Aurizon, the largest listed rail company in Australia, has said that it is planning to generate more than $230 million in cost savings from its business during the next two years, in a move that would include job cuts and property sales.

Aurizon, which was earlier known as QR National, also said that it has hauled almost 194 million tonnes of coal in the year to June, mostly in line with its latest guidance. The company had lowered its forecast for the amount of coal it would haul for the year to between 192 million tonne and 195 million tonnes.

The company has said that it would cut $100 million in support costs during the next two years and about $60 million of that will come from a lower labour cost.

Lower labor costs will come from laying off an undisclosed number of workers, staff leaving of their own accord, outsourcing work and reducing the hiring of contractors in the country during the coming two years. Aurizon has already reduced its workforce by about 1600 over the previous two years through voluntary redundancy programs in the country.

The company will also reduce its real estate costs by up to $25 million by selling property assets that are not required. It will also aim at 130 million in productivity improvements during the next two years including $70 million in labour savings.

Shares of the company rose 2.5 per cent to $4.50 during the early trading today.