QR structure the right one for all players: Hockridge

<span class="" id="parent-fieldname-description"> Comparisons between the de-monopolisation of Telstra and the likely structure of a listed QR National were unfair, because the markets within which the two companies operated were like "chalk and cheese", QR chief executive Lance Hockridge said on March 8th. </span> <p>By Sam Collyer<br />Speaking on the ABC’s <em>Inside Business </em>television program, Hockridge dismissed criticism of the way QR National would operate once the Queensland Government finalised the sale later this year.<br />Hockridge expects QR to list in the last quarter of this year.<br />Responding to criticism from QR’s bulk freight customers, Hockridge said the business model – which sees the company continue to control above and below-rail assets – remained the best method, despite a trend away from vertically-integrated models in other sectors, such as telecommunications.<br />“We’ve looked around the world at every railroad, around the world [to find the right model] for this kind of business,” Hockridge told the ABC.<br />“The exemplars are the resource companies themselves, all of whom operate integrated railroads [like ours will be].<br />“The North American railroads, the so-called class-one railroads, all of which are publicly listed, are all vertically integrated [and] they are all very successful railroads.”<br />The only parties opposing the structure had a vested interest in maintaining the current situation, he said.<br />“Competition is demonstrably working at the moment &mdash it’s the right structure, it’s the right time, this will be the right outcome for the customers and for the employees, for all of the stakeholders of this business,” Hockridge said.<br />QR made a $280m profit last year but the company has steered clear of breaking down the figure publicly.<br />“We don’t disclose the different parts of the business,” Hockridge said.<br />“Last financial year, the most recently published numbers, QR Limited made a return of 7.7%.<br />“So you can derive from that that we are not exactly making huge amounts of money out of these businesses.”<br />Hockridge said the return on the below-rail assets remained regulated.<br />QR would look to make a market-appropriate 12% return on its investment.<br />“We are all advantaged by getting the most number of tonnes through the system,” Hockridge said in response to concerns about access for rivals such as Pacific National.</p><p>Source: Lloyd’s List Daily Commercial News – <a target="_blank" href="http://www.lloydslistdcn.com.au">www.lloydslistdcn.com.au</a></p>