Pacific National’s $800m deal with Xstrata Coal
By Sineva Toevai
The world’s biggest coal producer, Xstrata Coal, has signed a 10-year haulage contract with Asciano-owned Pacific National covering the Hunter Valley and Port Kembla regions in New South Wales.
The contract, which makes Xstrata the rail operator’s biggest coal customer, replaces several existing contracts from January 1st next year.
Excluding rail access charges, the deal is tipped to generate total net revenue of more than $800 million for Asciano over the full term.
The agreement also boosts Pacific National’s footprint in NSW coal haulage in the wake of Queensland Rail’s (QR) recent successes in securing almost a quarter of the Hunter market.
Asciano expects to boost its NSW footprint by more than 50 per cent in the next five years.
“It is the largest executed single customer contract for Pacific National’s coal division and demonstrates our superior capacity to provide coal haulage services to major customers,” Asciano managing director Mark Rowsthorn said.
“The scale of our operations in NSW and our ability to offer performance-based contracts is important to our customers in an environment where they are accepting increased ‘take or pay’ exposure to secure long-term port and track capacity.”
Pacific National also aimed to further boost its coal haulage business in both NSW and Queensland, he said.
Source: Lloyd’s List Daily Commercial News – www.lloydslistdcn.com.au
CityRail trains arrive on time more than ever before
Record on-time-running results had been achieved on the CityRail network for the past financial year.
The release of the official figures show during 2008-09, on time running averaged 95.4 per cent – against a benchmark of 92 per cent.
“These are the best results in 10 years with every CityRail line improving on-time-running,” NSW Premier Nathan Rees said.
“We know how important it is to make sure we provide a good service – so people can get to work and home to their families on time.
“In the last two years alone we have seen real improvement, with on-time-running up from 92.7 per cent in 2007-08 and 92.2 per cent in 2006-07.”
Rees said the results were first-class, considering there were more than 300 million passenger trips across the CityRail network last year, an increase of 20 million since 2007.
NSW Transport Minister David Campbell said the government was expanding capacity to meet increased demand on the network.
“The $2.3 billion Epping to Chatswood Rail Link is transporting over 10,000 people every day and we expect that number to increase when it is incorporated into the network in October,” Campbell said.
“The Government has also invested $3.6 billion in 626 new air-conditioned carriages which is the largest rolling stock order in Australia’s history, and they will start hitting the network from late next year.
“The 2009 Timetable, which begins from 11 October, will see additional peak hour services, with six-car trains increased to eight-car trains on more services across Sydney.
“These results are good but we can do even better and we will continue to build on the improvements to public transport to deliver commuters the service they deserve.”
Epping to Chatswood integration moves a step closer
The process of integrating the Epping to Chatswood Rail Link (ECRL) is about to take another step forward, with trains to begin trial runs from Central to Hornsby through the underground link, NSW Minister for Transport David Campbell on July 18th.
Campbell said the $2.3 billion link, which is currently running as a shuttle, will be integrated into the rest of the network with the introduction of the new CityRail timetable on Sunday October 11th.
A trail run occurred on July 18th from Central to Hornsby, through the Epping to Chatswood Rail Link as part of the integration process.
“Trials will be conducted without passengers to give operational staff the opportunity to become familiar with the new run,” Campbell said.
“The trials will be run using 8-car air-conditioned, silver, suburban trains (K-set), which will operate on the Northern Line through the Epping-Chatswood link when it is integrated,” Campbell said.
“When the 2009 timetable comes into effect on 11 October it will provide a new way of getting to and from the City and increase capacity across the network.”
Campbell said integration of the ECRL would allow CityRail to provide additional peak services to the Western, South, East Hills and lower North Shore additional services between 9am and 12 noon for Western, South, Northern and North Shore passengers and additional carriages on peak hour trains to increase capacity.
 ”When the new timetable starts, Outer Suburban Trains (Oscars) will continue to stop at the stations on the new link during off-peak periods,” Campbell said.
“The link provides approximately 35,000 workers in the Macquarie Park area with a new transport option, together with 26,000 students and staff at Macquarie University.”
For copies of the new 2009 Timetable visit: www.131500.info
Interim go-ahead for Newcastle coal capacity plan
By Sam Collyer
The Hunter coal industry’s long-term capacity agreement passed another milestone on July 22nd, gaining interim clearance from the Australian Competition and Consumer Commission (ACCC).
The competition watchdog said the proposal was "materially different" to the capacity balancing system that has had several incarnations since first being introduced in 2004.
The old rationing system forced Port Waratah Coal Services – owned by several of the port of Newcastle’s biggest coal exporters – to share access to its two coal terminals.
Coal producer export forecasts were trimmed proportionally to ensure overall demand fitted the actual capacity of the coal logistics chain.
This acted as a significant disincentive for the miners to lock in long-term contracts which would underpin the level of investment needed to create more capacity.
ACCC chairman Graeme Samuel said the new proposed system would boost efficiency across the coal chain.
“Port Waratah Coal Services can now ask coal producers to nominate their capacity requirements for export coal,” the ACCC said.
“As a result, coal chain system capacity can be modelled and long-term contracts entered into which will underpin future investment and the efficient operation of the coal chain.”
Source: Lloyd’s List Daily Commercial News – www.lloydslistdcn.com.au
Barnett welcomes Chinese investment in WA
By Rob McKay
Increased Chinese involvement in Western Australia’s Mid-West region export infrastructure was on track to becoming a reality, Oakajee Port & Rail (OPR) said on July 24th.
The Murchison-Mitsubishi Development joint venture, chosen by the state to provide port and rail infrastructure to and at Oakajee, was responding to comments by Western Australian premier Colin Barnett, who is visiting China.
“The development of Oakajee Port is a key project in the future of Western Australia and the nation,” Barnett said.
“It also provides an unprecedented opportunity for a truly Western Australian-Chinese-Japanese investment collaboration.
“I am keen for Chinese companies to be involved in the construction and development of both the port and railway infrastructure and we ensured the scope for that through the state agreement which was signed earlier this year.
“Today’s meeting was about welcoming people to be involved in the Oakajee development and the message was well received.
“To facilitate Chinese participation in Oakajee, the government and Oakajee Port and Rail will jointly host a Chinese trade delegation in September.”
OPR revealed it was pursuing proposals whereby China Communication Construction Co would provide design assistance and China Railway construction Corp might provide strategic co-operation for the rail component of the project.
Barnett met Sinosteel Cooperation president Huang Tianwen and senior executives to discuss their operations in the Mid-West region of WA.
“Sinosteel owns 100 per cent of Midwest Corporation and I made it known that the government would be supportive of Sinosteel increasing its share in other Mid-West companies,” he said.
“We also discussed the Oakajee Port and Rail development and I encouraged Sinosteel to participate in the project.”
Barnett also reportedly told an investment seminar in Beijing that he did not support the export joint venture in the state between BHP Billiton and Rio Tinto.
He highlighted the need for the proposal to gain government approval and pledged stringent scrutiny of the deal.
Source: Lloyd’s List Daily Commercial News – www.lloydslistdcn.com.au
More level crossing upgrades completed in Victoria
A further nine level crossing upgrades funded in Victoria under the Federal Government’s economic stimulus package have now been completed.
In five months, boom gates, flashing lights and other safety measures have been installed at 29 high risk crossings across the state, with work on a further seven projects currently underway.
Last year alone there were 28 collisions at level crossings in Victoria, nine resulting in fatalities and five involving serious injuries.
 
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