News in brief – 28 October-3 November 2009

Fortescue rail project back on track
By Sineva Toevai
Fortescue Metals has commissioned NRW Holdings to resume a rail construction project as the company looks to ramp up iron ore production.
NRW has recommenced $45 million of construction work on the existing Cloudbreak to Christmas Creek rail spur – a distance of about 50 kilometres.
NRW had completed almost half the work when the mining company suspended the project 12 months ago.
Fortescue's board of directors recently approved $360 million of capital expenditure to help boost the company's annual tonnage capacity to more than 50mtpa.
Fortescue plans to use the funds to open up Christmas Creek with its own new mine, plant and infrastructure linked by the rail system to Herb Elliott Port.
Christmas Creek holds a larger reserve estimate than Cloudbreak at 997 million tonnes compared with 588 million tonnes.
Source: Lloyd’s List Daily Commercial News – www.lloydslistdcn.com.au

ARTC signals work to boost Hunter rail reliability
Australian Rail Track Corporation (ARTC) has commissioned Ansaldo STS to commence a $14 million signalling upgrade in the Hunter Valley.
The project is an essential component of the ARTC’s strategy to improve the reliability and efficiency of coal freight and passenger services between Maitland and Branxton in the Hunter Valley.
Ansaldo STS will replace the current route relay interlocking system at Maitland Junction with a computer based system, and install a new crossover.
The key benefits will be increased system reliability and a reduction in maintenance requirements.
This Maitland Junction upgrade follows the successful delivery by Ansaldo STS earlier this year of a $31 million project to increase line availability and enhance operational flexibility on the Maitland to Branxton line through the introduction of bi-directional signalling.
Both projects have been awarded to Ansaldo STS as part of the ARTC Ansaldo STS Network Control Systems Alliance (AANCSA) agreement announced in March this year.Under the three year agreement Ansaldo STS is to deliver a range of control systems and signalling systems projects to increase the capacity, reliability and efficiency of ARTC owned and leased freight corridors.

Patrick closes Bathurst intermodal hub
By Sineva Toevai
Patrick closed its Bathurst Rail Intermodal Terminal on October 28th because it had “failed to provide a commercial return for a long period of time”, according to Asciano.
“The Bathurst facility serviced mainly forestry products and agricultural exports, with timber exports reducing significantly due to the high Australian dollar and timber being harvested from more cost-effective regions,” Asciano spokeswoman Marie Festa said.
Patrick opened the Bathurst terminal in 2007 in an effort to woo businesses to the central-western New South Wales area and to reduce pressure on road transport with its direct rail service to Sydney.
Festa said a “small” number of jobs would be affected by the closure and Patrick’s train crews would be redeployed into other areas of Asciano’s divisions.
Patrick will retain ownership of the intermodal site.
The number of containers moved by Asciano's Patrick division in the first quarter fell 7 per cent from a year ago to 470,000 units, Asciano announced recently announced.
Source: Lloyd’s List Daily Commercial News – www.lloydslistdcn.com.au

NTC annual report released
The National Transport Commission’s (NTC) recently released 2008/09 Annual Report shows a year of progress on transport reforms and the delivery of integrated national outcomes, NTC chief executive Nick Dimopoulos said.
“The last financial year saw some historic steps forward, led by transport ministers and supported by the NTC, in delivering national consistency of regulation and improved transport outcomes,” Dimopoulos said.
“The establishment of single national regulators for heavy vehicles and rail safety will deliver better productivity and safety outcomes for industry...”
Moving forward, the NTC said that it will continue to work towards delivering nationally consistent transport reforms and will seek to build on the ‘end to end’ theme in this year’s report, focusing on an integrated approach to reform development.
To download the report visit: www.ntc.gov.au

FIRB approves Dalrymple Bay stake purchase
By Sineva Toevai
The Australian Foreign Investment Review Board (FIRB) has approved Brookfield Asset Management's proposal to acquire half of the Dalrymple Bay Coal Terminal (DBCT) from debt-laden Babcock & Brown Infrastructure (BBI).
“FIRB has confirmed that it has no objections to Brookfield's cornerstone investment in BBI and the asset arrangements with Brookfield,” BBI said in a statement to the Australian Securities Exchange.
The Canadian infrastructure investor announced on October 8th that it would pay $295 million for the 49.9 per cent interest in the world's third-largest coal export facility as part of a complex $1.1 billion recapitalisation package.
DBCT boosted its capacity in July by about 50 per cent to 85 million tonnes a year and is currently looking to increase this further.
The rescue package would reduce BBI's $2.7 billion in proportionate debt maturing in 2010 and 2011, including the $300 million of corporate debt maturing next year.
Brookfield will purchase between $625-$713 million of stapled securities for a 35-40 per cent interest in the restructured BBI plus investment in Dalrymple Bay.
Source: Lloyd’s List Daily Commercial News – www.lloydslistdcn.com.au