traditional diesel. But as ESG priorities gain weight, we’re confident there will be miners who see the value in adopting these new solutions,” he said.

Bespoke engineering for Australian conditions

Australia’s mining corridors present unique engineering and operational challenges. Rather than pushing standardised equipment, Martinus is tailoring solutions to fit each site.

“If a customer needs smaller wagons to fit a particular corridor, we’ll design around that,” Lee explained. “We’re not going to over-engineer something that doesn’t fit. The goal is the right wagon, the right size, the right cost – it’s efficient for the miner and avoids waste.”

This flexibility extends to locomotive options too. “If a miner wants a cutting-edge ESG-aligned locomotive, we can provide it. If they want a traditional but brand-new diesel for reliability and cost efficiency, we can do that too,” Lee said.

Building on infrastructure expertise

While the haulage arm is new, Martinus brings a long track record in large-scale rail construction projects – experience Lee says helps reassure miners that the company can deliver.

“Our infrastructure team has mobilised and demobilised thousands of people on projects like Inland Rail and the Carmichal Rail Network  in Queensland,” he said. “That’s highly complex work, and it shows we can manage scale. When we put out tenders on the haulage side, we point to that expertise as proof that we can stand up new services.”

Looking deeper into the supply chain

Lee also sees opportunities for Martinus to go further downstream in logistics support. “We’ve spoken with miners about operating loadouts, managing maintenance facilities, and getting more involved in the end-to-end supply chain,” he said. “It’s all about finding where we can add the most value for each customer.”

He emphasised that much of this remains in development. “Martinus is an evolving business. Some of these ideas are at early stages, but in twelve months I expect we’ll have live examples to point to,” he said.

Strategic direction: contracts that work for miners

Looking ahead, Lee believes Martinus’ future lies in staying true to its founding principle: making logistics serve miners rather than the other way around.

“We want miners to get back to being miners,” he said. “Our role is to make sure the contracts and the supply chain work for them, not force them to compromise. If they have a problem in the supply chain, our job is to find a way to solve it.”

Reliability, too, is a cornerstone of the Martinus pitch. “Because everything we’re bringing in is new, we’re aiming for high utilisation rates and very low unplanned failures. And if something does go wrong, our contracts are structured so the first priority is always to get the tonnes moved. Penalties come second,” Lee said.

A new force in bulk haulage

For decades, the Australian rail haulage market has been dominated by a handful of tier-one incumbents. Lee knows that entering this space as a challenger will not be easy, but he is confident Martinus’ flexibility, financing models, and focus on fresh assets will set the company apart.

“Our vision is to build a reputation as a reliable, responsive, and genuinely customer-focused partner,” he said. “If we do that, the miners will come to us because they know we can deliver a solution that works for them.”