News in Brief – 15-21 July 2009

EBRD to provide $500 million for Russian Railways
The European Bank for Reconstruction and Development (EBRD) has approved a $500 million 10-year unsecured loan to the world’s second largest rail system, Russian Railways (RZD). This will allow the state-owned railway to restructure its balance sheet and support the completion of reforms of the rail system despite the economic crisis and market contraction.
The transaction brings the amount invested by the EBRD in nine Russian railway projects to nearly $1.2 billion following the Russian Government’s decision in 2001 to launch a structural reform of the system.
This loan will be closely tied to the ambitious reform goals that RZD and the government have set themselves, including restructuring of freight operations and improving sector regulation.
By providing these long-term funds to RZD, the bank is contributing to a more efficient match between the assets and liabilities of Russian Railways, thus freeing up resources for the priority goal of upgrading the rail network, EBRD business group director Thomas Maier said.
As one of Russia’s biggest energy users, RZD has agreed to implement a sustainable energy strategy with EBRD support in order to reduce emissions of greenhouse gases and other pollutants.
Russian Railways is one of the world’s largest transport companies. With a staff of around 1.3 million, it is also Russia’s largest commercial employer. The railway system is a key driver of the Russian economy, accounting for some 85 percent of all freight movements (excluding pipelines). Its network is second only to that of the U.S.

WorleyParsons wins critical Oakajee contract
By Sineva Toevai
WorleyParsons has been named the project management study contractor for the $3 billion Oakajee port and rail project in Western Australia.
WorleyParsons will govern the budget and engineering for the project's feasibility study, Oakajee Port and Rail (OPR) said in a statement.
The company will manage the design and engineering for the deepwater port and associated heavy haulage rail network.
The selection of WorleyParsons followed a comprehensive tender process, OPR chief executive Christopher Eves said.
“The project management study contractor role is a critical one in framing the significant engineering, construction and logistics tasks ahead of us,” Eves said.
“The company's appointment will support the timely completion of the feasibility study and maintain our momentum in delivering this nationally significant project.”
The feasibility studies for the port and rail project are due to be completed in 2010.
OPR is 50 per cent owned by Murchison Metals and Mitsubishi Development.
Separately, Sydney Ports Corp said it had commissioned WorleyParsons to help design the $75 million second bulk liquids berth project at Port Botany.
The new berth will have the capacity to accommodate vessels up to 90,000 dwt and 270 metres in length.
The design phase is due to be finished by December, Sydney Ports Corp said.
Source: Lloyd’s List Daily Commercial News – www.lloydslistdcn.com.au

Calls for industry input into Hunter Valley corridor capacity strategy
Australian Rail Track Corporation (ARTC) is seeking industry input into the development of the Hunter Valley Corridor Capacity Strategy for 2009 to 2018.
The Capacity Strategy provides the road map for ARTC’s investment in the Hunter Valley rail network to accommodate projected growth in coal volumes till 2018, ARTC’s chief executive David Marchant said.
“Boosting the capacity of the Hunter Valley rail network is vital if we are to meet the projected increase in world demand for coal produced in this region,” Marchant said.
“Growth in the Hunter Valley coal network is also crucial in assisting the Australian economy in its recovery.
“The Hunter Valley Corridor Capacity Strategy provides the framework for the identification and development of projects in the corridor and documents the assumptions and methodology used by ARTC for its capacity assessment.
“The importance of developing the Hunter Valley Corridor dictates that the coal industry has input into the direction of infrastructure investment in the region.”
Key features of the updated Strategy include a 10-years assessment of potential requirements; significant additions to the scope up to 2013 including: Nundah Bank Third Road, an option for a common user Provisioning Centre, two arrival or holding roads in the terminals area, five additional loops on the Ulan line, Bylong Tunnel Ventilation, one additional loop extension on the Gunnedah basin line; and a total 5-year investment, if agreed to by the Coal Industry by ARTC estimated at $1,414 million.
“The value of the identified projects represents a significant commitment for both ARTC and the industry,” Marchant said.
“I want to ensure that the industry fully understands and supports the strategy which is why we are asking for their input.”

Any comments about the Strategy should be provided by August 14th.
Further copies of the strategy can be downloaded from ARTC’s website: www.artc.com.au under ‘Investment Strategies’

Workshops identify NSW freight challenge
A lack of integrated planning of transport and logistics remains a major obstacle to freight efficiency in New South Wales, the first of a series of workshops has found.
The Freight and Logistics Council of New South Wales (FALCONSW) discussed major freight challenges with stakeholders in Newcastle last week.
The council will hold a further six workshops to identify major supply chain challenges in the state and promote better communication between industry and government.
Those working in manufacturing, distribution, transport, logistics, retail, commercial property, infrastructure, government and planning are invited to participate in the workshops.
FALCONSW is jointly-funded by the Federal and NSW governments.
PricewaterhouseCoopers is working with the council to develop an agenda, based on the workshop discussions, to boost the state's freight efficiency.