Re: [QLD] FreightCorp Proposal

["John Kerr" <jkerr@gil.com.au>]

Further thoughts on QR and FreightCorp.

If I own a coal mine, I can't get a rockbottom price from QR, so I talk to
FreightCorp, their price may be better than QR, but even if its higher, I
select them, then either QR is bluffed into going lower and I win, or I give
the contract to FreightCorp which spends lots of money on capital. When the
contract comes up for renewal, they are desperate to renew rather than have
their capital idle, QR are equally keen to put coal into their idle wagons,
rates go even lower.
    This is purely hypothetical, but followers of coal industry will not how
Japan has encouraged opening of more coal mines, get excess capacity in coal
production, owners keen to sell coal, agree to reduced prices...
     John Kerr
Peter Cook wrote in message <38BE2715.57FD41CC@ozemail.com.au>...
>Read QR Granite Creek & FreightCorp Thread by Jonathan Lau and then read
>below
>
>This is quoted from FreightCorp's Press release
>"
>BACKGROUND:
>FreightCorp is a national, above rail operator with services in NSW, SA
>and VIC. It is a State Owned Corporation of the NSW Government,
>corporatised in 1996. FreightCorp carried 85.5 million in 1998/99, of
>which over 90% was export coal and grain, and earned revenues of $688
>million.
>
>ABOUT THE OPERATION:
>? 10 year contract to rail-haul 6 million tonne per annum from
>Blackwater region coal mines in Central Queensland to Stanwell Power
>Station for domestic power generation and to the Port of Gladstone fro
>export.
>
>? FreightCorp to deliver the service using two train sets of 100 hundred
>wagons each, under a distributed power arrangement (two locomotives at
>the head and two at the rear of the train), allowing for easier turning,
>better stopping and braking and reduced wear and tear on wagons.
>
>? Continuos, driver only operation (i.e. 24 hours a day, 365 days per
>year, one person crewing, similar to FreightCorp/Flinders Power coal
>haul operation in South Australia).
>
>? Service to be fully operational by late 2001.
>
>? FreightCorp to invest over $70 Million in narrow gauge locomotives and
>wagons and fleet maintenance facilities in the Rockhampton region.
>
>? Train crew and administration staff to be hired locally and the
>operation to be managed locally from a base near Rockhampton.
>
>? It is intended that rollingstock, equipment and materials be sourced
>locally.
>
>? The FreightCorp operation is expected to create 15 to 20 long term
>jobs in regional Queensland, as well as 120 to 130 short term jobs
>during the 12 to 18 months rollingstock manufacturing and construction
>phases.
>
>"
>UnQuote
>
>Makes for interesting Times.
>