ARTC reports record weekend for Hunter coal haulage

<p>The Australian Rail and Track Corporation said yesterday a record haul of coal had moved through New South Wales’s Hunter Coal Network the previous weekend.</p> <p>The figures showed 328,000 tonnes of coal were delivered to Newcastle Port over a 24-hour period, shattering the old record of 314,000 tonnes.</p> <p>The ARTC said the record haul came on the back of the Federal Government’s $1bn announcement of further investment on the network.</p> <p>&#8220This will increase export coal capacity from 97m tonnes per annum (mtpa) to 200 mtpa in 2012,&#8221 the corporation said.</p> <p>&#8220Against the backdrop of an increasingly volatile world markets, it is essential for the Australian economy that the Hunter Valley rail network is able to meet future market demand and deliver coal to port efficiently and on time.&#8221</p> <br />

ACCC to block ARTC access variation

<p>The Australian Competition and Consumer Commission (ACCC) has made a preliminary finding against an Australian Rail Track Corporation (ARTC) move to vary its interstate access undertaking, in a draft decision revealed today.</p> <p>In doing so, ACCC chairman Graeme Samuel took a swipe at the ARTC for lack of consultation with industry.</p> <p>The ARTC had sought ACCC consent to vary Samuel its access undertaking, which sets out the terms and conditions for operators of train services to access the interstate mainline track.</p> <p>"The ACCC has a preliminary view on the information presented to it that the proposed variation to the liability and indemnity clause in the Indicative Access Agreement (IAA) is not justified," Mr Samuel said.</p> <p>"For example, the variation would stop a rail operator from recovering from ARTC, under the IAA, any loss or damage to the operator’s customer that ARTC has caused by breaching the IAA, where the rail operator contracted to indemnify the customer for its loss. </p> <p>"The ACCC understands that it is industry practice for rail operators to offer limited contractual indemnities in respect of losses that may be incurred by a third party. </p> <p>"The ACCC believes that a party should continue to be liable to indemnify the other party under the IAA for loss or damage that one party’s acts or omissions have caused to third parties. </p> <p>"As such, having regard to the relevant statutory criteria, the ACCC is of the preliminary view that it is not appropriate to consent to the proposed variation.</p> <p>"Further, the ACCC is of the preliminary view that ARTC has not consulted with rail operators prior to applying to the ACCC seeking the variation as required by the undertaking." </p> <p>The ACCC was seeking submissions by January 21 from interested parties on the draft decision before it issues a final decision. </p> <p>An ARTC spokesman had yet to respond by deadline today.</p> <br />

Early details of national infrastructure audit released

<p>Infrastructure Australia’s preliminary audit was released this afternoon by Federal infrastructure and transport minister Anthony Albanese.</p> <p>Infrastructure Australia, chaired by transport expert Sir Rod Eddington, had concluded that future public and private investment should be directed towards seven broad areas:</p> <p>&#8226 Developing a more competitive broadband system</p> <p>&#8226 Extending the national energy grids so there’s greater flexibility and competition in our power and gas markets, whilst creating new opportunities for renewables</p> <p>&#8226 Improving port productivity and associated land transport links</p> <p>&#8226 Lifting the amount of freight shifted by rail</p> <p>&#8226 Preparing for the impact of climate change on water supplies</p> <p>&#8226 Expanding public transport services within cities and</p> <p>&#8226 Improving services to Indigenous communities.</p> <p>In an 83-page document, <em>A Report to the Council of Australian Governments</em>, Mr Eddington set out 94 infrastructure proposals for prioritisation from the more than 1,000 put forward in over 600 submissions received from state and territory governments as well as councils, business organisations and members of the public.</p> <p>The port projects and their costings accepted were Port of Hastings $58.8m, Abbot Point multi-purpose harbour $1.75bn, Darwin Port $292-$363m, Bell Bay $150m, and Oakajee Port and common use infrastructure $3.5bn. </p> <p>For freight rail projects, it was Adelaide urban freight &#8211 Goldwood and Torres Junctions $415m, Melbourne-Perth east-west rail freight corridor $554m, Gippsland coal industries transport Infrastructure $NA, Hunter Valley Corridor Rail Strategy $1.68bn, Mount Isa rail corridor upgrades $1bn, North-south rail freight corridor $7.2bn, northern Sydney rail freight corridor $4.075bn, and Newcastle-Dubbo rail freight link $24m.</p> <p>Road freight initiatives chosen were Abbot Point and state development area bypass $400m, alternative to West Gate road tunnel &#8211 Geelong Road to port of Melbourne $3.5bn, Donnybrook Intermodal Hub $290m, Central Queensland expanded higher mass limits $750m, Tasmania’s Frankford-Birralee-Batman freight corridor $160m, Green Triangle freight network and rail&#47port connections $390m, Green Triangle Project $136m, Improved access for higher productivity freight in South Australia $385m, Peak Downs Highway heavy vehicles route Mackay-Bowen $315m, Illawarra Region’s Picton Road $135m, Port of Brisbane Motorway $730m, Port of Mackay multi-modal access road $300m, Toowoomba Bypass $1.3bn, West Tasmania freight analysis $NA, and parts of Tasmania’s transport system $432m </p> <p>Infrastructure Australia had also developed national public-private partnership (PPP) guidelines, under which all projects with a capital value over $50m would be considered a PPP option. </p> <br />

BBI gains rail debt payment extension

<p>Buffeted Babcock &#38 Brown Infrastructure (BBI) has seen its Western Australian rail trust gain an extension to March of $66m in mezzanine debt repayments that had been due on Monday this week, the company said today.</p> <p>This would allow time for the cash from the sale of 50% of Powerco to arrive so the debt could be retired.</p> <p>"BBI is also in negotiations relating to a commitment to purchase an additional economic interest in the WestNet Rail Group," it said.</p> <p>That obligation was due tomorrow.</p> <br />

Tendering to decide hit list of NSW grain rail lines

<p>Amid confusion over which New South Wales grain rail lines would be closed in June, the state’s transport ministry has hinted a reprieve for some.</p> <p>It said in an addendum to its expression of interests (EOI) for new tenders for the operation of the 11 branch lines that no rail lines had been finalised for closure yet.</p> <p>The NSW Government is looking to close up to five lines once a tender has been selected.</p> <p><em>The Land</em> had reported the ministry as saying the Ungarie-Lake Cargellico, the Nevertire-Warren, the Cowra-Koorawatha, the Koorawatha-Demondrille and the Koorawatha-Greenthorpe lines were going to be closed.</p> <p>However, in the addendum, the ministry said nothing had been finalised and the lines selected for closure would be decided by the outcome of the tendering process.</p> <p>&#8220Although these lines have been earmarked for closure, no final decision has been made,&#8221 the ministry said.</p> <p>&#8220The EOI process is non-prescriptive and proponents have been asked to indicate on which branch lines they would propose to provide grain haulage services. </p> <p>&#8220The EOI process will therefore inform the final decision as to which five lines will be suspended.&#8221</p> <p>Asciano -owned Pacific National plans to pull out of most NSW grain rail lines by next June.</p> <br />

ACCC gives Newcastle coal export lifeline

<p>Hunter coal terminal operators will submit monthly progress reports to the Australian Competition and Consumer Commission (ACCC) as a condition of yesterday’s go-ahead for the continued rationing of port capacity.</p> <p>The ACCC yesterday gave interim authorisation that would allow the capacity balancing system to remain in place for coal exports through the port of Newcastle until the end of March.</p> <p>Terminal operator Port Waratah Coal Services and the fledgling Newcastle Coal Infrastructure Group, led by BHP Billiton, submitted the proposal a month ago when talks with the NSW Government appeared stalled.</p> <p>The ACCC approval was widely expected following the coal industry’s support for a proposed long-term coal capacity system presented by NSW last week.</p> <p>The State Government plan, which closely follows a coal industry-led proposal presented mid-year, seeks to allow the terminal operators to lock in long-term contracts without excluding new entrants to the export market.</p> <p>The ACCC authorisation extends the use of a capacity system originally introduced in 2004 to regulate vessel arrivals and minimise demurrage.</p> <p>ACCC chairman Graeme Samuel said the competition watchdog remained concerned that the capacity system discouraged long-term investment in infrastructure, but recognised that all parties had made significant progress.</p> <p>&#8220The ACCC considers that, to be effective, any long-term solution must extend beyond terminal capacity allocation to ensure all coal chain contracts, including track and rolling stock, are properly aligned and reflect whole of coal chain capacity rather than just stand-alone capacity of individual components,&#8221 Mr Samuel said. </p> <p>The ACCC would require monthly reports from Port Waratah Coal Services and Newcastle Coal Infrastructure Group, and said it would revoke the authorisation should insufficient progress be made towards a long-term solution. </p> <p>A report in today’s printed edition of <em>Lloyd’s List DCN</em> incorrectly suggested that Xstrata was a member of the NCIG consortium.</p> <p>Xstrata is in fact a significant owner of the rival PWCS. </p> <br />

SAFC identifies regional transport infrastructure issues

<p>The South Australian Freight Council (SAFC) has identified the state’s major regional freight transport infrastructure issues in what the peak state transport and logistics industry group said today was the first report of its kind.</p> <p><em>Regional Freight Transport &#38 Logistics Systems, and Infrastructure to Support Regional Communities</em> was the culmination of 11 regional forums held throughout regional SA over the past four years.</p> <p>Key issues identified and discussed at the forums included:</p> <p>&#8226 Construction of highway bypasses at Port Wakefield, Port Augusta, Renmark, Mt Gambier, and other locations to improve safety in those areas</p> <p>&#8226 Significant upgrade &#8211 including grade separation &#8211 at the intersection of Main North, Grand Junction and Port Wakefield roads, at Gepps Cross, as it is a vital carriageway for regional road freight</p> <p>&#8226 Establishing an intermodal terminal at Tailem Bend, which already has significant grain facilities, to cater for Riverland produce, as well as increasing output from the Mt Barker and Adelaide Hills areas</p> <p>&#8226 The potential to re-open the southeast rail network to accommodate the expanding woodchip and pulp demands, as well as other freight task in the region</p> <p>&#8226 The need for a new port at Kangaroo Island (Ballast Head area) to accommodate woodchip exports and</p> <p>&#8226 Potential development of an airport in the state’s mid north to handle regional produce,</p> <p>&#8220This collation of genuine industry issues affecting different regions of the State is one of the most comprehensive reports of its type ever produced in South Australia,&#8221 SA Freight Council general manager Neil Murphy said.</p> <p> &#8220While this report is not a position of SAFC, the issues raised during our forums enable us to have a very clear and concise blueprint to work with for the future.</p> <p>&#8220The Bureau of Transport and Regional Economics (BTRE) has forecast that the demand on the delivery of freight will double over the 20 years to 2020.</p> <p> &#8220If we, as a state, are to adequately deal with that growth in demand, and maintain our national and international competitiveness, efficient and effective regional freight transport infrastructure is crucial.</p> <p>&#8220At all forums, infrastructure issues across all four transport modes &#8211 road, rail, sea and air &#8211 were the dominant points of discussion.</p> <p>&#8220Regional SA contributes significantly to the state’s economy, and in terms of freight requirements and usage, is reliant on consistent and high quality freight logistics systems to ensure competitiveness on the world stage.</p> <p>&#8220All communities expressed an opinion that a failure to adequately deal with their local infrastructure issues will constrain their ability to achieve the economic development objectives of the local community – and collectively the State and nation.&#8221</p> <p>Mr Murphy said the 27-page report would be delivered to state and federal ministers responsible for transport and logistics, the SA Regional Development Boards, local government bodies including specific councils and local government associations, peak industry bodies with an interest in transport and logistics, and other interest groups and stakeholders.</p> <br />

Miscalculation in emissions White Paper, SAL says

The effect of including international shipping carrying domestic cargo in the Carbon Pollution Reduction Scheme (CPRS) will have detrimental environmental affects in the short term, peak body Shipping Australia (SAL) said today.

Responding to the Federal Government’s White Paper, Shipping Australia chief executive Llew Russell said that increasing the cost of domestic shipping would simply drive cargo on to the more environmentally damaging land transport modes especially road transport.

The Government had rejected its own Green Paper proposal that the scheme only apply to domestic emissions as defined under the international accounting standard.

Under this standard, fuels consumed on the domestic section of international voyages were not counted towards national emissions.

“The important point is that decisions have already been taken within the International Maritime Organisation on reductions in sulphur oxide and nitrous oxide emissions and there is active debate on CO2 reductions,” Mr Russell said.

“Indeed, many members of Shipping Australia have been pro-active in adopting environmentally friendly practices and vessel design that exceed the minimum international standards.

“We had agreed in our submission to government that those stakeholders which were concerned that competitive distortions will arise if the scheme covers domestic maritime fuels, but excluded fuels used by international ships had a point.

“The answer was to provide transitional assistance or exclusion pending the development of an international scheme for shipping that is well underway.

“While Shipping Australia remains supportive of the Government’s general approach as outlined in the White Paper, it is disappointing that there had been a miscalculation in this area.”

Emissions scheme gets mixed response from transport industry

<p>The Australian Shipowners Association (ASA) and the Australian Trucking Association (ATA) backed the Federal Government’s Carbon Pollution Reduction Scheme (CPRS) yesterday, though rail interests were less than enthused by it.</p> <p>ASA executive director Teresa Hatch described the CPRS White Paper as an "early Christmas present" through creating a level playing field for coastal shipping by ensuring all shipping that carried domestic cargo would face an equivalent carbon cost.</p> <p>&#8220The Government’s preparedness to acknowledge our concerns and agree that a competitive disadvantage would have been created sends a message of real hope for a brighter future for Australian shipping,&#8221 Ms Hatch said.</p> <p>The ASA also called for special consideration to be given to Bass Strait trade, where modal choice was limited, "to recognise that the residents of Tasmania deserve the same transition assistance being applied to other Australians via the road transport rebate".</p> <p>Australian Trucking Association chairman Trevor Martyn said the scheme would enable Australia to meet its greenhouse gas targets at the least cost to businesses and the community.</p> <p>Mr Martyn welcomed the Government’s plan to introduce a new CPRS fuel credit for the trucking industry to offset the initial effect of the scheme on fuel prices.</p> <p>&#8220The new fuel credit will be available from the start of the scheme, July 1, 2010, and will continue for a year. Importantly, the new fuel credit will be separate from the fuel tax credit that the industry currently receives," he said. </p> <p>&#8220The CPRS fuel credit will give trucking companies an extra year to get ready for the increased fuel prices under the scheme,&#8221</p> <p>Australasian Railway Association chief executive Bryan Nye was less enthusiastic, saying it was difficult to discern how the White Paper would encourage greater use of freight transport modes other than road.</p> <p>Heavy road transport businesses are eligible for fuel tax credits up to the value of the road user charge, which will be 21 cents&#47litre from January 1. Businesses in this industry will be able to claim the CPRS fuel credit, equal to the cut in fuel tax for one year. </p> <p>The Government will review this measure after one year. </p> <p>Vehicles with a gross vehicle mass exceeding 4.5 tonnes will be eligible for the CPRS fuel credit. </p> <p>To minimise the compliance burden for eligible businesses, the Australian Taxation Office will administer the CPRS fuel credit, and businesses will claim it on their business activity statements.</p> <p>In the White Paper, the Government committed Australia to cutting greenhouse emissions by between 5% and 15%, depending on the outcome of global climate negotiations.</p> <p>Prime minister Kevin Rudd noted concerns about the slowing economy and set a cautious target.</p> <br />

DBCT notches up eight-month congestion-free

<p>Upgrades to Dalrymple Bay Coal Terminal (DBCT) in April had ensured the queue of vessels off the coast has remained at an ideal size for most of 2008.</p> <p>DBCT said, unlike previous years when the rail and port capacity had been below demand, the terminal had operated within the design limits of its queue management system since the upgrade work was brought on-stream on April 1.</p> <p>Queues at the port have dropped from more than 60 ships three years ago to less than 10 at times.</p> <p>The terminal has maintained its ideal queue for eight months straight and is intent on keeping the queue under control by coordinating infrastructure upgrades in line with demand.</p> <p>The Australian Competition and Consumer Commission last week rejected an application to extend the use of the queue management system into next year.</p> <p><em>Lloyd’s List DCN</em> reported last week that this could have wider implications for other east coast coal ports that have experienced congestion in the last 12 to 18 months.</p> <p>The ACCC is still to decide if it will approve an interim capacity system at the port of Newcastle. </p> <br />