AusRAIL, Market Sectors

News in brief ‘ 9-15 September 2009

FerrAus signs rail and port deal with Chinese firm
By Rob McKay
The outlook for more rail and port infrastructure supply in the Pilbara gained a boost on September 8th with iron ore explorer FerrAus announcing it had signed a deal with China Railway Materials (CRM).
In an alliance where CRM will take a $12.6 million, 12 per cent stake in the Australian firm, the companies have agreed to look at linking FerrAus’s existing Pilbara resources with new resources in the region.
CRM would then “receive a substantial entitlement, at market terms to be negotiated, for iron ore offtake”.
CRM has also agreed on a non-binding basis to assist FerrAus with sourcing finance for the construction of Pilbara rail infrastructure for iron ore exports from projects 25-65 kilometres from the Mount Newman line railhead at Jimblebar.
FerrAus is one of several of Pilbara iron ore juniors engaging heavily with Chinese customer firms and needs transport infrastructure for its product.
Source: Lloyd’s List Daily Commercial News – www.lloydslistdcn.com.au

Oakajee Port CEO quits suddenly
By Sineva Toevai
Oakajee Port and Rail (OPR) chief executive Chris Eves unexpectedly resigned his position on September 9th after less than two years in the top job.
With the project now progressing into the engineering and construction stages of development, Eves said it was an “appropriate time” for him to resign, an OPR statement said.
Eves, who led OPR’s bid to develop the $4 billion Western Australian port, to be located about 22 kilometres north of Geraldton, was appointed chief executive in October 2007.
OPR supply chain director, Alwyn Vorster, will take over as interim chief executive until a replacement for Eves is found.
Source: Lloyd’s List Daily Commercial News – www.lloydslistdcn.com.au

Alliancing rebuilding nation’s infrastructure, quickly

Infrastructure delivery partners from the public and private sector will meet at the AAA’s third annual national convention in Melbourne from October 21st-23rd to discuss how collaborative contracting is stimulating the economy and rebuilding infrastructure.
“There has been much talk of the need to fund shovel-ready projects so valuable flow-on effects benefit the general economy during tough times and create more jobs, sooner,” AAA executive director Alan Mignot said.
“And the Australian Government’s Building Our Nation Plan announced in December 2008 recognised the need to also look beyond the economic crisis for the long term capacity needed for the economy and to focus on infrastructure as one of the key drivers of productivity growth.”
Mignot said alliances play an important part in getting projects underway which are difficult to fully scope, particularly “brownfield” projects which boost the lifespan of existing assets, and deliver them to the community quickly and sustainably.
“These alliances are upgrading essential community infrastructure while operation of these ‘live” assets continues a complex feat,” he said.
For more information on the AAA national convention visit: www.alliancingassociation.org

Tottenham rail bridge span put in place
By Rob McKay
A span of Melbourne’s new Brooklyn Sunshine Triangle rail bridge was put in place on September 5th in an operation described by Federal Infrastructure and Transport Minister Anthony Albanese as &quota massive engineering feat&quot.
The bridge, to be completed next month, is expected to help provide a seamless rail connection between Adelaide, Sydney and Brisbane when the line comes into operation in 2010.
It should eliminate the need to shunt trains within Tottenham Rail Yard, which can add an hour to the transit time while also congesting the network.
The 100-tonne girder is 45 metres long and was installed as part of a $15 million project joint-funded by the Federal Government and its wholly-owned Australian Rail Track Corporation (ARTC).
Southern Improvement Alliance is building the bridge.
Source: Lloyd’s List Daily Commercial News – www.lloydslistdcn.com.au

MTM reaches financial close on Melbourne rail franchise
As a shareholder in Metro Trains Melbourne (MTM) alongside MTR Corporation and John Holland, United Group Limited (UGL), said that it is pleased MTM has reached financial close with Victoria’s Department of Transport on the contract to operate and maintain Melbourne’s passenger trains.
UGL anticipates revenue from its share in MTM of $162 million each year, the company said in a statement. In addition, UGL expects to generate revenue from capital works projects associated with the Melbourne rail franchise, although specific details of the value of these works are not available at this time.
Separately from MTM, UGL has extended its contracts to supply maintenance services from its Ballarat operations to Melbourne’s metropolitan tram and train networks for at least three years. UGL anticipates revenue from these contracts of approximately $10 million a year.
In Hong Kong, UGL also provides fleet cleaning and maintenance services for the MTR’s Tseung Kwan O line.
Until MTM assumes operation of the Melbourne rail network, UGL will continue to providemaintenance services to outgoing franchise operator Connex through the MainCo joint venture. UGL acquired this contract as part of its acquisition of Alstom’s engineering operations in Australia and New Zealand in 2005.

Dublin’s light rail contract awarded to Alstom
Ireland’s Railway Procurement Agency has reportedly awarded the five-year maintenance contract for Dublin’s light rail system, Luas, to Alstom, to commence on October 1st.
The contract is worth over &euro30m for Alstom and its partner Dalkia, with Alstom’s share being &euro24m, it was reported.
Alstom and Dalkia have maintained the light rail infrastructure since the Luas started operating in 2004 Alstom is currently supplying 26 new Citadis trams to RPA, which will bring the number of trams in operation to 66 by the year 2010, it was reported.

Biggest decline on record for Germany’s rail cargo
Germany’s rail cargo traffic has reportedly seen the biggest decline on record in the first half as the recession curbed orders for goods made in Europe’s largest economy.
The German railway system transported 147.3 million metric tons of goods in the first six months of 2009, down 22.4 per cent from the year-earlier period the biggest drop since records began in 1950, it was reported.
The quantity of goods transported abroad declined 30.5 per cent, and imports by train fell 29.7 per cent, while inland traffic of goods declined 17.8 per cent, it was reported.

China to give rollingstock to Myanmar
China is to reportedly hand over 225 railway carriages, including 20 passenger, 200 freight coaches and five engines to Myanmar as part of a deal agreed by the two countries during the China-ASEAN Economic and Investment Summit in 2008. Myanmar currently has a reported 6,942 kilometres of rail tracks in the country.

Wheat exports slide in July
By Sineva Toevai
Wheat grain exports fell 584,000 tonnes in July to 1.1 million&nbsptonnes, according to data released by the Australian Bureau of Statistics.
Western Australia was easily the largest exporting state, with 582,000 tonnes, followed by New South Wales with 282,600 tonnes.
Victoria exported the least wheat in July with 59,800 tonnes.
There were 2.9 million tonnes of wheat grain committed for domestic use or for export in July, representing a 21 per cent fall from the June estimate of 3.6 million tonnes.
Of the total wheat grain committed, 2.2 million tonnes, or 76 per cent, was reserved for export.
Source: Lloyd’s List Daily Commercial News – www.lloydslistdcn.com.au

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