AusRAIL, Market Sectors

News in Brief ? 14-20 July 2010

<span class="" id="parent-fieldname-description"> </span> <p><strong>KiwiRail announces short list for new Auckland trains</strong><br />The four rolling stock manufacturers are Hitachi Limited, Hyundai Rotem, Bombardier Transportation Australia, and a consortium of Const Construcciones y Auxiliar de Ferrocarriles, SA. (CAF) and Mitsubishi Corporation.</p><p>The short-listed manufactures now have the opportunity to provide feedback into the technical requirements and specifications for the rolling stock before a full set of RFP documents are released to them in August. They have until November to submit their final bids.</p><p>“The number of responses has reinforced the high level of interest in this, given the relatively small number of suppliers world-wide with the skills and resources to meet the tight timeframes of the project,” Kiwi Rail chief executive Jim Quinn said</p><p>KiwiRail is working closely with the Auckland Regional Transport Authority on the procurement process.</p><p>Quinn said the project was still on target for the first new units to arrive in 2013.</p><p>A total of $500m has been allocated for the purchase of the new trains. KiwiRail’s Expression of Interest documents indicated that up to 38 electric multiple units (EMUs) were to be provided for the Auckland network.</p><p><strong>FMG reveals third party access charges</strong><br />Inroads have been made into the long-awaited rail access regime in WA, with Fortescue Metals Group revealing what it is intending to charge third parties to access its railway.</p><p>The company reportedly revealed in a submission to the Economic Regulation Authority that it is proposing to charge third parties between $5.07 a tonne and $5.77/t to access its 270km railway line that links the company’s Cloudbreak mine to port facilities at Port Hedland.</p><p><strong>Rio Tinto projects 50% production spike by 2016</strong> <br />By Liz McCarthy<br />Rio Tinto Group’s move to expand its Western Australian iron ore operations will boost the dry bulk market in the long term, as production is set to rise 50% to 330m tonnes over the next five and-a-half years.</p><p>Rio Tinto’s Pilbara expansion will include a US$200m project to dredge Cape Lambert and allow four more berths, boosting export capacity to 180m tonnes a year.</p><p>Rio’s Pilbara iron ore exports are expected to rise to 225mtpa early next year and 280mtpa within three years.</p><p>By 2016, Rio anticipates 330mtpa of iron ore will be leaving its Pilbara ports.<br />Between its Australian and Canadian iron ore export operations, Rio Tinto will account for almost a quarter of the 996m tonnes forecast to be shipped in 2010.</p><p>As well as rising iron ore production, Rio Tinto also reported an increase in coking coal sales, another commodity used in steel production.<br />Volumes were up to an all-time high of 2.4m tonnes in the second quarter this year, following increased investment at its Queensland operations.<br />Source: Lloyd’s List Daily Commercial News – <a target="_blank" href=""></a></p><p><strong>Mixed signals for exports to an insatiable China <br /></strong>By Michelle Wiese Bockmann<br />China’s imports of crude oil and soyabeans hit monthly records in June, while imports of copper and iron ore slowed from May, according to preliminary data from China’s customs authorities.</p><p>It provides a mixed picture for Australian bulk exporters amid increasing uncertainty about China’s continued ability to keep devouring commodities at the levels seen since the start of 2009, when a massive stockpiling and stimulus program boosted imports.</p><p>Industrial production grew by 13.7% in June and by 16% for the second quarter of 2010.<br />This compared with 19.8% in the first quarter and 11.1% overall growth seen in 2009.</p><p>The chairman of Baosteel Group Corp, China’s second-largest steelmaker, yesterday said that China’s iron ore imports, as the world’s largest buyer, might equal last years level at best but may decline.</p><p>Chinese iron ore imports grew 40% in 2009 over the previous year to 628m tonnes, but purchases dropped for a third straight month in June 2010 to 47.2m tonnes, as steel demand weakened from automobile makers and builders.</p><p>Steel consumption has declined, after peaking in March 2010, with June production at steel mills at 53.8m tonnes, compared with the monthly peak of 56.1m tonnes in May.<br />Source: Lloyd’s List Daily Commercial News – <a target="_blank" href=""></a></p><p><strong>Fortescue’s iron ore exports jump in June quarter </strong><br />By Sineva Toevai<br />Fortescue Metals, run by mining magnate Andrew Forrest, shipped 36% more iron ore from Port Hedland in the June quarter.</p><p>Ore exported through Herb Elliott Port in the three months ended June 30 climbed to 11m tonnes from 8.1m tonnes in the 2009 June quarter and 9.8m tonnes in the three months ended March.</p><p>The volume of ore processed over the quarter jumped 21% from the year-ago period to 10.5m tonnes.</p><p>In June alone, 24 ships were loaded with just over 4.2m tonnes of iron, an increase on last year’s 3.3m tonnes onto 19 ships.</p><p>The rail operations performed strongly with the volume of ore transported to Port Hedland rising 10.5m tonnes from 8.2m tonnes a year earlier.</p><p>The expansion of Fortescue’s Christmas Creek operations to a capacity of 55mtpa was continuing, the miner said.</p><p>Current capacity is just over 40mtpa.</p><p>“Earthworks for the 50 km extension of the rail line from Cloudbreak through to Christmas Creek will be complete by the end of July,” the company said. <br />Source: Lloyd’s List Daily Commercial News – <a target="_blank" href=""></a><br />&nbsp</p>