FOMO factor key to interest in Pacific National

By the Editorial Team · Wednesday, September 2, 2026

Qube Holdings is competing with multiple investors, including I Squared and Stonepeak, to acquire Pacific National, a major Australian freight company currently valued at about A$6 billion. The sale is complicated by Pacific National’s significant coal haulage operations, which pose environmental risks that may affect buyer interest despite the company’s strong market position and expected EBITDA growth.

Qube Holdings faces increasing competition in its pursuit of Pacific National, one of Australia’s largest freight companies, as several potential buyers express interest driven more by a fear of missing out than urgency to acquire the asset. The logistics group, valued at around A$6 billion, has been on the market for over a year, with investment banks JPMorgan and Barrenjoey managing the sale process.

Among the interested parties are US-based infrastructure investors I Squared and Stonepeak, both of which have recently made substantial acquisitions in the Australian market. I Squared purchased outdoor advertiser oOh!media for A$898 million, while Stonepeak acquired aged-care operator Estia from Bain Capital for A$2.5 billion this year. Sources indicate these firms are drawn to Pacific National due to its market position and the potential for an opportunistic purchase.

Originally, Global Infrastructure Partners (GIP) planned to sell its 27 percent stake in Pacific National. However, other shareholders, including Canada Pension Plan Investment Board (CPP Investments), China Investment Corporation (CIC), and British Columbia Investment Management Corporation, have also considered selling portions of their holdings if market conditions prove favorable.

A key challenge for prospective buyers is Pacific National’s coal haulage segment, which accounts for roughly half of its coal transport business divided between thermal and metallurgical coal. This exposure to coal has reportedly deterred some investors focused on environmental, social, and governance (ESG) considerations.

For the 2026 financial year, Pacific National is expected to generate approximately A$600 million in earnings before interest, tax, depreciation, and amortization (EBITDA), up from A$579 million the previous year. Projections for fiscal 2027 suggest EBITDA could rise to nearly A$650 million. Despite carrying over A$3 billion in debt at the end of last year—encompassing bank loans, US bonds, and subordinated notes—the company maintains a stable credit outlook with an S&P rating of BBB minus. However, it reported a net loss of A$44 million in 2025, which included A$189 million in finance costs.

Pacific National operates as Australia’s largest private rail freight business, with diverse divisions covering bulk goods, coal, intermodal freight, and steel transport. Its infrastructure assets include bulk handling terminals, maintenance facilities, crew depots, an extensive train fleet, and a property portfolio valued at approximately A$12 billion. The company holds the largest coal haulage market share in New South Wales, is the second largest in Queensland, and leads the east coast grain and waste transport sectors.

As the sale process continues, industry watchers are monitoring whether bidders will prioritize strategic value or cautious appraisal of coal-related risks in their bids.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.