Aurizon has opened itself to nearly $200 million worth of asset impairments after a decision to slash the number of trains, wagons and workers at the company.

Aurizon says it will shrink its locomotive fleet by 28 per cent down to 598 engines and cut its wagon fleet by 12 per cent to 16,292 cars in the next few years. Those moves will lead to the incursion of about $150 million in pre-tax impairment charge.

Aurizon is expected to take charges of around $47 million after a review of strategic projects which may end with it scrapping the 204 km Surat Basin joint venture, and winding-back efforts on a Galilee Basin project with GVK Hancock.

Analysts say the charges will be an extraordinary expense “below the line”, changing estimates for the group’s underlying profits.

The company says almost 250 voluntary redundancies have been made since July this year, 2000 people have left since 2010.

The company is reporting healthy coal haulage statistics from sites in Queensland and New South Wales, it also says it will hit an operation ratio of 75 per cent in the 2015 financial year.

Aurizon has been slimming down since it was sold by the Queensland government in 2010. The latest trimming efforts are an attempt to simplify its range of vehicles as much as cut costs. Currently the company runs 59 kinds of train and 297 forms of wagon. It says a smaller, more efficient fleet will allow it to better compete with national and global rivals.

Some analysts are surprised it has taken the directorship three years to “get its arms around” the company and move towards more profitability. Other reports indicate high costs for scoping studies and environmental approvals as a major investment, which will not be as necessary now that projects are moving ahead.