PN calls for regulator to examine QR’s Felix deal
By Rob McKay
Coal-haulage rivalry between QR and Pacific National (PN) is being played out in the regulatory arena, with PN parent Asciano complaining to the Queensland Competition Authority about QR’s deal with Felix Resources.
Asciano told the regulator last week that the lower tariff QR used to seal the deal pointed to a question mark about the separation between QR’s above-rail coal division and its below-rail operations.
Asciano said there was no “positive obligation” on QR Network, which shared directors with its parent state-owned entity, not to discriminate between above-rail operators, giving rise to conflict of interest issues.
However, QR said all negotiations had been transparent and independent.
“All commercial arrangements with Felix Resources have been entirely appropriate and independently negotiated by QR Network and the QR Coal businesses.” a QR spokesman said yesterday.
“We do not intend to debate publicly specific commercial arrangements with our customers nor is it our role to comment on the processes of the independent regulator in determining access tariffs.
“However there has been absolute independence and transparency of these completely separate processes.
“We negotiated a new contract in the Hunter Valley on fair and commercial terms.
“It would appear that our competitor is simply becoming increasingly concerned about their inability to compete with QR in the national market on commercial terms.”
Asciano said it had been told by Felix that the decision to go with QR for its Miverva mine on the West Blackwater line had been made with reference to above and below rail costs, a point Felix has reportedly disputed.
Source: Lloyd’s List Daily Commercial News – www.lloydslistdcn.com.au
Leighton wins $152m Hunter rail contract
By Sam Collyer
Leighton Contractors has been commissioned to complete a $152 million rail upgrade in the Hunter Valley coal chain.
The Australian Rail Track Corporation (ARTC) said Parsons Brinckerhoff, Coffey Geotechnics and KMH Environmental would also support the work.
The ARTC could not immediately provide specific figures on how much additional coal capacity would be created, but the work is part of its strategy looking ahead to 2018.
The two existing coal terminals at the port of Newcastle, and a third terminal due to start operating next year, are already approved to expand to a combined 211mtpa capacity.
The ARTC said the rail work would upgrade two sections, the tracks between Singleton and Muswellbrook and a section north of Muswellbrook to Werris Creek.
The projects include track triplication, a bypass of Werris Creek and re-configuration of a rail yard at Scone.
Source: Lloyd’s List Daily Commercial News – www.lloydslistdcn.com.au
New generation test train arrives in Newcastle
The delivery of CityRail’s new generation trains has met an important milestone with the arrival of a four carriage pre-production test vehicle.
“The partially-completed carriages are being unloaded at Newcastle port today, where they will undergo quarantine and other inspections, before being delivered to Downer EDI Rail’s facility at Cardiff for final manufacture,” NSW Transport Minister David Campbell said.
“The pre-production test vehicle will have two driver’s cabs installed, along with traction inverters, an electrical auxiliary power supply and a suite of test and other equipment.
“Rigorous train testing will begin in the Hunter later this year with the test train to be pushed to its limits.”
Campbell said the testing phase was an important step in the production of the 626 PPP carriages, which the private sector will deliver from late 2010.
“The new generation, air conditioned trains will be the most technically advanced on the network, improving reliability, safety and the travel experience of Sydney commuters, as well as providing additional capacity,” Campbell said.
“The fleet delivers not only greater comfort for commuters but also better safety, reliability and accessibility.”
The first eight carriages in the fleet will be delivered to the Cardiff facility for final assembly and commissioning later this year.
Rural industry concerned by QR route overhaul
By Rob McKay
Queensland Rail’s (QR) overhaul of services on the Townsville-Mount Isa rail corridor continues to worry the rural industry, particularly in regard to the future of rail transport availability for cattle movements.
QR has already moved some freight from rail to road on the corridor and says the next step in the process will be a review of the freight distribution centre operations along the route.
“QR is consulting with employees and stakeholders on plans to close freight distribution centres at Charters Towers, Hughenden, Richmond, Julia Creek and Cloncurry,” a spokesman said.
The closures will directly affect 13 staff, though no redundancies or forced relocations were planned.
“All of these communities will continue to receive general freight services of an equal to or better service level,” QR said.
The changes come as rural lobby AgForce continues to voice concern at the outlook for rural rail and long-term contracts for cattle transportation.
AgForce Cattle spokesman Peter Hall said there was growing frustration that a long string of meetings which began in November last year with a commitment from then Queensland Transport Minister John Mickel had failed to achieve any resolution about the future for transporting cattle on rail.
Hall said he hoped a way forward would be found at an August 4 meeting of all sectors of industry, including producers, agents, truck drivers, processors, local government and customers.
“We need to pull out all stops to secure a more flexible system than QR’s business model currently allows,” he said.
“One of the difficulties is the seasonal nature of cattle movements because they cannot be stockpiled in the same way that grain and coal can be stored.
“The Queensland Government and QR underwrite the urban network as a community service obligation and we believe the regional cattle network should be retained for similar reasons.
“Without the rail network, thousands of meat processing jobs in south-east Queensland will be put at risk and thousands more cattle will be moved on the already over-burdened road network.”
Source: Lloyd’s List Daily Commercial News – www.lloydslistdcn.com.au
New ASA Logistics and ICF merge
By Sineva Toevai
Australia’s ASA Logistics and International Concept Forwarding have merged to create a new supply chain management company trading as Axima.
The new entity, with 40 years of combined industry experience, will offer supply chain and logistics solutions across Australia, chief executive Sandra Fairchild said.
“Very few logistics service providers in Australia can provide the scale and scope of services offered by Axima,” Fairchild said.
Axima, which has a presence in Hong Kong and China, will be based in Melbourne.
Source: Lloyd’s List Daily Commercial News – www.lloydslistdcn.com.au
 
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