Freight Rail, Safety, Standards & Regulation

James justifies Asciano play

Maurice James, managing director of Qube Holdings in 2012. Photo: Oliver ProbertMaurice James, managing director of Qube Holdings in 2012. Photo: Oliver Probert

Qube managing director Maurice James has shed some more light on why the ASX-listed company is making a multi-billion-dollar play at major competitor Asciano.

James told a delegation at AusRAIL in Melbourne the company is keen to keep at least one major stevedore in Australian hands, so that stevedore can help drive the government’s agenda to get more freight off roads, and onto rail.

“If you actually look at some recent statistics, the average stevedoring tariff is around $170 a TEU,” James told a forum on Thursday. “The average road transport cost is around $530 a TEU.

“So our view is the inefficiencies in that transport operation are there, where you’ve got empty container legs, [etc.] that drives this high cost.

“Rail is in a perfect position to be able to take costs out of that chain, provided we deliver.”

James said a large role in getting more freight on rail would have to be played by the stevedores.

“The stevedore is absolutely critical to the preliminary,” he continued.

“It’s really a commercial issue with stevedores that we’ve got: to make sure stevedores play their part in an efficient rail solution.

“That’s why we’re taking a stake in the Asciano acquisition: because we believe it’s really important for the country that we have at least one entity owning stevedores that is (a) Australian owned, and (b) can drive the change that’s needed.”

Qube, backed by a pair of Canadian investment funds, is competing with another Canadian entity, Brookfield, to takeover Asciano, the company which owns rail operator Pacific National and ports business Patrick.

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