Mining companies call for structural separation of QR

Queensland mineral and energy companies are calling for the structural separation of Queensland Rail. The Queensland Resources Council (QRC) would see an end to the vertical integration of QR’s below rail and above rail services, chairman Michael Roche said today (Wednesday, July 18). QR was disappointed by the comments, a spokesman told Lloyd’s List DCN , as QR and industry partners were midway through an independent review of the Goonyella coal supply chain. &#8220There’s been a spirit of co-operation and focus on the relevant issues during this review,&#8221 he said. According to Mr Roche, QR has been &#8220partially receptive&#8221 to the QRC’s suggested realignment of its commercial model. &#8220My organisation is not focused on structural separation of QR for its own sake,&#8221 Mr Roche said. &#8220We are focused on outcomes.&#8221 From a customer perspective, an advantage of separation would be simplified regulation of below track returns, Mr Roche said. &#8220Another benefit would be a clearer distinction between the static capacity of a given rail network and the variable capacity, depending on the mode of operation, of an above rail regime,&#8221 he said. &#8220Separation would enable a clear identification of additional throughput gained from improvements in operating procedures and other above-rail efficiency gains. &#8220Clarity about the origins of capacity gains, particularly for an expanding network, would in turn simplify the process of deciding who has access to this capacity, and how much they should pay for the access.&#8221 Mr Roche said QR’s performance in the region was &#8220less than customer-focused&#8221 in recent times. &#8220Clearly there are a range of issues impacting on the key Queensland export supply chains,&#8221 he said. &#8220A defensive response, characterised by not openly addressing operational problems, is not compatible with what is expected from a world-class logistics manager &#8211 a manager focused on managing performance in order to meet customer expectations. &#8220Resource companies compete in global markets, and should not be hamstrung by their logistics suppliers.&#8221 The QR spokesman said the rail provider’s attention was now fixed on finding short-term gains in the supply chain to meet immediate customer needs, and to rollout long-term infrastructure and rollingstock upgrades to meet growth over the next 10 years. &#8220We need to need to be focused on the issues moving forward and not on the past,&#8221 he said. &#8220QR has always accepted that we could have performed better but like all industry players the size and scope of global demand for coal was not forecast.&#8221 In 2006&#4707, QR met its contract obligations across the Goonyella system, but wanted to haul more for its customers, the spokesman said. &#8220That’s clearly our target &#8211 to go beyond our contract obligations and meet as much customer demand as possible and within the constraints of the heavily-dependent supply chain where there are more than 25 parties.&#8221 QR established a new haulage record of 162m tonnes in 2005&#4706.

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