Asciano subsidiary Pacific National has signed a ten-year haulage contract with Xstrata Coal, covering the Hunter Valley and Port Kembla in New South Wales (NSW), Australia.

The contract, effective from 1 January 2011, will replace a number of existing contracts and generate total net revenue of more than $800m, Asciano said.

The contract represents the largest single customer contract for Pacific’s coal division and is expected to further strengthen the company’s coal haulage business in NSW.

Pacific expects its haulage business to increase in scale by more than 50% over the next five years.