News in Brief – 8-14 July 2009

Rowsthorn reduces stake in Asciano
By Rob McKay
Chief executive Mark Rowsthorn has reduced his stake in Asciano when taking up his entitlement under the company's recent capital raising process, Asciano confirmed on July 14th.
Rowsthorn told the board that he had sold $40 million in existing shares and obtained a loan to help fund his $76.2 million take-up under an entitlement offer.
He had said in May that he would take up the full entitlement but later, after last month's capital raising announcement, had said he had yet to decide how to fund it.
“In conjunction with the loan, I have entered into a collar arrangement over approximately $36.2 million existing Asciano stapled securities for a period of between 12 and 18 months,” Rowsthorn said.
“The protection level under the collar is set at $1.10 and I will retain a portion of upside exposure to these hedged securities.”
It is thought the transaction will reduce his control of the Asciano from almost 11 per cent to about 5 per cent.
According to Investec Private Bank, a collar loan provides low-cost term finance for shareholders, whilst protecting the value of a shareholding.
“The collar loan can be appropriate if you own a large holding in a single share, and wish to raise term liquidity,” it said.
Source: Lloyd’s List Daily Commercial News – www.lloydslistdcn.com.au

Joint funding agreement signed for Gold Coast Rapid Transit project
A joint funding agreement for the $949 million Gold Coast rapid transit project has reportedly been signed by Queensland Premier Anna Bligh, the Federal Minister for Ageing  Justine Elliott and Gold Coast Mayor Ron Clarke.
The Queensland Government will fund the infrastructure with a private sector partner to run the service and provide carriages and depots.

Melbourne’s tram contract rolls out
Plans for Melbourne’s new tram fleet have gathered steam with Victorian Premier John Brumby announcing on July 6th that the Victorian Government will seek expressions of interest from industry for up to 50 new low floor trams.
Brumby said the Victorian Transport Plan pledged $1 billion for a new tram fleet which will be capable of moving as many as 10,000 people at any one time.
“This investment forms a key element of the $38 billion Victorian Transport Plan which will generate up 100,000 jobs over the life of the plan,” Brumby said.
“We are going to the industry to seek interest for the production of the new tram fleet as quickly as possible to serve the growing tram patronage.
“And importantly we will be looking to secure and create new jobs with local content one of the key evaluation criteria to be addressed by potential bidders.
“We require that at least 40 per cent of the total contract must include local content in line with the Victorian Industry Participation Policy.”
Brumby made the announcement while inspecting works at the $34.9 million upgrade of North Melbourne station with Public Transport Minister Lynne Kosky.
“These trams will be designed to maximise passenger comfort and ensure increased capacity for peak times and the low-floor design will increase accessibility in accordance with Disability Discrimination Act (DDA) standards,” Kosky said.
“The improved design features will ensure getting on and off the tram is easier and quicker for all passengers, improving service efficiency for the entire tram network.’’
The new trams will start to be delivered in 2012.
The EOI documents will be available at: www.tenders.vic.gov.au
until August 20th.

Failure to maintain freight rail leads to illegal truck operations
Greens MP and transport spokesperson Lee Rhiannon said that information she received on July 3rd that b-double trucks contracted to GrainCorp are travelling illegal routes highlights the need for the NSW Government to back rail haulage of the Central West grain crop.
Rhiannon comments came in response to a media report that revealed the NSW Government has given away 18 locomotives and 180 wagons to GrainCorp.
“Minister Campbell is proving to be an obstacle in reviving rail freight operations,” Rhiannon said.
“He has been involved in one of the major scandals of this government in giving away to GrainCorp 18 locomotives and 180 wagons worth millions of dollars.
“I am becoming increasingly concerned that...Campbell will use the two month shutdown of the NSW parliament to announce the closure of rail branch lines at Young, Greenthorpe and Cowra.
“That will mean more illegal truck operations, putting lives at risk.”
Rhiannon joined Greenthorpe farmer Michael Bryant in calling on the government to support rail freight operations and to wait for the outcome of the Federal Government sponsored NSW Grain Freight Review before deciding the future of rail branch lines
 “The government has botched the management of the rail branch lines for the past decade,” Bryant said.
“Pacific National as well as GrainCorp have benefited financially because of the government's incompetence.”

Transport medical standards review to ensure best practice
The National Transport Commission (NTC) is seeking public comment to assist with a review of transport medical standards for drivers and rail safety workers.
The NTC’s senior manager safety Dr Jeff Potter invited all interested stakeholders to contribute to the review.
“Our goal is to ensure the standards reflect medical best practice and continue to meet the practical needs of drivers, rail safety workers, health professionals, driver licensing authorities and rail operators,” Dr Potter said.
NTC is reviewing the medical standards contained in Assessing Fitness to Drive - Commercial and Private Vehicle Drivers (Sept. 2003) and the National Standard for Health Assessment of Rail Safety Workers (June 2004).
Dr Potter said the review would focus on the medical content rather than the administrative aspects of the guidelines.
“Driver licensing authorities and rail operators need to be assured that the decisions they make concerning a driver’s or rail safety worker’s fitness are based on the most up-to-date knowledge of the effects medical conditions have on safety,” he explained.
Written submissions are invited by COB Friday August 14th using the template provided in the issues paper to:
The Project Manager
Review of Transport Medical Standards
15/628 Bourke Street, MELBOURNE VIC 3000
Enquiries to the project manager: ntc@ntc.gov.au

Hunter coal producers canvassed for expansion plan
By Sineva Toevai
Hunter coal producers have been invited to participate in a potential 30 million tonne expansion of Newcastle Coal Infrastructure Group's (NGIC) export terminal in Newcastle.
New South Wales Ports Minister Joe Tripodi said the call for expressions of interest was an important first step towards providing increased capacity at the NCIG terminal.
“It will help NCIG to make a decision on Stage Two of the terminal based on demand requests from Hunter Valley coal producers and potential new players in the industry,” Tripodi said.
Stage One of the NCIG terminal is more than 50 per cent completed and coal shipments are expected to begin in the first half of 2010, Tripodi said.
The Australian Competition and Consumer Commission (ACC) has been asked to deliver a long-term solution for the management of coal exports in the Hunter region.The decision is pending.
The ACCC application, if approved, would give industry certainty over coal allocations beyond the end of each year, Tripodi said.
Under the Hunter Coal Plan submitted to the ACCC in June, NCIG is required to offer 12 million tonnes of capacity to producers and new entrants who are not members of its consortium.
“Producers who are not part of the NCIG consortium will have the opportunity to request capacity in this expansion project,” Tripodi said.
Source: Lloyd’s List Daily Commercial News –www.lloydslistdcn.com.au