2010

<span class="" id="parent-fieldname-description"> Australian iron ore developer Brockman Resources is in advanced negotiations with Fortescue Metals Group (FMG) regarding an agreement to use FMG’s infrastructure for the company’s iron ore project in Western Australia. </span> <p>The agreement would see Brockman use FMG’s end-to-end rail haulage, port handling and ship-loading facilities and marketing services for its Marillana iron ore project in the Pilbara region, WA.</p><p>Brockman said in a statement that it intends to progress negotiations with FMG “as rapidly as possible”&nbsp in order to complete a feasibility study on Marillana by the June quarter of 2011 and a final investment decision in the September quarter.</p><p>The Marillana project is located 100km north-west of Newman in the Pilbara region and is close to existing rail, road and port infrastructure.</p><p>It is touted to be one of the most significant hematite projects to be developed within Australia over the forthcoming years and is reportedly the largest hematite ore position in the Pilbara outside those held by BHP, Rio and Fortescue.</p><p>Marillana is targeted to commence in late 2013 with the first shipment targeted for early 2014.<br />&nbsp</p>

<span class="" id="parent-fieldname-description"> Rail technology in Australia has changed dramatically over the last 50 years, with today’s locomotives providing higher haulage capability, higher levels of tractive performance, better reliability and a safer operating environment. </span> <p>In Part Three of this Special Report, Jennifer Perry looks at how Australia’s below rail infrastructure is constraining above rail technology for our freight locomotives, and where technologies are headed in the future.</p> <p><b>To read Part One click <a href="../../8-12-10/other-top-stories/freight-rail-technology-2013-part-one">here</a>. To read Part Two click <a href="../../15-12-10/other-top-stories/freight-rail-technology-2013-part-two">here</a>.</b></p> <p><b>Below rail infrastructure: constraint or enabler of technology?</b><br />It’s fair to say that with the exception of WA’s privately owned heavy haul railways, a lot of Australia’s below rail infrastructure currently constrains above rail technological advancement, mainly due to track gauges and axle load limits that constrain the ability to get more performance out of locomotives.</p> <p>If companies like Downer and UGL are to make significant advances with locomotive design, Australia’s infrastructure has to improve first.</p> <p>According to Paul Bugler, director of Lacertus Verum – a management advisory service for the operation and management of railways – the “big issue” for Australian operators, with the exception of WA’s iron ore railways, is that our infrastructure does not generally allow the use of US designs without modification.</p> <p>“The impacts tend to be that Australia has lower axle-loads (the US ‘AAR’ standard is 32.4 tonnes whereas we have a variety of limits, all below this), smaller structure gauges (such as clearances to bridges and adjacent tracks etc), and in some cases different rail gauges,” Bugler said.</p> <p>“This means, unless you are buying for the north-west iron ore railways which can take ‘off-the-shelf’ AAR designs, you need to redesign the US locomotive.</p> <p>“In Queensland all three limitations come into play so substantial redesign is needed. While the Hunter Valley has the same standard gauge as the US, it has a limited structure gauge and 30 tonne axle load which still requires some level of redesign.”</p> <p>Below rail infrastructure serving as an enabler of above rail technology could, for example, see the upgrade of the Hunter Valley network to AAR standards, something that Bugler says has been considered by Australian Rail Track Corporation (ARTC), but “abandoned for now” as the required investment is simply just too big.</p> <p>Bugler also says the ARTC’s DIRN has a “fundamental structural problem” that is constraining the ability of operators to advance their locomotive fleets.</p> <p>“ARTC has been given an asset to manage and a set of cash flows which are insufficient to invest in that asset in any significant way, other than to maintain it, except where the Commonwealth gives them specific grant money,” he said.</p> <p>The revenues that ARTC is able to extract from operators while still allowing operators to be profitable are insufficient to allow ARTC to make major investments in the track.</p> <p>“ARTCs revenues are insufficient&nbsp to cover even the existing economic cost of the network., so ARTC falls very well short of being able to invest in any new technology or upgrades,” Bugler said.</p> <p><b>Future directions</b><br />Downer executive general manager growth and development Danny Broad&nbsp says success for Australia’s modern railroads requires “tenacity” for the development of future technologies and a commitment to improve and implement the best of technologies available today.</p> <p>“This combination will not only provide the continuous improvement that rail must embrace to grow, but will also allow the Australian rail industry to be tomorrow’s leaders when it comes to safety, efficiency and customer service across the freight transport sector,” he said.</p> <p>PN says while "once upon a time”, innovation in Australian rail locomotives was delayed or overlooked, suppliers are now being briefed to incorporate technologies that allow further assessment of aerodynamics, improvements in energy efficiency, consideration of options for alternative fuels, as well as systems that facilitate data capture and communication.</p> <p>“Suppliers have the opportunity to innovate and develop solutions that meet the current technological and operating needs of growing Australian companies such as ours,” a spokesperson for PN told <i>Rail Express.</i><br /><br /><b>For more on rail technology, look out for the March edition of the Rail Express magazine, free to all Rail Express subscribers. The March edition will also feature Engineering, IT, Signalling and Communications and Passenger Rail.</b></p>

<span class="" id="parent-fieldname-description"> The first of a new generation of “eco stations” has opened in the UK. </span> <p>Accrington railway station in Lancashire opened last week, and features solar panels to supply electricity and hot water, toilets flushed with collected rain water, cycle parking facilities and improvements to the carpark and footbridge.</p><p>The station has already achieved an A rating for its Energy Performance Certificate and has received a Building Research Establishment – Environmental Assessment Methodology (BREEAM) “excellent” rating.</p><p>With a construction cost of EUR$2m, the improvements to the station included a grant from the Interred IVB European funding programme .</p><p>“The new eco station is based on an environmentally friendly design which is sustainable and reduces energy consumption and C02 emissions,” Interim Area director forth for Northern Rail Kathryn O’Brien said.</p><p>“New features include solar electric, solar hot water and grey water recycling as well as locally sources materials to reduce construction related carbon emissions.</p><p>“A further innovative feature of the project is the inclusion of a learning centre as part of the new station building. We are also hoping to work with the local community to see if there is the potential for shared community use of the new building.”</p><p>For more information on the station’s design and sustainability features visit: <a href="http://www.eastlancashirecrp.co.uk/statons/accrington" target="_blank">www.eastlancashirecrp.co.uk/statons/accrington</a><br />&nbsp</p>

<span class="" id="parent-fieldname-description"> The Australian Competition and Consumer Commission (ACCC) says CBH is limiting competition in Western Australia’s grain transport sector and wants to give growers choice about who they use to move their grain to port. </span> <p>By Jennifer Perry</p><p>The competition watchdog last week issued the bulk handler a draft notification that it would revoke CBH’s policy that that allows the company to require growers who store grain in its ‘up-country’ storage facilities to also use its transport services to move the grain to port for export.</p><p>“The ACCC considers that the notified conduct allows CBH to leverage its significant competitive advantage in supplying up-country receival, storage and handling services to foreclose any possibility of competition to supply transport services to customers who use its up-country storage facilities,” ACCC chairman Graeme Samuel said.</p><p>“By leveraging its dominance of up-country storage to force growers to use its transport services CBH can insulate itself from competition.”</p><p>CBH chief executive Dr Andrew Crane said the company was “obviously disappointed” with the ACC’s decision.</p><p>“… We remain of the strong view that Grain Express provides a net benefit to the community and does not significantly lessen competition in the market for grain transportation services,” Dr Crane said.</p><p>“As the ACCC is aware CBH does not make a profit from providing grain transportation services to growers.&quot</p><p>While Dr Crane welcomed the ACCC’s recognition of the potential benefits of CBH offering a whole of supply chain receival, storage, handling and transport service, the ACCC did not believe that forced “tying arrangements” was necessary to realise these benefits.</p><p>“To the extent that CBH’s storage, handling and transport service is an efficient system, delivering benefits to growers, they will continue to use it without being forced to do so,” Samuel said.</p><p>“Grain is transported efficiently and cost effectively to port in other states, often as a bundled service similar to CBH’s arrangement, without forcing growers to acquire all relevant storage, handling and transport services from a single supplier.</p><p>“In this respect, most interested parties that have objected to CBH’s arrangements have indicated that they would be likely to continue to use CBH even if they were not forced to do so, but that the opportunity to explore alternatives would put competitive pressure on the company.”</p><p>Revoking CBH’s policy will, for the first time since deregulation of wheat export marketing in 2008, provide WA growers who use CBH’s up-country storage facilities with choice about who they use to move their grain to port.</p><p>If the ACCC goes ahead with revoking CBH’s policy, the company would still be able to offer a bundled receival, storage, handling and transport service.</p><p>“All that will change is that growers who store their grain with CBH will be free to choose whether to use CBH’s transport services or organise their own,” Samuel said.</p><p>The ACCC said the timing of any revocation of CBH’s notification was important to ensure minimal disruption to the industry and is&nbsp seeking interested parties’ views about when the most appropriate time for the revocation to take effect would be (for example, between harvests).</p><p>Dr Crane said with or without the current notification, CBH had the experience, flexibility and systems to provide the most efficient whole-of-supply chain service to the grain industry of Western Australia.</p><p>“The notification has ensured this was the most efficient supply chain possible in a deregulated environment for the benefit of growers, the industry and the community,” he said.<br />.<br />&nbsp</p>

<span class="" id="parent-fieldname-description"> The New South Wales Government has approved the first purpose built rail terminal for the state’s north coast. </span> <p>After three years of planning approval processes, the&nbsp Summerdowns Rail Terminal project, at Nammoona, north of Casino, could be built as early as late 2011, early 2012.</p><p>“The proposed facility will generate an estimated $250m in investment and revenue for the region by providing the incentive and opportunity for regional economic growth,” director of the rail terminal, John McMahon, said.</p><p>“We are excited about the projected employment opportunities which will be created for Casino and for the entire region with the potential to generate over 500 jobs in industries such as forestry, soya bean and rice growing and beef production.</p><p>McMahon <em>Rail Express </em>the proposed multipurpose terminal is in a good position on Australian Rail Track Corporation’s (ARTC) North South rail line, 200km south of Brisbane.</p><p>“We will be able to run trains through to Brisbane and hopefully a lot of agricultural products from this region can also head down south,” McMahon said.</p><p>“We already have a number of key regional producers, in particular significant rural industries proposing to reduce or remove their reliance on road transport by placing their goods on rail through our facility.</p><p>“We encourage all regional businesses which rely on the bulk import or export of goods north or south to consider the economic and environmental benefits of switching to rail transport.”</p><p>McMahon said one of the advantages of the terminal is that it will be able to handle 750 metre trains as well as full 1150 metre trains also.</p><p>McMahon said he was working alongside ARTC on development plans for the project and construction would start as soon as the final design plans were approved by Richmond Valley Council.<br />&nbsp</p>