NSW Government unfazed by Patrick rail withdrawal

By Sineva Toevai

“The government remains committed to working with industry and stakeholders to increase the share of containers moved by rail to 40%,” a spokeswoman for NSW ports minister Paul McLeay said.
“There are four other rail operators servicing Port Botany which have made rail an economically-viable option.”
Patrick announced last Friday that it would cease its Port Botany rail operations from June 30th because it could no longer justify investing into its Camellia terminal with rail's share of Port Botany freight movements running at a "poor" capacity of 23%.
“The decision to exit this business is disappointing but without any indication that conditions will improve we have no choice but to cease our rail services,” Patrick container ports director Paul Garaty said.
“We will look to accommodate employees in other parts of the business to minimise the impact on them as a result of this decision.”
Services affected by the decision include the Dubbo to Port Botany rail service and the Camellia Intermodal and Container Park operations.
On the reasons for the move, Garaty said that the short-haul nature of rail to and from Port Botany to metropolitan and NSW rural areas would never be competitive to road “as road is the price setter and there is a road task at the beginning and end of each rail journey at Camellia”.
Patrick had subsidised rail in the past on the basis that it created greater throughput through its Port Botany terminal, however, the decision to build a third terminal has removed this requirement.

Source: Lloyd’s List Daily Commercial News – www.lloydslistdcn.com.au