Rail and port operator Asciano's chief executive John Mullen is predicting stronger profit growth this year and says the underlying Australian economy is still strong.
Mr Mullen said the company was on track to lift underlying earnings by more than the five per cent growth recorded in 2013/14.
Asciano's operations are considered a barometer for the overall economy and Mr Mullen gave a buoyant outlook for next year despite the gloom the dive in iron ore prices is driving in terms of budget revenue.
"We have still got the fundamentals in Australia to grow; with a growing population you have got economic growth," he told AAP.
"Certainly, this is a tougher time than we have seen for a while because of the resources boom coming off ... but we will unwind off the back of that.
"Most core aspects are growing: housing, construction and employment are good ... If we get on top of our costs and productivity and a few other things like that we will continue to do well."
Asciano's latest quarterly update on Monday showed a 3.6 per cent increase in port container terminal activity from the March quarter last year.
That was offset by a two per cent lower coal volume in its rail haulage business, due mainly to a derailment with volumes still strong and Asciano largely unaffected by weaker coal prices thanks to longer-term contracts.
The forecast rise in earnings is being driven more by cost cutting than economic activity and a ramp-up at the newly-automated Port Botany.
Asciano could not cut costs forever and would eventually have to find growth either through an industrial uptick in Australia's economy or acquisitions, Mr Mullen said.
The business was looking at container terminal and bulk port space strategic opportunities around the world, he said.
Mr Mullen also said a slowdown in the movement of goods from the east to west coast over the past two years as resources activity slowed had reversed and had picked up in the last quarter.
Asciano shares fell 10 cents to close at $6.36.
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