Toll Holdings Ltd.'s Pacific National unit has won a A$1 billion ($780 million), seven-year contract to transport steel for Bluescope Steel Ltd. and OneSteel Ltd. sending Toll's shares up 2.5 percent.

Pacific National said on Monday the new contract is Australia's largest rail freight contract, and said it built on existing partnerships with the two companies.

The contract would remain with Toll under a plan it announced last week to spin off A$8 billion worth of infrastructure assets, including Pacific National's rail freight network, into a separately listed company, while keeping its logistics business.

Toll shares rose 2.5 percent to a high of A$18.44, outperforming a 0.2 percent rise in the broader market.