Re: EL class update ( was freight victoria update)

[mauried@commslab.gov.au (Maurie Daly)]

In article <88ctpa$alq$1@nnrp1.deja.com> james_ccj@my-deja.com writes:
>From: james_ccj@my-deja.com
>Subject: Re: EL class update ( was freight victoria update)
>Date: Wed, 16 Feb 2000 01:16:28 GMT

>In article <88bk70$osf$1@news1.mpx.com.au>,
>  "Freight_man" <freight_man@hotmail.com> wrote:
>> V/Line possibly have at least one 3000hp Prime Mover ex G518, How
>would that
>> fit in C503 at Junee? But the point is moot.....National Rail are not
>>in the
>> business of helping competitors.
>FV is not exactly a competitior of NR isn't it? FV never tender for
>Hunter Valley coal haulage and BHP's business nor NQ direct.

>> Since pre-empting Marinus [sorry Boss!] and announcing a profit for
>the
>> Company, I received a very interesting E mail from NSW........It
>seems that
>> WA Gov will announce the contenders for the purchase of WAGR soon. If
>the
>> Company I hear is convinced it will win, does win..................
>> CEO of Freight Rail announced that his Company will now concentrate on
>> Interstate workings as far West as Perth and all points in between.
>Although
>> V/Line and WAGR as well as QR have all committed to running trains in
>> competition with National Rail,
>QR interesting in passenger business at the  moment because there
>aren't suitable locos to expand its freight business across the state,
>they simply work with NR to compliment their business. If QR runs
>passenger trains across the border(such as Queenslander extension to
>Sydney) there will be lots of operators willing to hire their locos to
>QR. NR for example willing to hire their NR class or BL class to GSR.
>hmm... I wonder if QR is interested in Overland? lol!


QR is interested in buying NRC and is the main existing stumbling point to the 
sale, ie whether the existing shareholders will allow NRC to be sold to the 
Qld Govt.
Currently the answer is no . (State Rivalry again?).
Pretty certain also that NRC cant hire its NR class to anyone nor can anyone 
other than NRC drivers drive them ,due to the agreement they have with 
Goninans.

>>he does not expect more than two Companies
>> to Survive as Interstate Operators, 5 years! He states that Freight
>>Rail
>> will be one of them, and he does not necessarily believe National
>>Rail to be
>> the other.
>Freight Corp and NR had discussed merger serveral times last year, and
>it make sense as a portion of NR's motive power came from Freight Corp.
>Some managers of NR also came from Frieght Corp, the operation routine
>is similar and HQ are all in Sydney. 8 years ago when NR started, lots
>of people suggested NR just a business division of Freight Corp.
>Freight Corp even tender itself to purchase NR but Fedral government is
>not happy about it since they want "Private operator" rather
>then "State own enterprice"

>> I hear that Wiscon Central will probably not compete for WAGR,
>Last time I heard it will ... alone with ASR and FV, but I may be wrong
>since Ed Burkhardt no longer with  the company, their new CEO may not
>be as ambition as Ed.

>>and >Rail
>> America with its vastly expanded resources after successfully taking
>>over
>> Railtek is almost certain to purchase WAGR.
>> This would be great for both Companies, particularly if Gary Marino
>> continues his policy of letting Australian Management get on with it.
>> National Rail would end up being divided amongst the two surviving
>> operators.
>> This would better utilise Locomotives and solve both companies Power
>> Shortages.
>How about some new locomotives? Clyde factory at Cambellfield is been
>empty for a while, so is the one in Bathurst.


New locomotives arnt the answer.
Pretty obvious by now that the profitable rail companies, Tasrail,ASR and now 
FV are all companies that have fleets of old locomotives whereas NRC which has 
the newest locomotives is making continuing losses.
What is important to the success of a Rail company is its debt to equity ratio,
ie how much infrastructure does it own or is able to lease vs its liabilities.
Buying new locos which these days cost up to $4M each needs a lot of 
justification,especially when the freight isnt guaranteed.


>> ps I hear that V/Line Pass will start receiving their railcars within
>3
>> years and Freight Victoria has/is negotiating to purchase the N Class.

>That would be a good idea, N class is a passenger loco based on frieght
>loco design...except I don't think FV can wait for 3 years...


>--
>Cheers

>James


>Sent via Deja.com http://www.deja.com/
>Before you buy.


Yes N class are a good loco for freight purposes and if FV could purchase them 
for a low price it would really turn them into a fierce competitor.
The HEP would also help a lot for refrigerated loads.

MD