News in Brief – 12-18 August 2009

China to invest $100 billion a year in rail construction
China will invest more than $100 billion per year in rail construction on average during the next three years, an increase from a previously announced increase to roughly $88 billion this year, Vice Railway Minister Wang Zhiguo reportedly said in published remarks.
The ministry would seek approval for 20,000 kilometres of additional rail construction, requiring a total investment of more than 2 trillion yuan, or roughly $280 billion, by the end of next year, it was reported.
China has reportedly said that it seeks to expand its rail network to promote economic growth and ease transport bottlenecks and hopes to have upgraded or put in place 86,000 kilometres of rail by the end of the year, expanding to 110,000 kilometres by 2012.

Pacific National goes electric in Queensland
By Sam Collyer
The second of 25 new electric locomotives to be used for Pacific National's Queensland coal operations entered service on August 16th.
This is the first time Asciano-owned Pacific National has used electric trains in Queensland and comes as the group increases its presence in the market, which has long been dominated by Queensland Rail.
The roll-out of the Siemens-built Class 7100 locomotives is running six weeks ahead of schedule, with the manufacturer confident it will have a further 13 commissioned and tested by the end of the year.
The first of the narrow-gauge, 25kV locomotives, built in Munich, entered service last month.
Source: Lloyd’s List Daily Commercial News – www.lloydslistdcn.com.au

Transport jobs still going down
By Rob McKay
The Olivier Job Index report for July showed continuing tough times in the transport labour market.
While the hospitality, tourism and travel sector recorded an increase in online job advertisements for the month of 7.8 per cent (but a yearly fall of 33 per cent), online advertising of jobs in the transport sector fell 5.5 per cent and 63 per cent respectively.
The report pointed out that the new jobs were predominantly on a contract or temporary basis, but did not provide any further analysis for the transport sector.
Source: Lloyd’s List Daily Commercial News – www.lloydslistdcn.com.au

POTA on verge of $3bn Legend logistics deal
By Rob McKay
High-profile Melbourne businessman Joe Gutnick's mining firm, International Holdings, has signed a memorandum of understanding with P&O Trans Australia (POTA) for haulage and handling services associated with its Legend’s Georgina Basin phosphate project in Queensland.
The MOU will guide contract negotiations worth about $40 million during the first year of operations and up to $3 billion over the life of a 20-year agreement, the parties said.
“We went to great lengths to source suitable locomotives and rolling stock to service this new and important project for Queensland,” POTA managing director Paul Digney said.
POTA’s bid includes:
.road haulage from the D-Tree and Paradise North tenements, both located about 160km from the deposit to the rail head in Mount Isa;
.rail transport along about 1000 kilometres of track between Mount Isa and Port of Townsville;
.various storage and material handling tasks.
Source: Lloyd’s List Daily Commercial News – www.lloydslistdcn.com.au

Meet the Railway People Expo
As part of its ongoing commitment to the industry, the Railway Technical Society of Australasia (RTSA) seeks to attract and retain the brightest undergraduate students in the railway industry.
The RTSA is holding its inaugural Meet the Railway People Expo, aimed at undergraduate students from Victorian Universities.
The Expo initiative will showcase the industry participants and highlight some of the opportunities that are available in the rail industry, providing the opportunity for organisations to communicate directly with high calibre graduates from leading Victorian Universities.
Importantly, the Expo will provide an exclusive communication channel to promote employment, undergraduate projects, workplace internships, secondments and scholarship opportunities available within the industry as well as providing a forum for networking and exploring partnership opportunities with academics from leading tertiary institutions.
A free event, the Expo will be held on Saturday September 12th at the Park Hyatt Melbourne.
Registration is essential, RSVP by August 28th.
For more information email Ravi Ravitharan, Monash University: 0409 556 811
or email: ravi.ravitharan@eng.monash.edu.au

BHP Billiton profit plunges as prices crash
By Sineva Toevai
Resources giant BHP Billiton has reported a 62 per cent plunge in full-year profit following a massive fall in commodity prices.
Net profit after tax was $US5.9 billion in the year ended June 30th, down from a profit of US$15.4 billion in the same period last year, the company said.
The first half of the 2009 financial year saw steep declines in the prices of commodity markets in which BHP Billiton operates - iron ore, metallurgical coal and petroleum.
“Spot prices for our commodities fell between 50 per cent-90 per cent over this period as aggressive de-stocking occurred in all regions,” the company said.
“Lower prices led to supply-side cuts of 5 per cent-25 per cent year-on-year across the commodity suite.”
Lower average realised prices for commodities such as copper, nickel, crude oil and alumina slashed earnings before interest and tax by $US10 billion.
The global economic downturn forced BHP Billiton to slash 6000 jobs this year.
However, BHP Billiton said in the long term it expected strong growth in demand for its commodities.
Source: Lloyd’s List Daily Commercial News – www.lloydslistdcn.com.au

Kilgariff to head ALC as Morris goes to CILTA
By Rob McKay
GAS industry lobbyist Michael Kilgariff is to take over as Australian Logistics Council (ALC) chief executive, with the incumbent, Hal Morris, taking the corresponding role at the Chartered Institute of Logistics and Transport in Australia (CILTA).
Kilgariff was formerly director of industry and technical policy with the Energy Networks Association (ENA) and will take up his new position next month.
“He has a diverse background and leadership experience in industry, industry associations and advisory roles, and has a highly developed understanding of how industry and government interact,” ALC chairman Ivan Backman said.
“Mr Kilgariff will be based in Canberra where the ALC will establish its new headquarters in a move made necessary by the need for closer alignment to government.”
Morris will start in his new role in Queensland in mid-October.
Source: Lloyd’s List Daily Commercial News – www.lloydslistdcn.com.au