Toll offers locos and rail slots to competitors

Toll Holdings has told the Australian Competition and Consumer Commission that it is willing to release six locomotives for the use of competitors on the east-west rail network and to allow the Australian Rail Track Corporation to alter train paths for more competitor access. Toll said it would also sell the two Patrick vessels on the Bass Strait, together with berthing rights at Webb Dock East and in Burnie. The company would sell its stake in the Prix Car auto logistics business if it were to gain control of Patrick Autocare. Today’s (Tuesday, November 29) announcement to the ASX, explaining Toll’s divestment plans if it gained control of its Pacific National co-owner Patrick Corp, said it would lease the six locos to the Chicago Freight Car Leasing Company, and could on-lease them to other users. Toll said it was not offering any specific undertakings on terminals because it believed there was adequate terminal space in Perth, Adelaide and Melbourne. It named Queensland Rail, SCT Logistics and Australian Rail Group as the most likely competitors on the east-west corridors. Toll said SCT and QR had facilities in Melbourne, Adelaide and Perth, and ARG in Adelaide and Perth, with adequate common-user terminals in Adelaide and Melbourne to run train services. But the company said it did not believe it would be able to disadvantage other forwarders, even without the undertakings. ACCC chief executive Graeme Samuel told Channel Nine’s Business Sunday that Toll’s offerings, given to the commission last Friday, were "a step in the right direction but probably not sufficient". He said the Bass Strait, auto logistics and east-west rail were the main issues. But Mr Samuel said the ACCC would be less interested in the shareholding control of Pacific National, and more concerned with terminal access in Sydney and Melbourne, access to train paths between Melbourne and Perth and to locomotives and rolling stock. The ACCC’s issues paper of three weeks ago also raised a list of as yet unanswered questions on vertical integration of container transport and port haulage with stevedoring operations. Patrick managing director Chris Corrigan also raised the prospect of Toll combining future control of freight bookings in Asia with stevedoring and container logistics in Australia. However, John Lines, chief executive of shipping line ANL, said his only concerns were "more to do with the ability to manage the terminals at the price and level of service which we require". Mr Lines said: "We are already concerned about the duopoly and so is the ACCC. It would be a different owner, but the same issues." ANL has already declared its interest in buying Patrick’s Bass Strait operations if Toll has to divest them.

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