Re: Surveyers at McInytyre!

[mauried@tpg.com.au (Maurie Daly)]

In article <3925342D.1D12A1C1@primus.com.au> Richard <richard_snook@primus.com.au> writes:
>From: Richard <richard_snook@primus.com.au>
>Subject: Re: Surveyers at McInytyre!
>Date: Fri, 19 May 2000 12:36:06 GMT



>The Narc wrote:
>>
>> According to our CEO we can't make money on a intermodal train unless
>> it is 1500 meters long and DOO makes me wonder how Freightcorp can run
>> an 82 class from sydney to melbourne with one wagon with only one 20
>> foot container with a two man crew and still make money perhaps you
>> can explain this to me or how freightcorp can run the leigh creek coal
>> trains in another state for $4.00 a ton and ASR reckon break even is
>> $7.00 a ton?????


>You,ve got me!! :-))

>The vagueries of differing costing systems are anyones guess!! A lot may
>depend on differing rates, overheads...and what one company "calls" a profit
>as compared to another. Some companies work leaner than others (some too
>lean!!) But you do raise the 'interesting' question of what one firm calls a
>spade and another a shovel. that is what is making money for the differing
>concerns..obviously very differnt!!

>cheers >:~)) Richard


Its got nothing at all to do spades and shovels.
Govt owned railways like Freightcorp can run services at a loss simply to keep 
competitors out.
They can do this because 
1/ They cant go broke whilst they are Govt owned.
2/ Their shareholders ,ie the Govt dont give a stuff whether they make or lose 
money.
3/ They can use other profitable freight where they have a monopoly to 
subsidise unprofitable routes.

The Leigh creek coal is a classic example.
$4 a tonne equates to approx 1c per ntk which is an excellent rate if you can 
get it.
One then wonders why it costs 4.5 c per ntk to haul coal in the Hunter Valley.
We are using the same locos , same wagons , its the same coal being hauled.
Maybe something to do with lack of competition and secret track access charges.

MD